Hon David Cunliffe
Finance Spokesperson

18 June 2009 Media Statement

English: Lion turns lamb

Finance Minister Bill English confirmed in Parliament today that representations from “three” or “four” major banks lay behind National’s change of emphasis on bank interest rates, Labour finance spokesperson David Cunliffe says.

“Last week Bill English and John Key roared like lions that banks should pass on the full cuts to the official cash rate to Kiwi homes and businesses,” David Cunliffe said.

“But this week they are lying down like lambs and declaring that their ‘top priority’ is the ‘stability’ and ‘profitability’ of the banking sector.”

Asked in Parliament why the Government’s stern words to the banks had ended not with a bang but a whimper, Mr English confirmed “three” or “four” banks had made representations in the last week on the matter, David Cunliffe said.

“The message from the Beehive to the Northern Club is now clear – please don’t confuse our wet bus ticket with a serious slapping.

“The Government cannot have it both ways. If they were relaxed about interest rate cuts being withheld they should not have pretended otherwise. If they were seriously concerned they should not have buckled,” David Cunliffe said.

David Cunliffe said the next step lay with Parliament’s Finance and Expenditure committee, which has announced that it is considering an inquiry into banking matters focused on short term interest rates.

http://www.parliament.nz/en-NZ/PB/SC/BusSum/9/f/a/00DBSCH_INQ_9251_1-Briefing-on-proposed-inquiry-into-the-relationship.htm

ENDS

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