Rt Hon John Key

Key Notes: Budget Issue

In this issue:

Presenting our fifth budget
Prime Minister's video on Budget 2013
Finance Minister's video on the Budget

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Government builds momentum in Budget 2013

Budget 2013 builds on the momentum created by the previous four Budgets across the Government’s wide-ranging programme, Prime Minister John Key says.

“Every Budget since 2009 has been presented against the backdrop of extremely challenging economic conditions.

“In particular, the global financial crisis, the Christchurch earthquakes and ongoing uncertainty around the world have affected most New Zealand households and businesses.

“While those challenges remain, improvements across a range of indicators and improving confidence among New Zealanders mean Budget 2013 has been prepared with a fresh sense of optimism,” Mr Key says.

“Growth is better than in most other developed countries, we are on track to surplus in 2014/15, and we are investing in programmes that will support jobs and deliver better public services.”

A feature of the Budget is a $100 million-a-year internationally-focused growth package, providing extra research and development assistance to businesses, additional funding for tourism, and more resources for marketing New Zealand to international students.

“This important initiative acknowledges New Zealand’s need to pay its way in the world through increased trade and investment if we are to create jobs and opportunities for hard-working Kiwis here in New Zealand,” Mr Key says.

“As I announced last month, within this package $158 million over four years will provide a significant boost for overseas tourism marketing, particularly in emerging and high-value markets, and $40 million over four years will be used to encourage and foster international education.

“In addition, science and innovation funding will be increased by $50 million a year. This takes the Government’s annual investment in research and development for 2013/14 to a record $1.36 billion.”

Mr Key says many other developed countries are still struggling with too much debt, little or no growth, or a combination of both.

“My Government does not want that for New Zealand.

“Budget 2013 sets out the next steps in our long-term programme, which we started after we were first elected in 2008, to ensure that we have a brighter future in this country.

“Momentum is building towards a stronger, more stable, economy that can again weather global storms and deliver opportunities, higher incomes, and more jobs for New Zealanders,” Mr Key says.

Improving healthcare

When National came into office in 2008, we inherited a health service in crisis. We've turned this around. At the end of the day, the health of our families, and especially our children is important to all of us.

As Prime Minister, I'm proud that we've been able to protect and grow our health service at a time when many other developed nations are freezing or even reducing their investment in public health.

In my latest video I discuss some of the great results we've achieved for New Zealand families in health.

Key Notes: Improving Healthcare

When National came into office in 2008, we worked extremely hard to ensure our health service was delivering the high level of service we expected it to.

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PM announces Ikaroa-Rāwhiti by-election date

Prime Minister John Key has announced the date for a by-election in Ikaroa-Rāwhiti will be Saturday 29 June 2013.

The by-election follows the death of MP Parekura Horomia.

“I have been advised that, since the vacancy arising from Mr Horomia’s death has now been gazetted, it is appropriate to set a date for the by-election,” says Mr Key.

“The by-election Writ day will be Wednesday 29 May. Candidate nominations must be received by midday on Wednesday 5 June and the last day for the return of the Writ will be Thursday 18 July.”

Slideshow: Our Infographics

Created with flickr slideshow.

Draft intelligence community legislation released

Prime Minister John Key today released a final draft of legislation to clarify the functions of the Government Communications Security Bureau (GCSB), and to strengthen the oversight regime governing New Zealand’s intelligence community.

The final draft of the omnibus Bill – the Government Communications Security Bureau and Related Legislation Amendment Bill – encompasses amendments to the Government Communications Security Bureau Act 2003, the Inspector-General of Intelligence and Security Act 1996 and the Intelligence and Security Committee Act 1996.

The draft Bill follows a compliance review, which focused on the GCSB, as well as a wider review of other related intelligence legislation.

“The compliance review of the GCSB, conducted by Rebecca Kitteridge, showed there were difficulties in the legal interpretation of the GCSB Act,” says Mr Key.

“Ms Kitteridge’s review found the GCSB Act 2003 is not, and probably never was, fit for purpose.

“It is essential that an agency which is exercising intrusive powers has a clear legal framework to operate within.

“It’s also essential the oversight regime governing such an agency is strong enough to mean the public can have confidence the agency is acting within the law.

“The responsible thing to do is to clarify legislation so it is clear what the GCSB can and cannot do; then it can get on with the important job of protecting the security of New Zealanders,” says Mr Key.

“The draft Bill I am releasing today will, if enacted, help the GCSB to get on with the job of helping New Zealand public and private sector entities deal with the growing threat of cyber-attack.

“The GCSB will require an authorisation from the Responsible Minister and the Commissioner of Security Warrants when its cyber security and information assurance functions are being performed in relation to the communications of New Zealanders.

