Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Don’t Overreact to Inflation, Warns CTU

Don’t Overreact to Inflation, Warns CTU

The inflation level is a sign of the growing economy and the Reserve Bank should not overreact and drive down economic growth along with the benefits it can bring, Council of Trade Unions economist Peter Conway said today.

The new inflation rate of 2.4 per cent, released by Statistics New Zealand, had been widely anticipated, Peter Conway said.

“The level is not a cause for major concern as inflation remains within the Reserve Bank’s one percent to three percent range.”

Wage rises were not to blame for pushing up inflation, he said.

“The labour market has been tight for over three years and predictions of wage inflation have not eventuated,” Peter Conway said. “House prices went up 20 per cent last year, but private sector wages only increased by around two per cent.”

Higher wages should logically flow from persistent labour shortages but this had not happened, partly because of the absence of genuine collective bargaining in huge parts of the labour market, he said.

Unions will factor in today's inflation figure to wage negotiations, he said. “However, wage claims are always based on a wide range of factors including industry trends, recruitment and retention, what was paid last time, ability to pay, productivity and equity issues.”

© 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>>


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>>


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>>


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>>


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>>


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>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news