ASB economist says surplus opens door to more govt spending

With the Government's books in good order, a bank economist is encouraging the Finance Minister to consider loosening the purse strings. Grant Robertson unveiled the biggest surplus in a decade yesterday - $7.5 billion in the black - as well as low levels of debt. But storm clouds still linger on the global horizon and interest rates are sitting at record lows. The ASB's chief economist Nick Tuffley told our deputy political editor Craig McCulloch the latest accounts should be read with some caution.