Rt Hon John Key

PM launches strategy to open doors to China

nospam@example.com (admin) — Fri, 03 Feb 2012 11:30:42 +1300

Prime Minister John Key today confirmed New Zealand was on track to doubling its two-way trade with China to $20 billion by 2015 at the launch of the NZ Inc China Strategy at the Cloud in Auckland.

"We have a strong relationship with China and have seen good growth in trade over the past few years. The launch of the strategy today will help further strengthen that relationship," Mr Key says.

"The goal of doubling two-way trade from $10 billion to $20 billion by 2015 was agreed when I visited Chinese Premier Wen Jiabao in 2010.

"We are on track to meet that goal. Bilateral trade in the year to last September was up 22 per cent on the year before, largely helped by the Free Trade Agreement that came into force in late 2008," Mr Key says.

New Zealand was the first, and is still the only Western economy, that has a free trade agreement in place with China.

Mr Key says the NZ Inc China Strategy launched today sets out ambitious medium term goals and provides a clear direction for the whole of government effort over a five year period.

"It is the second centralised strategy to be launched following India last October. In addition to India and China, other strategies under development are the US, Australia, South East Asia, Middle East, and the European Union," Mr Key says.

"Trade with China is one of the success stories of the New Zealand export sector over the past decade or so. China is also New Zealand’s largest source of foreign students, and our fourth biggest tourist market and we plan to develop these areas further."

The strength of the relationship with China is underpinned by the Chinese community in New Zealand, which numbers more than 147,000 and is growing.

Mr Key says it is fitting the China Strategy is being launched at the beginning of the auspicious Year of the Dragon, and also the year marking the 40th anniversary of New Zealand’s diplomatic relations with China.

"There are good reasons for a strategy. China is the world's second largest economy and is still growing relatively fast. It is also a major influencer in the Asia Pacific region."

The strategy brings government agencies together to work collectively. It has a strong trade and economic focus but also looks at building political and diplomatic ties. The Strategy outlines why New Zealand businesses should be looking at China and gives them some of the information they need to do business there.

The strategy includes a set of five goals that specify action such as increasing trade and developing more high-quality science and technology collaborations.

Further information on the strategy can be found online at: www.nzincstrategy.mfat.govt.nz

Joint Statement: Prime Minister Key, Prime Minister Gillard

nospam@example.com (admin) — Sun, 29 Jan 2012 23:34:08 +1300

Prime Ministers Julia Gillard and John Key met for the annual Australia-New Zealand Leaders’ meeting in Melbourne on 29 January. Their meeting was followed by the second Joint Meeting of Australian and New Zealand Cabinet Ministers.

The Prime Ministers re-affirmed their strong commitment to the closest possible relations between Australia and New Zealand, including through an annual Leaders’ meeting. They agreed to conduct further joint meetings of Cabinet Ministers on a regular basis and at least once in the term of each government.

Towards 30 Years of Closer Economic Relations

2013 marks the 30th anniversary of the Closer Economic Relations (CER) agreement. CER and the Single Economic Market (SEM) agenda have brought down barriers to trade, reduced costs for business, encouraged investment and created jobs and economic growth for both Australia and New Zealand.

The Prime Ministers agreed the Productivity Commissions of each country would conduct a joint scoping study [details attached] to identify options for further reforms which might boost productivity, increase competitiveness and drive deeper economic integration. The Commissions will report by 1 December 2012 for consideration by Leaders in 2013.

Stronger Defence and National Security Cooperation

The Prime Ministers welcomed the outcome of the Review of the Australia-New Zealand Defence Relationship, which has been launched today by Defence Ministers. The review outlines a new defence relationship framework that will make it easier for Australia and New Zealand to work together in our region and cooperate on capability development and procurement.

The Prime Ministers announced further steps to deepen cooperation on national security and emergency management cooperation. They agreed:

· to strengthen cooperation against the shared and growing challenge of cyber security through a regular Australia New Zealand Cyber Dialogue;

· that New Zealand would move from observer status to membership of the National Counter-Terrorism Committee, to ensure the closest possible coordination on counter-terrorism policy;

· that New Zealand would move from observer status to membership of the National Emergency Management Committee, in recognition of the strong collaboration between the two countries on disaster management.

The Prime Ministers agreed to continue to work closely together in the lead-up to the Centenary of the ANZAC landings in 2015, and other important WWI centennial commemorations.

Criminal History Sharing

The Prime Ministers agreed to enhance the reciprocal sharing of criminal history information for employment vetting purposes and plan an initial six month trial with Queensland to test how consistent and systematic requests for criminal history checks for employment purposes can be facilitated between Australia and New Zealand. They also directed officials to accelerate the work under way on reciprocal information sharing to support border control and law enforcement, consistent with free movement of people across the Tasman.

Continuing Trans-Tasman Cooperation

Following their agreement in June to establish a joint Australia New Zealand Therapeutic Products Agency (ANZTPA), the Prime Ministers were pleased with progress towards the phased introduction of ANZTPA, and welcomed the inaugural meeting of the ANZTPA Ministerial Council, which will oversee the implementation of ANZTPA.

