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

 


Labour's monetary policy prescription warrants consideration

April 29, 2014

Labour's monetary policy prescription warrants consideration

The changes to monetary policy proposed by Labour have merit and warrant careful consideration, particularly as the Reserve Bank's independence would be preserved, the Employers and Manufacturers Association says.

"Apart from our investment in housing, we're constantly told we're poor savers, and our exporters certainly deserve a better priced dollar - this policy prescription addresses both of these fundamental issues," said Kim Campbell, EMA's chief executive.

"What's more, New Zealanders would keep their added savings rather than see them disappear when interest rates rise.

"It could work out well in the longer term.

"But it wouldn't work unless Kiwisaver is made compulsory, an idea whose costs may fall unfairly on small businesses.

"Increasing our savings rate is important for our producers to rely less on borrowings from offshore, which adds to the upward pressure on the exchange rate.

"The proposals draw heavily from other successful countries where mandatory savings are the norm, such as Singapore which has a variable savings rate, and Australia.

"The variable savings rate concept is a good idea; it would not be a good idea to allow politicians to determine what it should be.

"The policy is not sufficiently clear on whether employers' Kiwisaver contributions would be increased, which would not be helpful, and employers will be seeking reassurances that the variable savings rate would apply only to the employee contribution.

"The idea that the Reserve Bank should have responsibility for inducing a positive external trade balance is farfetched, and could be problematic. We would urge extreme caution over this suggestion.

"The wording otherwise for widening the Bank's objectives is not out of line with how other countries instruct their central banks, though we are concerned about how the changes were to be implemented and the risk of confusing the Bank's mandate.

"The policy proposals are also very light on the tight fiscal discipline business expects from the government.

"Certainly they show a level of thought well in advance of Labour's poorly considered proposals for reforming the electricity market."

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news