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Goff: RB Governor Dismisses Key's Spin

Fuseworks Media
Fuseworks Media
Phil Goff
Phil Goff

Even the Reserve Bank Governor doesn't believe John Key's election promise that he had a plan for New Zealand to catch up with Australia, Labour Leader Phil Goff said today.

Mr Goff was commenting on Alan Bollard's dismissal on television this morning of the likelihood of the Key government achieving the goal of New Zealand matching Australia's economic performance by 2025.

"I firmly believe New Zealand does have the potential, with its climate, its abundance of water, its entrepreneurial skills and its innovative people to close the gap with Australia.

"But no economist or business leader I have talked to believes Mr Key, because in its first 14 months nothing National has done will help achieve that outcome.

"To the contrary, New Zealand has fallen further behind Australia over the past year. We have gone backwards not forwards.

"New Zealand over the term of the Labour government achieved a lower unemployment rate than Australia. Since the election, our unemployment rate has soared, and now stands at 30 per cent higher than Australia's, where unemployment has gone down.

"Australia has enjoyed a Government that has been proactive, has stimulated the economy and has committed itself to investing more in skills training and education.

"Our government has sat on the sidelines. Employers have complained at its lack of a skills training strategy. As a result, one in five young new Zealanders are not in employment, education or training. Australia has reduced that to one in 10.

"Australia sought to benefit more Australians with its stimulus package. The Key government gave the biggest part of its tax cuts to top income earners, which stimulate growth and employment. Australia increased R & D funding, National cut ours.

"New Zealand does have the potential to close the gap with Australia so that all Kiwis can get ahead.

"But nothing this National government has done yet will persuade most New Zealanders that it has a plan for this to happen," Phil Goff said.

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