David Parker

Worsening economic forecasts are being ignored by a Government that is just drifting, says Labour's Finance spokesperson David Parker.

"Despite worsening Reserve Bank forecasts for growth, productivity and overseas debt, the Government is in denial with the Prime Minister saying: 'There is nothing different we would want to do at this time'.

"John Key is saying that nothing needs to change when growth and overseas debt forecasts are deteriorating. We need change, not drift.

"Before the Budget, the Prime Minister claimed the government was 'sticking to a plan that works'. But there is no adequate plan and the Reserve Bank forecasts are being reduced because it's not working.

"The Reserve Bank forecasts for growth have been reduced to an even smaller fraction of the average growth rates predicted for our sixteen major trading partners.

"It has reduced its forecast of productivity growth.

"And it has increased its forecast for our overseas deficit and rising international liabilities. From the end of last year to 2016 our net international liabilities are projected to increase from $130 billion to more than $200 billion.

"New Zealand urgently needs to modernise our economy, with pro-growth tax reform, more savings to reduce ballooning overseas liabilities, more support for exporters and jobs, and tough decisions to deal with looming fiscal pressures.

"But all the Government is doing is selling assets. Changing who owns what already exists does nothing to improve our economy or exports.

"The fact that selling our power companies is the most significant part of this Government's plan for the economy shows just how inadequate its plan for the economy is," said David Parker.