increase font size
FOR THE most part, New Zealand's growth over the next year has already been set in train, and any stabilisation is the job of the Reserve Bank.
The Government's main role is to keep looking out over the next five years or so and put in place policies that will help the economy become more competitive and productive – through good times and through bad. Again, the European crisis offers some important lessons.
Here in New Zealand we have also lost competitiveness over time, particularly as a result of poor policy decisions in the 2000s. In other words, it has got harder than it would otherwise have been for our exporters to compete in overseas markets. And it has got harder than it would otherwise have been for New Zealand manufacturers to compete with imported goods made offshore.
As a result, the industries and sectors that compete internationally actually went into recession in late 2004 and shrank in size by almost 10% in five years.
That decline in competitiveness began to turn around during the past three years.
The Government's view has always been there is no magic bullet – no one 'big bang' reform that would turn the economy on its head.
What is required is a series of good policy decisions and reforms over an extended time, in 100 different areas, to enhance the competitiveness of New Zealand firms. So we have a busy economic reform agenda, following through things we started last term and on new things we announced during the election.
For example:
We're rolling out ultra-fast broadband and the Rural Broadband Initiative, to lift New Zealand's connectivity.
We're introducing a six-month limit for granting consent to medium-sized projects under the RMA, to reduce costs, uncertainties and delays.
We're negotiating free trade agreements with nine countries in the Trans-Pacific Partnership, including the United States, and separately with a number of other countries including India, Russia and Korea.
I have tasked Bill English and Steven Joyce – the two most senior economic ministers – with driving this economic action plan. I have told them I want to see this action plan regularly updated.
The first update will be in the middle of this year.
OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.
OPINION: The coalition Government’s plan to make about 9000 public servants redundant looms as a major election issue
Prime Minister Christopher Luxon has announced changes to the ministerial lineup, including a new Minister for the Environment and a new Associate Agriculture Minister.
OPINION: Over the past month, people up and down the country have been asking me what I think is in store for the Agri sector.
OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the White House, farm commodity prices are holding their own.
Forestry Minister Todd McClay has today congratulated the winners of the 2026 Growing Native Forests Champions Awards at Fieldays.
The Government has announced $60,000 to provide one-off grants of $1,000 to each of the 60 New Zealand Young Farmers (NZYF) clubs across the country.
New Zealand’s rural sector has once again demonstrated its generosity, with the second Rural Industry Leaders Dinner, Debate and Auction raising an impressive $400,000 for the Rural Support Trust.
There has been another twist to the Federated Farmers annual election fiasco.
Analysis of decades of research has revealed the implementation of good farming practices plays a critical role in reducing nutrient losses to improve freshwater outcomes.
Yesterday the Government used the opening of Fieldays to announce a major investment, as part of its Land Use Flexibility package, to support a more productive and sustainable future across six sectors including dairy.
