The Green Party welcomed today’s cut in the Official Cash Rate (OCR) but restated that the Government’s failure to take the heat out of the Auckland housing market meant risks remained for further house price increases. The Reserve Bank today reduced the OCR by 25 basis points to 2.25 percent. “We welcome the long overdue decision to lower the OCR which will be a relief to indebted dairy farmers and households paying off their mortgages,” Green Party finance spokesperson Julie...

The Government must rule out mass sales of New Zealand rural land to overseas buyers if it’s to avoid a double disaster as the dairying slump forces farmers to the wall, the Green Party says. Finance Minister Bill English this morning admitted the dairy industry is in an extreme scenario yet he had no solution to offer farmers other than that he hoped they’d “get through”. “New Zealand is facing the prospect of a double disaster as the dairying slump...

Record, excessive profits in the banking industry and the high level of foreign ownership of the banking sector is causing long-term damage to the economy, the Green Party said today. KPMG's latest Financial Institutions Performance Survey found New Zealand's banks posted record collective profits up 6.9 percent to reach an all-time high of $5.17 billion last year. Interest margins are also at ten-year highs at 2.28 percent. “The fact that over 90 percent of our banking sector is foreign-owned means...

The cost to New Zealanders of National’s asset sales has today hit $1 billion, according to figures released by the partially privatised power companies. The latest interim dividend figures from the partially privatised Mighty River Power, Genesis, and Meridian show that the Crown has forgone $945.14 million in dividends since the asset sales. The National Government spent $96 million on the asset sales programme, including bonus-share sweeteners for investors. Combined, that means the asset sales have a total cost of...

Government financial statements released today are further evidence that National is failing to manage the economy responsibly for long term stability, the Green Party said. The financial statements for six months to 31 December 2015 showed a deficit of $889 million, $92 million higher than forecast. Core Crown debt grew to $66.9 billion, $1.1 billion higher than forecast. “The latest statements show the National Government is struggling to get its books in order in the short term and in the...

National’s housing policy half-measures aren’t enough to stop the Reserve Bank keeping interest rates on hold, which in turn is holding back small businesses, the Green Party said. “If it wasn’t for the Auckland housing crisis, I’d expect the Reserve Bank to cut the Official Cash Rate to help businesses invest and hire more staff,” Green Party finance spokesperson Julie Anne Genter said. “With very low inflation, Fonterra cutting its forecast dairy pay-out, and international ratings agencies saying New Zealand’s...

More cracks are appearing in the National Government’s façade of economic management, with the Crown accounts back in deficit and international ratings agency Fitch downgrading its predictions for New Zealand’s economy, the Green Party said. “Eight years into National's reign, the Government has slipped back into deficit while net Crown debt continues to grow, because National hasn’t found a stable way to fund its spending choices,” Green Party finance spokesperson Julie Anne Genter said. “The root of National’s economic problems...

Low overall inflation provides ideal economic conditions for the Government to tackle snowballing housing costs, stagnating wages, and increasing climate pollution, the Green Party said today. The Consumers Price Index released today showed 2015 experienced the lowest level of annual inflation since 1999, at just 0.1 percent. “Relatively high GDP growth, low inflation, and low interest rates have created good conditions for the Government to invest in tackling the big economic issues like climate change and inequality,” Green Party finance...

National’s obsession with its nanosecond surplus has ended up being a lose-lose for New Zealand because it came at the price of fewer jobs and more pollution, the Green Party says. The Government’s Half Year Economic and Fiscal Update today forecast a $401 million government deficit, GDP growth slowing to 2.1%, and unemployment rising to 6.5%. This is a step backward from the Budget 2015 forecasts of a surplus, 3.2% GDP growth, and 5.1% unemployment. “National should have focused on...

With unemployment rising and the economy going off on the wrong track, cutting the Official Cash Rate (OCR) was the right decision to help small and medium-sized businesses invest to create jobs and bring mortgage payments down for families, the Green Party says today.