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.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news