Facts not politics on the dollar
Despite Bill English's constant attempts to play politics with the high dollar and its impact on exporters, the facts don't back up his claims and he is once again showing his unfortunate ignorance about how the international marketplace operates, Acting Finance Minister Clayton Cosgrove said today.
"Our exchange rate is affected by movements in other currencies and the latest increase in the New Zealand dollar has in a large part been driven by the weakness in the US dollar. The New Zealand dollar has not appreciated much against the other currencies that we trade with. The high dollar is also driven by high commodity prices.
"The strong performance of the New Zealand economy in the March quarter is also likely to have attracted capital into New Zealand pushing up the dollar.
"Mr English's negative approach is not what exporters need right now as they struggle with the high dollar.
"Mr English has only one answer - cutting government spending on public services like health and education, cutting superannuation and cutting KiwiSaver. We have repeatedly asked Mr English to clarify what he would cut and he has ducked for cover, but finally today he has come clean. In the New Zealand Herald this morning, Mr English launched an unprecedented attack on older New Zealanders, suggesting that New Zealand Superannuation be cut and means and asset tested to more closely mirror the Australian scheme.
"Rather than petty politicking and threatening the financial security of older New Zealanders, Mr English should start acting with the maturity required of an opposition finance spokesperson," Mr Cosgrove said.
"Our exchange rate is affected by movements in other currencies and the latest increase in the New Zealand dollar has in a large part been driven by the weakness in the US dollar. The New Zealand dollar has not appreciated much against the other currencies that we trade with. The high dollar is also driven by high commodity prices.
"The strong performance of the New Zealand economy in the March quarter is also likely to have attracted capital into New Zealand pushing up the dollar.
"Mr English's negative approach is not what exporters need right now as they struggle with the high dollar.
"Mr English has only one answer - cutting government spending on public services like health and education, cutting superannuation and cutting KiwiSaver. We have repeatedly asked Mr English to clarify what he would cut and he has ducked for cover, but finally today he has come clean. In the New Zealand Herald this morning, Mr English launched an unprecedented attack on older New Zealanders, suggesting that New Zealand Superannuation be cut and means and asset tested to more closely mirror the Australian scheme.
"Rather than petty politicking and threatening the financial security of older New Zealanders, Mr English should start acting with the maturity required of an opposition finance spokesperson," Mr Cosgrove said.