Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government urges calm and reason on the economy

18 May 2000


Government urges calm and reason on the economy


"The current round of breast-beating about the economy is at odds with the facts," Finance Minister Michael Cullen said today.

"What some commentators seem to have forgotten is that the reason the Reserve Bank raised interest rates is because it has upped its growth forecasts for the next two years.

"Three months ago, it was projecting growth of 3.5 percent and 3.6 percent. It has now revised these numbers up to 4.3 percent and 4.6 percent respectively.

"In fact the outlook in the Bank's May Monetary Policy Statement, released on Wednesday, is extremely positive. Business investment is projected to increase 25 percent in the next three years and exports 19 percent," Dr Cullen said.

"Even more encouraging is recent evidence that the recovery is finally spreading to the export sector. The latest merchandise trade data shows the value of manufactured exports in the March 2000 quarter was 17.8 percent higher than in the same period last year.

"Add to that a good agricultural season, an improving trend in commodity prices and the boost to exporters of a competitive New Zealand dollar and we are looking at a substantial improvement in our trade balance.

"These are all reasons to be cheerful and I would urge everyone to take a deep breath and calm down." Dr Cullen said.

"Of course the petrol price rise will add to motorists' costs and higher interest rates, although good for savers, will be bad for borrowers.

"But it is important that these increases are kept in context. Generally the economic news is good.

"I would also note that, despite the best efforts of our political opponents, neither the petrol increase nor the Bank's decision on interest rates can be blamed on the Government," Dr Cullen said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election