6 Nov 2009

Bollard advocates taking advantage of Aussie growth

10:23 am on 6 November 2009

New Zealand should try to ride to prosperity on the back of Australian economic growth, according to Reserve Bank Governor Alan Bollard.

Dr Bollard believes this is a better bet than trying to match Australian incomes.

His comments follow a decision by the New Zealand Government to push for economic equality with Australia by 2025.

A special task force was set up under the former National Party leader Don Brash and Finance Minister Bill English has reiterated the aim.

However, at a closed door meeting in Auckland on Thursday, Dr Bollard appeared to pour doubt on the plan, saying rather than catching up with Australian incomes, New Zealand would do better to take advantage of Australian growth.

Dr Bollard's comments are an apparent rebuttal of government policy.

But he says there is no real contradiction between the two positions and since Australia is New Zealand's biggest trading partner, it makes sense to try and grow alongside it.