Fonterra’s Shareholders CEO peaced out today from his job representing the dairy farming owner-operators of farms and their 100% sole-owned collective shares. Prior to giving himself an honest holiday, the budget in NZ went down. Here’s what economic columnists are saying on the national paper’s night shift.
“Bill English‘s ‘Suck it up Budget’ plucks a little from most Kiwis’ pockets to help the Finance Minister reach his $197 million surplus by 2014/2015. He got it through because of heavy conditioning prior. But the major problem is that there is no clear economic growth agenda. Growth projections rely on the timing of the Canterbury rebuild. Much more could be done to encourage NZ firms to employ more young New Zealanders or, become exporters.”–Fran O’Sullivan.
“The government is relying on growth from the Christchurch rebuild and continued strong growth in China and Australia to get the economy and the government’s finances back on track. Little tax tweaks on boats, houses, maids and livestock added a bit there. What’s more likely is the Treasury’s downside scenario, given the slowdown evident in China and Europe in recent weeks. That means the government would have to keep borrowing for longer. But it doesn’t shift the economy to a new track.”–Bernard Hickey.
“It was a bit of a snooze session,” BNZ currency strategist Mike Jones said. “It was a no-surprises Budget for the currency.”
“If Ruth Richardson delivered the Mother of All Budgets, this is the housekeeper of all budgets. Drab. And not much sign of a growth agenda. The Government is shutting down the fiscal irrigation in the hope that enough rain will fall to keep the paddocks green and the economy growing. (more…)