Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Joint central bank nothing but sugar coating

“The creation of a joint central bank is largely irrelevant to the question of a single trans-tasman currency and would have only a palliative effect on the subsequent loss of our economic sovereignty,” TUF Secretary, Michael Gilchrist said today.

“Whether New Zealand simply adopts the Australian dollar or whether there is a joint central bank, the currency would continue to be managed for the benefit of the seven Australian states. Any alternative is politically inconceivable.

“A joint central bank would be mere sugar coating on the pill for New Zealanders – and what a bitter pill to swallow it is.

“In 1978 our per capita real GDP was 99% of Australia’s. In 1987 it was 98.5%. By 1998 it had collapsed to 84%.

“There is nothing inherently stronger about the Australian economy. The difference is a difference in economic management.

“The fact is that our economic management since the mid 80’s has been abysmal in comparison with that of Australia. That includes management of the dollar by the Reserve Bank since it was floated in 1985, as well as the throwing away of valuable domestic markets and a host of other missed opportunities to develop our national economy.

“Either we confront our failures and start repairing them or our performance will continue to deteriorate. An exchange rate fixed by the Australian dollar will only make us more vulnerable to shocks in the terms of trade and inflationary and recessionary pressures.

“An autonomous nation state offers its citizens the opportunity for balanced, equitable economic development. Until recently in our brief history that’s something we have looked like being able one day to achieve. With currency union that opportunity will be lost forever,” Mr Gilchrist concluded.

For further information contact: Michael Gilchrist 04 384 8963 or 04 237 7566

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO:

Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>

ALSO:

9.2 Percent: Gender Pay Gap Second-Smallest On Record

This is the second-smallest gap since the series began 20 years ago. In comparison, the gender pay gap was 9.1 percent in 2012 (the lowest on record) and 9.4 percent last year. More>>

ALSO:

Forest & Bird: Report Find Council Failures On Effluent

The report exposes significant inconsistencies and gaps in how regional councils are enforcing the rules around dairy effluent management. More>>

ALSO:

Mana In Mahi: Helping Young New Zealanders Into Work

Thousands of young people will be given the chance to gain valuable qualifications and meaningful work under the Mana in Mahi – Strength in Work scheme launched by Prime Minister Jacinda Ardern today. More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020, longer than we projected in our May Statement. The direction of our next OCR move could be up or down. ... More>>