Speech from the Throne
The government's direction for the next three years was outlined in the Speech from the Throne on Monday. The overall objective is to continue New Zealand's transformation to a dynamic, knowledge-based economy and society, underpinned by fairness, opportunity and security. The government is committed to continuing to develop a "New Zealand way" to achieve these goals, that is distinctly that of an inclusive, creative and innovative Pacific nation. The government will focus on economic growth, in particular through greater emphasis on savings, productivity, education and skills, science and innovation and export growth. Education is at the heart of the government's vision for economic and social development. The 20 hours free early childhood education every week for three and four year olds, 1:15 teacher: pupil ratios in Year 1 classes, boosting Modern Apprenticeships and Industry Training and interest free student loans are key initiatives in this area. The government is also determined to improve the quality and relevance of tertiary education. Other key elements of the government's plan include the creation of world-class infrastructure, healthcare and social services. The government will continue to focus on the security and well being of older New Zealanders and to focus on reducing crime. The government will continue to foster our growing sense of identity, through support for the creative sector, protection of the environment, and our contribution as an independent, principled player on the world stage. The government will continue to encourage Māori development, while moving to address Treaty claims in a timely manner. The governing arrangements for the minority Labour-led government are an expression of the desire to take a broad and inclusive approach, while providing stable government for all New Zealanders.

Record unemployment
Unemployment has fallen to 3.4 per cent - a record low in the Household Labour Force Survey's 19-year history. Social Development and Employment Minister David Benson-Pope welcomed the news that more than two million New Zealanders are in employment and New Zealand still has the lowest unemployment rate in the developed world. By comparison, in 2000, some 140,000 people were on the unemployment benefit and the unemployment rate was 5.8 per cent. Currently, we have fewer than 50,000 people on the unemployment benefit and there are now over 300,000 more New Zealanders in work than there were six years ago. As part of the drive to address the tight labour market, the government will continue to emphasise skills training. More than 8,000 trainees are now in Modern Apprenticeships, and the re-elected government has promised an extra 5,000 modern apprenticeships and to boost overall participation in industry training to 250,000. Mr Benson-Pope says employers need to be aware: If they want to attract and retain good staff there is real value in improving wage levels, investing in child care, and offering greater flexibility around work hours.

Legislation to deliver election pledges
Legislation to make student loans interest free and to expand the Working for Families package was tabled in Parliament this week. The legislation confirms two key Labour party election pledges that Finance Minister Michael Cullen said reflected the government's commitment to a fair and inclusive society. The family tax relief provisions will raise the threshold at which family income assistance begins to abate from $27,500 to $35,000 and reduce the abatement rate from 30 per cent to 20 per cent. This will provide targeted tax relief to 160,000 working families. The size of the tax reduction will depend on family circumstances, including the number of children, but will average around $50 a week, Dr Cullen said. The interest free student loan policy will apply to existing and new loans and is designed to cut the cost of tertiary study and encourage skilled Kiwis to invest their skills in New Zealand. For this reason, with some important exceptions, people have to live in New Zealand to qualify for the interest free loans. Dr Cullen said the Bill will be fast-tracked through all its stages before the House rises in mid-December so that the changes can take effect in the year beginning 1 April 2006.

APEC and rugby for PM
Prime Minister Helen Clark and three Ministers travel to Busan, Korea next week for the annual meeting of Asia Pacific Economic Co-operation (APEC) members. Helen Clark will be one of 21 leaders of the Asia Pacific economies attending informal retreat sessions on 18 and 19 November. Foreign Affairs Minister Winston Peters, Trade Negotiations Minister Jim Sutton and Trade Minister Phil Goff are attending ministerial sessions and bilateral talks at the summit. Helen Clark said there would be heightened interest in the WTO Doha Round, as well as regional and bilateral trade agreements, and the risk posed by a possible avian influenza pandemic, and energy security. From Korea, Helen Clark travels to Dublin where on 17 November she joins the final presentation of New Zealand's bid to host the 2011 Rugby World Cup. The International Rugby Board makes its decision the same day.

Tributes to Rod Donald
Members of parliament from all parties this week paid tributes to Rod Donald, Green Party co-leader, who died suddenly on Sunday 6 November. Prime Minister Helen Clark said since he entered parliament in 1996, Mr Donald had been a very honourable person to deal with. She was impressed with the strength of his convictions and his ability to work within the parliamentary system to resolve issues. Rod Donald was unfailingly pleasant, likeable, and always looking for a constructive way forward, she said. It is a cruel fate indeed that strikes down someone with so much to give in the prime of his life and he will be greatly missed, Helen Clark said. Rod Donald is survived by his partner Nicola Shirlaw, and daughters Holly, Emma and Zoe.