Parliament

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

 

IMF report praises Government’s economic plan


Hon Grant Robertson

Minister of Finance


4 July 2018

PĀNUI PĀPĀHO

MEDIA STATEMENT

The International Monetary Fund’s (IMF) latest annual review of the New Zealand economy shows the Government’s economic plan will support growth and help close the infrastructure and social deficits that built up in recent years, Finance Minister Grant Robertson says.

“The IMF’s ‘Article IV’ report praises the Coalition Government’s economic plan. It also provides a set of independent forecasts which indicate growth of about 3% a year over the next five years on the back of new, growth-friendly policies,” Grant Robertson said.

“The IMF specifically commented that our research and development tax incentive, the Provincial Growth Fund, our review of the tax system, trade policy and increased infrastructure investment will help the economy become more productive, sustainable and inclusive.

“Other specific policies including KiwiBuild, fees-free post-secondary training and the Review of the Reserve Bank Act also received positive reviews. The IMF said that in the current economic environment, our policy to raise the minimum wage is likely to have minimal negative impact on the economy, but that it will help ease income inequality.

“IMF officials held a range of views on the Government’s policy to place restrictions on overseas buyers of residential housing. The IMF’s Alternative Executive Director for New Zealand, Grant Johnston, wrote that the policy will make some homes more affordable at certain points in the property market cycle, while helping ensure a greater proportion of foreign investment flows into our productive economy instead of into housing speculation.

“The IMF also notes how the Government’s fiscal policy – which includes the $5.5 billion Families Package which took effect from 1 July – will increase potential economic output because of the increased spending it will generate.

“The Budget in May was the first step in our plan to close the infrastructure and social investment deficits which built up in recent years. We note the IMF’s comments that although we boosted infrastructure investment in the Budget compared to the previous Government’s plan, New Zealand might still face infrastructure gaps.

“Since the IMF’s report was finalised, we have announced a record ten-year nationwide transport infrastructure investment through the Government Policy Statement on Land Transport, with a $4 billion spend this year up from $3.6 billion last year and rising to $4.7 billion in ten years’ time.

“We are also continuing our work to develop innovative financing mechanisms for new infrastructure like roads and housing.

“It’s also important to pay attention to the risks to the economy that the IMF has highlighted. These include potential for tighter global financial conditions and New Zealand households’ high debt levels. These show why it is important for the Government to continue running surpluses while paying down public debt so that we are in a position to deal with any rainy day.

“The IMF report shows it is possible for the Government to remain fiscally responsible while creating the room to make record investments in infrastructure and other growth-friendly policies like the R&D incentive, Provincial Growth Fund, KiwiBuild and fees-free education and training,” Grant Robertson said.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Swing States: Gordon Campbell On Why The US Needs MMP

After the bizarre events this week in Helsinki, the world will be hoping and praying that the US midterm elections in November can put a restraining brake on the presidency of Donald Trump.

This may happen, but there’s a highly undemocratic reason why such hopes may be frustrated. More>>

 

Moving On: Flavell Leaves Māori Party TO Lead Te Wānanga o Aotearoa

The Māori Party congratulates Te Ururoa Flavell on his appointment as Kaiurungi - Chief Executive Officer of Te Wānanga o Aotearoa and thanks him for his many years of service, support and aroha for the Māori Party, its kaupapa, and for communities across Aotearoa. More>>

ALSO:

IPCA On 2016 Armed Offenders Response: 'Serious Failings' Put Officers At Risk

The Independent Police Conduct Authority has found that the tactical decision-making and control and command exercised by Police in response to shots fired near Kawerau on 9 March 2016 was highly flawed and placed Police officers at risk. More>>

ALSO:

Mental Health: National Offers Cross-Party Action

National is not prepared to let the Government park the mental health needs of Kiwis while it holds an inquiry, and has offered to work together to improve New Zealand’s mental health services both immediately and longer term, Mental Health spokesperson Matt Doocey says. More>>

ALSO:

Extradited To Deportation: 'Justice Not Served' In Australia Muddle

A number of New Zealanders who have been extradited to Australia to face charges - only to be sent back here or put in immigration detention centres - is concerning, Justice Minister Andrew Little says. More>>

ASMS: Syphilis Deaths Highlight Need For Proper Resourcing

“The heart-wrenching news that babies have died from syphilis underscores yet again the importance of properly funding and resourcing essential health services... This should not be happening in a quality first-world public health care system like New Zealand’s.” More>>

ALSO:

'Don't Mess This Up': Youth Message On Zero Carbon Act

The young New Zealanders credited with driving momentum for a Zero Carbon Act have formally handed over their submission on the proposed law to MPs from the Labour, Green and National parties. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages