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

 


Farmers call for OCR pause as exports fall in June quarter

Farmers call for OCR pause as exports fall in the June quarter


Following yesterday’s increase in the Official Cash Rate and export data for the June quarter, Federated Farmers is relieved the OCR will likely be on hold for the remainder of 2014.

“With the rural economy’s sentiment decidedly bearish, an OCR hold is perhaps the best we could hope for,” says Dr William Rolleston, Federated Farmers President.

“Dairy farmers are anxious about their likely payout following falls in international dairy prices and a stubbornly high exchange rate.

“This will not be helped by the seasonally adjusted value of exported goods falling 7.4 percent in the June quarter. Most of the major primary exports were down, including dairy, meat, logs

“Given the drop in farmer confidence and other economic developments, we actually thought there was good case for the OCR to be left unchanged.

“While that’s now academic, the key thing is that the Reserve Bank has clearly communicated its intention to pause and take stock. This is the right signal.

“We were pleased to hear the Reserve Bank state, in no uncertain terms, its concern about the unjustifiably and unsustainably high exchange rate. Clearly, in taking a pause, it wants to take pressure off the exchange rate and this is the right call.

“The fact that inflation remains contained is helpful and it has given the Reserve Bank some breathing space.

“We now hope that the Reserve Bank will be able to keep the OCR on hold for an extended period. To be able to do that other government policies need to help rather than hinder.

“This means fiscal responsibility, tight control of spending and wider policies around regulation. Exporters, whether ICT, tourism or the primary industries, need policies to assist rather than impede productivity and competitiveness.

“We hope that the media and commentators will be examining policies and pledges against this prescription,” Dr Rolleston concluded.

For Federated Farmers’ New Season Farm Confidence Survey, please click here.


Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news