Finance and the Economy

Labours economic record is good, Labour has;
• Lead the economy through its longest run of economic growth since the Second World War,
• Built an economy now a third larger than when we were elected in 1999,
• Created 360,000 more jobs in the economy,
• Reduced benefit numbers by almost 140,000,
• Provided greater security in retirement through setting a higher rate of New Zealand Superannuation, and establishing the New Zealand Superannuation Fund, and Kiwi Saver.

There is of course more to do, we must ensure that New Zealand remains a desirable place in which to live, raise families, work and do business.

Labour believes that economic policy should aim to promote sustainable and balanced economic development in order to create full employment, higher real incomes and a more equal distribution of income.

My own economic views are in line with the parties overall economic approach. We need to foster a wealth creating economy. NZ was no better served in this endeavour by a hands-off government than we were by the heavy handed policies of Muldoon.

A balanced approach has served this government well and will continue to do so. Bringing real wealth to NZer’s means increasing incomes (not just of the wealthy few but for everyone) by more than inflation. Labours record here speaks for itself.



The only way for this to happen sustainably is to continue to ensure that we are more productive. This means government needs to take a role in training and encouraging a high skill economy. It also means working New Zealander’s need to be able to claim their share of the wealth they create.

Labour has promoted both these areas in recently announcing policy to extend compulsory education until 18 and including far more vocational options. We have a real opportunity to lay the foundations of a genuine knowledge economy.

Economic security does not come from good incomes alone. Real wealth is also about assets and what we own. You need only ask friends or relatives in Australia what their super schemes are worth to understand the importance of KiwiSaver and how much it has to offer us as individuals and as a country.

In government I will advocate for more such policies and incentives to encourage home ownership as well as the establishment of small businesses. Research has shown that the single greatest indication of whether we will experience a prosperous retirement is whether or not we have managed to buy our own freehold home by the time we retire.

What is true for us as individuals is also true for us as a country. In Michael Cullen we have a finance Minister who has given significant assistance to kiwi families but who also has carefully shepherded our financial resources. The global economy is currently facing a downturn; NZ is excellently placed to weather this only because of his prudence. Eight years of surpluses will allow the Finance Minister to provide significant impetus to the economy in the years ahead, my own hope is that this will be done through non inflationary measures and that tax cuts will at least in part be linked to improvements in KiwiSaver.

Disclaimer The Labour party has a rigorous policy process whereby we debate ideas and establish the eventual party manifesto. It is the party manifesto that represents the official party policy. While unsurprisingly as a participant in this process I support the manifesto, on this site I have endeavoured to give my own personal views and thoughts so you will know where I stand on issues. In the majority of cases these will be in line with party policy, if however you want official Labour party policy please visit http://www.labour.org.nz