27 February 2007

Dollar Crippling Prosperous Future

The skyrocketing New Zealand dollar is of serious concern for exporters and the New Zealand economy overall, says New Zealand First primary production spokesperson Doug Woolerton.

“The persistent high level of the New Zealand dollar against the US dollar is of major concern to all New Zealanders,” said Mr Woolerton.

“The fact is that New Zealand has an export-based economy. To increase our living standards and prosperity, we must increase export volumes and returns. Instead, this is becoming increasingly difficult.

“While dairy farmers are benefiting from high commodity prices, non-dairy exporters are being crippled. When combined with rock bottom returns for sheep and beef farmers and the drought in much of the country, the increase in the dollar may drive some farmers to the wall.

“The dollar’s continuing strength is also a serious threat to our manufacturing industry. It will result in an increased exodus of manufacturers overseas, which will put many Kiwis out of work

“Even more concerning is talk by analysts that the dollar could hit 85 or even 90 cents in the near future.

“While there are a number of factors driving the high dollar our current monetary policy is a contributing factor, and it is in the national interest for the Government to act to ensure exporters are no longer collateral damage in the fight against inflation,” said Mr Woolerton.

ENDS

© Scoop Media