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 Eleanor Catton Rumpus

If anyone was in doubt about the accuracy of the comments made in India by Eleanor Catton, the reaction from some quarters here at home has gone a long way to proving her point.

By ‘some quarters’, I mean (a) RadioLive host Sean Plunket who called Catton a “traitor” and (b) Prime Minister John Key who dismissed her views as being those of a typical Green Party supporter, which is apparently almost as bad.

In context, Catton seemed to be talking about the mixed feelings she felt after what she had created suddenly becoming a kind of public property claimed by the entire country and its leaders. That must feel weird at any time, in any place. Catton evidently finds it particularly alienating when the government of the day has shown little interest in the arts beyond their promotional/economic value. More>>

 

More Rent Assistance, Less State-Owned Housing: John Key Speech - Next Steps In Social Housing

"We are going to ensure that more people get into social housing over the next three years, whether that is run by Housing New Zealand or a community provider. The social housing budget provides for around 62,000 income-related rent subsidies a year. We are committed to increasing that to around 65,000 subsidies by 2017/18, which will cost an extra $40 million a year." More>>

ALSO:

The Future Of Work: Andrew Little - State Of The Nation 2015

In 2005 when I led the EPMU we worked together with Air New Zealand to find a way to keep engineering jobs that were heading overseas. A lot of these workers were people I’d known for years and they were facing not just losing their jobs but not being able to find the kind of work they do without going overseas. A lot of people were facing personal and financial upheaval.... More>>

ALSO:

Gordon Campbell: On The Sabin Case, The Pressures On Greece And (Songs About) Coyotes

Mike Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint... However, the PM will not comment on any aspect of the story. More>>

ALSO:

Houses, ISIS, King (& Catton): PM Post-Cabinet Press Conference

The Prime Minister met with reporters to discuss: • Social housing, the Auckland housing market • The prospect of joining international forces to combat ISIS • David Bain’s compensation • The lowering of the flag for the King of Saudi Arabia's death ... More>>

ALSO:

Gordon Campbell: On Tomorrow’s Speeches By John Key And Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the RMA. Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing… . More>>

ALSO:

Transport: Auckland Looks To Light Rail

The Board of Auckland Transport has called for an investigation into a light rail network, which could relieve traffic congestion on some of the region’s busiest roads. This stems from work in 2012 (the City Centre Future Access study) which responded to a government request to develop a robust and achievable solution for access to the CBD. More>>

ALSO:

RMA: Smith's Claims Don't Match Evidence - Greens

The Motu group’s research into the impacts of planning rules looked at the costs related to housing development but not the benefits of environmental protections and does not recommend significant changes to the RMA to reduce the cost of new house builds. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news