The Prime Ministers also welcomed progress in streamlining trans-Tasman travel, especially through the SmartGate trial. They welcomed lowering of age eligibility for Smartgate from 18 to 16.

The Prime Ministers underlined their commitment to strong tobacco control measures and undertook to cooperate closely in their efforts to reduce tobacco use domestically. New Zealand will closely follow progress in implementation of Australia’s plain packaging legislation and the countries will look to ensure that no branded tobacco is able to be re-exported from New Zealand to Australia.

In the run up to the site selection decision, the Prime Ministers agreed to continue to promote vigorously the merits of the joint Australia-New Zealand bid to host the Square Kilometre Array (SKA). The SKA will be the most powerful radio telescope ever built and will revolutionise our understanding of the universe.

Climate Change

The Prime Ministers re-affirmed their commitment to pricing carbon as the most environmentally effective and economically efficient way to reduce greenhouse gas emissions. They welcomed work towards linking the Australian and New Zealand emissions trading schemes, including agreement by Climate Change Ministers in December to Terms of Reference which will guide the work of the Australia New Zealand Carbon Pricing Officials Group.

2015 Cricket World Cup

Prime Minister Gillard congratulated New Zealand on its successful hosting of the 2011 Rugby World Cup. Recognising both countries’ passion for sport, the Prime Ministers looked forward to Australia and New Zealand co-hosting the ICC Cricket World Cup in 2015 and welcomed the opportunities this would present for both countries.

Regional and Global Issues

The Prime Ministers confirmed their commitment to see an end to all whaling in the Southern Ocean, welcoming New Zealand’s intervention in Australia’s international legal case against whaling in the Southern Ocean.

Recalling the strong outcomes of the first meeting of the expanded East Asia Summit (EAS) in Bali in November, the Prime Ministers reiterated the importance of enhanced regional cooperation through the EAS, APEC and the Pacific Islands Forum (PIF).

Prime Minister Gillard congratulated Prime Minister Key on New Zealand’s successful hosting of the PIF and committed to support New Zealand in its year as Forum chair. The two Prime Ministers reinforced their commitment to work closely together in the Pacific, particularly on progress towards the Millennium Development Goals, and welcomed agreement to a joint funding arrangement for education assistance to Nauru. The Prime Ministers agreed to expand cooperation on their respective seasonal worker programs in the region.

The Prime Ministers agreed on the importance of strengthening the region's response to the shared challenge of irregular migration. Recognising the efforts of regional partners and international organisations to examine opportunities to better cooperate under the auspices of the Bali Process, Australia and New Zealand agreed to consult on targeted refugee resettlement, within respective quotas, to enhance the region's response to irregular migration. Both countries will engage with the UNHCR to ensure that this approach complements global priorities.

The Prime Ministers agreed to further strengthen maritime surveillance efforts in the Pacific, with a focus on fisheries surveillance, and to work closely together and in partnership with Pacific Island countries to coordinate efforts.

The Prime Ministers welcomed the close cooperation between Australia and New Zealand in supporting Pacific Island countries to respond to and recover from natural disasters, most recently in relation to the 2011 drought in Tuvalu and current flooding in Fiji.

The Prime Ministers welcomed the close cooperation between Australia and New Zealand, together with the Solomon Islands and regional partners, in the Regional Assistance Mission in the Solomon Islands (RAMSI). Both leaders noted RAMSI’s progress on transition, building on the strong leadership and commitment of the Solomon Islands Government to ensure lasting benefits for the people of the Solomon Islands.

Prime Ministers noted also their close ties with Papua New Guinea and PNG’s importance as a neighbour and regional partner. They looked forward to the smooth conduct of elections in PNG and Timor Leste in coming months.

Both countries remained concerned about the continuing deterioration in Fiji’s political and economic situation and its impact on Fiji’s people, and agreed to maintain close consultation on developments, including with other international partners. They reaffirmed the need for Fiji to return to democracy and the rule of law as soon as possible.

The Prime Ministers reaffirmed both countries’ commitment to free and open trade in the face of global economic uncertainty. They called for protectionism to be resisted. The Prime Ministers said all countries must work together to secure global recovery and restore job growth. European Union countries must fully implement commitments to stabilise economies at risk, prevent contagion and, in the medium-term, reduce debt levels and implement necessary structural reforms. The Prime Ministers remained strongly committed to the goal of eliminating tariffs and other barriers to regional trade and investment, including through negotiation of the Trans‑Pacific Partnership.

Strengthening economic relations between Australia and New Zealand

Impacts and Benefits of Further Economic Integration of the Australian and New Zealand Economies - Joint Scoping Study by the Productivity Commissions of Australia and New Zealand

Purpose of the study:

The Governments of Australia and New Zealand are firmly committed to strong economic relations between Australia and New Zealand, including boosting productivity through reducing the regulatory burden on business, increasing competition and encouraging closer economic cooperation, and to strengthening those relations further. The two countries have a long history of working together through the Australia New Zealand Closer Economic Relations Trade Agreement which first came into effect on 1 January 1983 and has involved successive rounds of integration of the Australia and New Zealand economies. This has been highly beneficial to both countries.

