Watch my latest video journal on YouTube - click the image, or here.

LOOKING ON THE BRIGHT SIDE

Every day that I am on the road, I talk to people who are concerned about the economy and what the future holds.

New Zealand is battling a global downturn on a scale we haven’t seen for over a generation. But I’m confident we will come through it more strongly than many countries, and that these tough times can be a springboard for better times ahead.

Why? For five reasons – the health of our banking system, our monetary and fiscal policies, our export base, our position in the world, and our capacity to adapt.

For more, read or watch my speech to the Council of Trade Unions Productivity Conference. 

JOBS AND GROWTH PLAN – 1 APRIL CHANGES

We’re working hard to protect New Zealanders from the sharpest edges of the recession and prepare for future growth. On 1 April, several important parts of our Jobs and Growth Plan come into effect:

Cutting personal taxes – The 1 April tax cuts deliver on our election promise and will provide a billion-dollar boost to households. They will lift the after-tax income of a worker on the average wage by around $18 a week. They include a new independent earner tax credit of $10 a week for people earning between $24,000 and $44,000 and who are not receiving state support. The tax cuts are part of National’s plans for rewarding effort and providing better incentives for New Zealanders to get ahead.

Helping small businesses – Most of the initiatives from the new Government’s Small Business Relief Package  will come into effect, making it simpler and less expensive for small and medium businesses to manage their cash flows and pay taxes. The relief package is worth around $480 million for businesses over four years.

Boosting incomes for the most vulnerable – The new Government is lifting NZ Super, veteran’s pensions, student allowances, and benefit payments to match inflation. We are also lifting the minimum wage from $12.00 an hour to $12.50. These increases will help people on low incomes tackle rising living costs.

Encouraging saving – We are making changes to Kiwisaver to make it more enduring and affordable for savers to join, and for employers and the government to support. Changes include reducing the minimum employee contribution from 4% to 2% of their gross pay.

Restoring ACC to financial health – The government is reluctantly increasing ACC levies for earners and employers. This will help cover some of the massive hole in ACC’s accounts and, along with our efforts to improve management and get costs under control, ensure the scheme’s ongoing viability.

Last week I announced that the Government will give Tourism New Zealand an extra $2.5 million to immediately boost New Zealand tourism promotion in Australia . As the global recession bites, our friends across the Tasman will be keen to holiday closer to home, and the more Aussie tourists we can attract to New Zealand, the more jobs we can protect and create in our tourism industry.

DEVELOPING A CULTURE OF GIVING

One of the great joys of being Prime Minister is that I get to meet people in our communities who make a real difference in people’s lives.

New Zealanders are incredibly generous, but there is always more we can do to help those worse off than ourselves. That’s why I want to develop a culture of giving and generosity in New Zealand.

To find out how we can all play our part in this, read or watch my speech to Philanthropy New Zealand’s Annual Conference. 

TURNING AROUND TROUBLED LIVES

Last Friday I visited the teenagers and staff at Kingslea School, a youth justice facility near Christchuch, which caters for around 40 of our worst offenders aged between 14 and 17.

The stories these teenagers tell about their young lives are sometimes harrowing, but also hopeful. These kids have done some pretty bad things to end up at the school, but I don’t think it’s too late for any of them to turn their lives around. The staff and teachers are doing a great job helping them to learn vocational skills and get them back on track, but there is more that can be done.

That’s why we’re developing our Fresh Start programme for the worst young offenders. Fresh Start includes military-style activity camps with an intense year-long course of support and mentoring. This aims to give the most troubled teenagers the help they need to tackle their problems and become more responsible adults.

SUNDAY WITH THE PRIME MINISTER

Check out my video feature, Sunday with the PM. 

Best wishes

John Key