“The operating environment for New Zealand’s intelligence agencies has changed enormously over the past decade. In large part, this is due to the rapid evolution of technology in areas like cyber security and the threat of cyber-attacks.

“It’s vital that legislation in this area is fit for purpose and keeps pace with changes in the operating environment, while also safeguarding the rights of law-abiding New Zealanders,” says Mr Key.

The draft Bill also makes it clear the GCSB can provide support to certain named agencies – the New Zealand Police, the New Zealand Defence Force and the New Zealand Security Intelligence Service (NZSIS).

The GCSB will only be able to provide that support when those agencies are acting within their own lawful duties.

“This means the GCSB will be able to provide support under the right conditions and oversight, including in relation to New Zealanders,” says Mr Key.

In addition to the GCSB Act amendments, Mr Key says the draft Bill also significantly strengthens the oversight regime for New Zealand’s intelligence agencies to ensure it is strong enough to inspire public confidence.

“The Bill modernises legislation governing the Inspector-General of Intelligence and Security to make the office more proactive, and at the same time the Government intends to increase the resourcing of the Inspector- General’s office.

“Changes to the Intelligence and Security Committee Act would also give that committee greater oversight and accountability of the intelligence community,” Mr Key says.

Under the draft legislation, the GCSB Act will retain its three main functions of information assurance and cyber security; foreign intelligence; and cooperation and assistance to other agencies.

However, these functions will be clarified and updated so that:

· Information assurance and cyber security will include cooperation, advice and help to both public and private sector organisations;
· Foreign intelligence will remain broadly as is; and
· Cooperation and assistance to other agencies means the GCSB will be able to assist the NZ Defence Force, Police and NZSIS, but only when those entities are performing their lawful duties.

“These changes will ensure the GCSB is on a sound footing to keep doing the job the Government expects it to do in the interests of New Zealanders,” says Mr Key.

It is the Government’s intention to introduce and debate the final Bill later this week, subject to the House schedule. After passing its First Reading the Bill will go to the Intelligence and Security Committee for submissions.

Key Notes - Gearing up for Budget 2013

In this issue:

Gearing up for Budget 2013
Supporting science and innovation
Notes from my diary

Continue reading "Key Notes - Gearing up for Budget 2013"

PM marks death of Parekura Horomia

Prime Minister John Key has offered his condolences to the whanau of Labour MP Parekura Horomia who died today.

Parekura Horomia was the Member for Ikaroa-Rāwhiti, a former Labour Minister of Māori Affairs and a member of the Labour caucus since 1999.

“Parekura has been a stalwart of the East Coast community for decades. He has championed their causes and supported those in need.

“I know my colleague, Treaty Negotiations Minister Chris Finlayson, praised his advocacy for ensuring that, as the rate of Treaty settlements increased, the Crown’s commitments were actively honoured.

“The Government had enormous respect for the tireless work Parekura did for Māori, first as Minister, and then as a member of the Māori Affairs Select Committee during a period of increasing workload and important issues.

“I am thinking of his whānau at this very sad time. It is difficult to grieve privately when your father, grandfather, brother or uncle was a very public figure. “The Horomia family will take comfort in the achievements of a life well lived and know that he made a difference in the lives of many.”

Parekura Horomia was aged 62 and was a widower with three sons.

Govt stands by Chch as rebuild cost estimate rises

The National-led Government is standing behind Christchurch as the estimated cost of the rebuild is revised upwards, says Prime Minister John Key.

Mr Key spoke today to the National Party Mainland Region conference in Hanmer Springs, and released new figures showing the extent of the challenge in rebuilding the earthquake-damaged city.

“This is the largest and most complex, single economic project in New Zealand’s history. The scale of the rebuild is unprecedented,” says Mr Key.

“That always meant that it would be difficult to get an exact handle on the total estimated cost straight away.

“Treasury has revised upwards its estimate of the total capital cost of the rebuild from $30 billion – the number in last December’s half-year fiscal update – to $40 billion. This will be contained in next month’s Budget.

“This estimate includes capital costs incurred by entities, such as commercial entities, as well as the Crown.

“The Budget will also show that the estimated net fiscal cost of the earthquakes to the Crown will rise from around $13 billion at the half-year fiscal update last December, to around $15 billion.

“Despite this, the Budget will still show the Government is on track to a surplus in 2014/15.

“The estimate increases are due in many cases to more precise information becoming available about what the actual costs are across a range of areas, from housing and social investment to infrastructure and commercial development.

“These estimates will continue to be updated from time to time, but they do not change the Government’s commitment to Christchurch and Canterbury.

“We will do what it takes to rebuild our second largest city, and that commitment will be unwavering.”

Mr Key noted that considerable progress was being made on the rebuild.

He noted that while the rebuild will be largely built by private sector capital, the Government will put money into delivering core public facilities and services.

“We want to focus taxpayers’ money in social assets rather than putting that money into competition with private sector players.

