Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Government Should Do Its Bit

6 December 2005 PR 152/05

Government Should Do Its Bit

The government could do a lot more to contain inflation, which would help keep interest rates down and take the heat off the kiwi dollar, said Don Nicolson, Vice President of Federated Farmers of New Zealand.

“Farmers’ returns are being eroded by the dollar at a 20 year high. It would be wrong to single out the government as the sole reason for the kiwi’s strength and our high interest rates, but it must shoulder its share of the blame,” Mr Nicolson said.

“Ultimately, the government should be responsible for improving confidence and reducing inflation pressure by ensuring that all its policies are working together for a common aim. This means stopping growth in central and local government spending. The government’s total spending has jumped a staggering 50 percent in the past six years.

The government must also maintain a flexible labour market, improving infrastructure, reform the RMA, and roll back compliance costs.

“Over the past few months business confidence has slumped, commodity prices have eased, and the economy has been slowing as exporters gag on the high dollar. Meanwhile, exporters are sending jobs overseas.

“While a slow-down was probably necessary to ease inflation pressures, there is now a real risk that the economy will undershoot and suffer a hard landing, especially if interest rates are ramped up further this Thursday or in the New Year,” said Mr Nicolson.

“If the government was serious about taking some heat off interest rates and the dollar, it should do its bit to hose down inflationary pressures,” he said.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>


Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>


OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>


Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>