Peters Bringing Reserve Bank Act Rewrite to Parlt

Media Release

22 June 2007

Time for Talk Over – Peters to Bring Rewrite of Reserve Bank Act to Parliament

With the New Zealand dollar reaching 22 year highs overnight, crippling our export sector and further eroding our economic potential, the time for hollow rhetoric is over and real action must be taken, says Winston Peters.

"In light of this, New Zealand First will be bringing an amendment to the Reserve Bank Act, before the next adjustment to the Official Cash Rate on 26 July, to ensure that the Governor of the Reserve Bank must be cognisant of the dollar, export and economic growth among other indicators when adjusting the rate," said Mr Peters.

"It is time for the Government to share the responsibility for price stability by taking a realistic look at its own policy settings such as high immigration which is fuelling housing inflation in Auckland and elsewhere.

"By sharing that responsibility and amending the Bank’s policy target agreement to allow a broader range of economic objectives to enter the equation, the economic prosperity and welfare of New Zealanders will be put above the interests of foreign currency traders.

"Parliament now has a chance to right the wrongs of the original Reserve Bank Act, which was flawed when it was introduced and which has predictably created the huge imbalances which we see today.

"If we do not adjust our monetary policy we may as well be buying the ticket for our exporters such as Fisher and Paykel to leave.

"We call on the Government and National to take the responsible path and rewrite the Act. This is not a time for currency traders to exploit a failed policy to the detriment of our economy. It is a time for action," concluded Mr Peters.

ENDS