Action not posturing needed for exporters and NZ economy

John Key’s belated observation that the high New Zealand dollar is overpriced to the detriment of our exporters is not news to exporters or Labour, says Labour’s Finance Spokesperson David Parker.

“Observation is one thing, action is another. Labour believes action, not posturing, is needed for exporters and New Zealand’s economy.

“Recent studies have shown that the volatile nature of the New Zealand exchange rate is making it harder for our exporters. This is one of the reasons our economy isn’t making the gains it should be.

“When our exporters fail we don’t get the job creation or growth we need to dig ourselves out of the economic hole we are trapped in.

“Change is obviously needed. But despite his posturing, John Key’s policies remain unchanged and inadequate.

“Under the current Government’s settings, we’re set to become more indebted as a country and more profits will flow offshore to foreign owners. New Zealand will only continue to get poorer with the sale of New Zealand assets to foreigners.

“Labour is focusing on the issues that are holding the economy back. Simple changes, like broadening the objectives of the Reserve Bank Act and giving exporters a voice on the Reserve Bank Board, would help make a difference. But alone it will not be enough.

Labour’s approach will help exporters create jobs and keep profits in New Zealand by:

• Increasing the level of investment in our businesses through increasing our savings. This would also help take pressure off the dollar and New Zealand interest rates.
• Pro-growth tax reform will also help drive investment into the export sector and take pressure off the exchange rate.

“John Key’s concern about the dollar is not backed by any step to address the problem. Once again, he has shown that the National Government has no adequate plan to grow our economy.”