ACT Finance spokesman Rodney Hide said today that the union attack on Reserve Bank governor Don Brash raised questions whether the Reserve Bank Act could survive the operation of the Employment Relations Bill.

“The ERB powers up monopoly unions who will play to their members by making outrageous pay claims. The Reserve Bank Governor is required under the Reserve Bank Act to fight inflation. He naturally must caution against excessive wage rises,” Mr Hide said.

“The Reserve Bank Governor will be the only public figure to come out against excessive pay claims. That will put him and the Reserve Bank Act on a collision course with what will again be an all-powerful union movement.

“The Reserve Bank Governor is already under fire from the Council of Trade Unions before the ERB is even passed into law.

“On top of the that, we have a Deputy Prime Minister who is implacably opposed to current monetary policy and the Reserve Bank Act constantly chipping away.

“Finance Minister Michael Cullen could help reassure every one by pointing out that Dr Don Brash is simply doing his job in pointing out the obvious that excessive wage settlements will mean higher interest rates,” Rodney Hide said

ENDS

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