Winston Peters
Acting Prime Minister
Deputy Prime Minister
Minister, Disarmament and Arms Control
Minister, Foreign Affairs
Minister, Racing
Minister, State Owned Enterprises
Kia ora. Good afternoon. This week the House will return from a twoweek recess. Of note, the Reserve Bank monetary policy bill was tabled today and will have its first reading on Thursday. This bill makes two very important changes to the Reserve Bank Act, that will significantly improve monetary policy as it relates to its impact on New Zealanders and the real economy. The first change is to the objectives of monetary policy, that will now require consideration of maximum sustainable employment alongside price stability when making monetary policy decisions and setting the official cash rate.
This Government believes inflation is not the sole issue facing our economy. Our monetary policy settings will work to support maximum employment for New Zealanders, as much as keeping costs under control. We have been very successful at keeping inflation low while too many New Zealanders have lost their jobs. From now on, we aim to achieve better balance with higher levels of employment and low inflation.
The second change is the establishment of a monetary policy committee to make decisions of monetary policy and set the official cash rate. Previously, this has been a decision of the governor alone, but evidence suggests that committees make better decisions, on average, than individuals, including for monetary policy, because they include a range of perspectives and guard against extreme views or singular views that can hold our policy settings captive. A broader range of perspective will become especially important given the widening of the objectives of monetary policy to include employment. The monetary policy committee will need to have people on it who are labour market experts who can provide advice on that new dimension to the policy settings.
With regard to foreign affairs engagements, this evening I will meet with the visiting delegation from French Polynesia, led by Ḗdouard Fritch, the President of French Polynesia, while on Tuesday evening I’ll host a working dinner with the visiting Deputy Prime Minister and finance Minister of Japan, Mr Tarō Asō, and his delegation.
As you well know, Parliament resumes sitting this week, and I’ll attend question time on Tuesday, Wednesday, and Thursday.
Now, today Cabinet signed off an item appointing Dr Pauline Kingi CNZM to lead the inquiry into the appointment process of the deputy police commissioner. Dr Kingi has an extensive 28-year career in the Public Service, as both a community leader and senior public servant. She is a past Councillor for New Zealand Healthcare Standards, chair of the Auckland University of Technology, and an Auckland regional director of Te Puni Kōkiri. She was admitted as a barrister and solicitor in 1980, was a Harkness Fellow in 1983, and received a Master of Laws from Harvard University.
The inquiry will commence on August 6 and report back within 6 weeks of establishment. The inquiry’s purpose is to examine, identify, and report on the adequacy of the process that led to the appointment of the Deputy Commissioner of Police. It will not look into the suitability of the appointee for the role of Deputy Commissioner of Police. Any questions?