"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.