Has Labour changed their policy regarding exchange rates?

Labour and David Shearer have been banging on forever about the exchange rate being too high. That we needed to come down urgently in order to kick start the economy.

Yesterday on Q+A though he said the exact opposite, and he even stopped Susan Wood from interrupting so he could make the point:

SUSAN         But give me some specifics here of what you would do. We know what this government is doing. How would you raise a couple of billion to get the books back in balance?

DAVID          Well, what I’m saying is that what we need to do is to grow the economy in a way that it’s not growing at the moment, and we’ll be talking about Tiwai Point in a little while…one of the big problems about – no, no, let me finish – one of the biggest problems about that is that the exchange rate is so low that we’re seeing many of our businesses actually going out of business because they’re not being able to succeed. We’re not putting our money in the profitable sector; it’s going into the property market because we don’t have a capital gains tax that will help us direct money into those areas. And if you’re wanting to raise money, then at least put money into businesses- invest in businesses through the incentives of capital gains, and that brings, obviously, money into the government as well. 

At first glance I thought the transcript was wrong, so I went and watched the video at TVNZ OnDemand…and no there it was…the very words of David Shearer saying that “one of the biggest problems about that is that the exchange rate is so low that we’re seeing many of our businesses actually going out of business.”

Really? So low?

dollar

 

At what level does David Shearer want the dollar? Parity? higher?

Is this really a change of heart for the Labour party? Remember he interrupted Susan Wood to really make this point.

If a leader of a party can’t keep his own party’s policy straight in his head, forgets banks accounts with 7 figure sums in them…well I’m not sure he is fit to be a leader.

There is a big difference between calling for the exchange rate to be lower for months on end and then claiming that the exchange rate is so low that it is costing Kiwis jobs.

In this instance we really are better off having the country run by a currency trader at least he knows up from down.


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

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