Books almost $1b worse than expected

Yet again the Government’s financial statements are worse than expected, raising serious questions about National’s management of the economy and its books, says Labour’s Finance spokesperson David Parker.
“In November, December, January and now February National’s books were worse than predicted. This time around they are $884 million worse, due mainly to lower than-forecast tax revenue.
“For the November and December figures Treasury said there were timing issues. They were given a bit of leeway. But now even Treasury admits it doesn’t know why the books are even more in the red.
“Somehow Bill English is presiding over a growing economy but not getting the tax revenue that should be coming with it. He needs to explain himself.
“When the economy grows tax revenue should increase. Bill English should have a chat to Michael Cullen on how to run a budget – he ran nine surpluses in a row in the last Labour Government.
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Only National’s groupies gaining from ‘Rock Star’ economy

A significant shortfall in tax revenue revealed in today’s Crown accounts shows only the lucky few are benefiting from National’s much-hyped ‘rock star’ economy, says Labour’s Finance spokesperson David Parker.

“Compared to December’s Treasury forecasts, core tax revenue including GST, income tax and corporate tax receipts are $600 million below forecast. That’s the second month in a row that the smile has been wiped off Bill English’s face.

“That shows that, despite National’s hype of its ‘rock star’ economy, Kiwi families aren’t seeing the benefits. This economy is as much of a rock star as Bill English is.

“The only winners are National’s groupies, led by chief supporter Phil O’Reilly.
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Revenue projections drop by almost $1b a month

The Government’s tax forecasts for 2012 – 2016 have dropped by almost $1 billion a month since the election, highlighting its failure to boost growth and create jobs, says Labour’s Finance spokesperson David Parker.

“Since the election the Government’s tax forecasts have dropped by $1 billion a month. That’s no surprise when you’ve got 7.3 per cent unemployment. There are 175,000 people who can’t pay taxes because they’re looking for jobs, in addition to the 180,000 who have left for Australia under National’s watch.

“The worst growth rate for any Government in 50 years means businesses aren’t making enough profits to pay much tax.
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