At their annual leaders meeting, the Prime Ministers of Australia and New Zealand agreed that, to promote further reform and economic integration, the Productivity Commissions of each country would conduct a joint study on the options for further reforms that would enhance increased economic integration and improve economic outcomes. The Commissions’ final report should be completed by 1 December 2012 in order to inform the next meeting of leaders, expected to take place in early 2013.

With 2013 marking 30 years of the operation of the Closer Economic Relations Trade Agreement, the Commissions’ report will help advise the Australian and New Zealand Governments on next steps in economic integration.

The report should identify specific areas for further potential reform, the ways in which they might be best achieved, the likely impacts of potential reforms, any significant transition and adjustment costs that could be incurred and the time scale over which impacts are likely to accrue.

Scope of report

The Commissions’ report to leaders should provide analysis on:

· potential areas of further economic reform and integration, including identification of the areas of reform where benefits are likely to be most significant, with particular focus on critical issues for business like investment and productivity;

· the economic impacts and benefits of reform;

· any significant transition and adjustment costs that could be incurred;

· identification of reform where joint net benefits are highest;

· the means by which they might be best actioned; and

· the likely time paths over which benefits are expected to accrue.

Methodology

The Commissions should provide an explanation of the methodology and assumptions used in its analysis. The Commissions should also provide guidance concerning the sensitivity of results to the assumptions used and bring to leaders’ attention any limitations or weaknesses in approaches to reform evaluation.

Consultation and timing

In the course of preparing the report, the Commissions should consult and hold public hearings as appropriate. While these consultations would inform the Commissions’ assessment, responsibility for the final report would rest with the two Productivity Commissions.

The Commissions should produce both a draft and a final report. The Commissions’ final report should be submitted to leaders, through the Treasurer of Australia and the Minister of Finance of New Zealand, by 1 December 2012. The reports will be published.

Key Notes: Outlining the Government’s priorities

nospam@example.com (admin) — Fri, 27 Jan 2012 15:36:25 +1300

In this edition of Key Notes, I outline the main features of the Government's priorities over the next few years.
Continue reading "Key Notes: Outlining the Government’s priorities"

PM recognises young achievers at special event

nospam@example.com (admin) — Thu, 26 Jan 2012 18:42:35 +1300

Prime Minister John Key today met with the 100 participants in this year's Prime Minister's Youth Programme – young people who have overcome adversity and made a real effort to turn their lives around.

The group of 14- to 17-year-olds from South and West Auckland were chosen to take part in the week-long programme in recognition of making positive, life-changing choices.

Youth Affairs Minister Paula Bennett also attended the celebration dinner at the Ellerslie Events Centre with the Prime Minister, along with business leaders, celebrities and leaders from the community.

"Every year I am really impressed by the young people I've met and the inspirational stories I've heard through this programme," says Mr Key.

"These young people have overcome numerous challenges and made a concerted effort to change their behaviour and lifestyles. They've decided to take responsibility for their futures."

The participants were nominated by community leaders, including school teachers and youth aid officers, after improving academic performance, or by moving away from anti-social behaviour such as truancy or low-level offending.

This is the third year of the programme, which sees the participants engaging in a number of activities, including the opportunity to learn from high achieving New Zealanders such as the Warriors and designer Trelise Cooper.

Participants in this year's programme will benefit from follow-up mentoring for up to three months after it finishes this week.

John Key - Video Journal No.1 for 2012

nospam@example.com (admin) — Thu, 26 Jan 2012 13:59:56 +1300

John talks about the ground he covered in today's speech on the economy, setting out the Government's main economic priorities over the next several years. To read the speech, go here.

PM outlines key priorities for 2nd term in Govt

nospam@example.com (admin) — Thu, 26 Jan 2012 12:24:36 +1300

Prime Minister John Key today outlined the four key priorities the National-led Government will focus on during its second term in office, and also provided an update on the path towards a surplus in 2014/15.

In a speech in Auckland, Mr Key said the Government’s four key priorities for the term are to:

responsibly manage the Government's finances
build a more competitive and productive economy
deliver better public services
rebuild Christchurch.

"Over the past three years, we have proven that we can deliver strong and stable Government in very difficult times – including through a global economic crisis and the series of destructive earthquakes in Canterbury," Mr Key said.

"The next three years will be about rebuilding and strengthening the country. We are in a good position to do that compared to a lot of other nations."

Mr Key said that the Government’s focus on responsibly managing its finances includes a commitment to return to surplus in 2014/15 – which National campaigned on at the election. The Budget Policy Statement, which will be released on February 16, will update the track toward that surplus.

"Today I can confirm that we are still on track to post a surplus in 2014/15, and the upcoming Budget Policy Statement will show a forecast surplus in the range of $300 to $500 million in that year," Mr Key said.

"Given the events in Europe, this surplus is understandably smaller than was previously forecast. But we remain on our tight fiscal track."

Mr Key said New Zealand is in a relatively good position to deal with any fall-out from the European crisis in the near term.

"In both 2012 and 2013, the New Zealand economy is forecast to grow more strongly than the Eurozone, the UK, Japan, the United States and Canada – so we are in relatively good shape. However, it is important that we get back to surplus and make our economy more competitive."

