The 50 basis point cut in the Official Cash Rate by NZ's Reserve Bank today broke its remit. Truth is, its trying to kick start the economy, not fight inflation.

When National came to power, the Party amended the Reserve Bank of NZ legislation, which had previously instructed the Bank to pursue the dual objective of low inflation and "maximum sustainable employment". The latter aim allows a central bank to manage how fast the economy is growing, and to influence the unemployment rate, at least in the short term. However, Finance Minister Willis, when she came to power a year ago, removed the ability of the Bank to target the state of the economy, introducing legislation that gave the Reserve Bank the sole mandate of achieving price stability. That has been defined by the government as keeping inflation in a 1-3% bracket - so preferably close to 2%. Willis, who introduced the law, said removing the dual mandate was a “highly symbolic, important act”.

What is inflation currently in NZ? Its at 2% and so on target. Yet the Big Monopoly Banks, financial media & monetary "experts" are telling us the RBNZ will - and should - cut the OCR by 50 basis points today - maybe more. Why? Because, they say, the economy has stagnated and that's bad for business - bad for them. For example, Kiwibank's economist Mary Jo Vergara said the economy needed rate relief urgently - she says, "Interest rates are .. too restrictive .. There's no need for this sort of choke hold to be on economic growth anymore. We need that rate relief." That may be so - but what she's asking for - rate cuts to get the economy growing - is unable to be used to justify cuts. Inflation is already on target - so the sole mandate of price stability of the RBNZ has already been achieved.

Finance Minister Willis Challenges DownToEarth.Kiwi to give her "ideas" about how to Break Monopoly power in the NZ Economy. Here they are.

When interviewed by Heather du Plessis-Allan on Newstalk ZB yesterday, Finance Minister Willis said, "And I'd like to put this out to Robert MacCulloch: if he has more ideas on how we can drive competition in the NZ economy, to break up some of these duopolies that are making too much money out of New Zealanders, then I am up for those ideas". I've already done so. Her National Party rejected them. Despite knowing some of her colleagues, who've asked whether she'd like to meet to me, she never did. Why not? She already has an inner circle of old-school advisers. Who are they? Matt Burgess for one. He was Bill English's economic adviser ten years ago. By the way, English had an Academic Advisory Group, when he was Finance Minister, which included me. Willis dumped it. Her adviser outside the Beehive is the NZ Initiative, which is where I first came across her, and Chris Luxon as well. I'm no lefty critic of the Nats - I represented one NZ's richest families at the Initiative, who told me "not to take crap" from the other members.

The Initiative is a lobbying group for our biggest corporate monopolies. Its board includes Scott Perkins, who I remember from my old school days. He's a Non-Executive Director of Woolworths. Another Board member is Chris Quinn, who is Chief Executive of .. Foodstuffs North Island. (I suppose he'd prefer that to be "NZ", not "North Island"). Barbara Chapman, another Board member, is former Chair of one of the Big Banks. Can you believe it? This is the Board of the outfit who our Finance Minister takes advice from about how to break-up monopolies? Fletcher Building is a member of the Initiative. I was there around 8 years ago when Key was PM and the CEO of that company, an English guy, lectured me how NZ's infrastructure was amazing and not in need of any significant repair. Air NZ is a member. ANZ is a member. Matt Burgess, the PM's adviser, was "Senior Economist" at the Initiative.

So Finance Minister Willis, my first recommendation is to replace your advisers with ones who do not represent the interests of the biggest monopolies and duopolies in NZ.

A second recommendation is to go back to my 40 page article - joint with Sir Roger Douglas - that has been published in leading outlets in Washington, London, Germany and NZ about how our health system, which runs the biggest monopoly in the country courtesy of Health NZ- that is, a "single supplier" model of public health-care delivery - should be reformed to enable private health-care suppliers to provide over half of all our health-care services. Every Kiwi, regardless of income, should be able to choose provider, whether public or private, in consultation with their GP, with the bill paid for by the government. Health NZ is a far larger monopoly supplier than the Big Banks and Supermarkets combined. Kiwis who can't afford private care have no other choice but to go public. The system I'm recommending is similar to the one in France, which has the best health-care in the world.

A third recommendation is that the government should slash regulations on banks so as to encourage competition, new entrants and investment, and lending to start-ups, small businesses and the agricultural sector, but with one big exception. Should they fail, they must pay for the damage themselves - not the tax-payer - that's why they should be required to hold large capital reserves - a policy strongly opposed by .. the NZ Initiative.

So Finance Minister Willis, I challenge you. You say you are "up for my ideas". Then shed yourself of your monopoly supporting advisers. Reform banking. Bust the single biggest monopoly in the country by far - Health NZ - as represented - by you and your colleagues - and John Key's old mate - Lester Levy.