HIGHLIGHTS-Brazil candidate Serra's remarks on policy issues

BRASILIA May 10 (Reuters) - Following are comments by Brazilian presidential candidate Jose Serra on a series of key campaign issues from an interview on Monday with Brazil's CBN radio. [ID:nN10198404]

Serra, a member of the opposition PSDB party, leads rival Dilma Rousseff by as much as 10 percentage points in opinion polls conducted ahead the Oct. 3 election.

ON THE CENTRAL BANK

"The central bank is no Holy See."

"There were several occasions it could have lowered rates and erroneously didn't."

"(Rates) could be lower. I'm concerned Brazil has the highest rates in the world."

"Now, if there are calamitous errors, which are possible to identify, I think the president needs to make his opposition heard."

"The central bank people need to be able to work in peace without constant interference."

ON IDEOLOGY

"In the traditional political analysis of what is right and left, I am (a leftist)."

ON THE ROLE OF THE STATE

"I favor a national development project for Brazil with government activism.

"I defend a strong state, not obese but muscular, with the capacity to promote our development with social justice."

ON BRAZIL'S OIL REFORM BILL

"I have doubts over this ... even changing the model, as the government wants to do. It wouldn't necessarily require creating a new company given the existing firms, like Petrobras (PBR.N)(PETR4.SA), or organs like the National Petroleum Agency (ANP)."

"There are options for alternative energy ... which are not being used in Brazil, and I think that has to be important for the next government."

ON ECONOMIC GROWTH

"We are among those (countries) that invest the least. That hampers our growth. Ports are overburdened, airports are in a state of calamity due to overuse, roads that can take production to the coast, warehouses that can help with the logistics ... there's a lack of infrastructure."

"It's not only a lack of money, its also knowing how to do it, how to plan properly in the public sector."

ON SOCIAL SECURITY

"The pension systems needs a reform to eliminate privileges."

"It may not go bankrupt, but it leaves pensioners in a precarious situation."

ON THE SOUTH AMERICAN TRADE GROUP MERCOSUR

"I think Mercosur needs to be reformed. Very ambitious targets were set, stages skipped."

"I think it's important to save Mercosur. You need to take two steps back before taking one step forward."

"The meetings of presidents have become another show. There is no concrete progress. It needs to be reformed to be strengthened."

(Reporting by Raymond Colitt; Editing by Todd Benson and Stacey Joyce)