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

 


No real action on high dollar by Reserve Bank


David
PARKER
Spokesperson for Finance

14 March 2013 MEDIA STATEMENT

No real action on high dollar by Reserve Bank

The relentless pressure from exporters, manufacturers, unions and opposition parties has pushed the Reserve Bank Governor to acknowledge the damaging impact of the high dollar, yet nothing of substance has been done to protect jobs and exports, says Labour’s Finance spokesperson David Parker.

“Reserve Bank Governor Graeme Wheeler has tentatively responded to pressure on the exchange rate in his Monetary Policy Statement today.

“He said: All other things equal, a higher exchange rate relative to the baseline, in the absence of a corresponding relative strengthening of New Zealand's economic outlook, would warrant lower interest rates’.

“But still, acting under his current inflation-first mandate, and despite massive pressure on manufacturers and exporters, a huge current account deficit and the loss of thousands of jobs, nothing substantial has been done to lower the overvalued dollar. That’s because, under this Government, the Bank’s out of date mandate is stuck in the past.

“Exports are suffering, jobs are being cut and our current account deficit is getting lower and New Zealand poorer as a result.

“The Reserve Bank has a tunnel-vision mandate from the 1980s that requires it to give primacy to inflation. If the inflation forecast changes for the worse then hopeful exporters can kiss goodbye to any OCR cut.

“The tunnel vision mandate needs to change. To do that the Reserve Bank Act must be overhauled and the primacy given to inflation removed. The Reserve Bank must be allowed to give proper weight to other important economic considerations such as jobs and the exchange rate.

“Currently our Reserve Bank is a retro-throwback to the 1980s. The world has changed dramatically since then. But the Government just sits on its hands when action is required,” says David Parker.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Post Cab Presser: Inquiries And Consciences

    This afternoon the Prime Minister John Key announced that his cabinet had drafted terms of reference for the Havelock North water contamination inquiry... In response to questions on the Shop Trading Hours Amendment Bill, the Prime Minister said he didn't think allowing National MPs a conscience vote was warranted. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news