Asset sales push up energy costs

The economy is mired in low-growth because of out of date policy, Labour’s finance spokesperson David Parker said today following the release of the latest CPI figure.

Meanwhile, electricity prices are some of the fastest rising in the country because of planned asset sales.

“Electricity prices rose 4.5 percent in the June 2012 quarter - that’s much faster than other parts of the economy because the Government is getting the big publicly-owned generators ready for sale.

“When the electricity assets are sold, everyone will pay more for their energy.

“Other prices are more consistent with a struggling economy rather than a healthy one.

“Inflation is being kept down by our high dollar. Electricity prices are not subject to international competition. While they are rocketing up, the high exchange rate is holding back growth and destroying jobs.

“Exporters and businesses that compete with imports are closing down and laying off staff.

“Just last week 61 jobs were lost at South Auckland engineering firm Flotech after the company said that the strength of the New Zealand dollar had been ‘unhelpful.’

“The Government’s lack of action to grow our exports and jobs in those industries is starting to bite.”