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

 


Kiwi Families Worse Off Under Labour

The latest CPI figures show that New Zealand household costs are more than $31 a week higher than they were a year ago, National's Finance spokesman Bill English said today.

A 1.2% rise during the December quarter has pushed the annual rate of inflation to 4%, well in excess of the Reserve Bank's 0-3% target band.

Applying the CPI increases over the course of 2000 to the average weekly expenditure of a Kiwi family indicates that during the calendar year 2000 household costs rose by around $31.50 a week *.

"Wage increases have failed to keep pace with inflation and that has caused a real decline in spending power," Mr English said.

"Much of this can be directly sheeted home to the Government. Excise increases and price increases due to the low exchange rate have hit Kiwi families hard.

"In real terms, the average Kiwi worker was 1.5% worse off in December 2000 than they were in December 1999. Compare that with the recessionary period during the Asian financial crisis and successive droughts when real incomes continued to rise.

"The last time real wages fell was during 1995 when the housing market was booming. At that time households were compensated by rising house prices. This time around households are suffering the added pressure of falling house prices.

"The Reserve Bank has a difficult balancing act to perform. In any future interest rate decisions they need to weigh up the fledgling domestic economic recovery, inflation that is becoming more generalised, likely future wage demands as households attempt to restore their spending power and the weakening external environment which has already prompted the US Federal Reserve to cut interest rates," Bill English concluded.

Ends

* calculated using data from the Household Expenditure Survey and CPI including interest rate changes.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

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:

Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. 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>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news