Hon Bill English
Minister of Finance

29 October 2009
Media Statement

Long-Term Fiscal Statement highlights choices

Finance Minister Bill English has welcomed Treasury's Long-Term Fiscal Statement, which outlines some of the challenges and choices successive governments will face over the next 40 years.

"This is an important report that is produced at least every four years and contains projections out until 2050," Mr English says.

"This report highlights the stark choices New Zealand faces if it is to avoid an explosion of public debt.

"Doing nothing would see net debt climb to over 200 percent of GDP in 40 years, due to large starting deficits and an ageing population.

"Future Governments will face two basic options. They can either lift economic growth above current assumptions or they can cut spending and reduce public services.

"This Government is focused on lifting our economic growth and we have a clear plan to do that.

"I remain confident about New Zealand's long-term future. We are coming out of the recession in a relatively strong position compared with many other countries.

"The task now is to unleash our real growth potential and ensure New Zealanders who lose jobs can find a new one as soon as possible," Mr English says.

ENDS

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