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18 July 2010
Special Edition: National Party Conference

In this issue of Key Notes, I talk about delivering on our promises - and the new package of reforms to employment law.

Click here to view one of my latest videos from the Asia trip
Meeting with ROK Prime Minister

SECURING A BRIGHTER FUTURE

This weekend I've been in Auckland at the National Party's annual conference. It's been good to catch up with National Party members and thank them for their support.

In my conference speech today I described how we are delivering on our election promises and focusing on the issues that matter to all New Zealanders.

National is working hard to lift the long-term performance of the economy, create jobs, raise living standards, and provide world-class public services for Kiwi families. We are securing the brighter future that New Zealanders voted for in the 2008 election.

You can read and comment on my full speech here - and here for my media release, "Employment law package all about jobs & growth".

IMPROVING EMPLOYMENT LAW

Today at the conference I announced National's employment law package. It contains practical solutions to issues facing employers and employees, and is part of our plan to grow the economy and create jobs.

We're extending the 90-day trial period for new employees to cover all employers, not just those with 20 or fewer employees. This voluntary trial period gives employers more confidence to take on new staff, and it gives people the chance to prove themselves in a job.

We introduced the trial period for small businesses in 2008 and it's been really successful. Research shows that 40 per cent of employers would not have, or were unlikely to have, hired someone without the trial period. 

We're also giving employees the option to trade one of their four weeks' annual leave for cash, and fixing the personal grievance system.

And we're changing the rules on union access to workplaces, so that any access will require the prior consent of an employer. That consent cannot be unreasonably withheld.

There are other changes too. Click here for a one page summary.

BOOSTING TRADE WITH ASIA

This week I got back from a successful trip to the Republic of Korea, China and Viet Nam. Check out photos from my trip here:

There are big opportunities for New Zealand in Asia and I am determined that we make the most of them.

In Korea I met with President Lee Myung-bak and injected new life into free trade talks. I also attended a wreath laying ceremony to honour the 45 New Zealanders who lost their lives in the Korean War.

In China I visited the Shanghai Expo on New Zealand Day. The Expo is a fantastic way to showcase the best of our country. I especially enjoyed the performance by Kiwi musicians Moana and the Tribe, and got to have a chat with them afterwards.

I was in the air on my way to Viet Nam when the All Blacks were playing the Springboks last weekend. We avoided learning the score so we could watch their win "live by replay" when we arrived in Hanoi. I enjoyed Viet Nam, especially meeting the Prime Minister and President for the first time.

BUILDING THE CYCLE TRAIL

While I was in Asia, Associate Tourism Minister Jonathan Coleman announced that work will start on eight new cycle trails this summer.

The trails are in Opotiki/Gisborne, Taupo, Hawke's Bay, Nelson/Tasman, Westport, Mount Cook/Waitaki, Queenstown, and Clutha. They are all part of The New Zealand Cycle Trail Project.

This project will showcase some of our most breathtaking scenery, and the completed trails will be a big draw card for tourists from New Zealand and around the world.

FROM MY DIARY

On Wednesday I caught up with the All Blacks and Springboks at a reception we hosted for them at Parliament. On Thursday I was in Auckland to launch the Rex Robotic Exoskeleton, made by Albany firm Rex Bionics. The product helps wheelchair users walk and stand up, and it's a great example of innovation in New Zealand.  And on Friday I visited the Tip Top bread factory in Christchurch.

Next Wednesday I'll be at the All Whites' parade in Wellington and I hope to see lots of Wellingtonians and football fans there.

Best wishes,

John Key
Prime Minister

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#1 - Michael 2010-07-18 18:25 - (Reply)

I understand the 'principle' of the 90 trial period. I have been in business for over 20 years and the issue in getting rid of problem staff is not during the trial period, but afterward. This law is bad law becuase it is hugely unfair to employees. I also think it is detrimental to the NZ economy because it creates negatives to employees from moving from one employer to another. They may as well move to Austrlia where prospects for earning higher incomes are much greater. I do not beleive this law change will create a signifcant number of new jobs if any. Creating vibrant businesses does. This law also does nothing to inspire confidence in workers or business to propel our economy forward. If the National party thinks the 90 trial period has been 'really successful' pick up the newpapaer and read about our economy teetering into slipping into recession again. It looks like we have a case of the emperor is wearing no clothes if this is the best the government can come up with to stimulate employment and economic growth.

#2 - Anita 2010-07-18 19:06 - (Reply)

Just to let you know I voted for your party, we are getting poorer every year, what happened to all your promises of getting us on the same standard of living as Australia? I cannot live here for much longer if this continues, I will have to leave like so many other quality New Zealanders. So many beneficiaries that are dishonost, sucking us hard workers dry. You won't get my vote again. You politicians are all the same, I am disappointed. Thanks

#3 - Ross Lockyer 2010-07-18 19:39 - (Reply)

Dear Prime Minister, an excellent report this week. The improvements to the employment law - all aspects, are exactly what the country needs both to encourage employment and to protect employers from the claims of the terminally useless. An excellent and well devised plan. Secondly the work that you have been doing in boosting trade with Asia and especially with China is also excellent news. That is where our future trade and relations lie. As one who spent almost all my working life in Asia (primarily Indonesia, Singapore and the rest of SE Asia) I know that is where NZ must concentrate our trade and international relations to ensure our future prosperity. Great work. You have our support 100%. Regards Ross Lockyer Kerikeri

#3.1 - diane 2010-07-19 08:53 - (Reply)

i agree with the 90 day trial and have used it to employ 3 new farm staff all; who were unemployed and two who had criminal records.as long as employers give training and support and ensure everyone knows whats expected it works. there are however those employers who abuse the system and somehow this needs to be addressed. You are on the right track with the Asian development. clear examples of how things acn work and what we have to do as nation are required to demonstrate potential success to the majority of 'why do we have to change' population. Diane Ohaeawai

#4 - Richard. 2010-07-18 20:43 - (Reply)

Where in this newsletter did you approach or mention the appalling violent crime endemic in the country you are currently governing???

