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

 


Budget 2014: Sound economic management pays dividends

15 May 2014

Budget 2014: Sound economic management pays dividends

The government’s sound economic management has begun to pay dividends said the New Zealand Bankers’ Association today in response to Budget 2014.

“The Budget shows that the New Zealand economy is on the right track with a return to a small surplus in 2014/15 and then with surpluses forecast to increase moderately in future years,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“There’s no doubt that after six years of deficits the Crown’s books are improving, and this reflects the responsible fiscal management of the government, and the strength of the New Zealand economy. Overall, this is a balanced and sensible Budget.

“That said, it’s important that we take a cautious view on the state of the economy. Budget 2014 shows that the forecast surpluses in out-years remain modest at best and could easily be put at risk.

“For that reason it’s pleasing to see the government taking a prudent approach to future expenditure and only allowing for moderate increases in government spending. This will also ensure that inflationary pressures are kept to a minimum, and that interest rates are not materially affected.

“This restraint is welcomed and it’s vital that we resist the temptation to move away from careful, cautious government spending and put undue pressure on interest rates.

“We are also pleased to see Budget 2014 projecting net Crown debt dropping to 20% of GDP in 2019/20 and with it the government committing to resuming full contributions to the NZ Super Fund.”

The Budget also contained a number of tax changes including abolishing cheque duty and adjusting tax deductibility for research and development expenditure.

“These are constructive steps and will aid economic growth. However, again we would like to have seen a stronger focus from the government on specific incentives for savings and a firmer commitment to auto-enrolment in KiwiSaver.”

Budget 2014 also continues the government’s efforts to address housing affordability through freeing up supply.

“The move to temporarily remove tariffs and duties on building products is an innovative one. Reducing the cost of building a family home should help improve the supply of housing, especially in conjunction with previous steps taken by the government to free up housing supply.

“Significant challenges remain in regards to housing affordability in Auckland and this will be an area that will require ongoing focus from both central and local government,” added Hope.

PDF version

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Bill English, Abroad

Looks like you need to get the blurb yourself. Probably best to do that irrespective, actually.If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common.

Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues. Neither have yet been given a mandate to govern by the electorate although – in both countries – the Labour opposition is in less than robust shape. More>>

 

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news