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

Two Dead, One Injured: Suspect Charged After Ashburton Shooting

Russell John Tully has appeared in Christchurch District Court. Tully has been remanded in custody on charges of murder of Peg Noble and Leigh Cleveland and attempted murder of Lindy Curtis.

The victim’s families and the victim have requested that their privacy be respected and will not be making a statement at this time.

Police have formed a picture of what has occurred yesterday and are appealing for further information and sightings .... More

 

Parliament Today:

John Key Press Conference: Ashburton Shootings, Judith Collins Inquiry

Prime Minister John Key has delayed the release of Nationals’ fiscal policy in light of this morning’s shooting at a Work and Income office in Ashburton... Key also answered questions about Judith Collins, and confirmed that independent inquiry will be held with regard to allegations made against Collins. More>>

ALSO:

Internet MANA: Georgina Beyer Rocks The Waka

“There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority of MANA members and supporters around the country” states MANA Candidate for Waiariki, Annette Sykes. More>>

ALSO:

IGIS Update: Inquiry Into Release Of NZSIS Information

The Inquiry would be conducted in private and individuals would appear before her separately over a period of more than a week. She does not intend to name those summoned to give evidence until her report is published. “I can confirm that all persons summoned will be required to appear under oath...” More>>

ALSO:

Gordon Campbell:
On John Key’s ‘Blame It On Judith’ Strategy

Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious Fraud Office. More>>

ALSO:

Maori Council Lawyers' Statement: Supreme Court Decision On Maori Water Rights

“…the Supreme Court refused to give Pouakani people what they asked for, but may have given them something much, much better instead… the Supreme Court has questioned whether the Crown owns the River at all.” More>>

ALSO:

Gordon Campbell: On The Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ. More>>

ALSO:

Gordon Campbell: On Winston Peters' Latest Bout Of Immigrant Bashing

It is only one poll, but rather than cannibalising each other's vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist... Few are questioning how Peters got to this happy place, and what it says about the mood of the electorate. More>>

ALSO:

More Immigration News: First People Trafficking Charges

The first people trafficking charges in New Zealand have been brought by Immigration New Zealand (INZ)... The defendants have been charged under the Crimes Act 1961 for arranging by deception the entry of 18 Indian nationals into New Zealand. More>>

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news