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 Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news