14 October 2005 Statement

Bollard comments welcomed

Finance Minister Michael Cullen today welcomed the speech by the Reserve Bank Governor Dr Alan Bollard, and its strong warnings about the levels of borrowing and spending.

“Dr Bollard's comments are very timely. They emphasise the importance of what I have been saying for some months about the need for the government to maintain a strong fiscal stance in the face of a large current account deficit and inflationary pressures.

“It is clear that major priorities for the new government will include continuing to take significant measures to improve our overall savings rate, lift productivity and increase exports.

“At the same time the financial sector can help by taking a firmer stance on borrowing for consumption purposes,” Dr Cullen said.

ENDS

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