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Labour joins Greens in exchange rate call

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Labour joins Greens in exchange rate call

3News NZ

Prime Minister John Key said on Tuesday the dollar was high because of weak US and European economies

Prime Minister John Key said on Tuesday the dollar was high because of weak US and European economies

Labour and the Greens are calling on the Government to control the exchange rate.

They say exporters are being crippled by the high kiwi dollar and businesses will go bust if the Reserve Bank isn't given new intervention powers.

Labour's finance spokesman David Parker says simple changes like broadening the bank's objectives beyond just controlling inflation, and giving exporters a voice on its board, would help.

Greens co-leader Russel Norman has a Statistics NZ survey showing 45 percent of businesses cite the high exchange rate as a major barrier to growth, while only 13 percent say foreign tariffs are a problem.

"The Government has spent too much time pursuing free trade agreements when it's the high and volatile kiwi dollar that's affecting export businesses the most," he said.

Dr Norman says there's no quick fix, which is why there has to be a policy debate.

Prime Minister John Key, who is visiting Indonesia, said on Tuesday the dollar was high because of weak US and European economies.

He told reporters the Government was considering "what we can do to resist a rising exchange rate".

Mr Parker says making observations on the problem don't help.

"Change is obviously needed, but despite his posturing John Key's policies remain unchanged and inadequate."

NZN

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Comments

20/04/2012 12:46:42 p.m.

Tweety wrote:

Surprisingly David I have to agree with much of what you are saying. The Tax cuts I support we're for the earners of around the $100,000. But we must also realize that if Businesses both large and small go broke, even more jobs will be lost. I have owned a small business employing 5 people. I worked very hard, 45 hours a week and after costs I was lucky to get enough money to fill my car with as. People Whinge about what you charge them, even though you struggle keeping prices down, but they forget how much is going to the Government and the local Council. I really don't think people laugh at us but I do believe they think for what NZ has we certainly don't take advantage of it. I recently had a much enjoyed trip down the Haast and then up through Central Otago and I was overwhelmed by the beauty of our Country. Yes, we do always end up with bad governments, unfairness and throwing more Benefits at people is not improving a thing. The shortage of the world is food. NZ has the resources to produce enough to solve this problem. The same as Aus has the resources to provide Coal and Iron Ore to the World. I actually wrote to John Key and gave him figures and the World food need. I, as expected, didn't get a reply. But really, do you think there would be any Beneficiaries prepared to get out and work in the fields, they can't even get NZers to pick the fruit off the trees. A serious Government would look at every Beneficiary, at every Government Dept and improve efficientcy. Why do we need Women's Affairs, Maori Affairs, and all the other good for nothing Govt departments. Go back to what we had in the 60s and rid us of the high price Departments that are hangouts for Politicians mates. Yes, we must have Benefits, they are definately needed but not for Malingerers. Pay genuine people more. And I guess you will agree that these people, Sirs and all that deceived people with investment Companies should be stripped of everything they own and the Investers paid the money. Including what they have stashed in Family Trusts. It shouldn't be left to the Tax Payers to pay the Investers. But what Government would do that, not this one and certainly not the one you support.

19/04/2012 11:57:43 p.m.

David wrote:

You do understand that even before the recession and Nationals tax switch... New Zealand actually had one of the lowest tax rates on the wealthy? Nationals tax switch was about greed... citing a failed economic theory referred to as trickle down economics... a theory that people around the world have laughed at for decades now... as the one thing that stops that theory working is greed of the wealthy. I know business owners that are breaking the law now... those who receive government funding but misrepresent their entitlements. They steal more tax payer funds per year than all the beneficiaries supposedly ripping the system off. National is feeding the wealthy and business corporate welfare. And incase that wasnt bad enough it is bad mouthing the poor.. attacking the sick and trying to make out that the recession is the poors fault... not the thieves that have been stealing from the public trough calling themselves consultants or mid level management.. where the most economic harm has come from. No tweety... when the country is bleeding money.. you dont give tax cuts to the wealthy.. thats extreme stupidity... as is trickle down theory in general. I know of one private company that has access to public funds who was found guilty by the serious fraud office last year of deliberately misrepresenting their entitlements and claiming money from the Ministry of Education that the werent entitled too... the company owner isnt in jail and is still carrying on the same behaviour a year later. The overpriveldged dont deserve special treatment... particularly since they are the biggest criminals in our society. I have seen many National Governments.. and they all, including this one.. only reward the real criminals... while pretending none of the rest of us exist. Key is the worst Prime Minister I have ever seen in my opinion... but thats what I expect from a corporate Lackey.

