Agenda Highlights: Anderton Says RBNZ Should Relax

See also full transcript:
Agenda Transcript: Jim Anderton & Gordon Copeland

ANDERTON SAYS RESERVE BANK SHOULD RELAX

Agriculture Minister Jim Anderton says we should relax about the current inflation rate.

Speaking today on TVOne's "Agenda" Mr Anderton said that if we weren't careful we could throw the baby out with the bath water.

"If you look at the reality that we're in now, we've got an average growth rate of about 3%, on our historical standards that's actually very high," he said.

"Our inflation rate is about 2.5% now if you look at those combinations it wouldn't exactly be a disastrous condition for everybody, so my view is we should relax a bit."

Asked if he wanted to see changes to the Reserve Bank Act, he said "if you're not careful you can get fixated on one objective and if you use one instrument like high interest rates then that tends to impact on our tradable goods sector."

Mr Anderton said that within Cabinet he expressed his view on the Bank and "full and frank" discussions took place.

ANDERTON LEADS MEAT TALKS

With reports that the country's biggest meat company, PPCS, is in danger of exceeding its banking limits, Agriculture Minister Jim Anderton says talks about meat marketing are taking place.

Speaking today on TVOne's "Agenda" Mr Anderton said he was encouraging people to have a more co-operative attitude to marketing New Zealand's meat.

He said: "I think we've learnt from the dairy industry how you know a combined approach to marketing and a more unified industry on a cooperative basis does bring benefits, and I think the meat industry is starting to realise that."

"I'm watching this space very carefully, I'm keeping close watch on it.

"I've met with representatives of the industry and I am encouraging people to think clearly about a more cooperative approach to marketing."

ENDS

© Scoop Media