The Labour Party is calling for "a massive shift in economic direction" following a report showing there was a slowdown across all sectors during the last three months.The Quarterly Survey of Business Opinion published today by the New Zealand I
The Labour Party is calling for "a massive shift in economic direction" following a report showing there was a slowdown across all sectors during the last three months.
The Quarterly Survey of Business Opinion published today by the New Zealand Institute of Economic Research (NZIER) showed businesses had turned pessimistic during the September quarter after a year of sustained optimism.
It said subdued domestic demand weighed on manufacturing and construction, and even manufacturing export growth, which had been a bright spot during the recession, was barely positive.
Labour's finance spokesman, David Cunliffe, said no new external event had brought this about.
"Business turnover is down. Businesses are not hiring. Businesses are not investing. Any hope for strategic development of key sectors in regions is disappearing," he said.
"It is time for a massive shift in economic direction -- the government must show some leadership to stimulate growth in key sectors."
Mr Cunliffe said the government had no plan for growth.
"New Zealand's economic woes have deepened, lack of confidence is feeding on itself."
The Council of Trade Unions (CTU) said the report should be a wake-up call for the government.
"It is increasingly clear that the government can't continue to say `wait for the tax changes'," said CTU economist Bill Rosenberg.
"The tax changes will provide very little boost to the economy. It is time the government took action to ensure we don't go back into recession as the NZIER survey suggests is a real possibility."
Mr Rosenberg said actions could include additional support for people out of work and renewed investment in infrastructure, new housing and home insulation schemes and increased funding to provide places for people in tertiary education.
