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Govt spending on industrial scale is not a plan - Goldsmith

Contributor:
Fuseworks Media
Fuseworks Media

Government borrowing from March to June is projected to be over $1.6 billion a week, that’s equivalent to borrowing the annual Pharmac budget roughly every four days, National’s Finance spokesperson Paul Goldsmith said today.

"Increased Government spending is justified during the extraordinary Covid-19 conditions, but we can’t lose sight of basic disciplines around that spending, because the debt has to be paid back.

"We shouldn’t think that Government spending money on an industrial scale on its own is any sort of economic plan.

"Private sector investment is also critical to recovery and creating jobs.

"That’s why National will combine effective Government investment in infrastructure and skills, with an equal focus on policies that encourage private firms to invest.

"That means moving with pace to open up the economy, a commitment to keep taxes low, reducing the regulatory burden that slows down investment and not excessively restricting foreign investment that creates jobs.

"The Government’s plan appears to rely on massive spending while we wait for a vaccine. Meantime, they are slow to reopen international education, as a critical sector, they won’t commit to holding taxes, they carry on increasing regulation and the minimum wage even when businesses had no income, and have further restricted inward investment.

"Budget 2020 projects a $28 billion deficit, created in the last four months of the 2019/20 budget year - at a rate of just over $1.6 billion a week."

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