Doing nothing on the NZ dollar not an option
 
FIRST Union has welcomed a further contribution to the monetary policy debate, as consensus grows that our current monetary policy settings are broken.
 
The Green Party has today released monetary policy proposals to give the Reserve Bank a broader mandate, introduce a capital gains tax and bring in quantitative easing through government purchasing of earthquake recovery bonds.
 
“Sitting on our hands and doing nothing about the high New Zealand dollar is not an option,” said Robert Reid, FIRST Union General Secretary.
 
“There will be plenty of views on how to deal with the high dollar, but shirking away from a meaningful debate on alternative monetary policy settings that support jobs in manufacturing is not good enough.”
 
Opposition parties, unions, researchers and some business representatives with a better grip on real economy are driving this debate, but the government needed to front up also, Robert Reid said.
 
“Manufacturing is New Zealand’s third largest employing industry, but workers in the sector have been paying the price for government inaction through job losses.”
 
“These workers deserve a proper debate about our failed monetary policy settings, and the Greens have made a good contribution to this.”
 
Robert Reid said that in addition to monetary policy changes, the government should also consider other ways to help industry and its workforce, including better use of government procurement and former MSD initiatives such as temporary Job Support Schemes, brought back in for sectors facing significant redundancies.
 
ENDS

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