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

 


Inflation numbers show smart polices needed

21 January 2014

Inflation numbers show smart polices, not interest hikes, needed

Today’s low inflation numbers show that the Reserve Bank doesn’t need to hike interest rates, which would hurt exporters and families with mortgages. Instead, smart policies are need to fix sectors where prices are rising too rapidly, Green Party Co-leader Dr Russel Norman said today.

Consumer Price Index figures released by Statistics New Zealand today show that inflation was 0.1% in the December quarter and 1.6% in the past year, in the lower half of the Bank’s 1-3% target range. The figures reveal that purchase of new housing and electricity were significant contributors to what inflation there was. The Reserve Bank has indicated it intends to raise interest rates this year, which are already high by international standards.

“New Zealand families don’t deserve to be hit with higher mortgage rates when inflation is not a problem,” said Dr Norman.

“What inflation there is in the economy is being driven by the Auckland housing market and National’s broken electricity system. The Green Party has laid out practical steps to fix both these issues.

“The Greens will introduce a capital gains tax, restrictions on foreign investment in housing, a government-led programme of affordable house building, and Progressive Ownership for first home buyers to stabilise house prices. Our NZ Power plan will bring an end to National’s failed experiment which saw electricity prices rise 3% last year even as demand fell.

“Families are already struggling with stagnant wages and high unemployment; they can’t afford to pay thousands of dollars more a year on their mortgage because of higher interest rates.

“Our interest rates are already high by international standards, which is why our currency is so over-valued. Pushing interest rates higher would just hurt exporters, widen our current account deficit, and destroy jobs.

“We need smart policies to fix the causes of inflation, not the blunt tool of higher interest rates that hurts families and businesses,” said Dr Norman.

ENDS

© 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:

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:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news