#5 - Ron Ashman 2010-07-18 21:47 - (Reply)

The new employment changes are realistic and fair to ALL, I say. I am a waged employee. Good work.

#6 - Richard Goodwin 2010-07-18 23:34 - (Reply)

John and all of your National colleges, I am bitterly disappointed at the clear lack of judgment and courage displayed by yourself and the conference members with regard to the raising of the drinking age. It bodes ill for National's support of the ''5 point solution' proposed by Doug Sellman and many other eminent New Zeaanders. Liquor reform must and will come as did the abolishion of slavery in 19th century Britain. With slavery, it was powerful, economic vested interests, rather than reason which delayed its abolition. I hope the power of the liquor lobby won't continue to have a stranglehold on common sense and reason. Comprehensive reforms to the advertising, distribution and sale of liqueur, more than anything else in NZ society today, will produce positive effects in terms of reducing spending on healthcare, and reduction of crime and imprisonment. However what is far more important, will be the reduction in suffering of the most vulnerable members of our society, particularly women in abusive relationships, children and adolescents.

#7 - Tama Nikora 2010-07-19 02:03 - (Reply)

I like Chinese. I employ them. Good workers, good food, no burquas, no mosques. Peter Chin is my mate. Pita Sharples - no way. Need new flag, southern cross, and fern. Ungrateful Bethune suffers from insomnia. Employment policy good for everybody and Maori. Better than being indigenous. Most courageous and exciting policies to improve the economy for everybody. Naku noa, Tama Nikora, Urewera.

#8 - Rex M Roberts 2010-07-19 06:44 - (Reply)

Congratulations on your positive approach - keep up the good work.

#9 - Jo Barry 2010-07-19 08:48 - (Reply)

Dear Prime Minister, I heard recently on the news that you are not in favour of raising the drinking age. I can't believe that you think that the lower drinking age has been a good thing. I believe that this has given teenagers the impression that they have a right to get drunk, because it is legal. Outrageous behaviour has escalated & I believe that you should raise the drinking age & see for yourself what difference this makes. You will probably find that young people still drink, but they behave themselves a whole lot better so they don't get caught!

#10 - Harmen Van Weerden 2010-07-19 19:35 - (Reply)

Good to see the government introducing some proactive employment conditions. The 90 day trail is a good thing for both employees and employers. Its a shame the Unions aren't more procative in engendering positive working environments. Asia certainly holds a good trade relationship for NZ's future. Are there any moves to develop closer relationships with the Philippines, of which there is a sizable population in NZ?

#11 - Ross Prichard 2010-07-20 16:55 - (Reply)

PM John Key, Dear sir, I am increasingly concerned about product leaving our shores without having value added. In particular the trade in logs to China. It just happens that we live in Kawerau and We saw another train-load of whole logs leaving to go to the port of Tauranga only yesterday. Please intervene to change the policy so that we only export finished product and add a few thousand jobs to our country and more much-needed money. Thanks, Ross and Dianne.

#11.1 - Donald Boese 2010-07-21 21:27 - (Reply)

Hi Ross, I agree with your comments..but how can you stop all our raw products from being exported with out value added?? Nearly all our value adding factories have been moved to China over the last 5 years..We are now selling our Dairy factories to the Chinese (Synlait-Canterbury) The Bright Dairy deal is the second Chinese bid to capitalise on New Zealand's dairy production, with Hong Kong-listed Natural Dairy looking to inject $1.5 billion in a buy-up of land and facilities, including the 16 Crafar family farms. Your views of raw logs heading out to China is just a trickle in a huge Asian sell out. Don Boese.

#11.1.1 - Ian Mansell 2010-07-24 08:28 - (Reply)

Donald, This is the next phase of asset stripping NZ. Most NZ listed corporates were basically stripped by the Asians and Australians and now because of what I perceive to be weak governance we are selling the ground we walk on. NZ needs to really consider what political and cultural influences will be exerted on NZ over the coming decades and whether it will lose control to overseas investors, NZ Europeans and Maori are very small minority sitting on a very desirable piece of real estate. However, with the raw products, strong governance would simply say that they cannot be exported unprocessed. The asset value of these commodities would then fall until it then became economic to process them onshore. The issue with these raw products though becomes one of international supply and demand, if Canada can produce logs at such a low rate that even if our logs were zero priced (with the added cost of onshore processing) that they were not competitive then they could sit indefinitely in our forests, effectively world prices would have to rise enough to warrant their extraction. Also, the type of wood that NZ grows (that isn't a native) isn't that sort after as a highly processed product, mainly it would appear that we produce industrial timber for house building and so forth; I don't believe that there is huge benefits in just cutting logs into 4x2 planks.

#12 - James Lai 2010-07-21 11:26 - (Reply)

God bless you, Mr. Prime Minister and grant you all the wisdom to lead the country.


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