Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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


Lower company profits impact Crown accounts

Hon Bill English
Minister of Finance

4 December 2009
Media Statement

Lower company profits impact Crown accounts

The fiscal challenges facing the Government as the economy comes out of recession are again highlighted in the Crown’s financial statements for the four months to 31 October, Finance Minister Bill English says.

A feature of the latest data is the impact of lower-than-expected business profits on tax revenue – particularly indications that lower company profits in 2009 will flow through to reduced 2010 tax revenue.

“This lower tax revenue was the main contributor to the operating balance before gains and losses (OBEGAL) being in deficit by $3.2 billion in the four months to 31 October - $1.2 billion larger than forecast,” Mr English says.

“It’s clear that the impact of the recession will be felt by many businesses and, in turn, on the Government’s books for some time. This will influence our decisions around both revenue and spending.

“It means there will be little or no new money for government departments and ministries for the foreseeable future – and certainly not at the unsustainable rate of increase provided by the previous government.

Mr English says this challenging environment reinforces the real value of the significant economic programme the Government already has in place.

“Without this balanced programme, there is no doubt that New Zealand would have emerged from the recession in much worse shape than it has, at the cost of thousands more jobs and even more debt.”

The Budget Policy Statement and Half-Year Economic and Fiscal Update on 15 December will set out the Government’s economic framework and update forecasts for 2010 and beyond.

“They will help shape our decisions for Budget 2010, as we focus on getting a better performing economy that supports more jobs and higher incomes.”


Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Perils Of Joining AUKUS Pillar Two

The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:
...We've been gratified by how many countries want to join with us to work with cutting-edge technologies like in the cyber arena, hypersonics, you can go down a long list and it's great to hear that New Zealand is interested...


Government: Backs Police To Crackdown On Gangs
The coalition Government is restoring law and order by providing police new tools to crack down on criminal gangs, says Justice Minister Paul Goldsmith and Police Minister Mark Mitchell. “Over the last five years gangs have recruited more than 3000 members, a 51 per cent increase... More

Government: Retiring Chief Of Navy Thanked For His Service

Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More

Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.