In terms of the daily cut and thrust of the House today, Bill English backfired (IMHO). Comparing the New Zeland economy to that of Greece was wrong on every level.
First, there is no comparison. Greece is far and away one of the most indebted countries in the OECD. NZ is in the bottom third or quarter by various measures. Greece has gross crown debt of 115% of GDP. NZ had net crown debt of zero % under Labour in 2008, rising to 5% by election time due to the GFC. NZ gross crown debt today is about 29% .
Second, to the extent that NZ hit troubled waters in the GFC, most of that is on National’s watch. That is not to blame them for the international crisis, but then theycannot blame Labour either – the whole argument is silly and circular, and patently so.
Third, NZ stacks up very well on the other aggregates too: Greek unemployment nearly 11%. NZ now 7.3% NZ under Labour 3.4%.
Fourth, a Minister has no responsibiity for opposition policies anyway, and especially when he is simply making them up, as Mr Speaker confirmed. That is simply outside Speakers Rulings.
So what exactly was Bill English’s point?
Underneath this attempt at deflection is of course a deeper issue: English is desperately trying to convince Kiwis they need to swallow savage service suts in health and education because the alternative is “Greece on steroids”… Really? Or isn’t that just a teensy bit exagerated, Bill?
Of course prudent fiscal managment matters. We have always said so. Labour’s record on this is unimpeachable: Gross debt cut in half, net debt to zero; historic lows in unemployment; higher average growth over the decade than under National; the longest post war expansion on record etc etc etc.
Point is: fiscal prudence is a necessary but not a sufficient condition for a coherent economic strategy for good jobs and living standards and the other things that really matter to ordinary Kiwis. That’s why labour is challenging National at the heart of the economic debate: on jobs and growth. Why we are emphasising the need to close the other deficits in exports, savings, innovation and social issues. On boosting valued added and clean technologies.
See the post below (Building to the Budget) for more detail.