The overnight drop in milk prices combined with yesterday’s fall in commodity export prices reinforces the need for Labour’s Economic Upgrade, says Labour’s Finance spokesperson David Parker.
“Even before this latest price drop, when our terms of trade were at a 40-year high, we still didn’t earn enough from our exports to pay for our imports and interest. National’s credibility on exports is in tatters.
“They promised to increase them to 40 per cent of GDP. Instead they’ve dropped since they took office to 29 per cent of GDP and are expected to drop further to 26 per cent.
“This is more proof of the need for Labour’s Economic Upgrade. This includes a capital gains tax, excluding the family home, to encourage investment away from property and into productive exports.
“Labour’s Economic Upgrade will boost investment, innovation and industry to turn New Zealand’s economy from one reliant on raw products to one that is high value, high tech and creates better jobs with higher wages,” says David Parker.
3 September 2014 MEDIA STATEMENT