New Zealand government outlines spending cuts, asset sales

In a “state of the nation” speech late last month, New Zealand Prime Minister John Key announced that his conservative National Party government would once again slash new operating spending in this year’s budget—from an already grossly inadequate $NZ1.1 billion to as little as $800 million.

Key also outlined National’s plan, if it won the next election in November, to raise up to $10 billion by selling minority stakes in the state-owned power companies Meridian, Genesis, and Mighty River Power, and the state-owned coal producer Solid Energy. The government will also reduce its stake in the national airline Air New Zealand from 76 to 51 percent.

Like its counterparts around the world, the Key government is forcing the working class to pay for the global economic crisis by imposing austerity measures, including cuts to healthcare and education, attacks on welfare beneficiaries and an increase in the consumption tax. It has also introduced draconian labour laws to drive down wages and make businesses more profitable.

While government debt is relatively modest, at 18.8 percent of gross domestic product, total public and private debt stands at $162 billion, equivalent to 85 percent of GDP...Speaking to the New Zealand Herald, Key dismissed public opposition to asset sales: “I know the polling indicates people don’t necessarily like the concept, but do they like the concept of interest rates going up? Do they like the concept of the economy all of a sudden being controlled by bailout?”

http://www.wsws.org/articles/2011/feb2011/nzea-f14.shtml

:mad:

Is election fraud rampant in NZ too?

austerity.

because it's the programme of the entire ruling class, not just the "right".

So I am guessing they are like the UK tories. But you sure are right about there not seeming to be any real choices. Certainly not in the USA.