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


Current account deficit underlines fiscal prudence

Hon Dr Michael Cullen
Minister of Finance

22 June 2006 Media Statement

Current account deficit underlines fiscal prudence

The wisdom of the government's fiscal strategy has again been underscored by the latest current account figures, Finance Minister Michael Cullen said today.

The March year current account deficit widened to $14.5 billion or 9.3 per cent of GDP, slightly worse than market expectations.

"Strong economic growth and higher oil prices have aggravated the goods balance, but there are some hopeful signs with the trend on goods flattening out. This should improve over the next year as the lower exchange rate boosts export returns," said Dr Cullen.

"The result shows just how reckless National's multi-billion tax cuts would have been at this stage of the economic cycle. Further fiscal stimulus would clearly have aggravated the deficit as well as boosting inflation and raising interest rates.

"Today's result reinforces the government's prudent fiscal strategy of reducing debt, investing in infrastructure and building up assets in the New Zealand Superannuation Fund. It's why Standard & Poor's recently said we have the balance right, being one of the "best placed" nations in the world to cope with future challenges.

"However, we need to encourage a stronger savings culture if we are to be less reliant on foreign capital and the government is endeavouring to do that through initiatives such as KiwiSaver."


© 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>>


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>>


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>>


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>>


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>>


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>>


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



Search Scoop  
Powered by Vodafone
NZ independent news