11. R DOUG WOOLERTON (NZ First) Link to this
to the Minister of Finance
Will he consider implementing changes to New Zealand’s monetary policy framework if such changes are recommended by the Finance and Expenditure Committee’s inquiry into the future monetary policy framework?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Any recommendations will be fully considered not just by me but by the whole Cabinet in conformity with Standing Order 253(1).
Can the Minister confirm that a large number of the submitters share New Zealand First’s view that we should move from our single focus on price stability and make the Governor of the Reserve Bank take the dollar, and export, and economic growth into consideration when adjusting interest rates; and would he consider making such changes if the select committee returns with such recommendations?
Hon Dr MICHAEL CULLEN Link to this
As far as I am aware, so far the hearings have been a bit like a tennis match—at deuce, with about seven advantages so far to one side or the other. Therefore, I think it is unwise to draw any conclusions about the outcome of this select committee inquiry until it is complete.
Is the Minister aware that support for changing our monetary policy has even come from those traditionally seen as Bill English’s mates, and does he find it odd that Mr English’s party continues to stonewall any attempts to change New Zealand’s monetary policy for the better? [ Interruption]
Madam SPEAKERI agree. The Minister can address the question as it relates to ministerial responsibility but not to comments about other parties.
Gerry BrownleeI raise a point of order, Madam Speaker. What part of that question could possibly relate to ministerial responsibility? The member asked him about the views of Bill English’s mates. Now¸ the Minister just does not have the time to go through giving this House the views of Bill’s many, many mates.
Thank you; I understand the member. Would the member like to rephrase his question to bring it within ministerial responsibility.
Madam Speaker, I take your suggestion and ask the Minister why he thinks that the National Party is continuing to stonewall any attempts to change New Zealand—
H V Ross Robertson Link to this
Has the Minister seen any reports at all on how fiscal policy can be used to support monetary policy?
Hon Dr MICHAEL CULLEN Link to this
I have seen one report that simultaneously calls for larger surpluses to take heat out of the economy, and tax cuts to reduce the size of the surplus. Now, although I am used to Mr Key and Mr English contradicting each other, it is quite impressive for Mr English to contradict himself so glaringly in the one press statement.