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 Pharmac, Gough Whitlam And Sleater-Kinney

Ridiculous reported comments on RNZ this morning by Trade Minister Tim Groser, as he sought to dampen down concerns about the leaked draft of the IP chapter of ther Trans Pacific Partnership negotiations. According to Groser, ‘extreme’ positions are common at the outset of negotiations, and these get whittled down over the course of negotiations. Fine.

Except that we’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations.

Still, Groser did promise that the cost of medicines would not rise as a result of the TPP trade deal. Great. But this is not what politicians in other countries are saying. More>>

.

 
 

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Tertiary Education: Students Doing It Tough As Fees Rise Again

The Government is making it increasingly difficult for Kiwis to gain tertiary education as fees continue to rise and access to student support becomes even more restricted, Labour’s Tertiary Education spokesperson Chris Hipkins says. More>>

ALSO:

Housing, Iraq: PM Press Conference – 20 October 2014

Prime Minister John Key met with press today to discuss:
• Housing prices and redevelopment in Auckland
• Discussions with Tony Abbott on the governmental response to ISIS, and New Zealand’s election to the UN Security Council More>>

ALSO:

Labour: Review Team Named, Leadership Campaign Starts

Labour’s New Zealand Council has appointed Bryan Gould as Convenor of its post-General Election Review. He will be joined on the Review Team by Hon Margaret Wilson, Stacey Morrison and Brian Corban.

ALSO:

Roy Morgan Poll: National Slips, Labour Hits Lows

The first New Zealand Roy Morgan Poll since the NZ Election shows National 43.5% (down 3.54% since the September 20 Election). This isn’t unusual, National support has dropped after each of John Key’s Election victories... However, support for the main opposition Labour Party has crashed to 22.5% (down 2.63% and the lowest support for Labour since the 1914 NZ Election as United Labour). More>>

ALSO:

In On First Round: New Zealand Wins Security Council Seat

Prime Minister John Key has welcomed New Zealand securing a place on the United Nations Security Council for the 2015-16 term. More>>

ALSO:

TPP Leak: Intellectual Property Text Confirms Risk - Jane Kelsey

The US is continuing its assault on generic medicines through numerous proposed changes to patent laws. ‘These are bound to impact on Pharmac if they are accepted’, according to Professor Kelsey... Copyright is another area of ongoing sensitivity... More>>

ALSO:

RMA: Smith Plans Reform To Ease Urban Development

Newly appointed Environment Minister Nick Smith has announced Resource Management Act reform to foster urban development, where high land prices and expensive resource consents are blocking efforts to provide affordable housing. More>>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news