Transtasman Political Letter – 24 November Digest

This issue - 24th November 2005

Euphoria in the Govt over the Rugby World Cup bid faded quickly
... Defying the seasons, a winter chill is creeping over the Govt - business confidence has slumped to its lowest level for 17 years
... Cullen’s credibility as an efficient economic manager is shredding
... Foreign Affairs are normally diverting, but not with Winston Peters in charge
... What will Clark say to him when they catch up with each other in Malta?

Business Battens Down Hatches

The slump in business confidence, fear of yet another round of interest rate increases, a hard landing looming for the economy: all the portents suggest this is the end of the golden weather for the Govt.

Inflation Breaking Through The Ceiling

Inflation is pushing through the Reserve Bank’s ceiling of 3%, and the Bank says in its briefing to the Govt, its priority is to slow down the pace at which domestic demand is growing.

Govt Digs Economic Hole As Pressure Mounts

Coming on top of Treasury’s attack on Govt economic policy last week, the Reserve Bank’s salvo has reinforced National’s criticism the Govt has dug a hole for itself and is digging itself deeper into it.

Cullen Defends Govt Policy Over Maori Grievances ...

The Govt, which has set 2020 for concluding all historical Treaty of Waitangi settlements, is urging claimants to choose a “modular approach” so large numbers of claims and claimants can be addressed simultaneously through regional inquiries.

CAPITAL TALK

Foreign Minister Winston Peters’ accusations the NZ Herald committed “treason” over its reportage of his visit to the APEC summit have had political historians searching the files. When was such an accusation last leveled in NZ?

Play of the week: The Boy In The Bauble

There’s something banana republicish about a Foreign Minister who reacts to media criticism by calling the newspaper concerned “treasonous.” Treason is a serious crime.

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