Reserve Bank Act Overhaul

Reserve Bank Act Overhaul

Many economic experts, including the IMF, believe the New Zealand dollar is overvalued by at least 20 per cent.

It is damaging manufacturers and exporters, causing firms to shut down, and putting thousands of New Zealanders out of work.

Our Private Members Bill – the Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill – would provide the bank with the flexibility it needs to properly manage our dollar and create a prosperous and stable economy.

Where we've got to
  • Our Private Members Bill was drawn from the ballot in 2012. It was defeated at the First Reading by one vote. 
  • The Bill was resubmitted into the Member's ballot in May 2013. It had its First Reading in November 2013 and was defeated 59-61. 

 

What's next
  • All our MPs are focused on generating political support for the Bill to pass
  • We are lobbing key organisations and commentators for their support

History

The Reserve Bank Act 1989 had a primary focus of keeping inflation at low, defined levels. That, according to experts, was achieved more than 20 years ago. The biggest challenge the bank now faces is our seriously overvalued dollar which is damaging our economy. But the bank’s focus is still on holding inflation and lacks the flexibility it needs to address our overvalued dollar. Our Private Members Bill will provide that flexibility.

Why you should care

Our overvalued dollar has resulted in the loss of 20,000 manufacturing jobs since 2008, and is estimated to have resulted in the loss of export profits amounting to $10 billion over the same period. Job losses have been increasing over the past few months with at least 600 gone since July. Our Bill will assist in the creation of jobs and put more money in workers’ pockets.