“All this demonstrates our commitment to the people of Christchurch, and Canterbury,” says Mr Key.

Prime Minister praises Tim Groser’s WTO campaign

Prime Minister John Key says he has now received confirmation from Geneva that New Zealand’s Trade Minister has not reached the final round of consultations to select a new Director General for the World Trade Organisation.

“This is obviously disappointing, not only for Tim Groser and the Government, but for all those WTO members and people in the wider trade community who were hoping to see him secure this role. We were grateful for the expressions of support from around the world.

“I know that Mr Groser appreciated that support and looks forward to continuing to work for the conclusion of the WTO’s Doha development negotiating round and towards making the international trading system work more effectively for all members. These were shared priorities and they remain so, regardless of the outcome of this race.

“In putting Mr Groser forward for this role, and in the enthusiasm with which he has pursued his nomination, New Zealand has underlined its strong commitment to the WTO and the multilateral trading system,” says Mr Key.

“The candidate eventually selected to lead the WTO will face a challenge in ensuring that the organisation remains fully effective and credible. I want to assure whoever is selected that they will have New Zealand’s full support in this endeavour.”

Mr Key says that New Zealand’s trade negotiations agenda for the coming year remains full and exciting.

“A number of negotiations likely to reach crucial stages, in addition to the WTO Ministerial meeting in Bali in December and I am reassured that New Zealand will continue to enjoy the benefit of Mr Groser’s experience and skills as Trade Minister to progress these initiatives.”

Entries open for PM’s Business Scholarships

Prime Minister John Key says executives looking to expand their international expertise should apply for this year’s Prime Minister’s Business Scholarships, which are now open for applications.

The scholarships are designed to build business capability and develop skills, particularly in management and international business leadership.

“We need to develop better skills to get the best out of our workforce, which in turn will help to grow the economy,” says Mr Key.

“Getting access to the best knowledge from the world’s best schools can only benefit our senior executives and the companies they return to.”

Last year’s scholarships enabled 14 successful recipients to enrol for this year’s intakes at prestigious international institutions such as Harvard, INSEAD and London Business School.

“We are already seeing tangible benefits as the recipients return to their firms,” says Mr Key.

“This will only increase as each new tranche complete their courses and return home to help their firms expand their international business transactions.”

Applications for the scholarships close on 27 May 2013. For more information visit: www.med.govt.nz/scholarships.

Video Key Notes on growing tourism

I rated my recent trip to China as a ten out of ten and that's what we hope visitors to New Zealand do too, including tourists.

Whether they come for a wild adventure, or to escape the northern winter by enjoying our summer, or to see where Hobbits live when they're at home, we hope that when our visitors depart they leave as ambassadors for the New Zealand Experience.

Every host wants their visitors to have a good time. But there's more riding on tourism than that.

Make no mistake: it's a very important industry for New Zealand.

With about two million visitors coming here a year, tourism directly contributes more than six billion dollars to the New Zealand economy.

It directly supports about one hundred and twenty thousand full-time equivalent jobs including in hospitality and transport.

More tourists will mean more jobs. That is a good reason for us to want to grow the industry in a sustainable way.

Having a beautiful country, and a reputation for great food and wine are perfect starting point for attracting tourists. But that doesn't mean there aren't challenges.

Other countries also want international visitors, and the wealthier they are, the more choices those tourists have. Attracting them here is a competitive business, even with some of the beautiful lodges and scenery we have on offer.

On top of that challenge, we're a long way away from where most people live and, right now, our dollar's pretty high.

But there's real potential for growth in tourism which is why I've announced that this year's Budget will have an extra $158 million of spending in tourism over the next four years.

Some of that will go to marketing New Zealand to high-value tourists.

When they get here, we want them to sample a range of experiences. The Lord of the Rings and The Hobbit films show what can be achieved by combining stunning scenery and creative talent. Showcasing our country, and our creativity are a natural fit.

I've hosted many overseas leaders here who are impressed by the beauty of our country. But we want visitors to take something away on top of their photos of a rugged mountain range, or a beautiful lake.

We want them to have felt the warmth and personality of New Zealanders. After all, the landscape is only one part of what makes this a great country to live in and visit. Dedicated people work in the tourism industry day and night but there's a role for all of us in sharing the Kiwi spirit when we get the opportunity.

We can help visitors to feel at home in our home so that when they're asked to rate their time in New Zealand, they say, "ten out of ten".

Key Notes: Growing tourism

I made my first pre-Budget announcement on Tourism last week, as part of our international growth package. This week I announced more details around this. We've already indicated that this year's Budget will be about growth, and in tourism, there is great potential to grow.

Continue reading "Key Notes: Growing tourism"

Post-Cabinet press conference

Announcements and a discussion of the Mighty River Power share float.