19/04/2012 6:21:34 p.m.

Tweety wrote:

David, try looking at working for families, interest free student loans, free child care, just a few that haven't helped economics in NZ. I do believe National should never have agreed to bail out failed finance companies. Especially to pay the Investers their money and include interest. To lower the Tax rate was not a bad thing. It was a fact the top earners were paying far to much Tax. Labour raised taxes during their 9 years merely to give bribes to their voters to stay in. That is why they created working for families, they created more Beneficiaries. You may not realize that the person who furthers their education and say earns $90,000 pays 38 cents in the dollar for a large part of his earnings, the person on $60,000 receiving working for families almost has the same take home pay. But even more unfairly, the people without children pay the most to subsidies this Benefit. Sure there was and is a recession going on, and of course we have had the Christchurch Quakes but do you not think much of the borrowing is paying for Labours legacy that they left the present Government with. I would also say to you that keep in mind, we don't vote a good Government in, we vote a bad one out. At the end of the day we really do not have much of a choice, neither care about NZ, I'm sure their fat pensions and perks are the most important things to them, but I feel as bad as this lot are it could have been worse. Look at our Politicians, it is impossible to get rid of any of them, they are there until it suits them to go. MMP means it is almost until death us do part.

19/04/2012 4:38:51 p.m.

Carlos wrote:

That is how the exchange of currencies work. The greens and labour really are dummies ?!

19/04/2012 12:16:18 a.m.

David wrote:

@Tweety How did labour stuff the country exactly? Afterall the recession and a very much reduced tax take... even lower after Nationals unsucessful tax switch.. was what created New Zealands current debt. National took power with no overseas debt, now we are up to 60 Billion in debt (all Nationals). And what I think you meant to say was... leave National to stuff it up further... afterall what have they done in 4 years to create jobs?. They even fiddled the crime statistics by leaving out Domestic Abuse... (National likes to lie and hide problems).

18/04/2012 11:10:39 p.m.

Tweety wrote:

Leave the dollar alone. Start playing around with it and no one will trust it and we will just go further backwards. A message to the Greens and Labour, do something to get NZ out of the crap, don't bury us further in it. 9 years of Labour has already been a disaster for the Country. Just go away and save the snails, and leave the National Govt to run the Country.

18/04/2012 3:38:25 p.m.

Roger wrote:

Our dollar is to high, what a load of, well maybe its because the bottom has fallen out of the US economy, and their $ isn't worth jack, if we were not pegged to the US$, and were able to pay for oil in another currency it would come back, but as we are dictated to by the US $ controling won't make any difference

18/04/2012 11:53:45 a.m.

matty wrote:

@ David. Please keep your comments civil. Everybody appreciates differing opinions on these boards, and it's fine to disagree. But please stop the personal attacks, as it's offensive and doesn't help your credibility.

18/04/2012 10:14:26 a.m.

nigel wrote:

Dr Norman I can speak about this being a regular importer and seller of goods. When the exchange rate is high it is only a reflection of the global economic climate. You may think it is great for me as an importer but I’ll tell you what happened and is happening. My overseas suppliers put their prices up twice last year as their currencies devalued, effectively then I am still paying the same in NZ dollars as I was when our exchange rate was much lower. So the same must apply to exporters in reverse their goods must be worth more on overseas markets in overseas currencies because goods prices in those currencies have risen. The exporters are having you on Dr Norman, if they can get you to artificially fix the currency lower than its market value, they make more money than when it was actually lower based on global factors. Moreover any exporter that cannot compete properly now couldn’t compete properly before and shouldn’t be in business. There will be exceptions but in general I am correct, as is the National government on this one.

18/04/2012 10:12:27 a.m.

SG wrote:

David, at least Mike makes an intelligent argument rather than just trying to make personal attacks. Try actually saying something coherent and people may listen to you. I doubt you will though as no doubt you are in the same economic dreamland as the others who just want to put their hands out but are not prepared to actually do anything to help themselves, or the guy down the street, like most of us do.