8 December 2009 Media Statement

Manufacturers and exporters justified in slating Government inaction

Manufacturers and exporters are justifiably exasperated that the Government is not even prepared to discuss possible options to move beyond the OCR as the instrument of monetary policy, says Labour Associate Finance spokesperson David Parker.

The New Zealand Manufacturers and Exporters Association said yesterday that the association continues to be disappointed by the Government's inaction over monetary policy reform.

David Parker, whose brief includes monetary policy reform, said he sympathised with the association’s position.

“That is why Labour is now going beyond the bipartisan policy consensus on using the OCR as the sole instrument of monetary policy. We need new solutions.

“Exporters are at the mercy of a volatile exchange rate, and they will remain reluctant to commit to investment and growth without some certainty that what they commit to today in their own businesses won’t be undermined tomorrow.

“National is adept at setting up taskforces and working groups, but when it comes down to the hard job of actually doing something to help our productive sector, the Government shelves the problem.”

David Parker said manufacturers and exporters had now issued a blunt warning. “As the association said yesterday, investment by those operating in the tradeable sector will not prosper and productivity growth will continue to fall unless the policy framework changes.

“The Government is currently even avoiding joining in a dialogue with its critics.
Labour welcomes such dialogue, and will continue to promote it.”

ENDS

© Scoop Media