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Nothing new in Treasury briefing - English

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Thu, 02 Feb 2012 4:14p.m.

Bill English

Bill English

The treasury hasn't told the government anything it didn't already know in its post-election briefing paper for ministers.

It says there's a need to implement wide and ambitious policy reforms to increase economic growth and meet the target of returning to surplus in 2014/15.

"Treasury's views on all these issues are well known and so are the government's - there's nothing new here," Finance Minister Bill English said after the paper was released on Thursday.

"We want faster growth but we also want to take New Zealanders with us and we believe we've struck the right balance."

The Treasury is suggesting further efficiency gains in the public service, which usually means cutting departmental budgets and jobs.

It says that to raise productivity and minimise cost pressures there should be changes to policies including education, welfare, tax, regulation, science and innovation, infrastructure and the management of natural resources.

The Treasury presents advice to ministers after elections, telling them what it thinks needs to be done to generate economic growth.

Its suggestions are often considered too radical and politically dangerous to implement.

Among its latest suggested measures are:

* Reintroducing interest on student loans, which the government has previously rejected.

* Using education money more efficiently by increasing class sizes and spending more on teacher training. Mr English says that might be worth considering.

* Cutting income and company taxes, which the government says it can't afford.

* Contracting out some welfare services.

* Making further reforms to the Resource Management Act.

NZN

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Comments

02 Feb 2012 10:48p.m.

michael smeltz PHD wrote:

Mr Cullan's 7 years of surplus in a row and you and i know when labour put money back into ordinary kiwis pockets the economy grew to 3.5 % per year on average . almost full employment it went down to 3 % almost full employment . what you people do not understand is national is the party of high unemployment because they think it keeps wages low . the problem is there is alot less money in circulation thus a stagnated and dead economy . but do not fear the elite rich are doing vary well at the middle NZ expense . they want a society of elite rich and poor no middle class at all . that's why they use examples like India , china the USA who are bankrupt . get lost john we were doing vary well under Dr Cullin . what frightens me is the government has not learnt one thing from Shiplys days . not one new idea except lets oppress some body . lets have another election please.the most wealthy in nz pay about 13% tax at the end of the day just like Romney in the USA a billionaire let it out he pays 13% tax on the dollar the average American pays 33% . and NZ is no different . and you some how expect me to sit there when they scream poverty we need a tax cut . get real NZ . you have been shamed for to long .they got a big fat tax cut the wealthy elite thousands of dollars a week in 2009 and not one new job created for it . you guys fall for the same old same old over and over again and never learn .