Solid economic growth will create jobs
January 22, 2012
I talk to a lot of people from Wairoa and around the electorate who are worried about the economy, amid the uncertainty in Europe and elsewhere. It’s no secret that we are facing tough times. But there is reason to be optimistic, and I can assure you the Government has a solid action plan to grow the economy and create more jobs.
We face challenges from the turmoil in global markets. Governments across the world are cutting public services, and nine European countries have had their credit ratings downgraded. Many countries are dealing with stalled economic growth and no prospect of recovery any time soon. We need to make sure that we manage our economy responsibly to deal with the flow-on effects to New Zealand.
The good news is that the outlook for our exports remains positive, and the rebuild of Christchurch will contribute to economic growth. In addition to this, interest rates are at 40-year lows, easing the burden on households and businesses with large mortgages and other debts. Inflation also remains low, which keeps goods affordable and creates a stable platform for investment.
Growth has been solid over the last couple of years. The economy has grown in nine out of the past 10 quarters, including 1.9 per cent in the last year. Locally its been great to see Affco investing in its beef and lamb chains ensuring cornerstone jobs for the Wairoa community.
National promised during the election campaign that we would halve the Budget deficit in 2012, and we are focused on that commitment. It’s really important to get the books back into surplus so we can pay off debt sooner.
To achieve this we need to grow the economy. This is why initiatives such as connecting businesses to ultra-fast broadband, amending the Resource Management Act, slowing the phase-in of the Emissions Trading Scheme (ETS), and supporting the high-tech manufacturing and services sector will be so important.
We will also introduce a competitive new system for processing oil and gas exploration permits. I have been thinking about the potential of oil to really grow the East Coast economy. As long as oil is extracted responsibly, developing our resources industry could create hundreds of jobs and significantly boost wages in our region. This will be the subject of an upcoming column.
As your local MP, I am very aware that economic growth is the foundation for more jobs and higher incomes throughout Wairoa and the Napier electorate. We can be thankful that our outlook remains much better than in many other countries. With a commitment to stable and responsible economic policy, we can be optimistic about our future.
Chris Tremain
