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


High Interest Rate Symptom Of Deeper Problems

24 January 2008

High Interest Rate Symptom Of
Deeper Problems

New Zealanders are again confronted with the outrageous situation of the Reserve Bank Governor keeping New Zealand’s interest rate at the highest in the developed world, while others have responded more appropriately, says New Zealand First Leader Winston Peters.

“New Zealand has a distorted economy. While some indicators are sound, others, particularly our debt levels, current account deficit and interest rates are not, leaving us dangerously exposed to a volatile world market. What this situation is crying out for is greater liquidity, and yet what we have are further constrictions.

“The simple fact is that with the highest interest rates in the developed world New Zealanders are now spending huge portions of their incomes simply servicing debt. The net result of this is that Australian banks get rich, and our growth potential is further restrained. The incentives are all wrong.

“Unfortunately New Zealanders have a Clayton’s choice when it comes to economic management. On the one hand we have the aspirant, a currency speculator whose mates and former company are a big part of why the global economy is in turmoil. On the other we currently have a timid conservative approach and a refusal to break with the orthodoxy, even though our economy needs it.

“New Zealand First has a strong message on the economy this election year and it starts with the fundamentals such as the Reserve Bank Act and our tax system. Now is not the time for head in the sand conservatism or irresponsible speculation – but sound proven economic planning,” concluded Mr Peters.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On DHB Deficits And Free Trade

Currently the world is looking on aghast at the Trump administration’s plans to slash Obamacare, mainly in order to finance massive tax changes that will deliver most of their gains to the wealthy. Lives will be lost in the trade-off. Millions of Americans stand to lose access to the healthcare they need.

Spot the difference with New Zealand, where DHBs are under intense pressure to reduce deficits within a climate of chronic underfunding. More>>


Greens' Response: Slum-Like Rentals Exposed In Renting Review

“...The grim findings of the review are a wakeup call about the true state of rentals in this country. Too many renters are festering in slum-like conditions under the thumb of landlords who have largely unchecked powers and ignore tenants’ complaints when it suits them.” More>>


Gordon Campbell: On The Life And Times Of Peter Dunne

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>


Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>


Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>





Featured InfoPages

Opening the Election