Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


OECD Projects Continuing Economic Growth

"The OECD review of the New Zealand economy projects growth of 3.5 percent this calendar year, 2.9 percent next year and 2.8 percent in 2002," Finance Minister Michael Cullen said today.

"The forecasts reflect the OECD's view, shared by the Government, that confidence levels are out of step with the economic fundamentals, and that these fundamentals will reassert themselves.

"The OECD also echoes the IMF assessment, released last month, that the Government's fiscal stance is "appropriate" but will require close discipline over the next two budgets.

"The Government is aware of this, and has reconfirmed its intention to stay within the $5.9 billion spending cap set in the first year," Dr Cullen said.

The OECD welcomed the Government's Value for Money initiative, the strengthening of the Commerce Act and the reviews into the telecommunications and electricity sectors.

"Its judgement of the Employment Relations Act, while more mixed, offers a refreshing sense of perspective after the silly scaremongering of the Opposition and certain private sector organisations," he said.

Figures published by the OECD showed that New Zealand's productivity growth - both of labour and capital - was well below the OECD average from 1991 to 1998.

"And the report notes that the shift to the ERA moves the New Zealand industrial relations framework closer to the model applying in many other OECD countries," Dr Cullen said.

"But the OECD is critical of those Government decisions which it regards as weakening or backtracking on the economic reforms of the last 15 years.

"Although it freely acknowledges that the economic restructuring process has failed to deliver the expected gains, it believes the Government should keep moving further and faster in the same direction.

"Specific recommendations are for a resumption of the privatisation programme, a capital gains tax, a tax on the imputed rental income of owner-occupied housing [a tax on people for living in their own homes], benefit cuts and a "less generous" public pension.

"The Government considers this extreme, socially unacceptable and economically unnecessary. Our response to the structural problems in the economy is more pragmatic.

"We are engaged upon a modest rebalancing of policy toward the centre and the international mainstream," Dr Cullen said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Spying On Politicians, Activists, Iwi, Quake Victims: "Failings Across Public Service"

A State Services Commission investigation into the use of external security consultants by government agencies has uncovered failings across the public service, including breaches of the code of conduct...

However, the inquiry found no evidence of widespread inappropriate surveillance by external security consultants on behalf of government agencies. More>>


Doesn’t Compromise Sovereignty: NZ To Back UN Migration Compact

Foreign Affairs Minister Winston Peters says New Zealand will support the UN Global Compact for Safe, Orderly and Regular Migration after being satisfied fears about the document are unfounded. More>>


Children's Commissioner: Child Poverty Law "Historic Cause For Celebration"

...It represents a cross-party commitment to a fundamental shift of policy for our most disadvantaged children and should help undo 30 years of damage to children from our most vulnerable families. More>>


Dope News: Binding Cannabis Referendum To Be Held At 2020 Election

The referendum on cannabis for personal use is part of Labour's confidence and supply agreement with the Greens. It could be one of potentially three referenda - decisions have yet to be made about euthanasia and changes to electoral laws. More>>


Vic: Victoria University Name Change Rejected

Education Minister Chris Hipkins has declined Victoria University of Wellington Council’s application for a legal name change. More>>


PM's Post-Cab 17/12/18: Chief Justice, M Bovis

Prime Minister Jacinda Ardern's final post-cabinet press conference of the year focussed on announcing the appointment of Helen Winkelmann as the next Chief Justice, and an update on effort to eradicate Mycoplasma bovis from New Zealand. More>>


Law Commission Issues Paper: Use Of DNA In Criminal Investigations

In the 22 years since the Act came into force, it has become clear that the modern-day fingerprint analogy is increasingly inapt... Theoretically, whole genome sequencing could ultimately become the standard method of analysing a DNA sample. Such a development will give a new perspective on the concept of genetic surveillance in the criminal context. More>>

State Highways: $1.4 Billion For Road Safety Improvements

The Safe Network Programme will make 870 kilometres of high volume, high-risk State Highways safer by 2021 with improvements like median and side barriers, rumble strips, and shoulder widening. More>>





InfoPages News Channels