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

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.

Following a lengthy and complex investigation, charges are not being laid by Police at this time regarding 8 incidents involving 7 victims and 5 suspects. More>>

 

Parliament Today:

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:

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:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news