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

 


NZ must stick to Govt plan to head off global risks

Hon Bill English

Minister of Finance

17 October 2013

Media Statement

NZ must stick to Govt plan to head off global risks

A number of ongoing global risks reinforce the need for New Zealand to continue improving its own economic resilience and competitiveness, Finance Minister Bill English says.

It can do that by returning to budget surplus and addressing potential threats to financial stability such as housing affordability, he told the Institute of Finance Professionals New Zealand (INFINZ) annual conference in Auckland today.

“When the National-led Government was first elected in late 2008, we set out with a long-term programme to protect the most vulnerable New Zealanders from the recession, deal with the GFC and build a platform for sustainable growth.

“After inheriting Treasury forecasts showing never-ending fiscal deficits and soaring public debt, we have successfully set a path back to surplus so we can get on top of that debt.

“In addition, we have implemented a plan to improve competitiveness and we are now on a path of steady growth. At the same time, we’re dealing with important issues such as housing affordability,” Mr English said.

“We want to avoid a repeat of the dangerous house price bubble that developed in the mid-2000s, when house prices doubled in five or six years, floating mortgages rates exceeded 10 per cent and household debt got dangerously high.

“That’s why we’re addressing the underlying causes of fast-rising house prices by freeing up more land, removing costly red tape and looking at construction sector productivity.”

Mr English said the Government’s responsible economic and fiscal management had helped keep interest rates for homeowners and businesses lower for longer and had improved New Zealand’s financial stability.

For homeowners, average floating mortgage rates are now about half of what they were five years ago. This is saving a family with a $200,000 mortgage around $200 a week in interest payments.

“Sound fiscal policy and progress with increasing housing supply will help to keep interest rates lower for longer. On the other hand, Opposition promises to increase government spending and pump cheap credit into the housing market will push up rates sooner.

“Under current settings, interest rates are not expected to return to anywhere near their 2008 levels of more than 10 per cent, which is good news for home owners and businesses across New Zealand.”

Mr English, who has just returned from a visit to New York, Boston and Washington DC, said the recent United States budget stalemate was just the latest in a number of global risks to the New Zealand economy.

“As we’ve said all along, we cannot influence these global issues, so we need to focus on what we can influence, such as New Zealand’s competitiveness, better public services and the Government’s own financial performance.

“Together these global events provide a timely reminder to everyone from politicians, to businesses and to households, that we cannot be complacent about the progress we’ve made in the past four or five years.

“Now is certainly not the time to put that progress at risk by reverting to damaging policies that have failed us in the past such as more taxes, more costs on business and more government spending and borrowing.

“We must continue with sensible economic policies, year after year, that deliver better living standards and public services for families across New Zealand.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gaza.Scoop: Another Israeli Attack On A Hospital

Israeli tanks attacked Al Aqsa hospital in Deir Al Balah, killing five patients and doctors, and injuring more than 70.

The third and fourth floors, housing the emergency department, orthopaedic department, surgical department, and the Intensive Care Unit (ICU) were destroyed. Operating theatres had to cease work because of the lack of oxygen.

Patients are being evacuated to Shifa Hospital in Gaza City, and the European Gaza Hospital between Rafah and Khan Younes. More>>

 

Parliament Today:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Gordon Campbell: On The Non-Apology To Tania Billingsley

The refusal by Prime Minister John Key to issue a personal apology to Tania Billingsley has been accompanied by an array of excuses... Yesterday though, Key’s choice of words indicated that an apology was the last thing on his mind. More>>

ALSO:

Conventions: Winston Peters On The Nation

Winston Peters opens door to standing in East Coast Bays electorate, says it's an "exciting point" and he's thinking about it. "I’ve had a whole lot of people writing to me and calling up and saying ‘why don’t you have a go in East Coast Bays’." More>>

ALSO:

Waitangi Tribunal: Report On The MV Rena

In its interim report, the Waitangi Tribunal has found that the Crown’s conduct in response to the grounding of the MV Rena on Otaiti (Astrolabe) reef breached the principles of the Treaty of Waitangi. More>>

ALSO:

Gaza: Wellington Protest For Palestine Calls For End To Bombing

Around 300 people gathered outside the Israeli Embassy in Wellington on Friday to protest Israel’s occupation of Palestine. More>>

ALSO:

Gordon Campbell: On The Failure To Prosecute The GCSB

So one hand of the state – the Independent Police Conduct Authority – has now washed the hands of its brother agencies, and declared that all hands are clean. Case closed. More>>

ALSO:

Illegal Search: Police Behaviour 'Reminiscent Of Tūhoe Raids'

"Māori will lose further trust and confidence in the New Zealand Police and the Independent Police Conduct Authority (IPCA) if the recent incident in Stratford is not adequately addressed. This behaviour would not occur in Epsom or Khandallah so why should police think that such behaviour was acceptable in Stratford," says Chris McKenzie. More>>

ALSO:

Gordon Campbell:
On The Dotcom Emails

The Dotcom residency decision fails any number of sniff tests... Why, then, was it approved? Here we get into the realm of the “INZ being under political pressure” to approve Dotcom’s application. More>>

ALSO:

Gordon Campbell: On The Shonky Police Statistics, And The Israeli Air Strikes On Gaza

When people systematically alter how being statistics are recorded in order to gain personal and organisational advantage, that’s usually when the Police get called in. Yet in the case of the burglary statistics in Counties-Manakau, it was the Police doing the fudging and – at the time – it was then-Police Minister Judith Collins claiming the credit... More>>

ALSO:

'Clean Rivers': Green Party Launches Key Election Priority

The Green Party will make a series of announcements over the course of the election campaign in which it will outline the specifics of how it will clean up our rivers and protect our beaches. In the first of these announcements the party launched its plan for clean rivers. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news