Crown accounts improving despite tough times, PM says
The story behind this week's budget is that the Crown accounts are improving, despite a tough last few years, Prime Minister John Key told TVNZ's Breakfast programme this morning.
The story behind this week's budget is that the Crown accounts are improving, despite a tough last few years, Prime Minister John Key told TVNZ's Breakfast programme this morning.
“For the most part actually we've run a surplus in New Zealand for about the last 15 years,” Mr Key said.
“Now it's been much more difficult in the last three or four, and it'll be like that for a wee while.
“We've charted, I think, a really good course, if you think about the conditions we've had – [the] worst global recession since the Depression, two major earthquakes, all of those other issues we've had to deal with, [such as] baling out finance companies.
“So we've had a lot to deal with, but what [the budget] shows is our debt is well and truly under control, our accounts are starting to come right. We're getting back into surplus.”
Thursday's budget would be sensible and balanced, Mr Key said, with no extra spending compared with the last budget.
“What we have done is we've changed that mix.”
More money will be put towards health and education, he said, with $5.5 billion earmarked for the rebuild of Christchurch.
“But obviously we save money in other places and we've given a few indications of those.
“There are changes to KiwiSaver; some modest changes to Working for Families, but I sort of hasten to add more modest, and they take [place over] a long period of time. And some changes to the Student Loan Scheme but not interest going back on.”
Mr Key was not envious of the Australian budget, delivered last week, which forecast a return to surplus in the 2012-13 financial year.
“They’ve got their fair set of challenges.
“If you actually have a look, their mining industry is very strong, but once you strip that away, then what you see is retail consumption's actually quite weak.
The Australian housing market was “a bit overcooked,” he said.
“So they’ve got a lot of different issues.
“Their deficit is actually quite large this year.”
Colin Williscroft
Mon, 16 May 2011
Mon, 16 May 2011
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Crown accounts improving despite tough times, PM says
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