3 November 2000 Media Statement
Crown Accounts cap a week of good economic data

"The Crown Financial Statements to September showing the surplus running at more than twice budget forecasts cap a week of good economic news," Finance Minister Michael Cullen said today.

"While it would be foolish to draw too much from the fiscal data as it covers only the first three months of the budget year, the numbers do cast doubt on the 'doom-and-deficit' scenario being so avidly promoted by National and Act.

"Likewise the latest household labour force survey showing both the employment and the participation rate up and unemployment at a 12-year low.

"These figures should lift consumer confidence, as should the announcement yesterday of a new multi-million dollar high technology joint venture between global telecommunications company, Ericsson, and New Zealand infotech and management consultancy, Synergy."

Dr Cullen said the centre, which will be developing mobile internet applications for the world market, was exactly the sort of greenfields investment New Zealand needed.

"The Government's practical and pragmatic programme of business assistance was a factor in the joint venture's decision to locate here.

"These progressive programmes, plus the highly successful e-commerce summit hosted in Auckland by Paul Swain this week, testify to the Government's commitment to the knowledge economy.

"The economic outlook remains positive.

"Petrol prices and the low dollar have flattened domestic demand but the export-led recovery will gain momentum and will stimulate growth which, unlike the last fiscal expansion, will be austainable because it will be based on earnings rather than borrowings," Dr Cullen said.

ENDS

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