Hon David Cunliffe
Finance Spokesperson

12 December 2008 Media Statement
Reserve Bank Governor’s price concerns supported

The Labour Party supports the actions of Reserve Bank Governor Alan Bollard in expressing concern about inflationary price movements, Finance Spokesperson David Cunliffe said.

“Many New Zealanders are facing tougher times making ends meet.

“Governor Bollard is right to demand that banks, petrol and food companies and others lower prices,” Mr Cunliffe said.

“Kiwi families need to know their food, fuel, and mortgage costs are fair.

“World oil prices are falling, wholesale interest rates are falling, and global commodity prices are falling.

“The burden of proof must be with companies, banks and supermarkets, among others, to demonstrate that their margins have not increased and are fair given current economic circumstances.

“The Reserve Bank Governor is right to lay down this challenge.”

“Kiwis on modest incomes have already had a $730 million kick in the cuts with higher taxes from National, have had their Kiwisaver cut in half and now face being fired at will within 90 days. It is good to see the Governor of the Reserve Bank sticking up for New Zealand families even if National isn’t,” David Cunliffe said.

ENDS

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