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


It's the Govt driving inflation

9 December 2005

Crown accounts reveal it's the Govt driving inflation

"It's unbelievable that just one day after Reserve Bank Governor Alan Bollard notched up interest rates again, Treasury's figures confirm that it is actually rising government spending that is helping to drive up inflation," said Cameron Brewer, head of the Newmarket Business Association.

"Businesspeople will be sick to learn that the latest Crown accounts not only show an unnecessary surplus but that government expenditure for the four months to October is $1.2 billion more than at the same period last year.

"It's the Government that needs to take heed of Dr Bollard's unsustainable spending warnings. With Dr Cullen spending more and more, he's the biggest inflation driver out of anyone. Yet it's the business community, so heavily reliant on floating loans, that's getting hit every time Dr Bollard's ratchets up the Official Cash Rate.

"Business confidence is at a 17-year low with the boot going in increasingly harder every time interest rates go up. At the same time government spending just keeps on rising, with student loans and superannuation the next growth areas.

"It's plain wrong that my small to medium-sized businesses have to bite the bullet to control inflation. While in Wellington, the Government just keeps on writing bigger cheques. Further, it is incomprehensible that with record-low unemployment, welfare expenditure is continuing to increase at such a rapid rate," said Mr Brewer.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news