Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Cullen on RBNZ briefing

22 November 2005

Cullen on RBNZ briefing to the incoming government

Finance Minister Michael Cullen today released the Reserve Bank’s briefing to the incoming government, saying it made sobering reading.

“The report identifies a series of imbalances in the economy: persistent high domestic demand, core inflation knocking 3 per cent, a widening balance of payments deficit, house prices that the Bank considers are reaching levels inconsistent with longer-term fundamentals and an exchange rate at near record highs in trade-weighted terms.

“The Bank repeats earlier warnings that further increases in interest rates cannot be ruled out and reinforces the need for the government to maintain a prudent fiscal stance,” Dr Cullen said.

“It is a message that I have also been promoting. Although the government accounts are in a healthy state, too great a fiscal stimulus would be debstabilising under current economic circumstances.

“Certainly large across-the-board tax cuts of the kind National campaigned on would be explosive and irresponsible in the extreme.

“That is why the manifesto Labour took into the election campaign was the most fiscally conservative of any party and why we will continue to run a prudent and consistent fiscal strategy,” Dr Cullen said.

The briefing can be accessed on:

  • ENDS

    © Scoop Media

    Parliament Headlines | Politics Headlines | Regional Headlines

    Gordon Campbell: On Sam Uffindell’s Sorry Excuse For An Apology

    Most of us believe in redemption and atonement… But the timing, the nature and the semantics of Sam Uffindell‘s apology for his role in a gang that beat a younger kid (reportedly) with wooden bed legs, has left much to be desired. The victim seems pretty clear about the motivation behind Uffindell’s apology, which came out of the blue 22 years after the event...


    National: Sam Uffindell Stood Down Pending Investigation
    Tauranga MP Sam Uffindell has been stood down from the National Party caucus pending an investigation into further allegations about his past behaviour, says National Party Leader Christopher Luxon... More>>

    Auditor-General: Submission On The Water Services Entities Bill
    We have published our submission to the Finance and Expenditure Committee on the Water Services Entities Bill. Because water services are critical to everyone, our focus is on how the public and Parliament are able to influence the performance... More>>

    Luxon: Speech To The 2022 National Party Annual Conference

    Kia ora! What a brilliant conference! The energy wave from this weekend will carry us right through to election year and I say: bring it on... More>>

    Green Party: Abuse Revelations Leave No Choice But To Overhaul RSE Scheme
    The Green Party is calling on the Government to overhaul the Recognised Seasonal Employers scheme in the wake of revelations of shocking human rights violations... More>>

    Government: More Women On Public Boards Than Ever Before

    “Women’s representation on public sector boards and committees is now 52.5 percent, the highest ever level... More>>

    Te Pāti Māori: Debbie Ngarewa-Packer Calls On PM To Support Bill To Ban Seabed Mining

    Te Pāti Māori Co-leader, Ngāti Ruanui and Ngā Rauru uri Debbie Ngarewa-Packer is today celebrating that her Prohibition on Seabed Mining Legislation Amendment Bill has been drawn from Parliament’s biscuit tin... More>>




    InfoPages News Channels