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

 


Cullen on NZ Institute report

5 April 2005

Cullen on NZ Institute report

The government agrees it is important to raise savings, but Institute's plan too expensive.

---------------------------------

Finance Minister Michael Cullen today welcomed the final instalment in the New Zealand Institute's discussion on creating an ownership society, saying it was a useful contribution to the policy debate and that the government concurred with the Insititute's broad analysis.

"We agree on the need to both broaden and deepen the range of assets held by New Zealanders and to lift household savings rates as these are now among the lowest in the OECD and are part of the explanation behind New Zealand's stubbornly high external deficit.

"We also agree with the Institute that tax cuts which would further fuel consumption would be counterproductive given the current state of the economy as they would add to inflationary pressures, cause a worsening of the current account and lead to higher interest rates," Dr Cullen said.

"Both the Prime Minister and I have already signalled that this year's budget will contain measures to help people to save for their retirement and to assist them in buying their first home.

"The government's proposed savings scheme reflects the three principles advocated by the Institute in that it is designed to encourage maximum participation, to be responsive to changing life circumstances and to create a savings culture," Dr Cullen said.

He warned, however, that the package would be significantly more modest than that the $4 billion a year the Institute was recommending.

"Such a level of support would be totally unaffordable and would lead to the government moving from being a net saver to a net borrower, which would undermine the whole purpose of the exercise," Dr Cullen said.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Labour: New Figures Show Speculators Rampant

New figures released by the Reserve Bank show there’s been an explosion in mortgage lending with most of the growth going to property investors, Labour’s Housing spokesperson Phil Twyford says. More>>

ALSO:

False Official Information Response: English's Apology Accepted

Finance Minister Bill English is being thanked for his apology to New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters... Mr English says his staff and the Treasury have searched again, and they found the document that they denied having. More>>

ALSO:

Midwives On Pay Equity: Historic Bill Of Rights Case For High Court

“We have been left with no choice.” That from Karen Guilliland, the Chief Executive of the New Zealand College of Midwives, as the organisation prepares to file a pay parity discrimination case on the basis of gender under the NZ Bill of Rights Act in the High Court. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news