21 September 2012
Key Notes: Encouraging signs from GDP growth

In this issue of Key Notes:
Encouraging signs from GDP growth
Backing LSV graduates into work
Reforming welfare
The Chathams
Key Notes: The Prime Ministers newsletter

Click here to watch my latest video journal on YouTube.

Encouraging signs from GDP growth

Economic figures out yesterday confirm that New Zealand is well placed economically, despite uncertainty in other parts of the world.  In the three months to June, our economy grew by 0.6 per cent.  This takes annual growth to 2.6 per cent - the highest rate since 2007, which is great news.

While I was attending APEC last week, I spoke to other world leaders, and got a sense of the on-going economic uncertainty in many parts of the world.  In the first half of 2012, New Zealand has grown faster than the United States, Japan, Canada, the UK, and the Euro area.

New Zealand's rate of GDP growth, which is the highest we've seen since before the domestic recession and the Global Financial Crisis, confirms our economic plans are having a positive effect on New Zealand businesses and households. We expect solid growth to continue over the next few years.

Our plan to put the right economic conditions in place that will give businesses the confidence to invest, take on new staff, and compete in the global marketplace is even more important in the face of on-going uncertainty.  We are continuing to make good progress towards building a more productive and competitive economy - one of our four priorities for this term in office.

Backing LSV graduates into work
Yesterday I visited the Limited Services Volunteers (LSV) course at Trentham Military Camp in Wellington.  LSV is a six-week course provided by the Defence Force for 18-25 year olds, who have been on a benefit for six months or more.

The Government has invested $36 million over the past four years to provide 6940 more places in LSV, because we believe it does help our young people turn their lives around, and they come out motivated and ready to work.  The LSV programme is similar to basic military training, and provides a unique mix of fitness, personal presentation and other employment-focused activities. 

The next step for LSV graduates is to find work, and I want to encourage more employers to take on a young person and give them an opportunity to prove themselves in a job when they graduate.

To help with this, this week I've written to around 175 employers asking them to take on an LSV graduate.  I've spoken to employers across the country who have been delighted with the LSV graduates they've hired.  I'm also reminding employers that subsidies are available through the National-led Government's Job Streams initiative to help them employ someone.

You can read my press release here.

Reforming welfare
This week, the Government has introduced a Bill to Parliament which will enable the next phase of our Welfare Reforms.  We campaigned on redesigning the welfare system at the last election.  We believe those who can work should work.  At the same time, support is still there for New Zealanders in need.

Our changes alter the obligations we have for beneficiaries. And we're simplifying the current seven main types of benefit into three - Jobseeker Support, Sole Parent Support, and the Supported Living Payment.  These changes to the benefit system will come into effect in July next year.

Did you miss these important stories? From my diary
Today I've been in the Chatham Islands for a great visit to this very special part of our country.  This is my first visit to the Chathams, and I've enjoyed the chance to meet locals and discuss some of the issues they are facing.  I've also enjoyed the opportunity to sample the delicious crayfish the Chathams are famous for.

This weekend I am in Auckland.  It will be good to catch up with the United States Secretary of Defense, Leon Panetta.  Next week I'll be back in Wellington for another week in Parliament.


John Key
Prime Minister

Recent events on Flickr:

APEC chat

Arriving in Japan

Meeting with Japan PM Noda

Pacific Business Trust

Young Enterprise

LSV meetup



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#1 - Stan Martin 2012-09-21 21:27 - (Reply)

I found the newsletter had plenty of detail but ignored the hot topic of the moment. That is the issue of who governs this country as seen by the the Maori Council and Waitangi Tribunal's opposition to partial asset sales. Also the teachers using school children to attack plas to update Christchurch school plans. This are not minor issues and need to be seen to being sorted by the Government of the country democratically elected and NOT the courts.

#2 - John Galt 2012-09-21 23:17 - (Reply)

Being unfortunately a TC3 resident of Ch-ch ("blue-green" classification, if you are not from Ch-ch; it should more properly be labelled "black") I would like to see the Government giving much greater attention to "banging some heads together" in the ongoing impasse between the insurance industry and EQC in the matter of getting the "over $100k cap" land geo-tested. I was horrified to read this week that these negotiations have been dragging on for months; that state of affairs is just totally unacceptable.

#3 - Dianne & Darry Black 2012-09-22 06:18 - (Reply)

John, we are very happy with your progress, and thank you for all your hard work. Just remember that it is your government that is governing our country and not the Maori Council, who are merely trying to stop Partial Asset Sales.Don't let them dictate! Also we do not agree with Teachers inciting children and parents, with negativity on the proposed Christchurh school plans. Keep up the good work.

#4 - Leigh Blann said:
2012-09-22 09:09 - (Reply)

Good Morning John, If we take Christchurch rebuild out of the equation of growth, what is the country on a whole's growth? 2. Why is it that everytime Maori raises it's voice, the Government of the day throws heaps of money at them to shut them up? Does anybody know the EXACT figure that the tax payers of New Zealand have given to Maori under treaty claims? Are we the only country in the world that conquerer pays the conqured? Thanks Leigh Blann

#5 - Barrie Vivian 2012-09-22 12:30 - (Reply)

Hi John Key, Please dont give the Maori rights to water or anything else. Its not in the Treaty and if you do it will cause massive racial un rest.You should pass a action that all NZs are the same and there is no race based benifits etc.We shouldnt have a Maori political party either as its race based.

#6 - bronwyn williamson 2012-09-22 15:09 - (Reply)

What planet are you all on.The dairy farmers have pulled NZ out of the and as fast as we work and the harder we work we are faced with a dollar and fuel at record highs.Banks picking off foreced sales one by one.Ever increassing costs by beauracratic idiots.And you think its going good!!! The Maori's own the water, sea and air.Farmers own the debt and create the wealth and everyone else steels it.

#7 - willem ngatievans 2012-09-22 17:46 - (Reply)

hooray JK you are doing your job did you eat the tutai in the crafish and the chats need a hand up there is a lot of money generated over there.

#8 - John Wilson 2012-09-23 10:48 - (Reply)

You and the team are doing well,why not try an early election to sort a few things out, I think you would win. As Churchill said`Where there is a great deal of free speech, there is always a certain amount of foolish speech`

#9 - Gary 2012-09-23 13:21 - (Reply)

Re LSV . Limited programmes provide no on going support after the good work acheived by the programme. The only graduate is one who has found permanent employment or continued education.Support needs to extend into the community further developing their skill base until the right outcomes are acheived. Te Whangai Trust attempts tp acheive this utlising flexiwage.

#10 - willem ngatievans 2012-09-25 07:36 - (Reply)

hey,this water gate we all have rights to it i drink it all the time i had a shower last night cappa tea this morning my wife just flushed the toilet it belongs to all of us it should have goverment control to give us rights to it not king who making statements that not all maori agree with.

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