Brash enters politics because of 'vital need to grow economy'

12.15pm

Don Brash said today he resigned as Reserve Bank governor to enter politics because he believed there was a vital need for the country to increase its economic growth.

"Unless the growth rate improves, the future of New Zealand society is bleak indeed," he said at a press conference after his shock resignation announcement.

"It is the most important single challenge. If we don't achieve it we will face some dilemmas as a country."

Dr Brash said the Reserve Bank played only a minor role in economic policy.

"There's a perception that the Reserve Bank governor is very powerful, but basically it (the bank) does the Government's bidding," he said.

He was "generally comfortable" with the National Party's economic policy, which was announced on Monday.

Dr Brash declined to say whether he wanted a ministerial post in a National-led government, and described its chances of winning the next election as "reasonable".

Explaining his perception of the direction in which a government should go, he said there was a desperate need to get more people into meaningful employment, provide more security against crime and avoid divisions over Treaty of Waitangi policy.

He repeatedly stressed the need for increased economic growth so that a government could provide better employment, health and education systems.

"If we don't get growth, then none of the other things we want will be achieved or sustained," he said.

Dr Brash was approached to join National a few days ago by National Party President Michelle. he then spoke with party leader Bill English.

He said he was not resigning as a result of two recent interest rate rises, or because of any disagreement with the Government. He was also not leaving because was getting bored with the job he has held for 14 years.

Dr Brash will seek election as a list MP. He was given the expectation he would be given a reasonable position on the National list.

Dr Brash would comment on previous Governments or ministers, saying he would leave those things for another day.

- NZPA and HERALD STAFF