Interest rate rise will hit the regions

The latest interest rate rise will hit the fragile regional economies of New Zealand and hurt exporters by putting more upward pressure on the exchange rate, says Labour’s Finance spokesperson David Parker.

“The regions are already hit by dropping export prices for dairy products and timber prices plus they have flat housing markets from LVRs . Now they have to endure another interest rate rise which is a direct result of the Auckland housing price bubble.

““The Reserve Bank Governor has already said mortgage interest rates will get close to 7% by the end of the year, adding $233 to monthly costs on a $300,000 mortgage.
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Manufacturing report a blueprint for jobs

Manufacturers and exporters need a smart, active government willing to make the changes needed to create better jobs and higher wages, say Labour Leader David Shearer and Finance spokesperson David Parker.

“We need a-hands on government that’s willing to put Kiwi manufacturers first. A job in manufacturing creates between two and five jobs elsewhere in the economy,” says David Shearer.
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Joyce’s stubborn refusal to accept high dollar costs jobs

Steven Joyce’s stubborn refusal to acknowledge that the currency is overvalued is costing Kiwis jobs, says Labour’s Finance spokesperson David Parker.

“Steven Joyce is far too relaxed about the crippling effects of our overvalued dollar. Despite the hundreds of jobs being lost in exporting in recent weeks he flippantly says the dollar is ‘pretty toppy at this point in time’.

“He won’t acknowledge that the dollar is too high and doesn’t reflect the fundamentals of our economy. The facts are clear. Our dollar is overvalued. That hurts business and costs jobs.

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Reserve Bank targets can’t be changed properly without amending the Act

The new targets for incoming Reserve Bank Governor Graeme Wheeler can’t properly address the biggest issue facing the export economy – the high dollar, says Labour’s Finance spokesperson David Parker.

“The high dollar is costing Kiwis jobs. National must accept that unless changes are made to the Reserve Bank Act, the primacy which by law must be given to inflation will mean inadequate attention is paid to the exchange rate. Our dollar will remain overvalued. That means more businesses will suffer and more Kiwis will lose their jobs.

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High dollar costs Kiwis jobs but National substitutes ideas for insults

National’s head in the sand attitude to the exchange rate is an insult to the hundreds of Kiwis who have lost their jobs because businesses are struggling under the high dollar, says Labour’s Finance spokesperson David Parker.

“The high dollar is costing Kiwis jobs as businesses are forced to lay off staff but National says nothing can be done. Their close-minded thinking insults the people of Kawerau, Bluff and Greymouth still reeling from major job losses.

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