Rising Oil Prices And Falling Currency A Global Problem - Cullen

The Minister of Finance Dr Michael Cullen, reports his visits to German financial institutions in Frankfurt were worthwhile and positive.

“I had meetings with Commerzbank, Deutsche Bank and the European Central Bank. Despite the vast difference in size and scale there was a common concern with us about rising oil prices and exchange rate volatility.

“The main matter of concern to me was the reinforcement of a message that trends in global financial markets outside of our control are tending to make smaller economies less attractive from a variety of perspective’s. This is entirely a matter of size.

“This makes it all the more important that we look for wider linkages, including strengthening our closer economic relationship with Australia.

“It also emphasises the importance of the government’s strategy of developing means to promote stronger sustainable export-led growth and a higher level of national savings.

Dr Cullen said New Zealand is clearly held in warm regard and there is a sophisticated understanding of both the issues we face and the policies of the present government. "Contrary to a good deal of comment in New Zealand, there was no indication of any view that New Zealand was out of step with the mainstream of developed countries.

“New Zealand, as recent decisions (such as those relating to New Zealand Steel and Watties) emphasise, remains an alternative place to invest in. But we need to move on strongly to implement the Government’s agenda for change to maintain and improve our position," said Dr Cullen.

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