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Goff: Bollard's Action Shows Up National's Inaction

Fuseworks Media
Fuseworks Media
Phil Goff
Phil Goff

29 January 2009 - Labour Leader Phil Goff has welcomed the decisive action taken by Reserve Bank Governor Dr Allan Bollard today to address the effects of the global recession by lowering the Official Cash Rate to 3.5%.

"Labour believes Dr Bollard's move to cut the rate by 150 basis points is warranted and supports his call for banks to pass the benefits on to their customers," Phil Goff said today.

"The OCR cut will give much needed relief to many New Zealand families with mortgages and by farmers and businesses. It is however critical that these cuts be passed on.

"There are also many New Zealanders who face mortgages which exceed the equity they have in their homes. Some are struggling to meet their payments and will have to sell their homes. It's critical that banks do what they can to assist those facing genuine hardship, including the waiving of mortgage break fees.

"I congratulate the Reserve Bank for its forthrightness and strong response. Those are the qualities we also need from our government. It must show leadership and a sense of direction about how it plans to tackle the effects on New Zealanders of the global recession, " Phil Goff said.

"New Zealanders face increasing uncertainty around their jobs, their homes, and their businesses. It's time the Government set out clearly for New Zealanders how it intends to respond to a worsening recession. Other countries are well down the road in being proactive, ours is stuck in neutral."

Labour's strong management of the economy while in Government left New Zealand in a much better position than other nations to weather an economic storm, but he said with world growth now forecast to be the worst in 60 years, New Zealand will not be immune to its effects.

"What we need from the National government is a decisive plan, a whole of economy vision, so far what New Zealanders have been getting is silence," Phil Goff said.

US President Barack Obama made it clear today that America could not afford inaction or delay and called for U.S. political leaders to make bold and swift decisions.

"In contrast National seems to think that their 'business as usual' approach will get New Zealand through these difficult times. "New Zealanders are looking for leadership - other Western nations are moving decisively to deal with the crisis, while National is just tinkering around edges." Phil Goff said.

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