”Reality check” needed on oil use

NEW ZEALAND – Finance Minister Michael Cullen’s “reality check” on the economy should include a “reality check” on oil use, Green Party Co-Leader Jeanette Fitzsimons says.

“Dr Cullen has called for a reality check on an economy he says has ‘come off the boil’ at a time Statistics New Zealand is announcing an annual trade deficit of $7,102 million – the highest on record,” Ms Fitzsimons says. “His reality check should look more closely at reasons for the deficit; and long-term effects.

“Imports of merchandise goods are up $3004 million and of that nearly half is petrol and petroleum products at $1217 million. These kinds of figures will get worse with a lower New Zealand dollar – our high dollar insulates us from extremely high petrol prices.”

The high cost of oil and its contribution to New Zealand’s deficit is not a temporary phenomenon, Ms Fitzsimons says.

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