8. Hon TREVOR MALLARD (Labour—Hutt South) Link to this
to the Minister of Finance
Does he believe that the Government should take a cautious approach to borrowing in light of “uncertainty and volatility in financial markets”?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes. That is why we are committed to reducing our borrowing over the next 4 years.
Hon Trevor Mallard Link to this
Why is he then speculating on the fixed interest market by borrowing $100 million a week more than necessary?
It has been on the advice of the Debt Management Office. Because conditions are favourable up until the end of this month, the Government is borrowing more than is strictly necessary for its cash requirements. This means that over the next couple of years we will be borrowing less than is strictly necessary, and in the current international environment I think that is a good thing.
Hon Trevor Mallard Link to this
Why is Treasury’s best estimate of the effect on the exchange rate and on jobs of this excessive borrowing?