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


Alliance Raises More Question Marks Over Policy

Alliance Raises More Question Marks Over Monetary Policy

Treasurer Bill English said the Alliance's economic policy released today would create further nervousness about monetary policy under a Labour-Alliance government and could explain Helen Clark's recent comments on competitive exchange rates.

"Ms Clark raised the possibility of two targets for monetary policy. While Dr Cullen stepped in quickly to dampen these suggestions, it now looks likely that she was trying to express some common ground with the Alliance.

"Even two objectives for monetary policy will not work, as Dr Cullen was quick to point out to his leader. The multiple objectives proposed by Jim Anderton would be chaotic and disastrous for this country's economic growth.

"The Alliance has just made it harder for Labour to stick to its line that nothing much will change if it is running the Treasury benches. No matter what Dr Cullen says, today's announcement means more uncertainty about exactly what New Zealanders could expect from Labour-Alliance coalition negotiations.

"Not only does the Alliance economic policy reflect views on monetary policy that were defunct until raised by Ms Clark, it also reflects ideas about regional development from the 1970s.

"Centrally-planned economies, with bureaucrats running banks and making investment decisions, have long been discarded. Extraordinarily, the Alliance even draws on the failed Development Finance Corporation as a model for its new government bank.

"It is clear from this economic policy exactly where Jim Anderton sees himself sitting around a Labour-Alliance cabinet table. He would be in charge of his new Ministry of Economic Development and Employment, making decisions about what regions and what businesses will benefit from government handouts.

"It is most unlikely that a few hundred million dollars spent this way will transform our economic outlook.

"New Zealand needs to respond to the knowledge economy if we are to improve economic performance.

"But any investment in this area must fit alongside other economic measures to encourage innovation and enterprise and ensure our economy is as competitive as possible.

"In particular, we must maintain the sound economic framework that has served New Zealand well over the last decade - a flexible labour market, low inflation, prudent fiscal policy, low broad based taxes and debt repayment.

"We can't take these for granted. The Alliance and Labour are committed to a less flexible labour market, higher taxes, and no debt repayment.

"We must pursue lower taxes, which are crucial to a culture of innovation and enterprise. And we must keep driving to make our economy more competitive. This year we have moved on producer boards and ACC. Ahead of us are the big infrastructure issues - roading management, water and wastewater management, local government, and business compliance costs.

"Along with these areas, we must consider how Government activity, which accounts for 35% of the economy, is contributing to productivity growth and the knowledge economy.

"Finally, we must also make sure that what the Government spends is spent in such a way that we can actually make a difference. We must break the cycles of disadvantage by offering more choice and flexibility to everyone who uses public services," said Mr English.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Crowdsale And Crowdfunding Campaign: Help Create The Future Of Independent News

Two weeks to go! The Scoop 3.0 plan aims to create NZ’s first community-owned, distributed news and media intelligence ecosystem in 2019. We believe this ScoopPro media monetisation approach can be scaled and spread globally to support local and independent news efforts in regional New Zealand and around the world.

Scoop is an ecosystem, it would not exist without those who contribute to it, read it and rely on it for professional media purposes. Generous past support from this ecosystem has enabled us to come this far in developing our business model. Support our PledgeMe Campaign>>


14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>


Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>


Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>


Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>


Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>


Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>


Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>


"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>





InfoPages News Channels