Parliament

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

 

Govt's debt targets are firmly on track

28 May 2001 Media Statement

Govt's debt targets are firmly on track

"Bill English continues to misrepresent the Government's fiscal policy, and the funding mechanism for the proposed New Zealand Superannuation Fund," Finance Minister Michael Cullen said today.

"He is dead wrong when he says the Government cannot afford to meet the projected contributions into the Fund.

"We have always said the payments would come from the operating balance - and the Budget shows a surplus of $1.4 billion in 2001-02, followed by surpluses in the subsequent three years of $2.4 billion, $3 billion and $3.7 billion.

"This is more than adequate to meet forecast contributions to the Fund of $600 million, $1.2 billion, $1.8 billion and $2.5 billion respectively.

"Yes, the Budget shows a modest increase in net debt over the next few years. But that has nothing to do with the proposed Superannuation Fund. Instead it reflects the Government's decision to take on to its own books the borrowing programmes of the District Health Boards and Housing New Zealand.

"This makes shrewd sense because the Government can negotiate cheaper interest rates than can these smaller organisations.

"The other reason there is a small increase in the debt profile is that the previous government allowed the infrastructure to deteriorate through persistent under-investment over many years across many activities - from transport through to corrections and defence," Dr Cullen said.

"As a consequence, the coalition Government has had to embark on a heavy capital investment programme.

"But, we are able to do this while also meeting our debt targets. We committed ourselves in our first budget to keep net debt below 20 percent as a proportion of GDP and we are easily within that range.

"The budget has net debt stable at around 18 per cent of GDP over the forecast horizon. These are the lowest levels achieved in 20 years," Dr Cullen said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

General Assembly: Ardern Rejects Trump Call For War On Drugs

New Zealand will not be signing the United States' document calling for global action on the war on drugs, Prime Minister Jacinda Ardern says.

Ms Ardern is in New York for the United Nations General Assembly this week, along with about 140 other world leaders.

US President Donald Trump is kicking off his week at the UN by holding an event to promote the US document called the Global Call to Action on the World Drug Problem. More>>

 

Hunting v Pest Control: Tahr Control Needed To Protect Alpine Habitats

A cull of introduced Himalayan tahr browsing conservation land in Kā Tiritiri o Te Moana/ the Southern Alps is needed to protect special alpine plants and their habitats, Conservation Minister, Eugenie Sage said. More>>

ALSO:

Protest At Sea: Judge Discharges Greenpeace Activists

The judge today discharged Norman and Howell without conviction, saying the cumulative consequences of a conviction would be out of proportion to what was “low level” offending off the Wairarapa coast in April 2017. More>>

ALSO:

Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>

ALSO:

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels