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


Governor delivers verdict on Government

“The Reserve Bank’s decision to leave the Official Cash Rate at 1.75 per cent is good news for mortgagees but a long-term indictment on the Government, showing a soft private sector propped up by Government spending”, says ACT Leader David Seymour.

“Normally record low unemployment would lead to predictions of interest rate hikes, if not actual hikes. Added to that, inflation is taking off around the world and other central banks are raising interest rates. Our Reserve Bank says it ‘expects to keep the OCR at [1.75 per cent] through 2019 and into 2020.’

“Flat interest rate projections are the bank’s subtle message that this Government is slowly crashing the economy. The Bank says demand is boosted Government spending and low interest rates, but confidence is low as is new private sector investment. It is a story of Government propping up the economy but, as the saying goes, socialists always run out of other people’s money.

“Compounding the problem is the Government’s Reserve Bank Amendment Act, currently before Parliament. When conditions do soften, the Bank will have a mandate to boost short-term employment. The Government is baking in more monetary stimulus in election year, corrupting the purpose of the Bank when what we need is private sector growth.

“It didn’t have to be this way. This Government could have instilled confidence but instead chose to make abrupt and rushed regulatory decisions around oil and gas exploration and foreign investment. This Government could have practiced fiscal discipline and even offered tax relief, but instead has gone on a spree of low-quality spending on tertiary students, winter energy payments, and provincial boondoggles.

“Sooner or later, bad spending and regulatory decisions will bite this Government in the form of lower growth. The Reserve Bank is already quietly predicting it will."

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What We Could Do For Hong Kong, If Only We Dared

There has been something repulsive about PM Jacinda Ardern’s assurances that our joint 5 Eyes criticism of China’s actions over Hong Kong – and China’s harsh reaction – are all well understood on both sides. According to Ardern, it has been a case of us saying the sort of things we’ve said before, them acknowledging our need to do so, and then them responding much as we would expect them to do. All neat and tidy. Frankly, if all of this is merely virtue signalling on our part, and huffy declarations of independence on their part, then what’s the point of this diplomatic dance..? More>>


Law Commission: Recommends New DNA Laws For Criminal Investigations

Te Aka Matua o te Ture | Law Commission today released a report that recommends a new, comprehensive regime to control how DNA is obtained, used and retained for criminal investigations. The report has revealed significant gaps in the operation ... More>>


National: Leader’s Speech At Annual General Meeting

Good morning delegates. It’s an absolute privilege to be speaking as your leader. I’d like to acknowledge the party president, regional chairs, board members, National Party staff, our MPs, our candidates, and most importantly, you – the delegates, ... More>>


RNZ: NZ May Become 'Florida Of South Pacific' Without Young Tourists - YHA

The country may attract only the 'old rich set' and risks becoming known as 'boring and staid' if it targets wealthy visitors, the Youth Hostels Association says. More>>


Green Party: Announce Portfolio Reshuffle With Talented And Energised Caucus Team

“The Green Party caucus offers a breadth of talent and energy to the Parliament this term. In ten MPs you have a small business owner, a human rights lawyer, an academic, a climate negotiator, a transport planner, and so much more”, Green Party ... More>>


APEC: New Zealand Ready To Host Virtually

Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While ... More>>


Oranga Tamariki Report: Government Must Transfer Power To Māori - Children's Commissioner

The Children's Commissioner is calling for an urgent and significant transformation of Oranga Tamariki - and is telling the government to commit to a transfer of power to Māori. More>>




InfoPages News Channels