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 Legal Fudging Of The GCSB Revelations

As many have noted, the Hager/Snowden revelations of the spying by our security agencies on our Pacific neighbours and allies is a virtual re-run of the pre-election debate.

Unfortunately, it is also a forerunner of the kind of “ debate” we can expect during the upcoming review of the security agency powers, in June. It is a situation where the government (a) stonewalls, (b) baldly asserts that mass surveillance is not occurring despite the Snowden evidence that it is, and (c) claims that the GCSB actions were lawful.

Yet as Greens Co-Leader Russel Norman says, this can be true only if the legislation passed last year by the Key government has made the mass surveillance of New Zealanders – and the related handing over of their private data to the NSA – lawful. More>>

Latest:

 

PARLIAMENT TODAY:

Women's Day, March 8: It’s Time For Men To Step Up For Gender Equality

UN Women is launching the HeForShe campaign in New Zealand at the International Women's Day Parliamentary Breakfast, and is calling on New Zealand men — including politicians and community and sports leaders — to show their commitment to gender equality by signing up to this global campaign. More>>

ALSO:

Teina Pora Wins Appeal: Gordon Campbell On The Privy Council Decision

The quashing of the convictions of Teina Pora for the rape and murder of Susan Burdett in 1992 has shone a spotlight once again on a major gap in the New Zealand justice system... More>>

ALSO:

Urgent Bill Planned: MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency. More>>

ALSO:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news