The Government will be implementing the 120-point economic action plan released during the election campaign, while also focusing on delivering better public services and rebuilding Christchurch.

"We have a busy agenda. Within our public services work we will be implementing major welfare reforms, focusing on raising achievement across the education sector, improving health services and introducing legislation to strengthen sentencing, parole and bail laws.

"On top of these initiatives we are taking a hard look at the way public services are organised across the board. The state sector could do much better at achieving results and at delivering value for money. I will have more to say about this when we release the Better Public Services Advisory Group report and outline our direction for state sector reform in the next month or two.

"Finally, this year we will be getting on with rebuilding Christchurch, which is a top priority for this Government. We are totally committed to the reconstruction of Canterbury and I’m determined to see that momentum is maintained.

"It will be another busy and challenging year but I am very confident about New Zealand’s prospects.

"We need to get out and seize our brighter future because it won’t come delivered on a plate. My Government is committed to that task," Mr Key said.

PM: Speech to Waitakere Business Club

nospam@example.com (admin) — Thu, 26 Jan 2012 12:23:43 +1300

Ladies and Gentlemen

Can I start by saying that it’s a tremendous privilege to have won the trust and goodwill of New Zealanders for a second term in Government.

I don’t take that for granted and I never will.

I learned quickly when I came into Parliament that a government has to earn the trust and goodwill of voters again and again, every day.

And that’s what we’ll be doing.

We proved in the past three years that we can deliver strong and stable government in difficult times.

We worked constructively with a number of other parties in Parliament to get things done for the benefit of New Zealand, and we’ll continue to do that.

I don’t know exactly what the next three years will throw up.

The past three years have shown us that adversity gives little warning.

New Zealanders have had to deal with catastrophic events outside anyone’s control; from a global financial crisis to a devastating series of earthquakes in Canterbury.

New Zealand has changed over the past three years and, in fact, the whole world has changed.

The next three years will about rebuilding and strengthening the country.

And compared to a lot of other nations we are in a good position to do that.

Today I want to talk about the Government’s priorities over these next three years – in other words, how we are going to continue with our plan to secure a brighter future for New Zealand.

A brighter future is where New Zealanders from all backgrounds and all walks of life have the opportunity to better themselves and go forward in their lives; where people have the jobs, higher incomes and better living standards they aspire to and deserve; and where as a country we have the resources to provide better frontline services in health and education, stay strong on crime, protect the most vulnerable in society, and look after the environment.

How do we achieve that?

The Government has four priorities this term.

Our first priority is to responsibly manage the Government’s finances. In the world as it is today, the state of the country’s finances is all-important.

Our second priority is to build a more competitive and productive economy. That means an export-focused economy, which is selling more of what the world wants, at a competitive price, and is built on a solid base of innovation.

Our third priority is to deliver better public services to New Zealanders, within the tight budget the Government is operating under.

And our final priority is to rebuild Christchurch, our second-biggest city.

I want to talk some more about these priorities and give you an indication of where the Government is going.

But before I do that I want to talk briefly about the international backdrop.

The global economic outlook has deteriorated since the end of last year, and the European crisis, in particular, is the biggest potential threat to the world economy and therefore to the New Zealand economy.

Leading forecasters like the IMF, World Bank and Consensus Economics are expecting world growth to be weaker over the next couple of years than previously predicted.

For the most part, that is because of the ongoing turmoil in the Euro area.

The most likely outcome is that European countries manage through the crisis with the Euro intact, because it is in their collective interest to do so.

But that is by no means guaranteed.

As recently as yesterday, the IMF warned that if the required actions are not taken, the European crisis could spill over into a global recession.

Even under the more likely scenario, where Europe avoids a full-blown crisis, the Euro countries are expected to go into recession in 2012 and will be in for a protracted period of sluggish growth thereafter.

This poorer growth outlook for Europe has, in turn, contributed to lower growth forecasts for Asia, including China.

Overall, growth in China is expected to remain strong, but an easing in that growth will still have a flow-on effect for Australia, because of a lower demand for minerals.

The outlook in the United States is actually looking better than it did late last year, but growth is still likely to be subdued.

What does that mean for New Zealand?

Weaker global growth, particularly in our key export markets in Asia and Australia, will put downward pressure on the demand for our exports.

That will have a real and noticeable effect on the New Zealand economy, which is expected to grow somewhat slower than was predicted at the end of 2011.

But it won’t knock the New Zealand economy for six and it certainly won’t stop the Government pushing ahead with its priorities.

We are a small economy doing the right things, our banks are in good shape and the Government has managed effectively through the difficulties of the past three years.

The really difficult challenges will start to come if world growth continues to be revised further and further downwards, or if the European crisis triggers a global credit freeze.

Those are not the most likely scenarios for the world economy but they are certainly possible and the Government will continue to monitor global events very carefully.

So given that international backdrop, I want to talk some more about each of the Government’s priorities:

responsibly managing the Government’s finances
building a more competitive and productive economy
delivering better public services
and rebuilding Christchurch.

Our first priority is to responsibly manage the Government’s finances.

As every household and business around the country knows, that involves living within our means – budgeting carefully and deciding which things are priorities and which are not.

The Government is committed to returning to surplus in 2014/15.

