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

 


Government Should Do Its Bit

6 December 2005 PR 152/05

Government Should Do Its Bit

The government could do a lot more to contain inflation, which would help keep interest rates down and take the heat off the kiwi dollar, said Don Nicolson, Vice President of Federated Farmers of New Zealand.

“Farmers’ returns are being eroded by the dollar at a 20 year high. It would be wrong to single out the government as the sole reason for the kiwi’s strength and our high interest rates, but it must shoulder its share of the blame,” Mr Nicolson said.

“Ultimately, the government should be responsible for improving confidence and reducing inflation pressure by ensuring that all its policies are working together for a common aim. This means stopping growth in central and local government spending. The government’s total spending has jumped a staggering 50 percent in the past six years.

The government must also maintain a flexible labour market, improving infrastructure, reform the RMA, and roll back compliance costs.

“Over the past few months business confidence has slumped, commodity prices have eased, and the economy has been slowing as exporters gag on the high dollar. Meanwhile, exporters are sending jobs overseas.

“While a slow-down was probably necessary to ease inflation pressures, there is now a real risk that the economy will undershoot and suffer a hard landing, especially if interest rates are ramped up further this Thursday or in the New Year,” said Mr Nicolson.

“If the government was serious about taking some heat off interest rates and the dollar, it should do its bit to hose down inflationary pressures,” he said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news