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

 


Higher mortgage payments, fewer jobs as Nats let rates rise

13 March 2014

Higher mortgage payments, fewer jobs as Nats let rates rise

The current government’s failure to stabilise house prices and lower power costs is now going to hit families in the form of higher mortgage payments and cost the economy up to 30,000 jobs, Green Party Co-leader Dr Russel Norman said today.

The Reserve Bank has today increased the Official Cash Rate (OCR) by 0.25% and is expected to lift it by 1% over the coming year. The Greens have released Reserve Bank papers that show an increase in the OCR of 1 percent will lead to 12,500-30,000 fewer jobs in the economy. Employers and Manufacturers’ Association head Kim Campbell warned this morning that there would be ‘mass closures’ of manufacturing firms as OCR rises pushes up firms’ borrowing costs and the exchange rate. Housing and electricity accounted for a third of inflation in the past year.

“If National had tackled house price inflation and brought power prices down, we wouldn’t be facing higher mortgage rates and job losses today,” said Dr Norman.

“John Key sat on his hands as house and power prices skyrocketed. National left it to the Reserve Bank to clobber the economy with the blunt tool of interest rate increases, when it should have used smart tools to target price rises in housing and electricity.

“National’s failure hurts families in three ways: We’re paying too much for housing and power, we’re seeing our mortgage payments go up, and there will be fewer jobs to go around.

“The Reserve Bank says that there’ll be up to 30,000 fewer jobs in the economy as a result of a 1% OCR increase over the course of a year. There are 50,000 more Kiwis unemployed than when National came to office. The last thing we need is more businesses closing down or putting off hiring new workers.

“The Green Party would increase the supply of affordable housing, give families an affordable pathway to homeownership, and stop speculators forcing up house prices with a tax on capital gains (excluding the family home). We would use NZ Power to bring down power prices and introduce real competition to generation and electricity retailing.

“The Green plan would lower inflationary pressure, keep interest rates lower for longer, and create more jobs for New Zealanders,” said Dr Norman.


Additional information:
An estimated small open economy model with frictional unemployment pages 20-21
Shocked by the world! Introducing the three block open economy FAVAR pages 22, 26

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Greens: Russel Norman To Stand Down As Co-Leader

Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party’s Annual General Meeting in May. Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM.

“After nearly a decade as Co-leader, now is a good time to find a new challenge for myself, and to spend more time with my family” said Dr Norman.

“This is my ninth year as Co-leader and I think it’s time for a change. Now is a good time for new leadership for the Party. My replacement will start from a strengthened base and will have a full parliamentary term to establish himself in the role and take the Greens into government in 2017." More>>

 

Gordon Campbell: On The Eleanor Catton Rumpus

If anyone was in doubt about the accuracy of the comments made in India by Eleanor Catton, the reaction from some quarters here at home has gone a long way to proving her point… More>>

ALSO:

More Rent Assistance, Less State-Owned Housing: John Key Speech - Next Steps In Social Housing

"We are going to ensure that more people get into social housing over the next three years, whether that is run by Housing New Zealand or a community provider. The social housing budget provides for around 62,000 income-related rent subsidies a year. We are committed to increasing that to around 65,000 subsidies by 2017/18, which will cost an extra $40 million a year." More>>

ALSO:

The Future Of Work: Andrew Little - State Of The Nation 2015

In 2005 when I led the EPMU we worked together with Air New Zealand to find a way to keep engineering jobs that were heading overseas. A lot of these workers were people I’d known for years and they were facing not just losing their jobs but not being able to find the kind of work they do without going overseas. A lot of people were facing personal and financial upheaval.... More>>

ALSO:

Gordon Campbell: On The Sabin Case, The Pressures On Greece And (Songs About) Coyotes

Mike Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint... However, the PM will not comment on any aspect of the story. More>>

ALSO:

Houses, ISIS, King (& Catton): PM Post-Cabinet Press Conference

The Prime Minister met with reporters to discuss: • Social housing, the Auckland housing market • The prospect of joining international forces to combat ISIS • David Bain’s compensation • The lowering of the flag for the King of Saudi Arabia's death ... More>>

ALSO:

Gordon Campbell: On Tomorrow’s Speeches By John Key And Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the RMA. Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news