Paul Goldsmith says Government have broken promises on debt and deficit

Ryan Bridge 11/12/2019

The National Spokesperson for Finance made the comments speaking to Magic Talk Drive about announcements from Government for major plans to borrow and invest in infrastructure.

The Half Year Economic & Fiscal Update 2019 (HYEFU) has revealed financial results have been lower than forecast because of increased expenses and unanticipated low interest rates bringing lower returns for ACC.

At the same time the Government has announced a massive $12 billion infrastructure spend on transport projects is on the horizon.

Finance Spokesperson for the National Party Paul Goldsmith joins Magic Talk Drive as Ryan Bridge broadcasts out of Whakatane.

Ryan begins the interview commenting that the Government has been critical of roads but included them in their announcement of infrastructure spending.

Goldsmith doubts their commitment to roads countering, “time will tell, this Government has been first class in making announcements, but third-rate in actually delivering anything.”

What they have done in two years of Government is cancel all the road projects.

Ryan holds Paul to account clarifying that Government criticism that Nationals road plans were unfunded which is a valid concern.

Ryan then moves the interview to ask about the Government's responsibility rule, with Labour previously saying they would not borrow heavily.

But economists have advised to borrow and invest saying the environment is ripe for investment.

Goldsmith responds, “it’s the quality of spend that matters, but they’ve broken two promises.”

He criticises the Government on the news that, “debt is going to be higher than what they promised, and we’re going to be in deficit next year.”

You can listen to the interview above.