Parliament

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

 

RB News Grim, Recession Tipped For Christmas

The Reserve Bank's stagflation warning is further confirmation of the serious economic malaise the Labour Government has inflicted on the country, according to ACT's Finance Spokesman, Rodney Hide.

"They have done an amazing 'riches-to-rags' transformation in just under a year, turning a booming economy around to the brink of recession. Just look at their record:
 The highest ever balance of payments deficit;
 * Turn around of economic growth into contraction;
 * All-time low NZ Dollar;
 * Inflation about to break through 3%;
 * loss of 10,000 jobs;
 * Record numbers of skilled NZrs leaving permanently;

"Clark and Cullen have managed to do more damage than Muldoon in a shorter time, and now they're delivering the double-hit of low growth and rising prices.

"Dr Brash's statement warns that "a situation of that kind robs savers, savages those on fixed incomes, and enriches speculators. In that situation, the Bank would have to increase the Official Cash Rate to control inflation, even though, in the short term, that would further damage economic growth.

"I believe the negative economic situation is becoming entrenched, and there is a very real danger of a downward economic spiral. Instead of enjoying 1-2% quarterly growth we have a contraction, and now the Reserve Bank's stated response to the prospect of stagflation around the corner signals 'further damage to economic growth' according to Dr Brash's statement.

"The Reserve Bank news heightens my fears of a further quarter of negative growth, as already predicted by the BNZ. This news comes out on 21 December, and I believe a recession could be Clark and Cullen's Christmas present to all of us, to mark their one-year anniversary in Government," said Rodney Hide.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop 3.0: How You Can Help Scoop’s Evolution

Entering into its third decade of operation, the Scoop news ecosystem is set to undergo another phase of transformation and evolution.

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

 
 

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election