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

 


What Is The Strategy To Fix The Weak Economy?

20 December 2005

What Is The Strategy To Fix The Weak Economy Predicted To Get Worse Over The Next Two Years?

If the worst effects of the gradually weakening economy are, as Finance Minister Michael Cullen seems to be suggesting, more than a year away, he should tell the market now what action steps he has in mind to modify the pressure on inflation, interest rates and other costs of doing business.

Responding to the just-released revised growth forecasts of higher mortgage rates and petrol prices, fewer new jobs and slower wage growth, Michael Barnett, chief executive of the Auckland Chamber of Commerce, suggested three positive steps the Government could take immediately to modify the downturn’s impact:

Put a freeze on new Government charges and levies, and block increases in existing ones;

Impose legislation to prevent local bodies raising rates beyond the Reserve Bank’s 3% inflation guideline; and, Take steps to eliminate Government profiteering from the increased tax revenue generated from rising petrol prices.

On the other hand, if Dr Cullen is expecting that Government revenue will reduce next year because the impacts on businesses are already starting to bite and therefore tax revenue is predicted to be lower than in recent years, Dr Cullen should tell us the messages he will be passing on to Government agencies of what action they should take to:

Reduce the costs to business of the 40 percent share the Government sector has in the economy; and, Increase the volume and value of exports, and also increase New Zealand’s foreign exchange earnings over the next two years.

“We shouldn’t have to wait until next year’s Budget for these action steps,” said Mr Barnett.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

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, Including Xtra: 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>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news