“..It isn’t every day that the governor of the country’s central bank publicly scotches a fundamental plank of the ruling party’s economic agenda as not achievable.
But that is what Alan Bollard did on TVNZ’s Q&A programme last Sunday.
The Reserve Bank Governor’s view that New Zealand cannot close the income gap with Australia by 2025 – a goal which underpins the Government’s economic policy formation –
- was an extraordinary statement from someone who usually moves with extreme caution ..
- and an acute awareness of the politically sensitive.
Not surprisingly, his remarks were welcomed by the Beehive with about as much enthusiasm as another speech by Hone Harawira on race relations.
And not solely because Bollard poured cold water on National meeting its long-term objective.
It was inevitable someone with his authority would at some point say it was time to end the pretence of income and wealth parity with Australia.
At times, National itself has veered towards redefining income parity more as an “aspirational ” goal, rather than a realistic one.
Bollard’s musings, however, came little more than 48 hours before the Prime Minister tables a formal statement in Parliament today outlining how National intends to make the “step change” in New Zealand’s economic performance to meet the 2025 deadline.
Bollard’s credibility has made it much harder for John Key to sound convincing in insisting such a goal is realistic.
Much to Labour’s delight, Bollard is the party pooper who has taken the fizz out of Key’s big day..”
go to source/story>>John Armstrong: Up to Key to prove Bollard is wrong – Business – NZ Herald News
