Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Financial report shows agriculture is well on track

17 December 2013

Financial report shows agriculture is well on track

Federated Farmers is pleased to see the Government’s half year Economic and Fiscal Update report showing a faster growing economy, with the agriculture industry being well on its way to doubling its exports by 2025.

“We have long advocated for economic restraint, and it is great to see the $86 million surplus forecast for 2014/15 is up ever so slightly on the surplus forecast in May,” says Bruce Wills, Federated Farmers President.

“Agriculture has had a great start, with the tradable sector growing 11.1 percent since 2009 compared with non-tradeables up 6.6 percent, however resource pressures are growing and next year we will likely see a tightening of monetary policy to dampen inflation. Farmers and exporters will need the Government to keep spending and debt under control in order to take the pressure off interest rates and the exchange rate.

“Looking further afield, surpluses are looking healthier, with a $5.6 billion projected surplus for 2017/18. These growing surpluses will put the Government in a better position to reduce its debt, which is forecast to peak at $64.5 billion in 2015/16. This had risen significantly as the Government worked to "take the edge off the recession". Paying down debt remains an important focus as it improves the resilience of the economy and our ability to absorb future shocks.

“Leading into an election year, the Government and opposition parties will need to do their bit by committing to responsible fiscal policy, which does not work against monetary policy. The last thing we need is for politicians to spend the surplus before it arrives.

“This is the kind of news you want after a challenging few years, with the Global Financial Crisis and the Canterbury Earthquakes. Federated Farmers continues to support the Government in its efforts to keep spending under control and its aim to rebalance the economy towards sectors that compete internationally,” concluded Mr Wills.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>