Families pay price for Labour's mismanagement

Labour's legacy of economic mismanagement was even more damaging to New Zealand families than previously reported, after revisions to official statistics issued late last year, Finance Minister Bill English says.


"The revisions show that in the three years to September 2008 spanning Labour's third term - and before the impact of the global financial crisis - the economy actually grew by less than 1 per cent a year.


"This compares to already mediocre 1.5 per cent average annual growth over this period reported before the data revisions by Statistics New Zealand.


"In fact, New Zealand's total economic output is now barely above the level of four years earlier.


"They were the best of times internationally and we should have done much better than sub-1 per cent annual growth. Yet in Labour's last term, our economy grew by less than half the growth rate of the Western world and less than one-third the rate of Australia.


"This was a remarkable under achievement and hurt hard-working Kiwi families looking to get ahead and find higher-paying jobs."


During Labour's tenure, Government spending increased recklessly, interest rates were persistently high, exporters were struggling and the tax system was clearly not working, Mr English said.


"The result was a decline in New Zealand's export industries and a near record balance of payments deficit.


"That's why this Government has laid out a comprehensive plan to lift economic performance by shifting the economy away from borrowing and consumption, towards savings and exports."