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


Dr Cullen Asked To Explain What He Means

26 June 2002

Dr Cullen is confused about what message he is trying to send about the Reserve Bank and its mandate to maintain price stability, says National's finance spokesperson David Carter.

"The confusion he is creating is harmful to New Zealand's international reputation. On one hand he sounds like he wants the Reserve Bank to be more flexible, but then on the other side that he won't tolerate more inflation. Please explain what do you mean Dr Cullen.

"This morning Dr Cullen was critical of the Bank "squeezing the last bit out of inflation" in aiming for 1.5%. The fact is the Bank has never been that rigid. That's why over the last 10 years; inflation has actually averaged 2%.

"When that was pointed out to him, Dr Cullen suggested that meant the Reserve Bank had failed. Come on Dr Cullen - you can't have it both ways.

"Labour's Finance Minister and other advocates of "just a little bit more inflation" need to explain how that will lead to higher growth and lower interest rates.

"Seems to me this is all a tactic aimed at diverting attention away from the fact that Dr Cullen and the Labour Party have no idea about how to achieve higher growth - so that when growth slows in the next few months - they can just blame the Reserve Bank.

"If Dr Cullen is serious about higher growth, he should start talking about the things that matter, and that he can actually influence, like the regulatory environment, compliance costs, the tax burden, what's happening (or not happening) in schools, infrastructure and the quality of Government spending and investment.

"These are the things that matter when it comes to growth. Being tolerant of more inflation is simply a recipe for lower growth, higher interest rates and a further decline in our living standards," says David Carter.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news