Willis: Nats will focus on ‘squeezed middle’
National Party finance spokesperson Nicola Willis has outlined her party’s focus on the ‘‘squeezed middle’’ in her first major speech on the economy, ahead of Labour’s $6 billion budget announcement next week.
She took stock of the high inflation rate and housing costs, and reiterated major National Party talking points about how to manage these, as households face the biggest leap on everyday costs in a generation.
‘‘Now more than ever, New Zealanders need the Government to manage our economy and finances with great care and discipline, to carefully prioritise its choices and to be held accountable for delivering on clearly defined results for its spending and actions,’’ she told the Canterbury Employers’ Chamber of Commerce in Christchurch yesterday.
‘‘Despite much talk about new budget responsibility rules the upshot is that the finance minister doesn’t expect to get the Government books back into surplus until 2025.’’
She said the economy had taken ‘‘a great leap backwards’’ since Labour took office in 2017 and called for more effective public services, a more targeted welfare system with better social investments and an economy ‘‘where entrepreneurialism and innovation are thriving and encouraged’’.
‘‘Savers are watching their deposits erode in value, as inflation eats up interest earned.’’
Her speech outlined the party’s economic values and didn’t set out any specific policy. The party’s key policy areas are education and skills, infrastructure, technology, the business environment, and ‘‘rebuilding’’ trade,
investment and immigration. Willis also criticised Labour’s delivery on key projects like KiwiBuild, as well as election pledges on housing affordability.
‘‘Despite Labour’s promises to solve the housing crisis with a giddy dose of hope and KiwiBuild, the average house is now vastly less affordable, exceeding $1 million – a multiple nine times the median income,’’ she said.
‘‘Mortgage holders are facing a future of fast-rising interest payments, with the Reserve Bank having already hiked rates by more in one go than they have in 22 years – and more hikes clearly in view.’’
Finance Minister Grant Robertson will unveil spending plans in Budget 2022 next Thursday in Wellington.