Government on track for surplus - Key

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Thu, 26 Jan 2012 1:30p.m.

John Key says the Government is still on track to return to surplus by 2014/15 (AAP)

John Key says the Government is still on track to return to surplus by 2014/15 (AAP)

By 3 News online staff

The Government is still on track to return to surplus by 2014/15, Prime Minister John Key said today.

But, due to the economic crisis in Europe, that surplus will likely be less than originally forecast. "Today I can confirm that we are still on track to post a surplus in 2014/15, and the upcoming Budget Policy Statement will show a forecast surplus in the range of $300 to $500 million in that year," Mr Key said during his state of the nation speech at Waitakere.

He outlined National’s priorities for the next four years as:

  • Responsibly managing the Government’s finances
  • Building a more competitive and productive economy
  • Delivering better public services
  • Rebuilding Christchurch

The return to surplus was an issue National campaigned on in last year’s election.

The Prime Minster maintains that the country’s economy is in a relatively good position to deal with any fallout from the European crisis in the near term.

In order to move forward with the economy the Government plans will implement the 120-point economic action plan released during the election campaign.

Mr Key said his Government had proven itself capable of providing a strong and stable economy through the global economic crises and Canterbury earthquakes.

Other priorities for the Government are to provide better public services as well as rebuild Christchurch.

"We have a busy agenda. Within our public services work we will be implementing major welfare reforms, focusing on raising achievement across the education sector, improving health services and introducing legislation to strengthen sentencing, parole and bail laws,” Mr Key said.

"On top of these initiatives we are taking a hard look at the way public services are organised across the board. The state sector could do much better at achieving results and at delivering value for money. I will have more to say about this when we release the Better Public Services Advisory Group report and outline our direction for state sector reform in the next month or two.

"Finally, this year we will be getting on with rebuilding Christchurch, which is a top priority for this Government. We are totally committed to the reconstruction of Canterbury and I’m determined to see that momentum is maintained.”

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Comments

27 Jan 2012 02:28p.m.

Wilbur wrote:

Half truths and lies have spread like wild fire through the feral population. How big were these tax cuts you are all so happy to w**k on about?? Not that big proportionately but its the only argument you lot have got. Just remember that the RICH as you like to call them pay the most tax and are the reason we have a welfare system not middle to low income taxpayers. Many of these RICH have struggled also in the current climate. The Public Sector is as a rule totally inefficient. Sure some areas like Education and Health are essential but efficiency is still needed. Calling John Key a liar is pretty stupid also....his predecessor (who many of you consider a Saint) made a habit of lying every chance she got. All politicians are untrustworthy. How about we all just work hard, try to save a dollar or two and see what happens

26 Jan 2012 11:34p.m.

anne wrote:

The first place for savings that key and co look at is in the middle to low incomes or those who have already been tossed out of work and are in receipt of a benefit,instead of looking at the higher income levels who can afford to pay more tax and those companies that shaft nz'ers by not paying any tax at all as they take profits off shore,for the average worker paying 20% tax is noticeable on a low income,it would not be so noticeable on a high income surely, the warren buffet tax in the states, where he pays 15% and his secretary pays 35.5% represents the disparity between the well heeled and those who work their butt off for next to no reward.If nzer's keep on installing right wing politicians then nothing will change.
Before those who claim its those businesses that provide jobs,hang up the lassoo, huge profits can be made by playing with with cash and keeping the wage bill as low as it can be,that is the reason self centered businesses go to china or asia as the workers work for $5 a day,how they would like nz to have chinese or asian workers in nz taking over nz'ers jobs.

26 Jan 2012 10:39p.m.

johnmillan wrote:

I have read all the comments on this header and have come to the same conclusion as all above,that Key is the greatest liar traitor etc that we have ever seen in the New Zealand Parliament.He not only sets a record for lies but also how too stuff up the best country in the world, up to when he entered Parliament,and more so since becoming the Nat leader.

26 Jan 2012 09:40p.m.

Clarke wrote:

Shows what sort of a man John Key is, give to the rich (namely himself) invite them into the country... even if they have a criminal record for insider trading (a John Key favorite). Then introduce Austerity measures like the upcoming benefit cuts (moving 15,000 invalids onto the unemployment benefit) will net the government 1 Million dollars in savings per week... or 50 Million in one year. This is simply Nationals way of relabelling beneficiaries in order to give them a benefit cut. National gave away 1.5 Billion dollars per year in tax cuts to the wealthy using "trickle down economics" as their theory.... funny thing is trickle down economics was debunct years ago as a fallacy dreamt up by the rich and it hasnt worked in any country... ever. National are merely an elitest party, willing to smash human rights and privacy laws to introduce their own Austerity measures... though John Key wont call his welfare changes Austerity measures... that is infact exactly what they are.

26 Jan 2012 09:08p.m.

Henry wrote:

Before he starts going on about austerity measures, people need to know that debt is a good thing. It enables our country's economy to grow provided that money is invested into assets and not simply funneled into the pockets of the rich as National are happy to do. I guarantee over the next 3 years John Key is going to slash every single public service in the country and use the debt as an excuse to do so, don't listen to his lies. All this is going to do is ruin our country in the long term.

26 Jan 2012 08:07p.m.

Alex wrote:

That surplus will mostly be made up of the sale of government assets and funding cats as opposed to any economic growth.

26 Jan 2012 02:34p.m.

Neil wrote:

You have to laugh - really - he thinks he can predict how it will be in two to three years when his own advisers can't even predict what its going to be like two months ahead. And lets not talk about weather forecasting methinks studying of the entrails of goats would actually be more accurate (and cheaper) than these gamblers on hundreds of thousands of dollars a year to be consistantly wrong.

26 Jan 2012 02:18p.m.

Homer wrote:

John Key is lying everybody. He is on the same page as the rest of the worlds big leaders. What they are not telling you is that the worlds economy is about to collapse big time. Everyone needs to prepare for this. Do your research, there is plenty of evidence to support this. All countries are badly in debt and there is no way out.

26 Jan 2012 01:51p.m.

Peter wrote:

Read his statement carefully. Reading between the lines I see PPs model applying to the health sector. Here we go, privatization of our hospitals.

26 Jan 2012 01:44p.m.

james wrote:

John key is living in lala land. In the job ads ive not seen those 170,000 jobs anywhere that treasury is fore casting. Alright for the top 3 % who got a tax cut while chldren go without food in south auckland.