Prime Minister John Key continued to talk tough on the economy yesterday, promising action but still sticking to his February 4 timetable before making any substantial announcements on what the Government will do to counter the recession.
However, it appears he is not relying heavily on government departments for advice on how to fix things.
Instead, he seems to be relying on his experience as a currency trader in New York to work out the plan.
Asked at the post-Cabinet briefing whether the Treasury had advised him on the Government becoming a lender to corporate New Zealand, Mr Key tried to skirt the question before persis- tent questioning brought an animated response.
"Some corporates are candidates for government lending. There is a small group that fit into that category but I don't need Treasury to tell me who that group is."
He understood banks were continuing to lend to existing customers and that, in Australia, banks had no trouble this month raising funds in financial markets.
The Government becoming a lender to large companies in New Zealand was his least favoured option.
Mr Key again indicated he believed Reserve Bank governor Dr Alan Bollard would reduce interest rates next week, but said the final decision was for Dr Bollard to make.
Last month, Mr Key indicated he would like interest rates reduced, something the previous Labour administration did not do.
He was not moved by the news the British Government was planning to increase its share in Royal Bank of Scotland ownership from 58% to 70% as the bank prepares to report the largest loss in United Kingdom corporate history, or that it was preparing a second bail-out plan for banks.
Mr Key said he had relied on media reports to keep up to date with those plans.
Nor did he seem particularly interested the United States Senate had approved the second part of the $US700 billion ($NZ1.3 trillion) financial bailout.
Asked whether he believed the global economy situation had not worsened since Christmas, Mr Key said the outlook was weaker, but that did not mean it needed monitoring on an hour-by-hour basis.
He did not consider it appropriate to continue talking New Zealand down the "doom and gloom spiral".
The Government had options available that some other countries did not, and it would introduce a strong fiscal package this month.
That included the February 4 announcement, particularly around what help could be given to small and medium-sized businesses, the February 27 employment summit and the infrastructure package which would be announced in February.
More infrastructure projects were being proposed than there was money for, giving a wide range from which the Government would choose, Mr Key said.
The Cabinet had discussed some new initiatives yesterday and ministers were working with Treasury and Ministry of Economic Development officials on some of those suggestions.
Housing and transport officials would also be brought into the group once the infrastructure package was finalised.
The economic ministers grouping, which includes Finance Minister Bill English, Economic Development Minister Gerry Brownlee, Justice, State-owned Enterprises and Commerce Minister Simon Power, Health and State Services Minister Tony Ryall and Transport and Communications Minister Steven Joyce, will hold a press conference tomorrow afternoon.