Sticking to this commitment is an important part of our plan to limit debt and take pressure off interest rates and the exchange rate.

And sticking to this commitment is also important for New Zealand’s credibility with international financial markets. As we have seen overseas, a loss of credibility is very difficult to reverse and can have widespread effects across the whole country.

As you’d expect, the forecast slowdown in world growth makes our surplus target harder to achieve.

But today I can confirm that we are still on track to post a surplus in 2014/15.

The upcoming Budget Policy Statement will show a forecast surplus in the range of $300 to $500 million in that year.

Given the events in Europe, this surplus is understandably smaller than was forecast in the PREFU.

But we still remain on our tight fiscal track.

You’ll see a fuller picture of that in the BPS, which will be released on February 16.

The next update after that will be in the Budget itself.

The Budget will set out the Government’s revenue and spending, and show exactly what we are doing to meet our fiscal targets, get back to surplus and start reducing debt.

If the international outlook worsens between now and the Budget we may have to do more than we are currently anticipating to reach our surplus target, bearing in mind that the target is still three years and many forecast revisions away.

If the absolute worst happened, and there was a major shock to the global economy, the Government would look at whether retaining that surplus target would actually harm the economy by forcing a sharp reduction in demand.

But outside that scenario, we remain firmly committed to our target for surplus in 2014/15.

I want to talk now about our second priority, which is to build a more competitive and productive economy.

The reality, all around the developed world, is that the pre-GFC period of relatively strong growth, fed by a massive increase in borrowing, is unlikely to return in the foreseeable future.

Households and businesses are having to reduce the debt they built up over that time, and they are saving rather than spending.

So anyone who complains that New Zealand isn’t growing at four, or five, or six per cent a year right now is on the wrong planet.

In fact, we are doing better than most developed countries.

In both 2012 and 2013, the New Zealand economy is forecast to grow more strongly than the Eurozone, the UK, Japan, the United States and Canada.

So we are in relatively good shape.

However, it is important to understand the Government’s main role.

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.

European countries are in difficulty for two main reasons.

The first is that they have high levels of government debt, and I’ve already talked about the importance of sticking to our tight fiscal track.

And the second reason is that many of the economies in Europe have lost competitiveness.

That doesn’t happen overnight – it happens slowly over a number of years.

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 that are made off shore.

As a result, the industries and sectors that compete internationally actually went into recession in late 2004 and shrank in size by almost 10 per cent in five years.

That decline in competitiveness has started to turn around over the past three years.

A good example of how government policies can help competitiveness is in ACC. As a result of the decisions we made in ACC over the past three years, levies on employers and the self-employed will fall by 22 per cent this year, reducing total costs to business each year by around $250 million.

That’s just one example among many, but there is still much more to be done.

The Government’s view has always been that there is no magic bullet – no one ‘big bang’ reform that would turn the economy on its head.

What is actually required is a series of good policy decisions and reforms over an extended period of time, in 100 different areas, to enhance the competitiveness of New Zealand firms.

And I literally do mean 100.

During the election campaign we released an economic action plan of 120 key things we had done, or were doing, to build a stronger, more competitive economy.

Most of those action points are still ongoing.

So we have a very busy economic reform agenda, following through on things we started last term and on new things we announced during the election.

For example:

We’re restructuring IRL to become an advanced technology institute to work alongside the high-tech manufacturing and services sector.

We’re rolling out ultra-fast broadband and the Rural Broadband Initiative, to lift New Zealand’s connectivity.

We’re comprehensively overhauling New Zealand’s securities law, to restore investor confidence in our financial markets.

We’re introducing a six-month time limit for consenting medium-sized projects under the RMA, to reduce costs, uncertainties and delays.

We’re allowing for choice in the ACC Work Account, to help ensure efficiency and keep a lid on costs for levy payers.

We’re encouraging oil and gas exploration with a competitive new system for processing permits.

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.

We’re extending the mixed ownership model to four State-owned energy companies, to make better use of the Government’s balance sheet and to provide new investment opportunities for New Zealand savers.

And we’re investing heavily in roads of national significance and in the rail network, to promote economic growth and productivity.

These are a few of the initiatives in the 120-point plan, which sets out what the Government will be doing over the next three years.

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, showing progress on the existing initiatives and adding further initiatives as they are developed.

The first update will be in the middle of this year and will be publicly released.

Our third priority is to deliver better public services for families and businesses, within tight budgets.

Delivering better public services will help improve the lives and wellbeing of New Zealanders.

New Zealanders rightly expect a world-class health service, an education system that delivers for every child, a strong and effective justice system and social services that protect our most vulnerable and provide children from all walks of life with the opportunities they need to succeed.

Again, the Government has a very busy agenda over the next three years.

In education, our focus is squarely on raising achievement, in particular for those groups of students who have historically under-performed.

We’re strengthening performance measurement and accountability in schools, and we’ll be investing $1 billion of the proceeds from mixed ownership in modernising New Zealand schools.

It’s vitally important for New Zealand that students achieve because they are our future workforce.

But it’s also vitally important for the young people themselves, because a good education is the most important investment they can make in their own lives.

Welfare reform is also a very high priority for the Government.

