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


"Clumsy Response To A Serious Issue": Treasury Head Was "Unreasonable" On Budget Breach

Outgoing Treasury secretary Gabriel Makhlouf was "clumsy", unreasonable and fell "well short" of expectations in his handling of the Budget data breach, a government report has found.

The State Services Commission report was ordered in the fallout of Mr Makhlouf claiming Treasury's website had been "deliberately and systematically hacked" and referring the matter to police...

The Commission's report - released today - said Mr Makhlouf did not act reasonably in his use of the word "hacked" or his subsequent explanations to media. More>>


'Team' For Housing: Cabinet Reshuffled

Prime Minister Jacinda Ardern has confirmed the details of a Cabinet reshuffle that sees Kris Faafoi being promoted into Cabinet, Poto Williams made a Minister outside of Cabinet and a team put in place to advance the Government’s housing plan. More>>


'Increase Still Needed': Community Law's Interim Boost To Remain

Today’s Post-Budget announcement extending last year’s interim funding boost to Community Law services is the second step in honouring the Coalition Government Agreement to increase funding to Community Law. More>>


At Select Committee: WRC Blames Bus Troubles On City's Challenges

Wellington's Regional Council is blaming a perfect storm of new operators, buses, routes, driver shortages and design failures for the shambolic introduction of new bus services a year ago. More>>


Gordon Campbell: Public Service Reforms Don't Protect The Public

Reportedly, the legislation involved is to be called the Public Service Act, because… well, it seems that the notion of “public service” is back in vogue. More>>


Police: Excessive Force Used Breaking Up Party

The Authority found that one of the officers involved had used knee strikes during the arrest... this officer made concerning comments... to the effect that "it's about time some of these kids got what they deserved." More>>


Environment Accounts: NZ's Household Emissions Increasing

Household emissions of greenhouse gases increased 19.3 percent from 2007 to 2017, mainly due to rising emissions from road transport, Stats NZ said today. More>>


Legislation: End Of Life Choice Bill Passes Second Reading

Just 20 MPs had the opportunity to debate the bill and many shared personal stories of watching family members die in what was at times an emotional display in the House. More>>


Other Bills:

Principals Reject Offer: Primary Teachers Vote For Settlement

Primary teachers have voted to ratify a proposed settlement that will give them pay parity with their secondary colleagues, but disappointed primary principals have rejected a settlement that was unchanged from a previously rejected offer. More>>





InfoPages News Channels