Some economic sanity from Labour

Danya Levy at Stuff reports:

Labour is scrapping its plans to resume contributions to the Super Fund, saying New Zealanders told the party they were uncomfortable with borrowing to invest and it now understands the need to be thrifty.

Leader David Shearer this morning told the Wellington Employers’ Chamber of Commerce Labour had listened.

“We’ve decided that until we are back in surplus, any new spending will have to be paid for out of existing Budget provisions, new revenue, or by re-prioritising.”

Labour’s insistence that you should borrow to save was idiotic. It also went against what NZSF founder Michael Cullen stated when he created the NZSF. Contributions from the Government were to come out of surpluses, not out of borrowing.

Of course it is quite another issue, as to whether we would ever get back into surplus under Labour. Their opposition to every single spending freeze or cut suggests they lack the fiscal discipline to do so.

But still it is good to see them adopting more sensible economic policies.