Budget 2012

Government should be spending - CTU

14:47 pm on 25 May 2012

An economist from the Council of Trade Unions says the Government needs to needs to maintain a level of spending rather than continue with cuts.

Bill Rosenberg warns with the risk of another recession looming, more investment ideas are needed - not austerity budgets.

He says that could be an investment fund to help new businesses with exporting, a house building programme to relieve the shortage of affordable housing, or a programme to accelerate the rebuild in earthquake-hit Christchurch.

The 2012 Budget shows the Government is gradually squeezing the function of social services so they deteriorate slowly, in a way which is almost unnoticeable, he says.