Economic focus for Government in 2013

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VIDEO: PM outlines priorities for 2013

3News NZ

In his opening statement of 2013, Prime Minister John Key has reiterated the Government's economic plan, which will see purse strings kept tight (AAP file)

In his opening statement of 2013, Prime Minister John Key has reiterated the Government's economic plan, which will see purse strings kept tight (AAP file)

Parliament has begun sitting for the year with Prime Minister John Key outlining the Government's priorities for 2013 in a speech focusing heavily on the economy.

Painting an optimistic picture of a continued emergence from the global financial crisis, Mr Key says trade is expected to grow, unemployment is forecast to fall and the ongoing Christchurch rebuild will help stimulate growth and jobs.

He says the Government's books are still on track for a return to surplus in 2014/15, with a modest surplus of $66 million forecast - but getting there will mean keeping the purse strings tight for years to come as the global economy could affect revenue.

"We do not know for certain what 2013 will bring, but it will no doubt be another challenging year," Mr Key said.

"But the country is on the right track."

He reiterated that there will be no new capital spending in this May's budget, or in the next three, if National remains in government. New capital spending will be funded from reprioritising existing funds, along with the proceeds of the Government's asset sales, which he says will be a "shot in the arm" for the local economy.

The Government intends to offer Mighty River Power shares in the first half of this year, subject to the Supreme Court's decision on the Maori water rights claim, and it wants to offer shares in another power company later in the year.

Mr Key also signalled the Government will restart contributions to the New Zealand Superannuation Fund, but did not give a timeframe.

Other key areas of focus for the Government are trade negotiations, including reaching the outline of an agreement for the 11-member Trans-Pacific Partnership deal, and legislation changes for labour, charter schools and the Resource Management Act.

NZN

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Comments

29/01/2013 5:44:37 p.m.

WB wrote:

Key should go back to making money by diddling the poor. That's how he made his millions. He has lost it. What a tosser. His party is a party of the rich who have no idea how the workers live. His crew live in a privileged world and boy they are guarding it for themselves. It's time the less rich woke up and started getting their voice heard.

29/01/2013 5:15:41 p.m.

Wiseacre wrote:

John Key is selling us out. Selling out our national sovereignty to his corporate overlords via the TPP, which gifts rights and freedoms to corporations whilst taking rights and freedoms from the people. Selling out workers by introducing *legislation changes for labour*, which is code for undermining workers rights, driving wages and conditions continually lower so the elite can make ever larger profits. Selling out our public education system to private interests so they can profit from indoctrinating our children by introducing charter schools - that have failed around the world more often than not. Selling out our public wealth by carving up the state and giving it to the elite via sales of our fundamental infrastructure.

29/01/2013 5:08:54 p.m.

Wiseacre wrote:

We keep hearing them talk about what must be done for the sake of the economy. When will we hear them talk about what must be done for the sake of our society? 'Mr Key says trade is expected to grow, unemployment is forecast to fall and the ongoing Christchurch rebuild will help stimulate growth and jobs.' That's the same tired, old rhetoric they've been spouting for the last few years. What have they achieved so far? National have increased New Zealands debt by over $50 Billion since taking office. Unemployment is at it's highest level since the last time National were in office. Inequality is the worst it's ever been. The imposition of neo-liberal policies that National favour - cutting taxes for the rich, privatising state assets, deregulating labour, reducing social security - has seen growth-rates fall ,unemployment rise, and inequality soar. Neo-liberalism has nothing to do with economics; it has everything to do with power. Neo-liberalism is not economic policy; it is a mode of conquest.

29/01/2013 3:06:16 p.m.

Greg wrote:

The government needs to factor down its PAYE n GST take because it wants to make all workers to be poorer, and living in tents. The economies of this government havnt changed, they just want milk produced as cheap as possible and bugger everyone else. And of course to sell of the public commons to the 1%, everybody better clear their debt and tighten your belts, because the light at the end of the tunnel is a glowworm.