Covid 19 Omicron outbreak: Greens' Chlöe Swarbrick calls for economic response inquiry

Green Finance spokeswoman Chlöe Swarbrick said the purpose of the inquiry would be to better understand the impacts of the Government and RBNZ's economic response to the pandemic. Photo / Dean Purcell

The Greens want a select committee inquiry into the economic response to the Covid-19 pandemic.

Finance spokeswoman Chlöe Swarbrick has written to Parliament's Finance and Expenditure Committee, calling on it to agree to an inquiry into the Covid-19 economic response when it meets for the first time this year on Wednesday.

The Greens have been critical of aspects of the Covid-19 economic response, in the Government's reliance on the Reserve Bank's lowering of interest rates to boost demand in the economy. This had the unwanted side-effect of pushing up house prices across the country.

In the letter, Swarbrick said the purpose of the inquiry would be to "better understand the impacts, both positive and negative, of the Government and the RBNZ's [Reserve Bank of New Zealand] response".

Swarbrick said the inquiry would provide "insights for the remaining stages of this pandemic and to respond to future economic challenges."

"We are two years into the pandemic and Covid-19 and the Government's response to it have had clear macroeconomic impacts. While our unemployment levels are low, house prices and rents have skyrocketed.

"Banks and supermarkets have reported record profits while renters, students and those with precarious incomes have felt the disproportionate impact of global inflation," she said.

Swarbrick has previously wanted an inquiry into the economic response, but one conducted by the Government, rather than a Parliamentary select committee.

But Finance Minister Grant Robertson said "a more comprehensive evaluation" of the economic response would "be considered once we are beyond the current phase of the pandemic".