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Financial statements reflect fiscal strategy
The financial statements for the fiscal year ended June 30 underscore the government's progress in meeting the fiscal challenges of the present and into the future. The additional cash surplus announced by Finance Minister Michael Cullen this week is a one-off windfall gain and not "spare cash" to be used for ongoing spending or tax cuts. The $11.5 billion operating surplus is all but used up by:
- Planning for the future of an older population, with a superannuation fund, making regular contributions, leaving earnings of the fund to accrue in the fund. Clearly this isn't spare cash available for spending.
- Funding Student Loans. These are recorded in the surplus, but they are not the government's to spend - they've been lent out.
- Committing to capital and infrastructure purchases in the future such as new roads and state houses -not borrowing money when we don't need to.
- Maintaining its business entities - money retain by State-owned Enterprises for future investment is also not available for spending
The additional cash surplus of $1.2 billion for the moment is improving the financial position of the government. Until further forecasts are available in December it is not clear whether this represents a permanent strengthening in the fiscal position. But as always the government is committed to carefully managing the country's finances to meet the needs of all New Zealanders now and into the future.
Very low doctors fees initiative helps 760,000
Over 200 general practices around the country are taking up extra funding to help them charge very low fees. $43 million is being invested over four years in practices which have faced struggled with their long-term sustainability as a result of charging very low fees. No family should have to choose between putting food on the table and paying for the cost of a doctors visit, and any GP who feels they need to charge very low fees to ensure the community health deserves to have their ambition supported and encouraged by the government. The number of practices taking up the new funding from 1 October is 27 per cent higher and it covers 145,000 more people than estimated.
Industry training numbers continue to grow
More job training enrolments are good news for employers needing more skilled labour. The latest figures show there were 9,171 Modern Apprentices in the year to June (up 13 per cent on June 2005), and 123,202 Industry Trainees (up 11 per cent). Almost 2,300 young people have now completed the Modern Apprenticeship programme, a successful initiative continuing to make a real difference in developing the skilled labour force New Zealand needs. High quality on-the-job training is helping to transform New Zealand into a higher growth and higher wage economy by improving achievement in education, building a skilled workforce and lifting business productivity. Budget 2006 allocated an additional $58 million over four years to expand Modern Apprenticeships to 14,000 by December 2008 and for other industry training initiatives.
New campaign to beat depression
The new $6.4m three-year National Depression Initiative launched by Jim Anderton this week aims to raise awareness of depression, to aid early recognition, appropriate treatment and recovery and will see former All Black John Kirwan front a series of high profile television advertisements. Depression causes nine out of ten suicides, killing 500 New Zealanders every year. The National Depression Initiative will help tackle the problem head-on. Recovery from depression is much quicker if people seek treatment and for most people, there is a complete recovery, improving not just the lives of patients, but also the quality of life for family and friends. The National Depression Initiative supports new and existing primary mental health and mental health promotion services at a community level, showing a way through depression and a future with hope. More information: www.depression.org.nz, or Freephone 0800 111 757.
$3m for building faster, better building consents and inspections
A new $3m programme aims to help local authorities process building consents faster, more efficiently and to a higher standard. In November 2007 the new regime will bring widespread benefits, delivering the assurance of properly checked and well-built homes. The $3m aims to help councils upgrade their systems, capabilities and procedures. Submissions on the related consultation document close on 20 November 2006. More information: www.dbh.govt.nz - or Freephone 0800 242 243.
North Korea's nuclear test condemned
Prime Minister Helen Clark on 9 October said New Zealand utterly condemns the reports of a nuclear test by North Korea. It was a provocative and destabilising act for the region, contrary to the moratorium in place on nuclear tests for the past eight years, pending the entry into force of the Comprehensive Test Ban Treaty. Any threat to this moratorium is a significant step back for nuclear disarmament and non-proliferation. North Korea should have no illusion of the gravity with which the international community views its action.
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