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Speaker 1: The OCR thing yesterday. For a while now, I've been

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Speaker 1: thinking that the Reserve Bank and the government are working

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Speaker 1: at cross purposes for the country. So yesterday the RB

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Speaker 1: kept the OCR at the same rate it's at the

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Speaker 1: reason increasing inflation and little or no growth in GDP. Now,

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Speaker 1: of course, the government has an agenda of growth, growth, growth,

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Speaker 1: so reduced interest rates could help stimulate the economy to

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Speaker 1: bring some growth, growth, growth, an economy that has some

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Speaker 1: very flat spots in between primary produce and tourism. But

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Speaker 1: the Reserve banks perview is inflation and low interest rates

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Speaker 1: fires on consumerism, fires on inflation, so they haven't lowered

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Speaker 1: the rate. It's fair to say the RB will not

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Speaker 1: do what the government would like it to do. But

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Speaker 1: meanwhile the government pulls back on all government spending, including

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Speaker 1: stuff that fires on an economy like construction and public

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Speaker 1: builds and roading and more. And if you want proof

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Speaker 1: about this claim, government accounts in the eleven months to

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Speaker 1: the end of May for investing and operational activities was

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Speaker 1: three billion less than forecasts, three billion less than they

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Speaker 1: said they would spend, and it's six point four billion

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Speaker 1: less than the same eleven months a year ago. So

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Speaker 1: this is money that isn't stirring in the pot that

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Speaker 1: is the New Zealand economy. And as the interest rates

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Speaker 1: have fallen, we're not using the cheaper cash to spend.

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Speaker 1: Our farmers and our businesses and our households are choosing

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Speaker 1: to pay back debt instead. The government wants private capital

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Speaker 1: to invest in this country, but cash ain't cheap and

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Speaker 1: the investments aren't coming in. As I said before, why

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Speaker 1: would anyone want to invest in this country when even

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Speaker 1: the government is keeping its wallet shut. So welcome to

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Speaker 1: year three of recession with no change in sight unless

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Speaker 1: the policies of the Reserve Bank and the government start

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Speaker 1: working in tandem. For more from Early edition with Ryan Bridge,

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Speaker 1: listen live to News Talk Set B from five am weekdays,

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Speaker 1: or follow the podcast on iHeartRadio