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

'Tea Break Bill' Passes: Gordon Campbell On Bad Labour Laws And Poor Safety

By co-incidence, one of the prime dangers of the government’s new employment relations law has been underlined by the release of the death and injury statistics among workers at New Zealand ports. These are highly profitable enterprises for the port owners.

The Port of Tauranga for instance, is expecting its current full-year profit to be between $78 million and $83 million and other ports are enjoying similar boom times – but they are also highly dangerous places for the people who work on or around the port premises. At the Port of Tauranga, there have been 26 serious accidents since 2011, and two deaths. More>>

 

Parliament Today:

No Charges: Outcome Of Operation Clover Investigation

Police have completed a multi-agency investigation, Operation Clover, into the activities of a group calling themselves “The Roast Busters”. The 12 month enquiry focused on incidents involving allegations of sexual offending against a number of girls in the Waitemata Police district and wider Auckland area... More>>

ALSO:

UNICEF Report: NZ Cautioned On "Stagnating" Child Poverty

An international report by UNICEF has found that child poverty rates in New Zealand have barely changed since 2008, despite similar sized countries significantly reducing child poverty during the recent recession. More>>

ALSO:

Funding Report: Two Pathways For Transport In Auckland

Commissioned by Auckland Council, the group was asked to investigate two possible pathways for raising $300 million per year ($12 billion over 30 years) to pay for the improvements needed to help fix Auckland’s transport system. More>>

ALSO:

Pay Equity: Equal Pay Win In Court Of Appeal

CTU: The Court of Appeal has made a historic decision paving the way for a substantial equal pay claim for aged care workers. More>>

ALSO:

Gordon Campbell: On The TPP Finishing Line, And Amazon’s Woes

If the Trans Pacific Partnership trade deal wasn’t such a serious matter, this would be pretty funny… More>>

ALSO:

TV3 Video: Three Die On Roads Over Labour Weekend

The official holiday period ended at 6am Tuesday, with three deaths on the roads during the Labour Day weekend. More>>

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news