Yesterday's Q+A interview with Reserve Bank Governor Dr Bollard reinforces EUFA complaint to Minister Power claiming regulatory authority neglect as the cause of New Zealanders losses to shonky finance industry practices.

Given the Multi Billion dollar losses of individual's savings and the massive loss to the Taxpayer for the Government Guarantee scheme, some very serious question of culpability must be addressed.

While Dr Bollard points to the global financial crisis as the cause of the Finance Company meltdown in NZ he fails to acknowledge the massive cost of a blatant lack of prudential supervision involved.

In 2008 EUFA met with senior Reserve Bank Officials seeking an explanation as to why conditions of section 36 (Bank [Reserve Bank] may require financial institution to supply information) of the Reserve Bank Act 1989, were not enforced. The Officials offered no plausible reason for this lapse, while blaming the Securities Commission for its inaction.

Today Gray Eatwell, spokesman for EUFA said in response to Dr Bollard's appearance on Q+A, " It is Dr Bollard who needs to get real and cut the spin about NZ not being exposed to the dishonest practices exposed over seas".

"If Dr Bollard thinks that the liar lending, low doc and forged doc loans involved in Blue Chip, or that the 100% plus loans written on false valuations, not to mention securitized mortgages etc, are not toxic, then I say it again, it is Dr Bollard who needs to get real"

In the complaint presented to the Hon Simon Power in May, EUFA made specific reference to the Reserve Bank failing to take action on a cross border High Court warning that a bank operating in NZ had committed tax evasion and illegal customer overcharging.

Subsequently, after 4 years the IRD discovered that tax avoidance amounting to $654 million had occurred, while the Bank was being monitored by the Reserve Bank and nothing was done about the customer overcharging at all.

In writing his book at this time, Dr Bollard has demonstrated how insular to reality NZ's Reserve Bank Governor has become.