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

Mana Māori: Kawenata Unites Kaupapa Māori Parties

The Māori Party and Mana Party have signed a historic agreement today to unite Māori politically.

Māori Party president Tukoroirangi Morgan said the kawenata or agreement was a huge step forward for Māori in the lead up to the general elections.

"Today is an important day for the Māori nation because today is when the country's only two kaupapa Māori political parties unite to work tactically together in the best interests of our people," says Mr Morgan. More>>

ALSO:

.

 
 

Immigration: Short Reprieve For Nine Indian Students

A temporary hold on deportations of nine Indian students is a step in the right direction but the Government urgently needs to implement safeguards to stop further injustices to more international students, the Green Party says. More>>

EARLIER:

Welfare: WINZ Breaching Privacy Laws With WINZ Vetting Rules

E tū, the union for security guards, says WINZ may be breaching privacy laws with its new screening process for people visiting WINZ offices. The vetting requires WINZ security guards to check photo ID and whether visitors to WINZ offices have an appointment.More>>

ALSO:

Turnbull Visit: Leaders’ Talks Cement Trade Relations, Science Agreement

Mr English met with Prime Minister Turnbull in Queenstown today to discuss common approaches to bilateral and international issues, including trade and science and innovation. Mr English also thanked Mr Turnbull for Australia’s offer of support for those fighting the fires on the Port Hills in Christchurch. More>>

ALSO:

Youth Guarantee: Upskilling Fund Used For Retraining

News that one in five of the people enrolling in Youth Guarantee already hold qualifications at the level they’re enrolling in highlights the failure of the scheme to reach the disengaged young people it was set up to assist, says Labour’s Education spokesperson Chris Hipkins. More>>

ALSO:

Port Hills Fire: Midday Update, Monday 20 February

• 9 homes destroyed
• 2 homes with partial damage. Damage includes things like cracked windows, heat damage.
• 3 properties with damage to other external structures e.g sheds or outbuildings More>>

ALSO:

Gordon Campbell: On What Trump May Mean For Us

So far not much effort has been put into tracing the possible implications for New Zealand of the stream of executive orders and tweets that have been pouring from the Oval Office. Unfortunately, we may not simply be drive-by rubberneckers at this car wreck for much longer. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news