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Is The Finance Minister Inspired By Muldoon?

National holds grave concerns about the Minister of Finance’s announcement that he is to give himself greater powers to intervene in operations at the Reserve Bank, National’s Shadow Treasurer Andrew Bayly says.

“It is clear that the Minister is trying to show that he is doing something but it isn’t clear that he has thought this through.

“The Government should be clear about the Reserve Bank’s objectives, but it is then up to the Reserve Bank to determine how to achieve those objectives. There is a good reason why prudential regulators should have operational independence, and it is vital we protect the operational independence of the Reserve Bank on matters such as lending decisions.

“Minister Robertson’s continued fiddling with the Reserve Bank’s remit draws fair comparisons to Muldoonism and he, himself, has conceded that his actions could reduce confidence in the Reserve Bank, yet he carries on regardless.

“New Zealanders need to be assured that this Government respects the principles of good governance and will cease moves that risk putting the Reserve Bank at the whim of the government of the day.

“Rather than tinkering around with Government powers, the National Party suggests the Minister focuses on fixing the RMA, delivering on infrastructure projects, and getting some houses built.”

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