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

 

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news