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Reserve Bank’s dairy warning must be heard

The Reserve Bank’s warning that falling dairy prices are creating greater risks for the New Zealand economy must be taken seriously by Bill English and John Key, says Labour’s Finance spokesperson David Parker.

“Dairy prices have nearly halved since February and the Reserve Bank today said a low dairy pay out could increase the number of loan defaults in coming years.

“The risk of another housing market surge and our reliance on the Chinese market are other causes for concern from Graeme Wheeler.

“These risks show an increasingly unbalanced economy based on milk powder and house sales.  

“New Zealanders will never achieve the standard of living they deserve unless we refocus our economy towards value-added exports.

“With technology making so many jobs obsolete it’s even more important the economy is run in a way that encourages investment in jobs, not speculation.

“National is not addressing the long-term challenges we face. These are problems that won’t go away,” says David Parker.