Federated Farmers is once again urging Reserve Bank Governor Alan Bollard to do nothing at his final statement of 2010.

Dr Bollard will give his last monetary policy statement for the year on Thursday.

The OCR has been steady at three per cent since the end of July.

Feds Economics spokesperson Philip Yorke says the Government is borrowing money at an unsustainable rate, and now is not the time to put pressure on debt levels.

We do perceive that if the government continues to borrow money at the rate it’s going to borrow, then our lines of credit are going to get very tenuous at some stage and we are going to have to pay more interest to get money into the country."

Philip Yorke says he hopes Dr Bollard holds the OCR well into 2011.

FEDS BACK 'HEARTLAND BANK'

The proposed ‘Heartland bank’ is one step closer to reality after depositors of Southern Cross Building Society voted to merge with the Canterbury Building Society and Marac Finance.

The proposal won 82.6 per cent support, well above the 75 per cent needed, leaving just Marac stockholders and CBS depositors to OK the deal.

Federated Farmers economics spokesperson Philip York says shareholder support so far is well placed, as the scheme has plenty of merit.

It’s a good idea, if anyone can come up with a prudent bank, that's an alternative to the four Australian banks, then there's nothing wrong with that at all.

"But it’s got to be done on a sound basis and it’s got to be something that’s not going to fall over in the future."

If the final hurdles are cleared, the newly-merged entity will seek a New Zealand Stock Exchange listing in February, followed by a banking licence in the middle of the year.