Thursday 7th Sep 2000

Richard Prebble

Media Release -- Economy

This afternoon the New Zealand dollar fell to its lowest level ever, said ACT Leader, Hon Richard Prebble.

Today’s trading on the Foreign Exchange markets saw the dollar fall to below US41.88c.

“The dollar has fallen further than any other currency in the world except the Zimbabwean dollar and the Ecuadoran sucre.

“The level of the Kiwi is near crisis level. This means a further wave of price increases, lead by increased petrol prices is inevitable.

“On a trade weighed basis the Kiwi is now at an historic low. The New Zealand dollar is at its lowest ever level against the Yen which means all Japanese goods must increase in price.”

ACT has been told by the financial market that foreign investors are not investing in New Zealand. This is compounded by the fact that thousands of New Zealanders continue to take their money off shore.

“The country is paying a very high price for anti-business laws like the Employment Relations Act. It appears just a question of time before the Reserve Bank is forced to hike up interest rates to protect the Kiwi dollar from a total melt down

“Statements like ‘we won, you lost, eat it’, from the Finance Minister do enormous damage to the economy. Michael Cullen should step aside and allow Phil Goff the opportunity to re-establish business’ confidence in this coalition government,” said Hon Richard Prebble.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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