Migration curbs, tweaked inflation target not warranted 1 May 2015
Pattrick Smellie
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
Migration curbs, tweaked inflation target not warranted, says English
May 1 (BusinessDesk) - The government is not considering curbing immigration to New Zealand, despite its contribution to rising house prices, especially in Auckland, and the additional pressure it places on government spending in areas such as education, said Finance Minister Bill English.
Speaking to media after delivering a pre-budget speech in which he warned that achieving a fiscal surplus next year would be a challenge as low inflation saps the usual natural growth in tax revenues caused by rising wages and prices, English said that past experience showed that changes to migrant rules generally took a long time to produce any significant change in numbers arriving.
Nor did he believe there was a need to change the Reserve Bank of New Zealand's policy target agreement, which requires the bank to target an annual inflation rate of between one and three percent over the medium term. Inflation has tracked below 2 percent since late 2011 and ran at 0.1 percent in the year to March 31, influenced largely by plunging oil prices and the strong New Zealand dollar.
"I don’t see any reason to change the agreement," he said, while acknowledging inflation had been below the target for "a wee while". "It’s based on the idea that 2 percent, the mid-point of the band, is a sort of healthy level of inflation."
The Reserve Bank was "driven by the facts rather than the government’s opinion and they’ve shifted their view a bit in recent times based on their view about the outlook for the global economy and our economy. This is really a matter of how long it goes on for, isn’t it? We’ve turned out to have lower inflation than expected and it’s more persistent than expected and if it stays long for some time yet, my guess is the Reserve Bank would shift its view again."
On migration, English acknowledged that ongoing weakness in the Australian economy was likely to see record net migration figures continue for some time in New Zealand.
"Immigration numbers are a bit like interest rates," said English. "They’re a bit out of the ordinary and we expect them to stay out of the ordinary for a while. We expected immigration to ramp up and we thought it would peak and drop off pretty quickly. That hasn’t happened. It’s been maintained.
"That does put pressure on government spending. We need a lot more classrooms and we’ve got to pay for those.
"If you think those numbers have been driven by the relative performance of the Australian and NZ growth rates, then yesterday a significant Australian bank lowered their growth forecasts for Australia, so that would tell you we’re likely to have similar flows for a while and not have a sharp peak," said English.
"I think as everyone understands, that puts more pressure on some issues like housing, but it’s generally good for the economy. It’s a problem of success."
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more