Weird moment of truth from Key on Breakfast this morning. He admits government debt is low and private debt is high. Why then does he expect Mum ad Dad Kiwis to borrow to buy shares (which they already own) in SoEs. Bill English says it is to pay down that, already low, debt.
This makes it clear the agenda is ideological and driven, like his tax cuts, by a wish to make the wealthiest NZers wealthier and have the rest of us pay for it through increased power prices.
And of course the same thing will happen as with Contact – it became mainly overseas owned.
CORIN DANN: I just want to pick you up on that because there was some criticism about the debt issue. I think it was Professor Bowden from Victoria University who called it spin doctoring, because he argues, in fact New Zealand’s government debt is some of the lowest in the world.
JOHN KEY: It is.
CORIN DANN: So isn’t it the private sector and in particular the big four Australian banks who are the – who are the worry, not the Government’s position?
JOHN KEY: Well I wish it was spin doctoring. You’re right, New Zealand’s government debt as a percentage of GDP relative to the other countries is low, in other words we don’t owe very much. Vis a vis, say – and we’re about 20-odd per cent of GDP. If you go and look at Japan it’s 200 per cent of GDP. But the difference is New Zealand domestic consumers, mum and dad, they owe a lot of money. So on a combined basis we owe 85 per cent…