Time for a bit of in depth analysis of some of the key phrases in Bill English’s budget speech:
This Budget restricts the increase in public debt to manageable levels. Treasury’s December forecasts showed a dramatic and indefinite rise in debt levels. This is unacceptable to this Government because we do not want to saddle future generations with the cost of short term policies.
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We will initiate a programme to lift productivity, improve competitiveness and sharpen New Zealand’s future economic performance.We will consolidate the Government’s fiscal position, keep debt under control and ensure that Crown finances are properly managed.
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This Government came into office with a plan to lift New Zealand’s economic performance.
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I move on to our plan to balance the Government’s books. … This Budget will begin to restore the Crown balance sheet to its previous health.
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The measures I have outlined will form key elements of our strategy to ensure that New Zealand emerges from the downturn stronger than it entered it.The Government is determined that future taxpayers will not be burdened with higher debt which is unmatched by increases in productive assets.
To achieve this, the Government has made some difficult decisions.
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The measures outlined this afternoon, the expenditure restraint shown by this Government, deferment of the tax cuts and deferment of Super Fund contributions, will keep the increase in public debt within acceptable levels. …[This Budget] marks a turning point for New Zealand. Ten years of economic growth and expansive appetites for debt and Government spending have ended. Today we have outlined the challenge to rebalance the economy from debt and consumption to investment and exports.
The Budget will improve New Zealand’s international competitiveness.
It will get our debt under control and turning down.
It starts to create a government sector that provides better services and delivers better value for taxpayers.
It will help create new and sustainable jobs.
It will begin to build a platform for a much more ambitious New Zealand.
Mr Speaker, I commend this Budget to the House.
Ooops – Dammit! Sorry, my mistake. Wrong speech. That’s the budget speech from 2009. This is the one I meant:
The worst of the global crisis has for now passed and the economy has begun to grow again. In fact, New Zealand has weathered the economic storm better than many other developed economies.
Government policy struck the right balance between blunting the sharp edges of recession and maintaining control of public finances.
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The Government is committed to policies that will reduce our vulnerabilities by tilting our economy away from debt and consumption toward savings, investment and exports.These policies underpin the updated Treasury forecasts showing steady growth of around 3 per cent over each of the next four years.
The forecasts also show that this growth will raise real incomes of the average household by about $7,000 over the next four years, and create 170,000 jobs.
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I now turn to the Government’s fourth objective, that of maintaining firm control of the government’s finances, so we can return the budget to surplus and reduce our rising debt.The fiscal outlook has improved from last year, due to the economy returning to growth and the positive impact of Budget 2009 decisions.
The projected operating deficit for the next financial year is $8.6 billion or 4.2 per cent of GDP.
It is projected to improve steadily in each subsequent year, and to reach surplus in 2015/16, three years ahead of last year’s projection.
As a result of this improved outlook the debt projections have also become more favourable
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We now have our debt under control and unemployment is beginning to fall.We will emerge as one of the countries that other nations aspire to be more like.
There are risks to the recovery. A mountain of debt hangs over a number of our export destinations, and will also influence the markets that lend to New Zealand.
We cannot take for granted the contribution that the Australian and Chinese economies have made to our growth.
However, we are on track to a position most developed economies will envy.
This includes more new jobs, falling unemployment, rising family incomes,
quality public services and sound public finances.Mr Speaker, This Budget continues to build a platform for a much more ambitious New Zealand.
Mr Speaker, I commend this Budget to the House.
Oh My. I really don’t know what’s wrong with me today. That’s the wrong speech again! That was the 2010 speech. This is the 2011 speech. Really this time:
Today I introduce a Budget that will further strengthen the long-term performance of the economy.
It supports economic forecasts that show growth returning to its highest in over five years and 170,000 net new jobs being created by 2015.
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Our main task remains to return New Zealand to sustained prosperity. The economy has been underperforming since before the global financial crisis. Indeed, per capita GDP has not grown since 2004.
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The OECD, the Savings Working Group and others have pointed out that we need to make the economy more competitive and lift national savings.Currently, most businesses and households have successfully lifted their own savings. While that has hurt retailers for now, in the long term it is a good thing.
The main sector not saving is the Government.
The deficit in 2010/11 will be large, at $16.7 billion or 8.4 per cent of GDP. This includes a range of one-off costs, including the earthquakes.
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The measures announced in this Budget will put both the Government’s finances and the economy on a much sounder footing despite a series of adverse events and a slower economic recovery.The projected operating deficit will fall dramatically over the next three years. It will be in significant surplus from 2014/15.
This is a year sooner than the position forecast last year.
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Budget 2011 shows how, from the depths of the global financial crisis when a decade of red ink was in prospect, and despite the devastating Canterbury earthquakes and other setbacks, the Government has laid the basis for future prosperity.It is within sight of budget surpluses and falling public debt.
It has funded reconstruction of Christchurch, our second largest city.
It has in prospect the strongest growth for a decade.
It has materially improved the tax system.
It has placed KiwiSaver onto a sounder, more sustainable footing, and instilled a culture built on savings rather than debt.
And it will provide future New Zealanders with real choices about further lowering taxes, adding quality public services, or both.
We set a path for responsible government spending from the start of our term, and we maintain that path in this Budget.
This Budget continues to build a platform for a much stronger, more ambitious New Zealand.
Mr Speaker, I commend this Budget to the House.
Sounds awfully familiar doesn’t it. Right down to the recycled prediction of 170,000 new jobs. Why are the promises and predictions of 2011 any more realistic or believable than the failed promises and predictions of 2010 and 2009? How can anyone listen to Bill English, John Key and the Nats making these abundantly meaningless claims time after time without laughing? Know what they say eh. Fool me once, shame on you. Fool me twice…
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