Opposition parties claim credit for Labour’s price coaxing

I amvery grateful that the Minister of Finance has taken our advice. Andrew Bayly National’s Treasury spokesman

Both major opposition parties are jostling for credit overwhofirst prompted Finance Minister Grant Robertson to lobby the Reserve Bank to more closely address soaring house prices.

National and Act have welcomed the Government’s moves to curb house prices; Robertson wrote to the Reserve Bank Governor Adrian Orr asking him to consider adding house price stability to its job description.

The Reserve Bank isnow considering the information.

Not long after Robertson’s announcement, National and Act said they had this idea first— something Robertson rejected.

Although National’s Treasury spokesman Andrew Bayly said it was an “excellent thing to do”, he said it was something that forsometime, he had been pushing for.

“I amvery grateful that the Minister of Finance has taken our advice and written to the Reserve Bank Governor today.”

Last week, Bayly called on the Government to “rein in the Reserve Bank”.

Hesaid the Robertson needed to send a letter of expectation to Orr— but that letter would be focused on “mandating” the Reserve Bank to ensure the $28 billion earmarked for its funding for lending scheme goes towards building houses and supporting small businesses.

At the time, Primeminister Jacinda Ardern likened this call to something former Primeminister Robert Muldoon would do— in his time Muldoon had meddled with the Reserve Bank’s affairs.

Robertson said what he had done, and what National had proposed, was different.

The Government wants house price instability to be considered by the Reserve Bank whenit is setting its policies— howorr tackles the issue is up to him, Robertson said.

But National was proposing a direct intervention in the Reserve Bank’s job.

Act leader David Seymour also claimed credit for the idea of the letter.

Hetold media Act has been saying “longest and strongest thatweneed to start looking at asset price inflation (house prices) whenwelook at other inflation”.

“It is simply unsustainable that the Reserve Bank looks at the price of pizzas, petrol and cigarettes but not the most important asset that most Newzealanders will buy.”