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Read online www.iwk.co.nz Friday, <strong>23</strong> <strong>Sep</strong>tember, 2022<br />

NEW ZEALAND 9<br />

Labour, National lock horns<br />

over state of economy<br />

VENU MENON FROM THE<br />

PARLIAMENT PRESS GALLERY<br />

Acting Prime Minister and Minister<br />

of Finance Grant Robertson raised<br />

his decibel level to drown out the<br />

heckling from Opposition benches while<br />

defending the Labour government’s<br />

fiscal policy in Parliament on Tuesday.<br />

New Zealand’s public debt remained<br />

under 20 per cent of GDP, Robertson<br />

claimed.<br />

“Our level of national debt is lower<br />

than what National left us,” Grant added,<br />

while forecasting a surplus in the 2024-<br />

25 fiscal year.<br />

Robertson told the house he was<br />

hugely optimistic about the NZ economy<br />

that had been resilient through Covid.<br />

He claimed the prospects were strong<br />

with borders reopening and tourists<br />

and international students returning.<br />

Exporters were continuing to earn.<br />

However, National Party finance<br />

spokesperson Nicola Willis hotly<br />

contested those claims.<br />

Referring to the Appropriation<br />

(2022/<strong>23</strong> Estimates) Bill, which had its<br />

third reading in Parliament, Willis said:<br />

“We see the biggest spending Budget in<br />

NZ’s history.”<br />

She said real wages had declined by<br />

3.7 per cent in the past year. Prices<br />

were rising in NZ at the fastest rate they<br />

have in 32 years, while wages were not<br />

keeping up.<br />

Willis claimed the government’s<br />

budget failed to address the drivers<br />

behind the cost-of-living crisis.<br />

She drew attention to the bungling<br />

over the recent cost- of-living payments<br />

of $350 made to more than 6000 New<br />

Zealanders living overseas.<br />

Willis listed a litany of government<br />

failures, including the Three Waters<br />

Reforms, the long waiting times for<br />

emergency treatment, fewer elective<br />

surgeries, fewer children attending<br />

school, declining numeracy and literacy<br />

rates, state housing waiting lists<br />

quadrupling, “and 4000 families putting<br />

their children to sleep in a motel room.”<br />

Willis concluded that government<br />

spending was out of control with plans<br />

to spend $51 billion more this year than<br />

the National Party did in its last year of<br />

government.<br />

This represented a 70 per cent<br />

increase in spending, she said.<br />

It was left to David Parker, Minister<br />

of Revenue, to fend off National’s<br />

onslaught.<br />

He disputed Willis’ figures, saying<br />

government spending stood at 31.6 per<br />

cent of GDP.<br />

Parker added in 2013 government<br />

spending was 32 per cent of GDP under<br />

the National government after five<br />

years.<br />

“Vaccine and mask mandates have<br />

gone and the trees are blooming.”<br />

Parker highlighted the low<br />

unemployment rate of 3.3 per cent<br />

while admitting inflation was high. “But<br />

in Europe it’s higher.”<br />

He cited Stats NZ figures to show<br />

median weekly earnings from wages and<br />

salaries grew 8.8 per cent in the year<br />

2022.<br />

Parker said the country’s net debt<br />

was lower than Australia, the US, Japan,<br />

the UK and Europe, and peaked on a<br />

net debt basis at less than 20 per cent<br />

of GDP, a “stunning result for NZ that<br />

shows prudent fiscal management.”<br />

Parker touted figures to show exports<br />

were up.<br />

Notwithstanding Covid, merchandise<br />

exports rose while primary sector<br />

exports have for the first time crossed $<br />

15 billion. “We enabled productivity and<br />

supply lines to be maintained.”<br />

With claims, counter claims and<br />

disputed figures bandied about in the<br />

House, it was clear the last word had not<br />

been said on the state of the economy.<br />

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