Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Government signals big new infrastructure spend

Government signals big new infrastructure spend, looser purse strings


Yvette McCullough, Political Reporter, in Whanganui

The government plans to loosen the purse strings and spend up large on infrastructure - but the details are still some weeks away.

Finance Minister Grant Robertson flagged extra spending in his speech to the Labour Party's annual conference in Whanganui.

He said Cabinet had committed to a boost to infrastructure as part of the medium to long term spending plan.

"We are currently finalising the specific projects that the package will fund but I can tell you this - it will be significant."

The government had heeded the calls from the construction industry for "greater certainty" about the pipeline of transport projects from 18 months' time, he said.

"We will give that certainty".

The Reserve Bank has also been calling for the government to spend more and stimulate the economy.

It made sense to take advantage of low government debt and the very low cost of borrowing, said Mr Robertson.

"Right now, we can borrow at an interest rate of 1.3 percent for ten years. Just think about that for a minute - when we came in to office, this was up at 3 percent," he told delegates.

"We have the lowest borrowing costs in New Zealand's history, so it is time to invest."

There will be no details until the next update on the government books - the Half Year Economic and Fiscal Update on December 11 - when Mr Robertson will release more details about the areas of spending, and the price tag.

In his speech, he also acknowledged the "challenging times" in the global economy, with the US-China trade war, uncertainty over Brexit and instability around the world having led to a slowdown of global growth.

"As an open export-based economy we are not immune to this slowdown," Mr Robertson said.

"No one in the world that we compare ourselves to is growing at the rates they were two or three years ago.

"We cannot expect rates of growth to continue unabated in this part of the global economic cycle.

"The IMF and OECD have told us that our growth rates will continue to outperform the countries we compare ourselves to like Australia and that we are well ahead of the average for other advanced economies."

© Scoop Media

 
 
 
Top Scoops Headlines

 

Gordon Campbell: On Why We Shouldn’t Be Pushed Into Re-Opening Our Borders

I believe in yesterday as much as Paul McCartney, but it was bemusing to see the amount of media attention lavished last week on the pandemic-related musings by former government science adviser Sir Peter Gluckman, former Prime Minister Helen Clark ... More>>

Gordon Campbell: On The Media Collusion With National’s Attack Lines

For most of the past week, any consumer of this country’s management of Covid-19 would think New Zealand was actually Brazil, or Texas. The media language has been full of claims of “botches” at the border, and laxness and inexcusable errors ... More>>

Gregor Thompson: Don’t Be Too Pessimistic About New Zealand’s Future.

With the first hurdle hopped our Government will be turning its attention to trying to soften the economic damage this pandemic has on our little archipelago. More>>

Eric Zuesse: U.S. Empire: Biden And Kerry Gave Orders To Ukraine’s President

Eric Zuesse, originally posted at Strategic Culture On May 19th, an implicit international political warning was issued, but it wasn’t issued between countries; it was issued between allied versus opposed factions within each of two countries: U.S. and Ukraine. ... More>>

The Coronavirus Republic: Three Million Infections And Rising

The United States is famed for doing things, not to scale, but off it. Size is the be-all and end-all, and the coronavirus is now doing its bit to assure that the country remains unrivalled in the charts of infection . In time, other unfortunates may well ... More>>

Binoy Kampmark: Altars Of Hypocrisy: George Floyd, Protest And Black Face

Be wary what you protest about. The modern moral constabulary are out, and they are assisted by their Silicon Valley friends in the Social Media club. Should you dare take a stand on anything, especially in a dramatic way, you will be found out ... More>>

Binoy Kampmark: Welcome Deaths: Coronavirus And The Open Plan Office

For anybody familiar with that gruesome manifestation of the modern work place, namely the open plan office, the advent of coronavirus might be something of a relief. The prospects for infection in such spaces is simply too great. You are at risk from ... More>>


Binoy Kampmark: Why Thinking Makes It So: Donald Trump’s Obamagate Fixation

The “gate” suffix has been wearing thin since the break-in scandal that gave it its birth. Since Watergate, virtually anything dubious and suggestive, and much more besides, is suffixed. Which brings us to the issue of President Donald Trump’s ... More>>