MEDIA RELEASE

5 August 1999

Clark and Cullen at odds over economic issues?

Treasurer Bill English questioned today whether Labour leader Helen Clark was at odds with her finance spokesman over economic issues.

"Yesterday Helen Clark said that Labour would change the Reserve Banks' Policy Targets Agreement (PTA) with the aim of keeping the exchange rate competitive, without being clear about exactly how Labour would do this.

"Today Dr Cullen has had to step in and make it clear that Labour would not set an exchange rate target for the Bank.

"This suggests that Ms Clark may be at odds with Dr Cullen over Labour's economic policy.

"Having two objectives for monetary policy does not work and I am sure this is the advice that Dr Cullen has given his leader today. This apparent difference of opinion amongst Labour's leadership will undermine confidence in the party's economic policy," said Mr English.

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