2020 Prefu Election: National Says Grant Robertson Is A ‘Catastrophic Sugar Coat’ Government Books

National is accusing Finance Minister Grant Robertson of sugarcoating the government’s economic figures and having a rosy view of a “terrible” and “catastrophic” future.

New Zealand First leader Winston Peters described today’s Pre-Election Economic and Fiscal Update (Prefu) as a “wake-up call for New Zealanders.”

Figures from the Treasury show that although the initial economic impact of Covid-19 was not as bad as initial expectations, in the longer term New Zealand’s economy will be worse off.

Unemployment is expected to reach 7.8 percent in March 2022; In the budget, the Treasury expected 10 percent unemployment this month.

And short-term GDP growth, while expected to be the worst single decline in New Zealand history, will not be as bad as forecast in the May budget.

But National said that it is the longer term that is most important and, with those measures, New Zealand can expect a “more prolonged and painful economic crisis than previously predicted.”

“The Finance Minister should not try to sugarcoat these figures,” said national leader Judith Collins.

Today’s data showed that while it’s not that bad in the short term, unemployment is expected to be higher for longer.

“He has had a vision through rose-tinted lenses of a ghastly image that cannot be described as anything but catastrophic,” Collins said.

And the numbers show that the emergency and job seeker benefit is expected to jump from 180,000 now to 246,000 in 2024.

“Any short-term improvement in the budget forecast is far outweighed by the worsening situation after 2021,” Collins said.

Law enforcement leader David Seymour takes a similar outlook and says that in the long run Prefu shows higher debt and unemployment, and lower economic growth, compared to May’s budget.

“It’s not good enough for us to kick the can down the road. We need an honest conversation now about our out-of-control spending and debt.”

Peters, who was around the cabinet table when all of the government’s Covid-19-related spending decisions were made, said the data shows New Zealanders are facing a “severe economic crisis.”

“Now is not the time for the flashy campaign spending promises that some political parties are making,” he said.

“It is also not a time when the country can afford to experiment with inexperienced decision makers at the cabinet table.”

He said parties on the left are making spending promises that the country cannot afford, while parties on the fragmented right have no plans.

“As unemployment is expected to skyrocket, voters also need insurance from a party like New Zealand First that is totally focused on driving economic growth to create jobs,” said Peter.