Parliament

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

 

Credit rating agency confirms NZ economy sound

Credit rating agency Moody's annual report on New Zealand confirms that we
have a strong, adaptable economy, Treasurer Bill English said today.

"That is exactly what National's economic framework is designed to achieve
and it is what New Zealand needs to move into the 21st century.

"The message from the report is that we must continue to have policies that
drive growth, and that we need sound government financial management behind
that. Running surpluses and repaying debt are important, so any reduction in
surpluses should be about improving our economic performance.

"Moody's says the country's credit rating of Aa2, the same as Australia,
reflects the adaptability and improved performance of our economy from
fifteen years of structural reforms and a prudent macroeconomic framework.

"Moody's also said the Government's record in managing public finances was
impressive relative to other OECD countries. The healthy fiscal position and
the government's low debt burden supports the Aaa rating on the government's
domestic debt.

"This fiscal responsibility is important to maintain investor confidence,
according to Moody's. This is because the high current account deficit
leaves us exposed to external developments and potential shifts in market
sentiment.

"But New Zealand's Aa2 credit rating is not under threat from our current
account position. Moody's confirmed in the annual report that our current
credit rating fully captures their concerns about New Zealand's external
position.

"They noted a number of factors which help alleviate New Zealand's
vulnerability, including our floating exchange rate, the widespread use of
hedging against exchange rate movements, and the fact that much of New
Zealand's external debt is in domestic currency and/or accounted for by
inter-company loans.

"The ratings agency also commented on New Zealand's reliance on agricultural
exports, which has contributed to weakness in our trade balance as the
economy has been affected by drought and soft world prices. Treasury's
latest forecasts are for exports of meat and dairy products to grow by 12%
next year and this will help lead to a reduction in the current account
deficit.

"Over the longer term, Moody's noted the importance of boosting private
savings. In their opinion, future reforms to the welfare system and the
amendments to the tax structure envisaged by the government could lead to an
increase in savings in New Zealand.

"We recognise the importance of strengthening New Zealand's export sector.
This can best be achieved by providing an environment in which all firms can
excel. Low taxes, flexible labour markets, and reducing costs to business,
are policies that will achieve this," said Mr English.


Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Pike River: Mine Drift Re-Entry Plan To Proceed

The Pike River Mine Drift will be re-entered, Minister Responsible for Pike River Re-entry Andrew Little announced today.

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little...

“The advice I have received indicates that it is likely to be around February before the re-entry proper gets underway, by breaching the 30m seal.” More>>

 

Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>

ALSO:

Rebuilding: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>

ALSO:

Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>

ALSO:

Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>

ALSO:

Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>

ALSO:

"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>

ALSO:

Govt Loses In Supreme Court: Call For Debate On Prisoners' Right To Vote

The court earlier this week upheld a High Court decision which found that a law restricting a prisoner's right to vote was inconsistent with the Bill of Rights. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels