Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Inflation figures show need for a Green Investment

21 October 2008

Inflation figures show need for a Green Investment Plan

The Green Party is renewing calls for a green public investment plan, in light of the highest inflation figures in 18 years - driven by high oil prices.

A green investment plan would invest in projects to make New Zealand less dependent on oil, reduce our greenhouse emissions, use our resources more efficiently and keep people in work and business in business.

"Now is the time to speed up the rebuilding of our rail system to reduce the need for energy intensive trucks; to invest in Auckland's commuter rail system so people need their cars less; to build energy efficient, medium density state housing close to improved public transport; to spend the Greens' billion dollar fund making homes warm, dry and energy efficient, employing thousands of people in every community, not to cancel it as National wants to," Green Party Co-Leader Jeanette Fitzsimons says.

"Today's inflation figure of 5.1 percent shows the impossibility of controlling inflation by raising interest rates. Inflation is no longer just the result of economic boom-bust cycles but is driven by the fact that the world is reaching the limits of key natural resources."

"The most obvious one is oil, but fresh water is getting scarcer in many places and fisheries are over-fished. We have reached the atmosphere's limit to absorb greenhouse gases and internationally there is now a cost to emitting carbon. Together these are driving rocketing food prices and are a major component of inflation.

"This inflation figure is likely to be the peak for the moment as oil prices have dropped off but oil prices will continue their long term upward trend in the near future, once again putting pressure on inflation and hence interest rates.

"A green investment plan would have a triple effect:

* Firstly, it would address the current financial crisis by stimulating demand in the economy and employing workers in the building and construction industry which is facing a downturn.

Secondly it would prepare the New Zealand economy for inevitably higher oil, resource and carbon prices.

* Thirdly it would help insulate the New Zealand economy from further inflationary shocks as a result of rising resource prices.

"The side effects would be cleaner air from less fuel burning; a more secure energy supply; healthier people in healthier homes; and more transport choices with less congestion," Ms Fitzsimons says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Juggling Covid, And France’s Trump-like Populist

It is the age-old Covid problem. How to balance the needs for firms (and schools) to re-open against the need to protect public health. In the past, the balance has been struck by insisting that the best public health outcomes also deliver the best economic (and educational) outcomes. While that may still be objectively true, it is no longer a politically tenable position... More>>

Covid-19 & Education: NCEA And NZ Scholarship Exams To Proceed

NCEA and New Zealand Scholarship exams will proceed, including in areas where Alert Level 3 has been in place, Education Minister Chris Hipkins said today. “The New Zealand Qualifications Authority, Ministry of Education and Ministry of Health have been working together to ensure exams can be managed in a safe way, so students have the opportunity to demonstrate what they have learned... More>>


Ombudsman: Launches Investigation Into MIQ Booking System
The Chief Ombudsman Peter Boshier is launching a broad investigation into the Managed Isolation and Quarantine (MIQ) booking system after receiving hundreds of complaints... More>>


National: Launches Back In Business Plan

Leader of the Opposition Judith Collins has today launched National’s detailed plan to save livelihoods and unleash our economy in the face of the huge damage being wrought by the extended Covid lockdown... More>>


Pay Cheque To Pay Cheque: Half A Million New Zealanders Have No Savings
New findings from the Consumer NZ sentiment tracker found that 15% of New Zealanders had no savings, and a further 27% were anxious about their level of savings and would like to have more tucked away... More>>

Government: Mandatory Vaccination For Two Workforces

Large parts of two workforces critical to preventing the spread of COVID-19 will be required to be vaccinated, COVID-19 Response Minister Chris Hipkins said today. “Our education and health and disability workforces have done an incredible job throughout this pandemic to keep themselves and people safe,” Chris Hipkins said.... More>>

Green Party: Deeply Concerned Space Launches May Be Breaching Nuclear-free Laws

The Green Party is deeply concerned that space launches by Rocket Lab may be breaching nuclear-free laws, given our long-standing position as a signatory of the Nuclear Non-Proliferation Treaty... More>>




InfoPages News Channels