Wood Processors Support Mortgage Levy Proposal

Wood processors are delighted that Dr Cullen has raised the possibility of a levy on home loans as an additional monetary policy tool to control inflation.

Wood Processors Association Chairman Dave Anderson says that the current emphasis on interest rates as a key lever in monetary policy means that exporters are bearing the brunt of the battle against inflation. Current policy drives up the value of the New Zealand dollar against the US dollar which has a significant and negative impact on the viability of New Zealand exporters.

The concern expressed by the business sector about current monetary policy settings confirms that agriculturalists and manufacturers, as well as timber producers, are all facing reduced profitability and a threat to their future viability, predominantly due to the high value of the dollar.

Exporters make a huge contribution to the lifestyle we enjoy in New Zealand. If the export sector is performing well, tax is paid to fund Government services and local service industries thrive and provide employment in rural and provincial towns. Deplete export returns and the negative effects are felt throughout the economy as it grinds down.

Mr Anderson urges Dr Cullen to move quickly on this matter, and for opposition parties to put aside political differences and do what is right for the country.

ENDS

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