Responding to the Minister of Finance’s announcement today of an independent review into COVID-19 monetary policy, Taxpayers’ Union spokesperson James Ross said the review is “long overdue”.

“The Reserve Bank pumped far too much money into the economy. The result was a surge in asset prices and the kind of inflation that has hammered households ever since.”

“When the Bank finally realised it had let the inflation genie out of the bottle, it responded with sharp rises in the Official Cash Rate. That response tipped the economy into recession: a recession the former Governor, Adrian Orr, quite publicly said was necessary.”

“But the downturn has been deeper and longer than even he appears to have anticipated.”

“A searching investigation into how the Reserve Bank assessed the situation, and how it reached its decisions, is desperately needed. The review must examine the apparent lack of coordination between monetary and fiscal policy, and recommend corrective action.”

“It also needs to scrutinise the Bank’s use of ‘alternative’ tools, including the scale, timing, and duration of those interventions.”

“The Bank brutalised the New Zealand economy to correct its own mistakes. New Zealanders are still living with the consequences of the worst Bank-induced recession in more than thirty years.”

“This cannot be a once-over-lightly desktop exercise. It must be a forensic examination that produces a practical blueprint to prevent a repeat of this economic disaster. The public deserve nothing less.”

“The review should also have the full legal powers of a government inquiry. Decision makers should be required to give evidence under oath and in public. These decisions had major, real-world impacts on New Zealanders’ lives, and transparency demands it.”

The Taxpayers’ Union is slamming news of another taxpayer-funded payout, this time to Reserve Bank Deputy Governor Christian Hawkesby, calling it the second golden handshake revealed in as many months.

Taxpayers’ Union spokesperson Tory Relf said:

“This is déjà vu for taxpayers. Just weeks after Adrian Orr’s golden goodbye was revealed, we’re now seeing another six-figure payout dressed up as a ‘restraint of trade’. It’s the same old story: public-sector insiders look after their own while taxpayers pick up the tab.”

“Most Kiwis don’t get a cushy payout when they leave their jobs, so why should bureaucrats who already get paid eye-watering salaries be treated any differently?”

“The power to stop this sits squarely with Minister Judith Collins. Anyone in the public service earning more than the Prime Minister should have no entitlement to a taxpayer-funded golden handshake, period.”

“Two golden handshakes in two months is two too many. The Minister needs to act now to protect taxpayers from footing the bill for more of these outrageous payouts.”

Taxpayers who agree that golden handshakes must end can sign the petition at taxpayers.org.nz/petition_end_golden_handshakes.