Press Release – New Zealand Labour Party

The first decrease in the total number of businesses in New Zealand for nine years is one of the most powerful indicators yet that the economy has ground to a halt under National, says Labour’s Finance spokesperson David Cunliffe.29 October 2010 Media Statement

Decline in business numbers a telling indictment of National’s lack of an economic plan

The first decrease in the total number of businesses in New Zealand for nine years is one of the most powerful indicators yet that the economy has ground to a halt under National, says Labour’s Finance spokesperson David Cunliffe.

Statistics New Zealand said today that provisionally the total number of businesses in New Zealand at February 2010 was 470,000, down 1.7 percent from 2009. Statistics reported that this is the first decrease in the total number of businesses recorded over the past nine years, with the largest drop — 2800 — in the construction industry.

“It’s becoming harder and harder for John Key and Bill English to put their hands on their hearts and say with a straight face that they are managing the economy well,” David Cunliffe said. “The opposite is true. Australia and China are growing strongly. Under National, New Zealand is in decline.”

David Cunliffe said that when Labour Leader Phil Goff met Australian Prime Minister Julia Gillard and other senior Australian political figures this week, he learned first-hand the main elements in Australia’s strong economic performance compared to New Zealand’s failing economy.

“John Key and Bill English said they would close the gap but the gap is growing. National’s tax cuts for the rich have failed miserably – while the Australian tax relief package for low and middle income earners has paid off handsomely. The Australians are also continuing to invest in apprenticeships, skills training and research and development.”
David Cunliffe said today’s Statistics report also noted that the total number of paid employees, while not an official employment statistic, was 1.89 million, a 1.9 percent decrease from February 2009, with the biggest decreases in manufacturing and construction.

“The Australian Government has created 400,000 new jobs, while more than 50,000 have disappeared in New Zealand,” David Cunliffe said.

“Just as tellingly, Statistics also reports that there has been a significant reduction in the number of business start-ups. Just 44,000 started up over the year ended February 2010, down 20.4 percent from the previous year, while the number of business closures over the year was 55,000, up 6 percent on the previous year.

“National has just presided over the first year since 2001 in which business closures have exceeded business start-ups. National’s rebalancing the economy is all about tipping it over the edge into double dip recession. It has no idea what to do next.”

ENDS

Content Sourced from scoop.co.nz
Original url