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

 


New thinking on monetary policy welcome


New thinking on monetary policy welcome

“We welcome the new thinking on monetary policy and the exchange rate from Labour. It is long overdue”, says CTU economist Bill Rosenberg, commenting on Labour’s release of its monetary policy.

“We support Labour’s proposal that New Zealand should join countries including Australia, Canada and the US in having broader objectives for the Reserve Bank. The objectives should include the exchange rate, employment and a sound economy. The Reserve Bank also needs a broader range of policies to use to achieve those objectives. Reducing the need to raise interest rates will be very helpful in bringing the exchange rate to a more realistic level. In addition to Labour’s new policy to use Kiwisaver contributions as a demand management tool, it is important that the Reserve Bank consider other policies being used increasingly internationally to manage capital flows into the country, and to target areas of price increases such as housing rather than damaging growth in the whole economy.

These policies need to be accompanied by supportive Government action such as to provide low cost good quality housing aimed at first home buyers and providing a better deal for the increasing numbers of people who rent. A capital gains tax would also help.

“We also welcome Labour’s support for making Kiwisaver compulsory. We advocate moving to 6 percent employer contributions, 2 percent from employees and 2 percent from the government, with provision for continuing government contributions for people out of paid work such as caring for children. We recognise however that these contributions may be difficult for people on low incomes and advocate an increase in the minimum wage at the time when it is brought in, to ensure low paid workers can afford to save for their retirement.

Rosenberg says that criticisms of the scheme as being hard on low income workers can be met in a variety of ways such as a rise in the minimum wage, availability of exemptions or a progressive, scaled approach to increases in contributions if called for by the Reserve Bank. He points out that high interest rates also impact on low income workers. The solution is to deal with low income.

“This needs to be seen in a broader context. Labour and the Greens are committing to a range of policies that would help low income workers such as much more effective collective bargaining, a higher minimum wage, and support for the Living Wage for government workers. Their industry policies are likely to encourage the establishment of better jobs, and if their policies manage down the exchange rate, that will help too.”

These policies contrast with the current Government which raised GST, which hits low income households hardest, and cut taxes for high income earners much more than for low income workers. Its income tax changes increased the difference in take home pay between a person on $30,000 a year and someone on $150,000 by over $135 a week.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

  • Govt Probed Over Health & Safety
  • Questions and Answers 28-05-15
  • Week in Parliament 22-05-15
  • Saturday Sitting
  • House Rises At Midnight
  • Telco Levy Bill Passes
  • Telco Levy Bill Completes First Reading
  • Social Housing Bill Passes Under Urgency

  • Labour Party: McCully Doesn’t Deny Bribe In Saudi Sheep Scandal

    “In Parliament today I asked Murray McCully directly: Why is he the first Minister in history to back a multi-million dollar facilitation arrangement which in other jurisdictions is called a bribe? says Labour’s Export Growth and Trade spokesperson ... More>>

    ALSO:

    Welfare: Closure Of Relationships Aotearoa

    The Aotearoa New Zealand Association of Social Workers (ANZASW) Chief Executive Lucy Sandford-Reed is concerned about the closure of a national service which provides a wide range of services to rural and urban communities throughout New Zealand. More>>

    ALSO:

    TPPA: University Of Auckland Warns Of Negative TPP Impact

    The University of Auckland May 20, 2015 University of Auckland Warns of Negative TPP Impact With the Trans Pacific Partnership (TPP) negotiation drawing to a close, the University of Auckland has expressed serious concerns about its potential implications. ... More>>

    NZ Flag: Flag Referendum Gets Hit Hard In New Poll

    The latest Campbell Live text poll confirms it is time for the Prime Minister to listen to the public and shelve his flag referendum, says the New Zealand First Leader Rt Hon Winston Peters. More>>

    Gordon Campbell: The Government’s Belated Moves On Property Speculation

    Is it a property tax on capital gains or a capital gains tax on property? The Jesuitical distinctions in the government’s spin about its latest moves on property speculators are all about whether the government can claim that it jumped, or confess that it ... More>>

    Grant Robertson:
    Key Can’t Just Be Prime Minister For Parnell

    John Key must show New Zealanders in next week’s Budget that he is more than the Prime Minister for Parnell, and is also the Prime Minister for Pine Hill, Putararu and Palmerston North, Labour’s Finance spokesperson Grant Robertson says. In a ... More>>


    Labour Party: More Regional Jobs Go In Corrections Reshape

    News that 194 Corrections staff are to lose their jobs will have ramifications not only for them and their families but for the wider community, Labour’s Corrections spokesperson Kelvin Davis says. Prison units at Waikeria, Tongariro and Rimutaka ... More>>

    ALSO:

  • NZ First - Prison Job Losses to Send Money Offshore
  • TPPA: ‘Team Obama’ Regroups On Fast Track, Still Not Deliverable

    ‘After yesterday’s stinging and unexpected defeat for the Obama administration’s attempt to advance Fast Track legislation in the US Senate, Senate leaders have worked up a compromise they think will get them past this blockage’, according to Auckland ... More>>

    NZ Government: 5,500 More Doctors And Nurses In Our Hospitals

    Health Minister Jonathan Coleman says a record number of doctors and nurses are working in District Health Boards across the country. More>>

    Controller and Auditor General: Katherine Rich Conflict of Interest Decision

    We are writing to you about a matter that has been raised with us by members of the public. More>>

    ALSO:

    Budget 2015: Andrew Little On The 2015 Budget

    Speaking to the Chamber of Commerce, the Labour opposition leader attacked the government’s approach to economic issues facing New Zealand. He said they have been “more than reckless in their complacency” and “the next week’s budget will do nothing ... More>>

    Defence Force: NZDF Building Partner Capacity Mission Personnel In Iraq

    NZDF Building Partner Capacity Mission Personnel in Iraq The New Zealand Defence Force Building Partner Capacity training mission contingent is in place at Taji Military Complex in Iraq. The Chief of Defence Force Lieutenant General Tim Keating says the ... More>>

    PM Press Conference: ACC Levy Cuts Announced

    In a press conference this afternoon in Wellington, ACC Minister Nikki Kaye proposed $500 million worth of ACC levy cuts. More>>

    Quakes: New Process For Red Zone Crown Offers

    Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news