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

 


Imminent OCR rises highlight National’s big economic fail

30 January 2014

Imminent OCR rises highlight National’s big economic fail

The signalled Official Cash Rate (OCR) hikes over this year highlight National’s failure to build a strong, resilient, jobs-rich economy, the Green Party said today.

The Reserve Bank Governor made his strongest hint yet of imminent OCR hikes saying that ‘the Bank expects to start this adjustment soon’ in response to inflationary pressures driven by rising house prices in Auckland and the Canterbury rebuild.

“The National Government’s failure to fix the housing crisis in Auckland is going to result in interest rate hikes hurting the whole economy,” said Green Party Co-leader Dr Russel Norman.

“Higher interest and exchange rates will effectively cost jobs, exports, and raise the cost of living for all those with mortgages.

“A possible one percent hike in the OCR will raise the average homeowner’s interest payments by $70 a fortnight.
“Wage rates are not keeping pace with inflation, so adding further costs to households will hurt.

“Once again, New Zealand’s economic recovery is betraying the same underlying structural weaknesses of the last recovery; National has materially failed to rebalance our economy away from borrowing and consumption towards savings, investment, and exports.

“New Zealand is enjoying the highest terms-of-trade since 1973 yet we’re still running the third highest current account deficit in the developed world. If this is as good as it gets, we haven’t made the kinds of changes needed to secure our long-term prosperity.

“National’s failure to address the Auckland housing shortage with a mixture of demand and supply-side measures are forcing the Reserve Bank to hike rates, hurting the real economy.

“National’s failure to introduce a comprehensive capital gains tax (excluding the family home) has meant property speculators will continue to be rewarded at the cost of the productive economy and all those seeking to buy their own home.

“Rising interest rates will mean that New Zealand will lead the OECD hiking rates presenting a huge upside risk to our exchange rate, hurting exports and jobs,” Dr Norman said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news