Bollard Gives Committee Fiscal Warning
Reserve Bank Governor Alan Bollard talks monetary policy with Parliament's Finance and Expenditure Committee members
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Reserve Bank Governor Alan Bollard informed members of Parliament's Finance and Expenditure committee that he would have
to look at utilising unspecified tools in his armoury on banks should they continue to lend money willy-nilly to New
Zealanders.
New Zealand it would seem is a nation of consumers engulfed in a debt fuelled orgy of spending. Most of the consumer
orgy involves buying houses rather than the 70s type orgy involving car keys and fondue sets.
National's Finance spokesperson Bill English in the process of giving Dr Bollard a mild grilling
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The Finance and Expenditure members seeking out information from Dr Bollard (specifically National's Finance
spokesperson Bill English)
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National MP's on the Committee were keen to point out that besides housing overstimulating the economy the Government's
spending program was also to blame. National's Lockwood Smith pointed out that Social Welfare spending had increased
under Labour. Dr Smith's information lead to speculation among some in the media that Auckland's property boom could be
fuelled by indigent South Island beneficiaries cranking up huge loans from lax bank managers.
If Dr Bollard was stumped for an answer his trusty advisors were always ready to proffer their knowledge to the
Committee
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On the good news front it seemed to be accepted by all that the economy had come to a soft landing and was now
rebounding – it would seem that in Finance Minister Michael Cullen's hands the New Zealand economy has yet to hit a
brick wall of economic gloom.
Listen to Dr Bollard during his appearance before Parliament's Finance and Expenditure committee
ENDS