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

Snowden Documents: Show New Zealand Spies On Its Pacific Friends And Sends Data To US

NZ Herald link: New Zealand's spies are targeting the entire email, phone and social media communications of the country's closest, friendliest and most vulnerable neighbours, according to documents supplied by United States fugitive and whistleblower Edward Snowden. More>>

ALSO:

Green Call For PM To Come Clean Spying

“Rather than calling the whistle-blowers names, John Key must answer: Have our intelligence agencies been collecting details about phone and internet conversations in the Pacific and passing this information to the Americans? If so, why? And crucially, have New Zealand residents been spied on too; if so, what’s he going to do about it?" More>>

 

PARLIAMENT TODAY:

Teina Pora Wins Appeal: Gordon Campbell On The Privy Council Decision

The quashing of the convictions of Teina Pora for the rape and murder of Susan Burdett in 1992 has shone a spotlight once again on a major gap in the New Zealand justice system... More>>

ALSO:

Urgent Bill Planned: MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency. More>>

ALSO:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news