Cullen Seeks Mandate to Loosen Monetary Policy

Tuesday 9 Jul 2002 Rodney Hide Press Releases -- Economy

ACT Finance Spokesman Rodney Hide said today that Michael Cullen had chosen the election campaign to launch a stinging attack on former Reserve Bank Governor Don Brash, and to push for loosening the policy target agreement.

"In the heat of the election campaign, Dr Cullen has undermined the independence of the Reserve Bank and signalled that he expects the new governor to be directed by him, with a looser policy target.

"Michael Cullen's cheap political shots run the risk of spooking investment into New Zealand, and further sabotaging our fragile economy.

"Michael Cullen has had almost three years as Finance Minister to raise these policy issues responsibly. He has not done so. He had the Lars Svensson independent review, which rejected the very views that he is now campaigning on.

"Investors can only conclude that Michael Cullen is using the election to seek a mandate to reverse the very essence of the Reserve Bank Act, which has proved one of the pillars of the New Zealand economy against the excesses of politicians. And as Michael Cullen again shows, politicians are all too ready to put short-term political gain ahead of New Zealand's medium and long-term economic interests.

"Michael Cullen proves he is an economic retard who thinks high taxes are good for the economy, and that politicians are better at running monetary policy than an independent Reserve Bank," Mr Hide said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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