Parliament

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

 

Business lending rates must come down

5 December 2008

Business lending rates must come down

Labour’s spokesperson for small business Ross Robertson is calling for a reduction by banks in the base business lending rate.

“The call by Dr Alan Bollard to reduce the official cash rate by 150 basis points has already seen the ASB cut their floating rate from 8.7 to 7.95 percent, and it is now time to pass on similar cuts to the small and medium-sized business sector,” said Ross Robertson.

“For the month of November the base lending rate was 13.59 percent, indicating a significant delay in adjusting the business base rate as compared to the variable first mortgage housing rate which stood at 8.75 percent for that month.

“To highlight the significance of the difference one only has to look at the rates for the same time last year,” said Ross Robertson.

“Reserve Bank figures indicate that in November 2007 the housing rate was 10.55 percent while the business rate was 13.39 percent. Since then the housing rate has dropped in keeping with general expectations, while the business lending rate has remained almost static.

“With our banking system now dominated by the Australians, New Zealand small business entrepreneurs are subsidising the inefficiencies of the banking system here and in Australia,” said Mr Robertson.

“It is important that the banks do not make make a killing of the small business sector. To do so would be avarice at its worst, and the New Zealand economy will suffer as a result.

“Especially in this time of economic uncertainty, interest rates must become more affordable for business. To date, business borrowers have not fared as well as homebuyers. The small business sector is the locomotive of growth, accounting for more than 90 percent of all jobs in New Zealand, and any benefits to the sector automatically feed into the New Zealand economy.

“A reduction in the business lending rate will see business loan affordability increase and help stimulate investment and employment. The small business sector is not asking for any favours. What it wants is a stable environment within which all firms, large and small, can compete on reasonably equal terms,” said Ross Robertson.


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Not Easy: Gordon Campbell On The Greens’ Ongoing Problems

Hard to treat the Greens’ belated decision to stand a candidate in Ohariu as being anything other than a desperation move, by a party whose own leadership is evidently concerned about its chances of survival...

A few months ago, the Greens felt able to forego that role in Ohariu in order to help a beleaguered Labour Party get its candidate Greg O’Connor across the line, and knock Peter Dunne out of the parliamentary frame. More>>

 

Closing The Gap: Ardern Rules Out Income Tax Rise

After earlier commitments by Jacinda Ardern to do something about inequality and poverty, this new position on income tax seems an about face. To do something significant about inequality requires increases in income for those at the bottom and decreases for those at the top... More>>

ALSO:

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... 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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election