Gordon Copeland Press Release
For Immediate Release
Thursday, 7th June 2007

Parliament needs to respond to Monetary Policy Crisis

Independent MP Gordon Copeland today renewed his call for concerted cross-party action by Parliament in relation to monetary policy.

“We now have the Official Cash Rate (OCR) at 8% and the New Zealand dollar at a level which will continue to constrain the nation’s export capabilities,” said Mr Copeland.

“The Finance and Expenditure Committee is undertaking an inquiry into monetary policy and the Commerce Committee, of which I am a member, are undertaking an inquiry into housing affordability.”

“I am no longer a member of the Finance and Expenditure Committee but I sat on it for around 5 years listening to pleas from the Governor of the Reserve Bank, Dr Allan Bollard, for improvements in our monetary instruments.”

“For some years now Dr Bollard has appealed to Parliament for some real assistance in his efforts to control inflationary pressures within the New Zealand economy. He has made it clear that we need to revisit the tax rules around residential property investment as an aid to the cooling of the housing market and that issue needs to be picked up by the Government and the Finance and Expenditure Committee.”

“The National Party also has to be prepared to play a constructive part since the changes required will involve political risk and therefore call for a measure of courage from all concerned.”

“Dr Bollard and I have also discussed on a number of occasions the vexed question of land supply, at a reasonable cost, for new housing and I for one will ensure that issue is tackled by the Commerce Committee.”

Notwithstanding his new status as an independent Member of Parliament, Mr Copeland stated that he is prepared to play his part in making a contribution to the resolution of these important issues.

ENDS

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