KEY POINTS:
A select committee inquiry is the most likely way the Government will achieve cross-party discussion on monetary policy and National is not averse to the idea.
Its finance spokesman, Bill English, believes an inquiry would be "useful" but could take so long its report would be more valuable to the next Government than this one.
And Finance Minister Michael Cullen has cautioned that any inquiry is not a sign the economy is in crisis.
The issue of cross-party talks was raised last Friday, after Fisher & Paykel announced it was cutting 350 manufacturing jobs in its laundry range because its production costs would be much cheaper in Thailand.
The announcement followed a rise in the official cash rate to 7.75 per cent and a prolonged battering for exporters from a soaring kiwi dollar.
The Government consulted smaller parties last week about a select committee inquiry, prompting United Future MP Gordon Copeland to publicly raise the idea of cross-party talks.
The inquiry is expected to be run by the finance and expenditure committee, chaired by Labour list MP Shane Jones, and it would set its own terms of reference. The issue will be on the agenda of tomorrow's meeting.
The committee comprises four MPs from each of Labour and National and one MP from every other party except Jim Anderton's Progressives.
Prime Minister Helen Clark said if National wanted to broaden the focus to economic issues such as contestability in ACC, labour market flexibility and cutting Government spending there would be no chance of a consensus.
"But if a select committee inquiry was focused on monetary policy it would be informative and educative for those who sit on [it].
"And who knows? Parliament might surprise itself and find some common ground."
Dr Cullen said issues to explore included how monetary policy could work more effectively and quickly at minimal cost, especially to the exporting sector, what instruments should be available to the Reserve Bank, and what was making the operation of monetary policy more difficult.
He said there was "no crisis in the economy", with 3.5 per cent unemployment, rising household incomes and rising wage incomes. But there were imbalances that needed addressing.
The export sector bore a disproportionate amount of the "adjustment pain" that occurred when monetary policy was tightened.
Dr Cullen said monetary policy was too important an issue to be turned into a political circus.
He did not believe anything should be ruled out of being examined but said: "I personally do not believe that a capital gains tax in housing has anything to do with this issue."
Mr English said National would not be hostile to an inquiry.
"They can be useful and I'm sure in this case a committee inquiry may be useful. But it is not a process that will lead to policy change in a hurry."
He said it signalled the Government did not intend to change policy "because a select committee inquiry couldn't lead to a change of policy for a long time".
