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

 


PQ3. Economic Programme—Reports


[Sitting date: 23 July 2014. Volume:700;Page:4. Text is subject to correction.]
3. JOHN HAYES (National—Wairarapa) to the Minister of Finance : What recent reports has he received supporting the Government’s economic programme?
Hon BILL ENGLISH (Minister of Finance): Earlier this month the credit rating agency Fitch Ratings confirmed that it had revised New Zealand’s AA credit rating outlook from stable to positive. This indicates the credit rating’s likely direction over the next year or two. Fitch Ratings said that the Government’s fiscal consolidation and track to surplus in 2014-15 are increasing the resilience of New Zealand’s sovereign credit profile, and it noted that the Government has a credible plan to lift fiscal surpluses in the years ahead and to reduce net core Crown debt to 20 percent of GDP by 2020. Fitch Ratings also said that New Zealand’s economic policy framework, business environment, and standards of governance ranked among the world’s strongest from a credit perspective and warranted high-grade sovereign ratings.
John Hayes : In confirming the positive outlook for New Zealand’s credit rating, what did Fitch Ratings say about New Zealand’s current and future economic growth prospects?
Hon BILL ENGLISH : It noted that New Zealand’s macroeconomic record and prospects are supporting its credit rating. It said that real GDP grew by 2.7 percent in 2013 and is expected to increase to 3.8 percent in 2014. This will be supported by, among other factors, reconstruction in Canterbury; dairy prices, which have moderated but are still at elevated levels; and a house-building catch-up. Fitch Ratings noted that although New Zealand’s average GDP growth over the past 5 years, at 1.6 percent, is lower than the median among AA rated countries, it was less volatile and was higher than the 1.2 percent median growth rate among AAA rated countries.
John Hayes : What other factors did Fitch Ratings note in respect of its positive ratings outlook for New Zealand?
Hon BILL ENGLISH : One of the factors Fitch Ratings noted was New Zealand’s historical vulnerability around high net external debt and persistent current account deficits. I am pleased to report that both of these indicators have improved significantly in recent years. For example, the unadjusted current account balance in the March quarter was a surplus of $1.4 billion—the largest dollar surplus ever recorded—and the annual 2.8 percent deficit is well under half the deficits of around 7 percent of GDP in the 3 years to 2008. So our net international liability position has improved. It was 65 percent of GDP in March this year, well down from a recent peak of 85 percent of GDP in early 2009.
John Hayes : And for my last question, what other reports has he received about the state of the New Zealand economy?
Hon BILL ENGLISH : I have seen one report claiming that Government debt is larger as a percentage of GDP than New Zealand had during World War II. This is completely false. Gross Government debt is currently around 35 percent of GDP. At the end of World War II it was around 150 percent of GDP. David Cunliffe has again completely misled New Zealanders

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Legal Fudging Of The GCSB Revelations

As many have noted, the Hager/Snowden revelations of the spying by our security agencies on our Pacific neighbours and allies is a virtual re-run of the pre-election debate.

Unfortunately, it is also a forerunner of the kind of “ debate” we can expect during the upcoming review of the security agency powers, in June. It is a situation where the government (a) stonewalls, (b) baldly asserts that mass surveillance is not occurring despite the Snowden evidence that it is, and (c) claims that the GCSB actions were lawful.

Yet as Greens Co-Leader Russel Norman says, this can be true only if the legislation passed last year by the Key government has made the mass surveillance of New Zealanders – and the related handing over of their private data to the NSA – lawful. More>>

Latest:

 

PARLIAMENT TODAY:

Women's Day, March 8: It’s Time For Men To Step Up For Gender Equality

UN Women is launching the HeForShe campaign in New Zealand at the International Women's Day Parliamentary Breakfast, and is calling on New Zealand men — including politicians and community and sports leaders — to show their commitment to gender equality by signing up to this global campaign. More>>

ALSO:

Teina Pora Wins Appeal: Gordon Campbell On The Privy Council Decision

The quashing of the convictions of Teina Pora for the rape and murder of Susan Burdett in 1992 has shone a spotlight once again on a major gap in the New Zealand justice system... More>>

ALSO:

Urgent Bill Planned: MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency. More>>

ALSO:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news