Finance

Interest rates rise but only smokes increasing

Mortgage rate rises are making life harder for homeowners, and many of them will be surprised the latest CPI figures show inflation would be zero were it not for tobacco tax hikes, says Labour’s Finance spokesperson David Parker.

“New Zealanders understand the need to keep inflation under control, but will be uneasy about their mortgage costs increasing to offset higher taxes on cigarettes most of them don’t smoke.

“Interest rates are lifted to see off forecast inflation.

SPEECH: Institute of Directors

LEADING AND MANAGING OUR ECONOMIC FUTURE

David Cunliffe MP, Labour Leader
Speech to the Institute of Directors
15 April 2014, Auckland

It's a privilege to be speaking here. The Institute of Directors has a proud history of developing New Zealand's business leadership and your alumni are guiding many of our most vital and innovative companies to great achievements.

As New Zealand’s most senior company directors, your governance role draws on the distinction between strategic leadership, and day to day management.

Books almost $1b worse than expected

Yet again the Government’s financial statements are worse than expected, raising serious questions about National’s management of the economy and its books, says Labour’s Finance spokesperson David Parker.

“In November, December, January and now February National’s books were worse than predicted. This time around they are $884 million worse, due mainly to lower than-forecast tax revenue.

One pot of gold gone, Labour will create a new one

The Financial Service Council’s savings report shows while we have lost one pot of gold, Labour’s savings policy will help create a new one, says Labour’s Finance spokesperson David Parker.

The Infometrics analysis on Labour’s 1974 New Zealand Superannuation Fund shows it would be worth $278 billion had it not been axed by National.

“Higher savings mean better paid jobs. Those missing billions would have meant higher wages for Kiwis and less reliance on foreign debt and foreign ownership as a country.

Tax and spend Nats push up interest rates

National has changed its colours and become the real tax and spend party but is trying to hide the truth through suspect accounting, says Labour’s Finance spokesperson David Parker.

“John Key clearly enjoys testing the New Zealand public’s gullibility. Yesterday he claimed that new spending under National has risen by only $250 million each year under his Government.

“How does that explain the extra $3 billion he is spending a year on superannuation compared with five years ago as just one example?

Labour fact check: Key’s twists and turns in speech

John Key has yet again twisted the figures and selectively chosen his statistics, a fact check by Labour shows, says Labour’s Finance spokesperson David Parker.

“John Key has a long history of getting away with misstatements that range from an honest mistake to worse. Today Labour is calling him out with a list of the misrepresentations in his speech.

“Labour is determined to hold John Key and his spin doctors to account ahead of election year,” says David Parker.

Key: Over the past year, for example, 66,000 more people have got a job.

National fiddles while mortgages rise

National’s failure to address the underlying issues of the New Zealand economy means New Zealanders will be paying more for their mortgages, says Labour Leader David Cunliffe.

“They are fiddling while interest rates, rents and mortgages rise.

“The Government has ignored the major issues for the economy: a distorted tax system, a pitiful savings record, funding superannuation and outdated monetary settings.

IMF says ‘ways to innovate’ on monetary policy

The International Monetary Fund has admitted the Kiwi dollar is overvalued by up to 15 per cent and suggested, while care must be taken there is room for innovation on monetary policy, says Labour’s Finance spokesperson David Parker.

“The IMF has said  the dollar is 5 to 15 per cent overvalued. That’s crippling for exporters and it’s holding our economy back.

John Key must reject Treasury’s latest burp

John Key must reject Treasury’s latest advice that public ownership isn’t the best option for our schools and hospitals, says Labour’s Finance spokesperson David Parker.

“Treasury has had another ‘ideological burp’, which the department unleashes from time to time to show just how out of touch with New Zealanders it is.

More job cuts, monetary policy upgrade needed

The loss of 70 jobs at Alloy Yachts shows the pain being inflicted on exporters by the high New Zealand dollar and the need for an upgrade of our out-of-date Reserve Bank Act, says Labour’s Finance spokesperson David Parker.

“Our overvalued New Zealand dollar is having a huge impact on manufacturers, especially those like yacht-building that rely almost wholly on exporting. In January Fitzroy Yachts in New Plymouth said it would have to close down. Now Alloy Yachts is slashing its workforce.

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