With the media digging and finding the truth on the flaws in the deposit guarantee scheme we think it increasingly important for National, and John Key in particular, to show continuing leadership on the response to the financial crisis. Things are worse out there than many people want to belive. So lets be conroversial here. We believe from everything we have been told by the experts that, unless the Government guarantee is extended to cover the same territory as the Australian Government guarantee, the New Zealand banks will essentially run out of money to lend by the end of the year - certainly before the end of the first quarter next year.
Note to journalists - if you doubt the above start making enquiries about the nature of representations that have been made to the Australian Government by the Australian banks on the situation in New Zealand. You will find this very informative
This cannot be allowed to happen.
So John Key, where do you stand. Do you stand by the Clark/Cullen scheme or do you demand changes now? Will you make a black and white statement today that the Govt’s guarantee structure is flawed and it must be made to be consistent with Australia’s?
