Oct 22, 2008

Excellent Analysis From Fran O'Sullivan

Fran O'Sullivan is largely responsible for blowing open the looming crisis over New Zealand banks being able to access international credit lines through her article in Saturday's Herald. Today she notes that more bipartisan approach is being followed at Cullen-English level. This is welcome, but as Fran notes en even more bipartisan approach is essential to deal with the complex issues that need to be confronted urgently by New Zealand.

We suggest you read the full article. But here is a taste

National leader John Key took a calculated risk by going public on Sunday over behind-the-scenes moves to negotiate a wholesale banking guarantee.
A successful resolution to the issue is critical for offshore confidence in New Zealand banks.
Key wants negotiations to proceed with urgency to avert a deepening of the credit crunch by Christmas.
But the fact he's been working the phones to try to get a handle on the matter met with the Prime Minister's disapproval.
Helen Clark was at her lip-curling best when she dismissed a journalist's question at her post-Cabinet press conference on whether she - like Key - had been talking to the banking bosses on the issue.
"Most certainly not. I'm the Prime Minister. I'm the leader.
"I'm not the Minister of Finance. There is a distinction in roles."
There certainly is a distinction.
But you could hardly blame Key - a politician who is still odds on to get the first chance at forming a Government after the November 8 election - for seeking direct answers from the banking bosses themselves after he was blindsided by not being informed ahead of Clark's campaign launch announcement that the NZ Government was to guarantee retail deposits.