Banking Inquiry told soft landing a desire

The only reason the infamous “soft landing” theory was accepted by the Department of Finance was because Government wanted it to be true and a “don’t rock the boat” policy was in place, a former senior department official has claimed.

Former assistant principal officer Robert Pye issued the criticism of the boom-time Government — one of a series of written submissions to the bank inquiry from witnesses who have not been asked to attend public hearings.

According to the senior official, despite clear concerns from economists and independent experts, the soft landing view — which previous evidence shows was never formally examined by the department —was accepted by civil servants because Government wanted it to be true.