Hayes John: Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill (No 2) — First ReadingText is subject to correctionHayes John: Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill (No 2) — First Reading[Sitting date: 13 November 2013. Volume:694;Page:69. Text is subject to correction.]JOHN HAYES (National—Wairarapa): The people of New Zealand need to understand that if any person on that side of the House promotes this policy of interfering in the Reserve Bank process then we are going to send this country back to where Mr Peters and Mr Muldoon had it—straight up against a wall broke kaput. Having listened to Mr Goff talk about the state of the economy that he left this country in 5 years ago can I just remind him that at that time the current account deficit was almost 9 percent of GDP. Today it is 4.3 percent. Net external debt had blown out to 84 percent of GDP. Net external debt now is 71 percent. Inflation was running at 5.1 percent under Mr Goff and Ms Clark. Now it is down to 1.4 percent. Food prices had gone up 11 percent in Labour’s last year of 2008. Food prices have gone up only 1.2 percent in the past year. The economy had been going backwards for four quarters when we came to take power in this country. In the last year it has grown 2.5 percent and as the Governor of the Reserve Bank said this morning it is likely to go at 3 percent for the next year.I would like to remind members across the House that in 2000 when they were all in this Parliament Professor Lars Svensson who did a review of our monetary policy concluded that “monetary policy in New Zealand is currently entirely consistent with the best international practice of flexible inflation targeting with a medium-term inflation target that avoids unnecessary variability in output”—Dr Rajen Prasad: Who said that?JOHN HAYES: —“interest rates and the exchange rate.” I know that you will not understand what that means but I can also then draw you to a similar study done by one Charles Chauvel. Some of you in the Labour Party across the House might remember who Mr Charles Chauvel was. He undertook a review when he was chair of the Finance and Expenditure Committee and his review endorsed the current system. It found that “New Zealand’s monetary policy approach is now standard among small open developed economies and is regarded”—by our advisers the committee’s advisers—“‘as world’s best practice’”.Rt Hon Winston Peters: Where was the dollar then?JOHN HAYES: You were a part of the Government Mr Peters—Mr DEPUTY SPEAKER: Order! The member will be careful about the pronouns he uses.JOHN HAYES: We were advised that more than 20 countries are now using a similar approach to monetary policy.There is absolutely no need for this bill the Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill (No 2). While Labour the Greens and New Zealand First keep trying to talk our economy down and promote more taxes and spending this Government is getting on with the job of responsibly managing the country’s finances and helping to build a more competitive and productive economy. And we are seeing results as I have outlined. Our economy is one of the strongest growing of the advanced economies. Interest rates are low and inflation is under control. New jobs are being created and our public finances are improving with a deficit halved for the second year in a row and a surplus now within reach for next year 2014. This bill would put all of these gains at risk. It would send inflation soaring and interest rates soaring. We do not want this outcome.This bill came before the House a year ago and it was kicked for touch then. Winston Peters has recycled his hobby horse and it should be kicked out for touch once more. New Zealand First the Labour guys and the Greens just do not get it. I will not be supporting this bill to be passed on for review by a select committee. It is an absolute nonsense. Thank you.