At the moment around one in eight people aged 18 to 64 is on some sort of benefit, and about half of those have spent at least five out of the past 10 years on a benefit.

That is not only a poor position for beneficiaries themselves to be in: it's also not good for their children, for society or for taxpayers.

So we'll be moving quickly this year to get our welfare reform programme underway.

Early in the year the first Bill will be introduced to Parliament to enact the youth reforms I announced last year, targeting young people who are very much at risk of long-term welfare dependency.

That will be closely followed by another Bill in the second half of this year, to bring in the changes we campaigned on at the election.

New benefit categories will be created, and a greater proportion of beneficiaries will be required to make themselves available for work.

At the same time we will do more to help beneficiaries into work through services like childcare, training, workplace support, and access to health and disability support.

We also have a busy agenda in health, where we are working with local primary care networks throughout the country to provide free after-hours GP visits to children under six.

More people will get elective surgery, and we’re reducing waiting times for cancer treatment, first specialist appointments, diagnostic tests, elective surgery, and for people waiting in emergency departments.

In terms of public safety, we will be introducing legislation to strengthen sentencing, parole and bail laws.

We’ll be making it harder for those accused of the most serious offences to get bail and we’re increasing the penalties for child pornography.

These are all examples of individual initiatives we have underway in different areas.

But it has also become increasingly clear to us as a Government that the way public services are organised across the board needs to be addressed.

The state sector as a whole could do much better at delivering value-for-money, and it could do much better at achieving results, particularly in areas that cut across multiple departments, and which have proved difficult to get traction on over many years.

Last year the Government established the Better Public Services Advisory Group, and we have since received its final report, which we are currently considering.

We will release this report in the next month or two, when I give a speech on where the Government intends to go with state sector reform.

As I said, we are still working through the issues, but I have been quite clear with my Ministers that there needs to be significant change in the way the state sector is run.

Greater efficiency across government is an important part of this, but it is by no means the only part.

We are also focused on the quality and responsiveness of services, on strong and effective leadership, and on orienting the state sector around achieving results that really matter to New Zealanders.

Our final priority is to get on with rebuilding Christchurch.

2011 was about dealing with the damage caused by the destructive earthquakes that hit the region.

2012 is about starting to rebuild a vibrant, strong city.

The Government is totally committed to the reconstruction of Canterbury. That’s why we put aside $5.5 billion in last year’s Budget and created a whole new government department to lead the recovery effort.

We are committed to removing the barriers to reconstruction, and I can assure you that we won’t hesitate to use the powers we have to clear blockages in the system.

It’s easy to underestimate the scale of this undertaking.

Rebuilding Christchurch and its surrounding areas is an unprecedented project – without doubt the biggest economic undertaking in New Zealand’s history.

It is also at risk of delays from more seismic activity.

I want to say again to the people of Canterbury that we really do understand the frustration and anxiety you have felt as a result of the ongoing aftershocks, particularly the latest major ones that occurred around Christmas.

We continue to stand with you and I’m determined to see that momentum is maintained.

A National Bank report last year showed that economic activity in Canterbury was growing faster than anywhere else in the country.

The Re:START shopping area in Cashel Mall is up and running, and is drawing people back to the heart of the city.

And we have seen large companies show their faith in the city by announcing new investment in Christchurch.

Nearly 70 per cent of the 1,357 buildings approved for partial or full demolition in greater Christchurch have been demolished.

And early next week, the first suburban demolition by CERA begins in the residential red zone in Bexley.

We have made changes to the Regional Policy Statement for the greater Christchurch area, which The Press has reported could pave the way for more than 45,000 new houses.

The challenge now is for local authorities to use these powers to free up new land.

The residential red zone settlement process is progressing well. There are around 6500 properties in the residential red zone in Canterbury, and around 90 per cent of those homeowners have now returned their consent forms to CERA so they can receive an offer from the Government.

Around 46 per cent have also now formally accepted either of the Government's offers to purchase their property.

The commercial redevelopment of Christchurch is well underway.

And from February, residential housing reconstruction should move up a gear, subject again to seismic activity.

Plans by employers to hire more permanent staff in Canterbury are at an eight-year high.

And as the rebuilding grows the demand for workers and materials in Christchurch will be huge.

The Government’s strong focus will be on removing roadblocks so that demand can be met.

Finally, for Canterbury’s passionate sporting fans – of which there are many – the good news is that big-match rugby returns to Christchurch on March 24 when the Crusaders play the Cheetahs at the new 17,000 seat stadium in Addington.

Can I conclude by saying that 2012 will no doubt be another challenging year.

As a country we’ve had some tough things thrown at us.

But New Zealanders have shown great resilience.

Together we’ve come through a difficult period.

Looking ahead, I am very confident about New Zealand's prospects.

We're actually in good shape to meet the challenges that will continue to come our way.

There are huge opportunities out there for New Zealand.

We are a food-producing country in a world that is demanding more high-quality food.

A growing middle class in China, India and across Asia is tuning in to the goods and services New Zealand can supply.

And we’re a country that offers great opportunities for our young people.

So I’m unashamedly positive for New Zealand. I think we’ve got a great future ahead of us.

But we need to get out and seize that brighter future – it won’t come delivered on a plate.

