We continue to stand beside the people of Canterbury after the series of devastating earthquakes.
We’re making good progress in putting the economy on a more productive and competitive footing. And we’ve made early progress dealing with long-term, structural challenges [such as are] facing many countries around the world.
In particular, we need to break our old habits of debt and consumption that marked much of the 2000s. And we must build our future on innovation, higher savings and exports. That’s the only way we can create a more competitive economy selling more to the rest of the world to deliver more jobs, higher incomes and opportunities here at home.
As one of the most indebted developed economies in the world, we don’t have a choice about that.
Global markets will remain extremely nervous about debt for years and banks won’t be prepared to lend on the scale of the previous decade.
As we’ve seen recently, sustainable growth and new jobs in New Zealand won’t come from the Government. This can’t happen. The Government cannot afford to keep borrowing and spending at the rate of the past 10 years. Instead, growth and new jobs must come from businesses like yours having the confidence to invest, grow and hire new staff.
This Government is working hard to give you that confidence. That means doing a lot of things well, rather than trying to find one or two silver bullets. One of the Government’s economic priorities is to build a more competitive and productive New Zealand economy. The Government’s main role in this is to look out over the next five years or more and set a policy framework that helps the economy become more competitive and productive in the longer term.
I’m confident this will improve New Zealand’s international competitiveness over the next few years and give businesses like yours the confidence to invest and create new jobs. Take, for instance:
Our tax package in the 2010 Budget which increased taxes on consumption and property speculation, and reduced taxes on work, companies and saving.
Our changes to regulations, for example, resource management laws, building laws and industrial relations laws.
Our multi-billion dollar infrastructure scheme for rail, roads, electricity transmission and ultra-fast broadband.
Our focus on changing the incentives for welfare and work.
And reducing Government-imposed costs on business: ACC levies on employers and the self-employed will fall by 22% this year, reducing total costs to business each year by about $250 million.
All of these long-term policies are aimed at building a more productive and competitive economy.
Looking ahead, the Government’s Business Growth Agenda will continue that momentum.
