6 Oct 2008

Stock exchange head criticises political parties

5:00 pm on 6 October 2008

Stock Exchange chief executive Mark Weldon has criticised both Labour and National for failing to respond properly to the world financial crisis.

Mr Weldon told Morning Report on Monday that he would expect some pressure to be brought on both sides of the political spectrum over their policies on the issue.

"...If things have changed, if credit is no longer cheaply available, if the dairy sector's at risk and the housing market's falling, what are your policies that actually are going to allow the productive sector to help New Zealand earn its way out of this?

"The debate has been appallingly silent, actually, on what these guys on both sides are going to do to address these changed conditions."

Mark Weldon said with NZ being such an importer of capital, and with credit being rationed and costing more, New Zealand banks will shy away from the property market, which will accelerate the falls in that market.

Finance Minister Michael Cullen says it is important not to send out messages that the situation in New Zealand's financial sector is a bad one, because it is not.

He says if things deteriorated the Government would move to consider a range of options.

But Dr Cullen says New Zealand's financial sector and its banks are very strong, because they have not engaged in the same type of risky behaviour as many of their American counterparts.