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

Gordon Campbell:
On War Crimes And The Afghan Insurgency

Truly, with friends like former defence Minster Wayne Mapp, the SAS does not need enemies. At the very least, the Hit and Run book has raised the possibility that the New Zealand SAS committed war crimes in the attack they led in Afghnistan upon the villages of Naik and Khak Khuday Dad...

Mapp’s attempted defence of the SAS on RNZ this morning unintentionally indicated that collective punishment was baked into the planning exercise for the raid, and also into how the raid proceeded on the ground. More>>

 
 

Little Heading For Court: Apology Over Donation/Hotel Contract Claims Not Accepted

Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements. I have offered that apology to the Hagamans. More>>

ALSO:

Biscuit Tin Of Democracy: World Heritage Site Protection, Ombudsman and Equal Pay Bills Drawn

On Thursday, 23 March 2017 three places are available on the Order Paper for the first reading of a Member’s bill. The ballot was held, and resulted in the following bills being drawn... More>>

ALSO:

Emissions Plan: NZ Needs More Science, More Trees, Fewer Beasts

A combination of technology breakthroughs, much more plantation forestry, and a big switch away from pastoral, particularly dairy farming, are identified as the key elements of any approach New Zealand takes to reducing its carbon emissions to a net zero level, according to a new report sponsored by the New Zealand chapter of GLOBE, a multi-party, global parliamentary grouping. More>>

ALSO:

"Backed To Win Seats": Labour Māori Seat MPs Won't Stand On List

The Labour Party is backing a request from its Māori seat MPs to stand as electorate MPs only, says Labour Leader Andrew Little. More>>

OutsKey: John Key's Valedictory Speech

I rise to address this House for the very last time. It has been a huge privilege to have served the people of Helensville as their member of Parliament, and, of course, the people of New Zealand as their Prime Minister. More>>

ALSO:

Productivity Commission: New Models Of Tertiary Education Are Coming

The report is a broad-ranging inquiry into how well New Zealand’s tertiary education system is set up to respond to emerging trends in technology and the internationalisation of education, and changes in the structure of the population, and the skills needed in the economy and society... More>>

ALSO:

PM's Press Conference: Water Everywhere

Monday's Post-Cabinet press conference focused on water, with the Prime Minister fielding questions about the possibility pricing water taken for export. Mr English said the government was directing their water allocation technical advisory group to include export water in considerations. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news