Hon Dr Michael Cullen Labour Party Deputy Leader Finance Spokesperson

13 October 2008

Bipartisan concept involves two players

Finance Minister Michael Cullen today said that the concept of bipartisan involves two participants, not one.

"In recent days and weeks, there have been ever-higher-pitched demands coming out of the mouths of John Key and Bill English demanding that the operationally-independent Reserve Bank do certain things.

"This radiowave diplomacy of the National leaders has the potential to be misinterpreted by overseas investors in New Zealand dollar-denominated bonds and equities and in the New Zealand dollar itself.

"In recent weeks, the Reserve Bank of New Zealand has made a number of operational decisions. My understanding is that the Reserve Bank has kept the Opposition Party informed of the central bank's actions.

"Yesterday, the Australian and New Zealand authorities made some announcements regarding bank deposit guarantees. My understanding, from the public statements of National's leaders, is that National would support whatever action is taken in this regard from the New Zealand and Australian governments.

"In these challenging times for global financial markets, it is important that senior politicians act responsibly at all times," Dr Cullen said.

ENDS

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