Roger Douglas Calls for Nicola Willis’s Resignation After GDP Decline

Former Finance Minister Roger Douglas has publicly urged current Finance Minister Nicola Willis to resign following a significant contraction in New Zealand’s gross domestic product (GDP). This announcement came after Stats NZ released data indicating a troubling economic decline, prompting Douglas to take a stand on the issue.

In a statement issued alongside Robert MacCulloch, who holds the Matthew S. Abel chair of macroeconomics at the University of Auckland, Douglas criticized Willis’s management of the economy. He asserted that her failure to address escalating fiscal deficits and public debt is leading New Zealand towards financial instability. Douglas and MacCulloch’s comments reflect growing concerns over the government’s economic policies, which they argue are fundamentally flawed.

Concerns Over Fiscal Health

According to Douglas and MacCulloch, the recent GDP contraction serves as a clear indicator of the government’s fiscal mismanagement. They pointed out that Willis’s assertions regarding New Zealand’s path to a budget surplus are contradicted by the Treasury. The Treasury’s long-term fiscal forecasts predict unchecked deficits, primarily driven by rising costs associated with pensions and healthcare for an aging population.

In their statement, they emphasized the need for transparency and accountability in government finances. “Willis is not up to the job and is not levelling with the New Zealand public,” they stated, reinforcing their call for her resignation.

Despite these accusations, Nicola Willis has firmly rejected the notion that she should step down. She argues that the current economic challenges are complex and cannot be attributed solely to her leadership. Willis maintains that the government is taking the necessary steps to address the underlying issues affecting the economy.

The debate surrounding Willis’s position is likely to intensify as New Zealand grapples with its economic outlook. The latest data from Stats NZ indicates that the contraction in GDP reflects broader challenges within the economy, drawing attention to the urgent need for effective fiscal strategies.

As discussions continue, the implications of the GDP figures will likely play a significant role in shaping public perception and government policy in the coming months. The scrutiny of Willis’s performance as Finance Minister is expected to increase, with both supporters and critics closely watching the government’s next moves in response to these economic challenges.