Media Release

18 April 2008

NZ First Has Answer To Monetary Policy Madness Right Now

New Zealand First leader Rt Hon Winston Peters says his party has the answer to New Zealand’s crazy monetary policy which sees exporters crippled in the fight against inflation, and calls on all parties and interested groups to support the introduction of a bill to address the issue when the House next resumes.

“New Zealand First predicted yesterday’s job losses last year, stating in a release on 22 June 2007 that ‘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’. It is unfortunate that our warnings were not heeded,” said Mr Peters.

“As an export-driven economy, it is sheer madness to have a monetary policy which deliberately cripples our manufacturers, farmers and other exporters in an effort to control inflation.

“While inflation must be controlled, it should not be the sole focus of monetary policy. Other factors, such as the exchange rate, should be taken into consideration.

“When the House resumes after the current recess we will once again give Parliament the chance to address the fundamental failings in monetary policy, by seeking to table our Reserve Bank (Amending Primary Function of Bank) Amendment Bill.

“I would hope that all parties and interested groups can for once put politicking aside and support a bill that will give our exporters a fighting chance to help this country prosper,” said Mr Peters.

ENDS

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