Media release from Labour Party leader Phil Goff

A bleak report from the OECD portraying the challenges facing the New Zealand economy has now put pressure on the National Government to deliver a comprehensive plan to fight the global downturn, Labour Leader Phil Goff said today.

"National has been talking about taking the 'sharp edges' of the recession but the OECD report claims New Zealand's isolation will not shelter it from the challenges facing other nations," Phil Goff said.

"New Zealanders will now be looking for leadership from National in the upcoming budget. But they will also be looking for the government to show some compassion.

"Next month's budget will be a major test of the relationship between John Key and his deputy. New Zealanders need John Key and Bill English to put aside their differences and work together on a plan to protect jobs, homes and businesses.

"National's trumpeting that its tax package will get the economy moving again is silenced by the OECD. Its report states that tax cuts are 'less potent' as demand boosters.

"National's tax cuts are especially impotent as no one on $40,000 or less gets one. Those on higher incomes are the winners under National's unfair tax package. Those on low incomes - who are most likely to spend their tax cut - will this winter go without.

Phil Goff says the report offers options that will not be acceptable for most New Zealanders.

"The OECD advice to the Government for possible recession responses includes asset sales, increased privatisation, toll roads, and major cuts to public services," Phil Goff said.

"While the National Party may be ideologically sympathetic to these proposals, to implement them would be in breach of promises they made prior to the election.

"Uncontrolled free-market thinking was the genesis of the downturn the world faces. How can an unhealthy dose of the problem be a solution to the current crisis?