One of Bill English’s favourite lines is that New Zealand entered recession ahead of the rest of the world ‘due to Labour’s mismanagement of the economy’ and that’s why his government is unable to get off its arse now.
Pity that Agriculture Minister David Carter had to go and spoil the lie for him:
“Agriculture Minister David Carter has revealed that the nationwide drought between spring 2007 and autumn 2008 cost the New Zealand economy $2.8 billion.”
The new MAF report shows the drought knocked nearly $3 billion (1.7%) knocked off economic output. If that hadn’t happened, the country wouldn’t have entered recession until the global financial crisis hit.
Just to make it crystal clear, this report shows beyond doubt that the previous Government didn’t cause the early 2008 recession (not that any evidence has ever been provided as to how it could have caused it) – the drought, coupled with falling house prices and skyrocketing oil prices, are what brought on recession.
I’m sure Labour will be only too happy to remind English of this report the next time he tries to deflect questions about his own lackadaisical economic management. Maybe now, English will have to get on with his job instead of making excuses.