Parliament

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

 

Government’s economic plan remains on track

Hon Bill English
Minister of Finance

18 December 2012
Media Statement
Government’s economic plan remains on track

The Government’s economic plan to deliver a faster-growing economy, more jobs and a return to surplus remains on track, despite ongoing uncertainty in many parts of the world, Finance Minister Bill English says.

Issuing the Half-Year Economic and Fiscal Update today, along with the Government’s Budget Policy Statement, he says Budget 2013 will focus on continuing to implement this plan.

“We’ve set four main priorities for this term. “They include returning to surplus and reducing debt; pushing ahead with a wide-ranging programme of microeconomic reforms to create a more productive and competitive economy; driving better results from public services; and supporting the rebuilding of Christchurch.

“This programme is helping New Zealanders and their families to get ahead, encouraging personal responsibility and rewarding people for hard work and enterprise.”

The Half-Year Update forecasts the Government posting a modest surplus of $66 million in 2014/15 – down from the $197 million surplus forecast in Budget 2012. It also shows net core Crown debt peaking below 30 per cent of GDP.

“Thereafter, surpluses are forecast to increase and debt is forecast to fall,” Mr English says. “Continued control over spending has allowed the Government to remain on track to surplus, despite the impact on revenue of more difficult global conditions.”

Over each of the next five years, economic growth is forecast to average 2.5 per cent, together with increasing numbers of New Zealanders in employment and a falling unemployment rate.

“The global economic environment remains uncertain and this makes it even more important to maintain clear and credible fiscal settings,” Mr English says.

“This is a time for sensible and responsible policy – not for untried economic experiments. “Budget 2013 will confirm the Government’s commitment to responsible long-term fiscal management.

“This will require restraint well beyond the surplus target of 2014/15, so we can pay down debt and build a buffer against the next global shock, while at the same time resuming payments to the New Zealand Superannuation Fund and targeting investment at priority public services.

“At the same time as getting its own finances in order, the Government is continuing to address New Zealand’s significant economic challenges, including a sustained rebalancing towards the internationally competitive sectors of the economy.

“A broad range of targeted microeconomic reforms currently underway through the Government’s Business Growth Agenda will help to lift New Zealand’s productivity and competitiveness.”

Looking ahead, the European sovereign debt crisis and ongoing fiscal debt problems in the United States are risks to the global recovery. Downgraded forecasts of global growth have been factored into the Half-Year Update.

“Compared to many other countries, the New Zealand economy is in good shape,” Mr English says. “Despite our growth forecasts being slightly weaker than in Budget 2012, New Zealand is expected to grow more strongly over the next four years than the Euro area, the United Kingdom, Japan and Canada.

“New Zealand has a number of positive opportunities over the next decade, including strong and growing trade and investment links with Asia, elevated terms of trade and the Christchurch rebuild – which is expected to contribute 0.7 per cent to annual growth over the next few years.

“We’re in a strong position to translate those opportunities into more jobs, higher incomes and better living standards for New Zealand families. “The Government’s economic and fiscal programme is aimed squarely at ensuring this happens.”

Half-Year Economic and Fiscal Update and 2013 Budget Policy Statement available at: http://www.treasury.govt.nz/government/forecasts


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement.

As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

 

Ombudsman: Canterbury Schools Reorganisation Mishandled

An investigation into the Canterbury schools reorganisation after the February 2011 earthquakes has found significant gaps and flaws in the Ministry’s engagement and communications with schools and communities. More>>

ALSO:

Law Commission: Contempt Report "Protects Right To Fair Trial"

The proposed Act limits what news media representatives and bloggers can report on court proceedings, but it also makes clearer than the current law where the line is between contempt and freedom of expression. More>>

ALSO:

Gordon Campbell: On Our Refugee Intake (And Uber’s Woes)

On figures released this week, there are currently 65.6 million people worldwide who have been displaced from their homes by war, famine or other external causes… More>>

ALSO:

IGIS Report: GCSB Support For Groser WTO Bid Not Illegal

“The inquiry has found that the GCSB did not act unlawfully or improperly in providing assistance to the New Zealand government campaign”, Ms Gwyn said. More>>

ALSO:

PM's Press Conference: Pike And Houses

There were questions on Pike River mine re-entry after new video from inside the drift was released over the weekend. English maintained a human effort would not be feasible irrespective of any future coalition demands from NZ First. He said the government would continue to work with families on non-manned re-entry. More>>

ALSO:

Flogging A Dead Horse: NZ First Seeks New s59 Referendum

10 years on from the so called “anti-smacking” law - NZ First calls for a binding referendum. NZ First MP Tracey Martin told TVNZ’s Q+A programme that the law change has had a “chilling effect” on NZ parents including herself. More>>

ALSO:

Always Interesting: Internet Party Has New Leader

The Internet Party has a new leader: Suzie Dawson... She currently resides in Moscow, Russia, where she has applied for temporary asylum due to severe persecution she reports being subjected to by those whose corruption she worked to expose.More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog