Rt Hon Winston Peters
New Zealand First Leader
7 February 2013

Reserve Bank Amendment Bill Back In The Mix

New Zealand First says predictions that our seriously over-valued dollar will reach US90 cents is further cause for an urgent overhaul of the Reserve Bank Act (RBA).

Rt Hon Winston Peters has resubmitted into the Member’s Ballot the Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill (No 2) to expand the Bank’s focus.

“Our seriously over-valued dollar is doing all sorts of short and long term damage to our economy.

“One of the latest examples in a long list is the closure of Summit Wool Spinners in Oamaru with the loss of 192 jobs.”

Mr Peters says the current RBA inhibits new ideas on managing the exchange rate.

“Our Bill is not prescriptive – it gives the Bank the scope, the flexibility and the freedom to explore new ways of achieving a realistic exchange rate.

“Central banks internationally are changing their rules, locking the world into a new economic era.

“But New Zealand is reliant on a model which focuses solely on the rate of inflation which hasn’t been a problem for years. The RBA is well past its use by date.”

Mr Peters says the original Bill last year missed by just one vote in Parliament to go to the Select Committee stage.

“That indicates a large measure of support exists among parliamentarians. That comes as no surprise given that the Government offers no initiatives or ideas about how to tackle the high Kiwi dollar.”

nzfirst.org.nz | twitter.com/winstonpeters | facebook.com/winstonpeters

ENDS

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