David Parker
Spokesperson for Finance
12 June 2014
Government has no solutions to tackle risks to economy
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.
ENDS