He told chamber members that there were two parts to the New Zealand economy – the tradeable portion via exports and tourism, and the non-tradeables comprising the likes of health and social services, and housing.
"In recent times these two have got right out of kilter," he said.
"The income part of the economy has shrunk 10 per cent over the past five years, and in fact our export sector hasn't created a single additional job over the past 10 years. But the consumer part of our economy has grown by 15 per cent in the last five years.
"There's the problem. Try running your organisation when your spending is growing at twice the rate of your revenue."
Mr English stressed the importance of Taranaki's export sector; that it is vital to the success of NZ.
But so is cutting spending, or at the very least capping spending. I hope someone pointed that out to him.
2 comments:
The real problem is even simpler:
The government part of our economy has grown by 50 per cent in the last ten years.
Want to fix NZ? That's where you have to start.
As Gareth Morgan says in this week's listener: the first thing you have to do is to reduce the health, education - and especially welfare - systems down to second-world status, to match our second-world economy.
All I want is the option to 'untick' the deduction boxes on my tax return:
-Education
-Health
-Welfare
-Policing
etc...
Then, Bill, you dont have to provide those things for me, I am no longer entitled to access. Suits me fine.
The government downsizes its service & bill accordingly.
And yes, private policing for Invercargill, please. Happy to pay for that locally.
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