High interest rates show need for Economic Upgrade

New Zealand’s interest rates are among the highest in the world and homeowners that are bearing the brunt of them should join Labour’s call for an Economic Upgrade, Labour Leader David Cunliffe says.

“New Zealand mortgage rates are higher than Australia and much of the developed world. That’s because our economy is not paying its way in the world and has major issues that need to be fixed.

“It’s Kiwi homeowners that are feeling the pinch because our current Government is asleep at the wheel.

“Higher interest rates are also bad for business with Kiwi companies having to pay more to borrow than they do overseas, holding back investment.

“National is trying to have it both ways. When interest rates are low due to a global recession they try to claim credit, yet when interest rates rise they say they are managing the economy well.

“The truth is John Key and his party are just cruising along and aren’t willing to make the necessary changes.

“Labour’s Economic Upgrade, focussing on investment, innovation and industry, will fix the major issues in the economy that hold it back and result in high interest rates.

“As part of the upgrade we will make KiwiSaver universal so banks don’t have to borrow as much from overseas.

“Our comprehensive housing policy of a capital gains tax, clamp down on speculators and a KiwiBuild home-building programme will see less money invested in housing and more into productive industries where it’s needed.
“Labour will also upgrade our out-of-date Reserve Bank Act giving the Bank a wider remit and more tools to control inflation than just raising the official cash rate.

“Every time Kiwis see their mortgage payments go out of their account they are seeing the costs of National’s refusal to make the major economic changes needed. Labour’s Economic Upgrade will make the changes New Zealand needs,” David Cunliffe says.

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