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

 

PARLIAMENT TODAY:

Flyover Over: NZTA Not Appealing Flyover Decision

The NZ Transport Agency has decided not to appeal the High Court’s Basin Bridge decision, and says the High Court’s findings provide valuable clarity to help guide the development of future infrastructure projects throughout the country. More>>

ALSO:

Developing Crown Land: Government, Auckland Iwi Reach Agreement

The government has reached agreement with Ngati Whatua and other Auckland iwi over developing 500 hectares of excess land in Auckland for private housing which had been under High Court challenge. More>>

ALSO:

Gordon Campbell: On Maurice Williamson

Maurice Williamson seems to have been granted an annual licence to embarrass the National Party, and its that time of year again. Also as per usual, Williamson’s recent exercise in sexism and homophobia has passed by with barely a murmur from his leader. More>>

ALSO:

Green Climate Plan: Shaw Launches 40% Emission Cut Target

Green Party co-leader James Shaw has announced an emissions target initiative for 40% reduction by 2030. He said agriculture has to long been used as a reason for inaction, a roadblock to action... He proposed a tax of 8 cents per kilo of milk. More>>

ALSO:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news