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


What Is The Strategy To Fix The Weak Economy?

20 December 2005

What Is The Strategy To Fix The Weak Economy Predicted To Get Worse Over The Next Two Years?

If the worst effects of the gradually weakening economy are, as Finance Minister Michael Cullen seems to be suggesting, more than a year away, he should tell the market now what action steps he has in mind to modify the pressure on inflation, interest rates and other costs of doing business.

Responding to the just-released revised growth forecasts of higher mortgage rates and petrol prices, fewer new jobs and slower wage growth, Michael Barnett, chief executive of the Auckland Chamber of Commerce, suggested three positive steps the Government could take immediately to modify the downturn’s impact:

Put a freeze on new Government charges and levies, and block increases in existing ones;

Impose legislation to prevent local bodies raising rates beyond the Reserve Bank’s 3% inflation guideline; and, Take steps to eliminate Government profiteering from the increased tax revenue generated from rising petrol prices.

On the other hand, if Dr Cullen is expecting that Government revenue will reduce next year because the impacts on businesses are already starting to bite and therefore tax revenue is predicted to be lower than in recent years, Dr Cullen should tell us the messages he will be passing on to Government agencies of what action they should take to:

Reduce the costs to business of the 40 percent share the Government sector has in the economy; and, Increase the volume and value of exports, and also increase New Zealand’s foreign exchange earnings over the next two years.

“We shouldn’t have to wait until next year’s Budget for these action steps,” said Mr Barnett.


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... 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>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>