Need for end to Government complacency

new-zealand-council-of-trade-unions

Tue Oct 05 2010 13:00:00 GMT+1300 (New Zealand Daylight Time)

Need for end to Government complacency

Tuesday, 5 October 2010, 11:52 am
Press Release: New Zealand Council of Trade Unions

Grim NZIER report shows need for end to Government complacency

The report from NZIER today which describes an ‘economy in reverse’ should be a wake-up call to the Government, following the unexpectedly low GDP growth reported in the June quarter, said the CTU today.

NZIER reports from its survey of business opinion that ‘activity contracted and expectations are being revised down. The recovery continues to disappoint optimistic expectations.’ It says that ‘business profitability is deteriorating again; highly unusual for this stage of the recovery.’

“It is increasingly clear that the Government cannot continue to say ‘wait for the tax changes’,” said Bill Rosenberg, Policy Director and Economist at the CTU. “The tax changes will provide very little boost to the economy. It is time the Government took action to ensure we don’t go back into recession as the NZIER survey suggests is a real possibility.”

Actions could include additional support for people out of work and renewed investment in infrastructure, new housing and home insulation schemes, along with increased funding to provide places for people in tertiary education.

ENDS

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