That is the task my Government has embarked on.

Air New Zealand congratulated for top award

nospam@example.com (admin) — Tue, 10 Jan 2012 09:27:32 +1300

Prime Minister and Tourism Minister John Key has congratulated Air New Zealand on again being named Airline of the Year by ‘Air Transport World’ magazine.

“Air New Zealand was named Airline of the Year in January 2010, and to gain this honour twice in three years is an outstanding achievement,” says Mr Key.

“The award is for Air New Zealand’s industry-leading innovation and motivation of its staff, which has resulted in exceptional performance in many areas, such as customer service, operational safety, and financial performance.

“The award is an acknowledgement of the hard work the airline’s staff and management have put into the company.

“Air New Zealand is a vital part of our tourism infrastructure. Often, the first experience incoming visitors have of New Zealand is with the national carrier, and those first impressions count.

“Like all New Zealanders, I am very proud of Air New Zealand, and I congratulate the airline and its staff on this achievement.

“I am sure all staff and management at Air New Zealand will be proud of this well-deserved honour,” says Mr Key.

Hearts go out to people of Christchurch after latest quakes

nospam@example.com (admin) — Fri, 23 Dec 2011 16:50:13 +1300

It will be frightening and disheartening for the people of Christchurch and Canterbury to be experiencing even more earthquakes of such a magnitude, particularly this close to the holiday season, says Prime Minister John Key.

His comments follow two new aftershocks this afternoon, one a magnitude 5.8 at 1.58pm, and a second strong earthquake at 3.19pm.

“My heart goes out to the people of Christchurch and Canterbury at this time,” says Mr Key.

“However, residents can be confident that the authorities are onto the situation and government resources stand ready to assist wherever they are needed.

“My officials are keeping me informed as information comes in.

“The Canterbury Earthquake Recovery Minister, Gerry Brownlee, is intending to travel back to Christchurch later this afternoon to assess the situation.

“The Government’s resolve to work with the people of Christchurch and Canterbury to rebuild remains unchanged following today’s two aftershocks,” says Mr Key.

Key Notes - Merry Christmas

nospam@example.com (admin) — Thu, 22 Dec 2011 14:46:19 +1300

In this issue of Key Notes, I talk about the establishment of the new Government, thank you all for your support - and wish you a merry Christmas.

Continue reading "Key Notes - Merry Christmas"

SAS to come home in March

nospam@example.com (admin) — Thu, 22 Dec 2011 11:36:50 +1300

Prime Minister John Key has confirmed that the NZSAS deployment to Afghanistan will end as scheduled in March next year – a decision which has been foreshadowed for some time.

“The SAS has achieved the job they were sent to do with Kabul’s Crisis Response Unit (CRU), and they have done that job to the very highest of standards,” says Mr Key.

“Tragically, they have also paid the highest price, with two of the SAS’s fine soldiers losing their lives in the course of this work and I would, once again, like to pay tribute to Corporal Doug Grant and Lance Corporal Leon Smith who were killed in action.

“I deeply regret the loss of our soldiers but I do not regret our commitment to operations in Afghanistan.

“Thanks to the SAS’s efforts, the CRU is widely considered to be one of the best trained and most professional units operating in Afghanistan today.”

New Zealand remains committed to Bamyan province and completing the job begun in 2003. The Provincial Reconstruction Team continues its important work in building the security, governance and development capacity in Bamyan province.

“On behalf of the whole country I want to thank the SAS for their courage and professionalism over the two-and-half years they were in Afghanistan on this deployment.

“You made a difference. It’s time to come home.”

John Key Video Journal No.50

nospam@example.com (admin) — Wed, 21 Dec 2011 18:44:17 +1300

In his final video journal for 2011, Prime Minister John Key talks about today's Speech from the Throne, his plans for the holidays, and his hope that all New Zealanders enjoy the break.

Speech from the Throne

nospam@example.com (admin) — Wed, 21 Dec 2011 16:38:03 +1300

Delivered by His Excellency Lieutenant General The Right Honourable Sir Jerry Mateparae, GNZM, QSO, Governor-General of New Zealand, on the occasion of the State Opening of Parliament, Wednesday 21 December 2011

Honourable Members of the House of Representatives. It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 50th Parliament.

E nga Mema o te Whare Paremata o Aotearoa, tenei aku mihi mahana ki a koutou, tena koutou katoa.

Following the General Election in November, negotiations between political parties have resulted in the formation of a National-led Government with a majority in the House on confidence and supply.

Confidence and supply agreements have been signed between the National Party and, respectively, the ACT Party, the Maori Party, and the United Future Party.

These agreements will enable the Government to operate in an effective, stable and inclusive manner.

Beyond these agreements, my Government anticipates co-operating with other parties in Parliament on issues of mutual interest.

Honourable Members. The driving goal of my Government is to build a more competitive and internationally-focused economy with less debt, more jobs and higher incomes.

A strong economy in turn provides the resources necessary to protect the vulnerable in society, maintain the rule of law, provide high-quality public services, look after the environment, and provide opportunities for young people.

