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

 


Reserve Bank confirms over-valued dollar to blame for crisis

25 October 2012

Reserve Bank confirms over-valued dollar to blame for manufacturing crisis

The Reserve Bank Governor Graeme Wheeler’s unwillingness to lower the Official Cash Rate (OCR) despite acknowledging the devastating effect that the over-valued dollar is having on Kiwi jobs is further confirmation that the Reserve Bank needs modern tools to better do its job, Green Party Co-leader Dr Russel Norman said today.

“Governor Wheeler is dead right when he says ‘the high New Zealand dollar is undermining export earnings and encouraging substitution toward imported goods and services’. We urgently need to get the dollar down to a fair level with a lower OCR and other tools,” said Dr Norman.

“Because of the over-valued exchange rate, our exporters are unable to compete overseas and local businesses are being undercut by cheap imports. As a result, we have lost 40,000 manufacturing jobs and New Zealand has the second largest current account deficit in the developed world.

“Governor Wheeler’s statement suggests that he is prevented from lowering interest rates by the lack of tools to control housing speculation.

“Our manufacturers and exporters are being sacrificed because National’s outmoded monetary policy prevents the Reserve Bank from taking a sophisticated approach to lower interest rates and, hence, the dollar without triggering a housing bubble.

“With a modern monetary policy, such as that proposed by the Greens, we could get interest rates and the dollar down to internationally competitive levels and create jobs without causing another housing boom.

“National’s failed neoliberal approach is to stand by with its hands in its pockets while businesses close and Kiwis lose their jobs.

“No wonder Kiwis think that National is failing on jobs. The over-valued dollar is the most destructive force in the New Zealand economy at present; it is destroying thousands of Kiwi jobs. Yet National has no answer.

“New Zealanders deserve better. They deserve a government with a monetary policy fit for the times, not National’s dogmatic adherence to a failed neoliberal doctrine,” said Dr Norman.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Farcical Elevation Of David Seymour

With the election won, it’s time to find jobs for the boy. David Seymour is the Act Party’s latest scrounger to be rewarded by the National Party, and not only with a seat in Parliament. This time around, a couple of parliamentary Undersecretary posts in education and regulatory reform have been thrown in, plus an annual salary of $175,000 while he learns the ropes. Shouldn’t Seymour at least be put on a 90 day trial before he gets his hands on that sort of serious moolah?

It would be for his own good, really. At this rate, Act is never going to learn how to make its own way in the world More>>

 

As Key Mulls Joining ISIS Fighting: McCully Speech To UN Backs Security Council Bid

It is an honour to address you today on behalf of the Prime Minister and Government of New Zealand. Our General Election took place last week - our Prime Minister Rt Hon John Key is engaged in forming a government and that is why he is unable to be here in New York... More>>

ALSO:

Labour: Cunliffe Triggers Party Wide Leadership Contest

David Cunliffe has resigned as Labour Leader, but says he will seek re-election... If there is any contest the election will have to go through a process involving the party membership and union affiliates. More>>

ALSO:

Flyover Appeal: Progress And Certainty, Or Confusion And More Delays?

Lindsay Shelton: The Transport Agency, embarrassed by the rejection of its flyover alongside the Basin Reserve, says it’s appealing because the decision could “constrain progress.” Yet for most clear-sighted Wellingtonians a 300-metre-long concrete structure above Kent and Cambridge Terraces would in no way be seen as progress… More>>

ALSO:

Gordon Campbell: On Cunliffe’s Last Stand

Right now, embattled Labour leader David Cunliffe has three options. None of them are particularly attractive for him personally, or for the Labour Party... More>>

ALSO:

Key Seeking 'New Ideas': Look To Children’s Commissioner On Poverty - Greens

John Key should not reinvent the wheel when it comes to ideas for tackling child poverty, and instead look to the recommendations of the Children’s Commissioner’s Expert Group on Child Poverty, Green Party co-leader Metiria Turei says. More>>

ALSO:

'Safe To Re-Enter' - OIA Docs: Safety Is Absolute Priority At Pike River Mine

“We understand that the time it is taking to complete our evaluation of the risks is frustrating for the family members and we are trying to complete this work as quickly as we can,” Ms Dunphy says. “It is Solid Energy’s responsibility to make this decision and we will do so, once we have all the information required to make a fully-informed decision.” More>>

ALSO:

Images & Report: Mihi To Welcome Newly-Elected MPs To Parliament

The 29 newly elected MPs were welcomed into Parliament with a Mihi. Parliament’s current Speaker David Carter offered advice from his experience working in Parliament advising the MPs to work collaboratively. More>>

Gordon Campbell: On Labour’s Very Bad Year

While Labour leader David Cunliffe still appears to be in denial about the extent of Saturday night’s debacle, there was hardly a single redeeming feature about the election results for the centre-left... More>>

ALSO:

General Election NZ: National Win

Election Night: With almost all votes counted National and John Key have won a third term and are close to being able to govern alone if they so choose. Key has indicated he will still reach out to form a Government with ACT, United Future and Maori Party. More>>

ALSO:

Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
More RSS  RSS
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news