PM Says Current Account Revision Is Good News

PM's Post-Cabinet Press Conference

Prime Minister Helen Clark said she was pleased to hear about the favourable revision of New Zealand’s current account deficit, released by Statistics New Zealand today.

The adjusted current account figure is expected to have a positive effect on the New Zealand dollar.

Miss Clark said there were a lot of positive indicators in New Zealand business, and said she felt confident the economy would pick up from the third quarter on.

She said her trip overseas brought home to her that New Zealand is not the only country feeling the effect of currency devaluation and high crude oil prices.

Miss Clark said she will be meeting Australian Prime Minister John Howard in Australia next week and although a common currency for Australia and New Zealand is not on the agenda, she would be very surprised if it did not come up.

Miss Clark said her own view is that New Zealand will inevitably adopt a common currency, whether with the Australian dollar or another currency.

She said social security and defence developments are on the agenda for her talks with Mr Howard.

Miss Clark said she will catch the Premiere of Gareth Farr’s new composition at the Sydney Opera House while she’s in Australia, and will be at the Olympic closing ceremony.

On the home front, Miss Clark said she was sure there is a solution that will allow the Singapore Trade Agreement to go ahead, and is palatable for both Labour and National.

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