Govt Must Cut Spending - Before It's Too Late

ACT New Zealand Finance Spokesman Sir Roger Douglas today urged National to take the necessary steps to deal with our endemic balance of payment crisis, following today's announcement that the Balance of Payments has ballooned to almost nine percent of GDP.
"We have racked up over $16 billion in debt to international financers in the past year - about $17,000 debt for the average family. If we don't cut Government spending, how will we continue to finance this ever-increasing debt burden?" Sir Roger said.
"The past nine years saw Labour drastically increase Government spending, and households use debt to finance their desire for consumer goods. Household debt surged under Labour, leading us to the brink of financial disaster.
"And, although not to blame for this crisis, National is now in Government and has a duty to do something. It must stop complaining about Labour's spending and start cutting some of the unsustainable programmes.
"Finance Minister Bill English gets it - but, while talking about our debt crisis, he announces plans to borrow $40 billion to finance a bloated Government. He never says how he's going to fix our balance of payments.
"Anyone in debt knows to cut spending. National must cut wasteful Government spending immediately, or we will find ourselves with unsustainable debt obligations to foreigners. Any Government waste we cut will free resources for ordinary citizens to use.
"For example: Labour threw money at the Health system for nine years - yet doctor productivity declined 15 percent. Thousands are now not getting the operations they desperately need, with many now unable to work or contribute to society.
"Mr English should cut departments that deliver no real value for the average New Zealander: the Families and Charities Commissions, the Youth Development and Women's Affairs Ministries, and the Tertiary Education Commission.
"We need to get real. If we don't cut spending, we'll end up borrowing from banks and end up like Iceland - or end up selling our capital assets in a depressed market to finance the cost of Government. Any Government willing to do that will guarantee New Zealanders a future of poverty and misery," Sir Roger said.