The National Government has no solutions to tackle the serious risks to the economy identified by the Reserve Bank today, Labour’s Finance spokesperson David Parker says.
“Reserve Bank Governor Graeme Wheeler this morning highlighted falling dairy prices, declining log exports, strong immigration and high house price inflation as factors threatening the economic recovery. The Governor also noted that the exchange rate was at an unsustainable level.
“The quarter-point rise in the Official Cash Rate to 3.25 per cent means mortgage interest rates are well on their way towards 9 per cent.
“These pressures will add to the increasing cost of living. Kiwis know times are tough when 46 per cent of working New Zealanders have had no increase in their wage rate in the past year.
“National’s tool box is empty.
“Conversely, Labour has ideas to curb all these risks.
“Interest rates are going up because house prices are out of control in Auckland.
“Labour will take the pressure off house prices by clamping down on speculators, taxing capital gains, building 100,000 affordable homes and banning foreign buyers from purchasing houses.
“Our economic upgrade in the forestry sector will transform log exports from volume to value and create sustainable jobs in the process.
“Under Labour’s universal KiwiSaver there will be more savings and less inflation. Lower interest rates will take the pressure off the exchange rate which will mean more well-paying jobs.
“Labour has the answers that are needed. We will work with industry, boost investment and support innovation to create better jobs and higher wages,” David Parker says.
12th June 2014 Media Statement