Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Investment Statement shows strong government balance sheet

Investment Statement shows strong government balance sheet

20 Mar 2018

The Treasury’s 2018 Investment Statement He Puna Hao Pātiki published today shows the government’s balance sheet is healthy and resilient to economic shocks, says Treasury Secretary Gabriel Makhlouf.

The Investment Statement is an examination of the Crown’s balance sheet and is required every four years under the Public Finance Act 1989. Its purpose is to describe and state the value of the Crown’s portfolio of significant assets and liabilities, how this has changed from the past, and how it is expected to change in future. It also discusses the importance, progress and principles of good balance sheet management.

Mr Makhlouf says the Investment Statement is important for transparency because the government is managing the assets and liabilities on behalf of the people of New Zealand.

“It’s about our schools and hospitals, our superannuation and accident compensation, our state highways and state-owned enterprises. And the numbers involved are huge. At the end of June 2017, the government owned $314 billion worth of assets and owed $197 worth of liabilities, for a net worth of $117 billion. That’s around $24,000 per person. And the numbers are growing bigger. By 2022 assets are expected to reach $365 billion and liabilities $205 billion.

“But more important than the numbers themselves is how these assets and liabilities are used. They provide resources which the government can draw on for raising wellbeing, now and into the future. Managing the balance sheet well is essential for delivering public services needed today in a way that maximises value for money, and for sustainable, resilient and adaptable public finances that will support the community for generations to come,” Mr Makhlouf says.

He Puna Hao Pātiki differs from the previous Investment Statement published in 2014 by using the organising principles in the Treasury’s Living Standards Framework. The 2018 Statement includes a chapter on broadening the Investment Statement to include natural capital considerations.

“The Treasury has an ambition to integrate a broader conception of economics and value into the everyday work of public policy, and the Living Standards Framework is the way we are taking that forward. What we are now doing is taking wellbeing indicators and looking at how to actually apply them in policy development and resource allocation.

“The Investment Statement is one of the major pieces of our work programme as we further develop the Living Standards Framework. And the Statement concludes that the state and trajectory of human, social and natural capitals need to be included in analysis of balance sheet resilience and the government’s fiscal position.

“The New Zealand government balance sheet is currently healthy and our public finances are resilient in the face of adverse events. This strength means we have choices. It opens up a wider range of options for policies and investments that improve the living standards of New Zealanders. And it enables better planning to confront some known long-term fiscal pressures. As the Treasury’s 2016 Statement on the Long-term Fiscal Position He Tirohanga Mokopuna shows, demographic trends like the growing and ageing of our population and challenges such as climate change will have impacts on the government’s income and spending, and therefore the public services it provides.”

The 2018 Investment Statement He Puna Hao Pātiki is available on the Treasury website at http://www.treasury.govt.nz/government/investmentstatements/2018

Also available is a speech by Gabriel Makhlouf delivered at the Investment Statement Symposium in Wellington today at http://www.treasury.govt.nz/publications/media-speeches/speeches/investment-statement

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Thompson+ Clark, And Russia’s FIFA World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark, which has been employed – time and again - by state agencies over the past decade, to spy on (and provide security against) ordinary New Zealanders engaged in lawful forms of protest. More>>

 

HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say! Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>

ALSO:

Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in urope for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:

Hit And Run: AG Gives Approval For Inquiry

Attorney-General David Parker has today announced a Government Inquiry will be held into Operation Burnham and related events. The operation undertaken in Tirgiran Valley, Afghanistan, ... More>>

ALSO:

Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:

Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages