The latest global dairy price forecast shows that New Zealand dairy farmers will not reach a break-even payout before 2019 at the earliest, and will not reach the dairy price factored into this year’s Budget until after 2025, Labour’s Finance spokesperson Grant Robertson says.
“The calculations made by the Government in this year’s Budget are based on OECD forecasts, including the price for whole milk powder returning to US$3,400 a metric tonne in 2018.*
Today’s economic assessment from the Reserve Bank highlights the danger to the New Zealand economy from a National government that is recklessly complacent in the face of a housing crisis and a struggling export sector, Labour’s Finance spokesperson Grant Robertson says.
“The Reserve Bank is paving the way for further cuts to the Official Cash Rate as it struggles to bring the exchange rate to a more sustainable level, and to provide some impetus to lift inflation back towards its mandated level.
The slump in dairy prices that has seen farm prices drop to their lowest level since 2012 and down a third from their peak in 2014 will be of concern to farmers, banks and our overall financial stability, Labour’s Finance spokesperson Grant Robertson says.
“Two years of below break-even pay-outs have been tough for dairy farmers, and the impact is now spreading to the value of their farms. Dairy farm prices have dropped to their lowest level since July 2012, and are down 33 per cent from their peak in October 2014.
The proposal by the Reserve Bank to tighten loan to value ratios for investors shows they are prepared to do their bit to crack down on speculators, while National is still stuck in denial mode, Labour’s Finance spokesperson Grant Robertson says.
“The Reserve Bank have followed through on the indication of tighter limits for lending to people buying their second or more property. This is the right thing to do, as nearly one in two purchases in Auckland have been made by speculators, and there are signs of the rapid price increases spreading to other regions.
Steven Joyce’s surprise announcement that Housing NZ will no longer be used as a cash cow has forced the Finance Minister to make one of National’s biggest ever U-turns, Labour’s Finance spokesperson Grant Robertson says.
“After years of insisting the dividend was necessary to ensure the Corporation was financially disciplined, Bill English suddenly decides -- two days after Labour announced it would forego the dividend – it’s not needed.
Labour’s comprehensive plan to fix the housing crisis has left National Ministers flailing about, contradicting themselves and simply making things up, Labour’s Finance spokesperson Grant Robertson says.
“Steven Joyce has said in one breath that Labour’s plan represents a minor tweak of the Government’s current work, and also that it cannot be done. He is all over the place, because he knows that Labour’s plan is actually the clear and decisive response to the housing crisis that National has failed to provide.
John Shewan’s report into foreign trusts is a rebuke to John Key and the National Party who have protected an industry that has damaged New Zealand’s reputation, says Labour’s Finance spokesperson Grant Robertson.
“Three years ago the Inland Revenue Department warned National Party ministers that New Zealand’s reputation was being damaged by our loose and secretive foreign trust regime. The foreign trust industry used their influence through John Key to stop the IRD’s work in this area.