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

 


Rate rise not needed if Government was doing its job

24 April 2014


Rate rise not needed if Government was doing its job

Today’s interest rate rise wouldn’t have been necessary if the Government had been doing its job properly and targeting the sources of inflation, Labour says.

“New Zealand interest rates are among the highest in the world, putting more and more pressure on our exchange rate to the detriment of exports,” Finance spokesperson David Parker says.

“Not only that, today’s rise to 3 per cent is another blow for middle New Zealand. It will add an extra $70 a month to a $500,000 mortgage or $50 a month to a $300,000 one, on top of last month’s increase.

“With the Reserve Bank tipping interest rates to go to 8 per cent this is going to cause real pain for home owners and will make the dream of home ownership unattainable for many more Kiwis.

“The Government has dropped the ball on this. It could have been doing so much more. We will, and will be releasing details of how we will go about that next Tuesday,” David Parker said.

Housing spokesperson Phil Twyford said it was predicted this week that interest rates could peak at a level which would see first-home buyers in Auckland spending two-thirds of household income paying the mortgage.

“We have had five years of out-of-control house price increases which have seen the average Auckland house rise over 40 per cent while National has been in government.

“National’s failure to get a grip on the housing crisis – its refusal to tax speculators or build large numbers of new homes – is one of the reasons the Reserve Bank wants to put interest rates up. Low interest rates caused by the Global Financial Crisis, and the lack of demand in the economy, were the only thing good thing National could point to.

Now you can add rising interest rates to steeply rising prices, and LVRs shutting out first home buyers,” he said.

David Parker said Labour’s Kiwibuild policy, its capital gains tax, controls on foreign ownership, and providing the Reserve Bank with more tools would stabilise inflationary pressures and mean that today’s actions were not necessary.

“NZ interest rates are already higher than the rest of the developed world. Despite dropping export prices our exchange rate is going up with continuing job losses in export industries like forestry. Something has to change,” he said.


ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

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:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news