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


Raising interest rates may cost jobs, warns Donald

11 August, 2004

Raising interest rates may cost jobs, warns Donald

Green Party Co-leader Rod Donald is warning that a threatened hike in interest rates as a result of falling unemployment could stall jobs growth.

"It is a perverse consequence of falling unemployment in New Zealand that the Reserve Bank may raise interest rates to meet its inflation target," said Mr Donald. "Such a rate rise could well be counter-productive as many employers will be less likely to borrow in order to increase productivity and employ more workers.

"Threats of interest rate rises underscore continuing structural problems in the New Zealand economy."

Mr Donald pointed out that the sustained period of high employment and low inflation after World War II was a time of relative equal income distribution in OECD countries.

"Sharing the gains more equally is a fundamental part of avoiding the boom-bust cycle. There is no reason for an employment rate of four per cent or even one per cent to be inflationary.

"It is great news that official unemployment has fallen to four per cent but that still represents 84,000 New Zealanders without a job," said Mr Donald. "The official figures show an additional 148,000 people without work and wanting employment. Clearly, there still isn't enough work for everyone who wants a job."

Mr Donald refutes calls from employers that the answer to the perceived 'skills shortage' in the New Zealand workforce is simply to recruit more skilled workers from overseas.

"Employers should look in the mirror," said Mr Donald. "Too many of them are unwilling to invest in training young workers and in re-training older workers. Neither are they prepared to pay the market rates needed to keep trained kiwi workers from going overseas, despite their advocacy of 'market forces'."


© 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


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>>


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>>


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>>


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>>


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>>


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>>


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>>




Featured InfoPages

Opening the Election