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John Key’s only plan to reduce the exchange rate and help our exporters is to ask currency traders to play nicely, says Labour’s Finance spokesperson David Parker.
“John Key is firing blanks on the dollar. Our exporters need constructive plans to make the dollar more competitive and stable, not just words. John Key tried this before. The traders didn’t listen then and they won’t now.
“Countries around the world are ‘cheating’ by manipulating their exchange rates. It’s a race to the bottom with many countries needing low currencies to export their way out of this crisis.
“Our exporters are cutting jobs and shutting down because they can’t compete against low overseas exchange rates. We need to take action on the dollar.
“Labour has a three-pronged plan to for a stable and competitive currency.
“We will help New Zealanders save more so that we don't put pressure on the dollar by borrowing too much.
“Pro-growth tax reform will reduce pressure on interest rates from housing price bubbles, and help to take pressure off the dollar.
“We will reform the Reserve Bank to focus more on exporters’ needs. Our Reserve Bank Act was written in a time when the main economic threat was inflation, now the threat is stagnation and a competitive dollar is needed.
“Labour’s modern economy will give exporters the best chance to compete overseas, create higher-wage jobs and provide more opportunities for New Zealanders. That will mean we can keep our talented young people here in New Zealand instead of turning them into Generation OZ.