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

 

OCR helps manufacturing, system still needs fixing

September 11, 2008
Media Release

OCR drop will help manufacturing but system still needs to be fixed

The Engineering, Printing and Manufacturing Union welcomes today’s reduction in the official cash rate as a step toward easing pressure on New Zealand’s exporting manufacturers.

The call follows Reserve Bank governor Allan Bollard’s announcement the rate will be reduced by 0.5%, which follows on the heels of the last cut of 0.25%.

EPMU national secretary Andrew Little says the reduction will mean a lower New Zealand dollar and a better environment for exporting.

“We’ve seen a whole series of redundancies in manufacturing over the last few years and in most cases employers have cited the high dollar as a factor in their decision to downsize or close.

“The simple fact is that high interest rates mean a high dollar and that often means our export manufacturing being priced out of the global market.

“Over the last five years we have seen manufacturers punished by OCR increases that were responding to pressures in completely different sectors such as housing and debt.

“While it is good to see the rate coming down the fact is that it has been too high for too long because the single-lever monetarist model is a dreadful way to regulate inflation.

“We would hope that now the OCR is easing off the government takes the opportunity to review the Reserve Bank Act with an eye to providing a more sensible model of inflation control.”

The EPMU represents fifty thousand New Zealand workers across eleven industries and most exporting sectors.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

.

 
 

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election