Time for Positive Change
Last week I visited the Feltex factory in Foxton, which is closing in a few months time. It was a sombre experience with some of the 80-odd workers telling me the future appears bleak. While they have been offered work in Auckland with Godfrey Hirst, and some relocation incentives, they don’t want to leave Foxton. They also know that selling their home in Foxton won’t give them much towards a property in Auckland. Many are also struggling to find a job on comparable money in and around Foxton, and travelling to work in Levin or Palmerston North for better opportunities is compromised by the high and rising cost of petrol.
For the past eight years the Labour Government has been crowing about a roaring economy and low unemployment statistics. These statistics have mostly been related to a tight labour market, rather than any of the Government’s actual policies. Last week the Beehive was sent into a spin when it was revealed that 29,000 jobs disappeared in the March quarter. Apparently a big chunk of these employees (mainly females) left for their own reasons, but employers chose not to replace them. This is a real concern when the economy looks to be tightening.
In fact, the economic situation is grim for a number of other reasons.
Grocery prices are up 25% this year. Petrol is now about $2 a litre at the pump and some commentators say it could go to $3/litre. These factors alone mean we are all facing some tough decisions on our household budgets.
The pain for families and those with mortgages also looks set to continue. An example of this is a $250,000 mortgage, borrowed at 7.65 per cent two years ago, cost about $1773 a month. But interest rates now around 9.8 per cent, means a jump to $2157, or an extra $400 a month. Ouch. Interest rates have doubled under this Labour Government.
Last week Australia’s Labour PM Kevin Rudd announced he will continue the former PM John Howard’s programme of tax cuts. The latest cut will give the average worker about $57 extra in the hand each week. It’s no wonder that Kiwis are sick of waiting for a tax cut here and are leaving in record numbers to Australia. In the last 12 months 43,000 of us went to live in Australia indefinitely. That is the equivalent of every eligible voter in the Otaki electorate (that is all of Levin, Foxton, Shannon, Otaki, Waikanae and Paraparaumu) gone in just one year.
We can’t afford to have this brain drain across the Tasman.
This Labour Government has failed to turn the recent good economic times into increased financial security for our families. The Government should have used the good times to lock in real improvements in our economy: to cut tax, to improve economic productivity, to build effective public services. Instead the economy has been mismanaged. Labour’s legacy will be:
The second highest interest rates in developed world.
43,000 Kiwis leaving for Australia – a 20-year high.
The largest quarterly loss of jobs since 1989.
Households deeper in debt – total household debt has doubled.
After tax wages falling further and further behind Australia.
Public services underperforming (doctors striking, more kids wagging, greenhouse gas emissions up, violent crime up).
A slowing economy.
It is no wonder so many people have lost faith in this dishonest Government and say it is time for a change.
National will deliver an ongoing programme of personal tax cuts. We will also take a disciplined approach to government spending so interest rates track down, not up. National will stop the massive rise in head-office bureaucracy, and deal with the regulatory and compliance issues that smother Kiwi businesses and families. We will also have an unwavering focus on improving education standards. Finally, we will invest in the infrastructure this country desperately needs to grow.
I’m passionate about Horowhenua and believe people are ready for a positive change.