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

 


Net debt free status reflects wise fiscal managmnt

Hon Dr Michael Cullen
Minister of Finance

4 May 2006 Media Statement

Net debt free status reflects wise fiscal management

Finance Minister Michael Cullen used his traditional pre-Budget speech to the Canterbury Manufacturers' Association today to announce that the government has become a net saver.

"I am delighted to reveal that the government's net debt, including the New Zealand Superannuation Fund, is in the black for the first time since records on net debt began to be kept in 1972."

The information is contained in the detailed Crown financial statements for the nine months of the financial year to be issued tomorrow.

"The hallmark of this government has been wise fiscal management. We have enjoyed strong economic growth and strong revenue streams as a result. But we have spent and invested wisely, built up assets like the New Zealand Superannuation Fund (currently $9.2 billion) and repaid debt to the extent that we can now celebrate an enviable status among developed nations.

"New Zealand is now one of just seven countries in the OECD to be in a positive net financial asset position. As at 31 March net financial assets totalled $0.4 billion.

"We got there earlier than expected thanks to higher than expected returns by the New Zealand Superannuation Fund and foreign exchange gains. Budget 2006 will show the net financial asset position continuing to improve over the four year forecast horizon.

"We have buried the legacy of imprudent spending of the Think Big era which saw government debt surge to unhealthy levels.

In his speech today the Finance Minister said Budget 2006 delivers on Labour's election promises and maintains a steady hand on the fiscal purse.

"With the economy taking a breather, it is now more important than ever that Budget 2006 continues our prudent approach. But our wise fiscal management means we are still able to take sensible measures to help speed the transformation of the New Zealand economy."

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

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:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news