Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Northern EMA not credible on interest rates

MEDIA RELEASE

28 October 2005


Northern EMA not credible on interest rates

The Northern Employers and Manufacturers Association attempt to blame Government spending for interest rate rises is not credible said Peter Conway, Council of Trade Unions Economist.

“After all Northern EMA were among those supporting massive tax cuts by the National Party. Just imagine what an additional $2.2 billion from next April would do to interest rates,” said Peter Conway.

“This may have been bold politics but it was certainly reckless economics and the Northern EMA should have said so at the time.”

“The Government may have room to bring forward the much more modest bracket adjustments but the hugely inflationary cuts proposed by National were always going to be a disaster,” said Peter Conway.

Business has also been slow to support Kiwisaver, which will incentivise workplace savings and eventually help the first home buyers who are so disadvantaged in the housing market, Peter Conway said.

“We do agree that the export sector is being hurt by a combination of a high dollar and rising interest rates. If the economy does slow as predicted, then the latest rise in the official cash rate will be seen as a mistake, but it is hard to be too critical of the Reserve Bank when inflation is already at 3.4%.”

“Higher interest rates hurt workers by threatening export sector jobs, reducing investment, and also mean higher mortgage payments. It is also particularly hard on low income workers saving to buy a first home.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Lessons From Australia’s Election


Australia’s new PM Anthony Albanese faces an obvious dilemma, barely before he gets his feet under the desk. Australia is the world’s leading exporter of coal. Will the new Labor government prioritise the jobs for Queensland/NSW workers in its mining-dependent communities - or will Labor start to get serious about climate change, and risk the inevitable political backlash from making a major shift into renewables..?
More>>



 
 

Government: New Zealand To Stay At Orange For Now
With New Zealand expecting to see Omicron cases rise during the winter, the Orange setting remains appropriate for managing this stage of the outbreak, COVID-19 Response Minister Chris Hipkins said today... More>>

Australian Election: Prime Minister Congratulates Anthony Albanese
Prime Minister Jacinda Ardern has congratulated Anthony Albanese and the Australian Labor Party on winning the Australian Federal election, and has acknowledged outgoing Prime Minister Scott Morrison... More>>

Government: Helps Supermarket Shoppers Get A Fair Deal
Urgent Budget night legislation to stop major supermarkets blocking competitors from accessing land for new stores has been introduced today, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>


Government: Independent Panel Appointed To Review Electoral Law
Justice Minister Kris Faafoi today announced appointments to the independent panel that will lead a review of New Zealand’s electoral law. “This panel, appointed by an independent panel of experts... More>>


Trade: Prime Minister To Visit United States
Prime Minister Jacinda Ardern is leading a trade mission to the United States this week as part of the Government’s reconnection strategy to support export growth and the return of tourists post COVID-19... More>>


National: Jacqui Dean To Retire From Parliament In 2023

Waitaki MP Jacqui Dean has announced that she will not be seeking re-election at the 2023 election. “I have advised the President and Leader of the National Party that I have decided not to put my name forward... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels