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

 

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news