Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Broad Support For Svensson Review Changes To RBA

"The Government has cross-party support for a series of minor changes to the Reserve Bank Act arising out of the Svensson Review of the Operation of Monetary Policy," Finance Minister Michael Cullen said today.

"I welcome that as political consensus and stability are important in this area," he said.

The proposed amendments were:
- the Bank's Board to be chaired by a non-executive director rather than the Reserve Bank Governor
- the chairperson to be appointed by the non-executive directors
- the Governor to remain a member of the Board but the two deputy governors to be removed.

Dr Cullen said the changes, which were supported by all parties in the House, would be included in the Reserve Bank Amendment Bill set down in the government's legislative programme for passage if possible this year.

"As I made clear in my initial response to the Review, the Governor will retain sole responsibility for monetary policy. But I believe there are benefits in exposing the Governor to a wider range of views when decisions are taken and have invited the Bank to consider how this might be done.

"The Bank is currently advertising to appoint one or two part-time external advisers, chosen for their broad knowledge of the New Zealand economy, to provide input into the decision-making process."

Other initiatives which did not require legislation but were being introduced to raise both the transparency of the Bank's activities and the Governor's accountability included:
- publication by the Board of an annual assessment of the Bank's performance
- consideration by the Finance and Expenditure Select Committee of the appointment of monetary policy experts to lift the committee's ability to monitor the Bank
- hosting by the Bank of a conference for the evaluation of monetary policy to be held either at the request of the Board or at intervals of about two years.

In tandem with this, the Bank was pursuing a number of technical recommendations designed to improve its macro-economic and forecasting tools and the quality of the information it was able to produce about the financial system.

"The Review found monetary policy in New Zealand already compared well with international best practice. These changes should improve it further and should reinforce public confidence in the robustness and integrity of the regime," Dr Cullen said.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Crowdsale And Crowdfunding Campaign: Help Create The Future Of Independent News

Two weeks to go! The Scoop 3.0 plan aims to create NZ’s first community-owned, distributed news and media intelligence ecosystem in 2019. We believe this ScoopPro media monetisation approach can be scaled and spread globally to support local and independent news efforts in regional New Zealand and around the world.

Scoop is an ecosystem, it would not exist without those who contribute to it, read it and rely on it for professional media purposes. Generous past support from this ecosystem has enabled us to come this far in developing our business model. Support our PledgeMe Campaign>>

 

14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>

ALSO:

Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>

ALSO:

Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>

ALSO:

Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>

ALSO:

Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>

ALSO:

Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>

ALSO:

Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>

ALSO:

"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels