2. Question No. 2—FinanceHon PAUL GOLDSMITH (National) to the Minister of FinanceQuestion No. 2—Finance2. Hon PAUL GOLDSMITH (National) to the Minister of Finance: Does he stand by all his policies and actions?Hon GRANT ROBERTSON (Minister of Finance): Yes in the context in which they were made and taken.Hon Paul Goldsmith: What involvement if any has he had with the decision due on 5 December on capital requirements for banks?Hon GRANT ROBERTSON: Sorry could the member repeat the question? I just lost the middle bit of it.Hon Paul Goldsmith: What involvement if any has he had with the decision due on 5 December on capital requirements for banks?Hon GRANT ROBERTSON: That is an independent decision of the Reserve Bank. I've had a variety of meetings over the last two years that I've been in office with representatives of trading banks discussions with the Reserve Bank and decisions with Treasury about it but the decision is one for the Reserve Bank.Hon Paul Goldsmith: So is it his policy that the Reserve Bank's independence in setting interest rates extends equally to complete independence on regulatory decisions?Hon GRANT ROBERTSON: It's not a matter of my policy about that; it's a matter of what the Reserve Bank of New Zealand Act actually says. Over the years there's been an evolution in the responsibilities of the Reserve Bank beyond those that were there in 1989 as the member knows. We've got a review of the Reserve Bank of New Zealand Act under way and I would welcome a submission from him if he intends to break a 30-year consensus on the independence of the bank.Hon Paul Goldsmith: Does he not see a difference between independence on setting interest rates and on all the regulatory functions that have been recently added?Hon GRANT ROBERTSON: It's not a matter again of whether I see a difference in that; the Reserve Bank of New Zealand Act sees no difference in that.Hon Paul Goldsmith: Does he have an opinion on the appropriate level of risk the Crown should take on behalf of New Zealanders in relation to a potential bank collapse?Hon GRANT ROBERTSON: I believe that it is the responsibility of our central bank to ensure that we have a safe and effective banking system. They play a very important role in terms of regulation of our banking system. The Government will have opinions on that from time to time but I repeat the decision is in the hands of the Reserve Bank. I think it is very interesting that the member opposite is now deciding that he might like to intervene in the independence of our central bank—an interesting change of tune.Hon Paul Goldsmith: Has Treasury provided him with its best estimate of the effect that the new capital requirements to be released on 5 December will have on the cost of capital and access to capital?Hon GRANT ROBERTSON: I've had a range of advice from Treasury on that. They continue to give me that advice. We continue to communicate with the Reserve Bank and indeed with other trading banks about those matters but these are decisions that the Reserve Bank of New Zealand Act mandate has been for them to take not for politicians to take.Hon Paul Goldsmith: Has the Reserve Bank provided him with its best estimate of the effect of the new capital requirements on economic growth in New Zealand?Hon GRANT ROBERTSON: The Reserve Bank has provided a wide range of information including to the member I believe.David Seymour: Does the Minister have an estimate he believes for how many basis points the new Reserve Bank capital requirements will add to the average mortgage?Hon GRANT ROBERTSON: Personally I don't make those judgments; the Reserve Bank has published its judgments on those matters.David Seymour: I raise a point of order Mr Speaker. The question was whether he had a figure that he believed—not who made the judgments.SPEAKER: Well the Minister has indicated that guessing at that is not his responsibility.David Seymour: What preparations can the Minister possibly make for the impacts of the Reserve Bank's new capital requirements if he has no idea what those impacts will be on the average mortgagee?Hon GRANT ROBERTSON: That is not what I said in my answer.