Bill English MP
National Party Finance Spokesman

19 August 2007

Erratic Cullen should explain

Investors and households facing volatile markets deserve an explanation from Finance Minister Michael Cullen about his statements on monetary policy, says National Party Finance spokesman Bill English.

Last week, Dr Cullen said: ‘Oh yes, I have doubts about that consensus. I think it is probably the view the Reserve Bank would still hold but it's not a view that I would share’.

But Mr English says this is precisely the time when people need as much certainty as they can get.

“Dr Cullen’s erratic behaviour over the past 12 months leaves even well informed observers confused about his intentions for monetary policy.

“He has made several proposals for change which have come to nothing, and recently threatened to effectively override the Reserve Bank decisions on interest rates.

“Yet, when he had the chance to change course just three months ago, he made no change at all to the Policy Targets Agreement which guides Reserve Bank decisions.

“On Friday, Dr Cullen essentially withdrew Labour support for the existing monetary policy framework without proposing any alternative.

“But he isn't just any commentator. He runs a government with the power to make or break New Zealand’s future prosperity. It’s time for him to explain himself.”

Ends

© Scoop Media