Great stuff Helen Clark and Labour! Labour was also under no obligation to advise John Key about anything. Key would only use the opportunity to politicise the matter.
PM Clark proposes more infrastructure spending to stimulate economy if it weakens too much; mini-Dec budget if Labour wins election
Prime Minister Helen Clark says Labour will consider bringing forward infrastructure spending if economic conditions do not improve.
In response to the financial instability around the world, the government will guarantee all bank deposits in order to stop panic withdrawals. The Australian government made a similar move last week.
The guarantee will cover people who have savings with building societies, credit unions, finance companies and cash portfolio investment schemes. Banks with deposits up to $5 billion will not be charged for taking part in the scheme, but for deposits over that amount, a fee will be charged.
Miss Clark made the the announcement at the launch of the Labour's election campaign in Auckland yesterday. She also outlined a spending plan which is intended to stimulate the economy if needed. It includes bringing forward infrastructure spending and building projects such as school properties and extending the rail line from Whangarei to Marsden Point. Miss Clark says if Labour wins next month's election, it will devise a mini-budget in December.
A spokesman for National leader John Key says the party had been in contact with the Reserve Bank about its plans for the banking sector, but was not consulted at all, about Labour's proposal to guarantee bank deposits.
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