Good progress has been made already, despite some very testing times. New Zealand has experienced three challenging years, including a major recession, the worst global financial crisis since the Great Depression, and a devastating series of earthquakes that destroyed whole parts of Christchurch.

But in the worst of times we have seen the best of New Zealanders, as they have risen to these challenges.

The economy is recovering, having grown in eight of the past nine quarters, and 63,000 more people are employed now compared to two years ago. This recovery is forecast to continue.

Looking forward, the biggest risk to the New Zealand economy is from the European debt crisis. The outcome of this crisis is uncertain and, as a result, the economic outlook for the whole world has deteriorated.

However, New Zealand is in a relatively good position to deal with any fall-out in the near term, and my Government is firmly focused on improving New Zealand’s longer-term productivity and competitiveness.

Honourable Members. My Government has a comprehensive policy agenda, and a substantial legislative programme that it intends to put before the House in the forthcoming session.

My Government intends to return to an operating surplus in the 2014/15 financial year and start to reduce net core Crown debt as a proportion of GDP. This will be achieved through tight fiscal discipline, including new operating allowances of only $800 million in each of the next two Budgets.

As agreed with the ACT Party, legislation will be introduced to limit the growth in core Crown operating spending, with some adjustments, to a rate no faster than the combination of population growth and inflation.

Once in surplus, a KiwiSaver auto-enrolment exercise will be initiated.

My Government will maintain a new, lower cap on the number of staff in core government administration. It will be focused on achieving results, seeking new and better ways to deliver public services, and continuing to contain and reduce costs. Particular attention will be paid to the recommendations of the Better Public Services Advisory Group.

My Government will extend the mixed ownership model, under which Air New Zealand currently operates, to four State-owned enterprises – Meridian Energy, Mighty River Power, Genesis Power and Solid Energy – and will reduce its stake in Air New Zealand.

In each case, the Crown will retain at least 51 per cent of the company, and New Zealanders will be at the front of the queue for shares.

Proceeds from extending the mixed ownership model will go into a new fund – the Future Investment Fund – to pay for capital projects that help grow the economy and improve public services.

As agreed with the United Future Party, legislation will be introduced to limit any sale of public assets – that is, of State-owned enterprises and Air New Zealand – to no more than 49 per cent of the shares in the company, together with a limit on ownership by a single entity.

Honourable Members. My Government believes in a more active welfare system which supports people who can work, back into work, and does not trap them in a life of limited income and limited choices.

Legislation will be introduced to reform the current system of benefits. New benefit categories will be created, and a greater proportion of beneficiaries will be required to make themselves available for work. Changes will also be made to clamp down on beneficiaries whose recreational use of drugs affects their ability to work, and those who commit benefit fraud.

As agreed with the Maori Party, a separate appropriation and governance structure will be established for Whanau Ora.

The Government will introduce changes to support disengaged young people back into education or training. It will also have a more hands-on approach with 16- and 17-year-old beneficiaries, and with 18-year-old teen parents, including wrap-around support from third parties, and an expectation that they will be in some form of education or training.

As agreed with the Maori Party, a Ministerial committee on poverty will be established to improve the co-ordination of government activity in alleviating the effects of poverty.

Honourable Members. My Government believes that high-quality education is vitally important. It provides the opportunity for children from all backgrounds to make the most of their lives, and is an essential requirement for a skilled and productive workforce.

The Government’s focus will be squarely on raising achievement, in particular for those groups of students who have historically underperformed.

The Government will work to lift participation rates in early childhood education, with a target of 98 per cent of new entrants in school having previously attended an early childhood centre.

Performance measurement and accountability in schools will be strengthened. In addition, the Government will work to improve the quality of initial teacher education, introduce more effective appraisals of teachers and principals, and reform and strengthen the Teachers Council.

$1 billion from the Future Investment Fund will be invested over the next five years to build new schools and modernise existing buildings, including with new, 21st Century teaching spaces. It will be easier for schools to employ trades specialists to deliver courses, and to set up trades or service academies.

As agreed with the ACT Party, the Government will allow for the formation of charter schools in areas where educational underachievement is most entrenched.

Tertiary education providers will be funded in a way that takes into account their performance against indicators of achievement. It will continue to drive better value for taxpayers from the interest-free student loan scheme, including an expanded campaign to recover overdue debt from borrowers living overseas.

Honourable Members. My Government believes that a competitive economy, trading successfully with the world, is the best way to build sustainable economic growth that creates jobs and grows incomes.

The Government will restructure and expand Industrial Research Ltd into an advanced technology institute to work alongside the high-tech manufacturing and services sector. It will also invest in a series of national science challenges, in areas where science can address some of the most important longer-term challenges to New Zealand’s development.

The Government will continue its programme of investment in modern infrastructure. On current forecasts, $12 billion will be invested over the next 10 years in new State highways. The most immediate priorities will be the construction of the Waterview Connection and the completion of Auckland’s Western Ring Route.

KiwiRail’s Turnaround Plan will continue to be supported and there will be an investigation into the use of Clifford Bay as a new sea freight terminal.

Ultra-fast broadband and the Rural Broadband Initiative will continue to be rolled out. A Crown-owned company will be established to invest in irrigation and water storage, drawing on the Future Investment Fund.

The Government has set aside $5.5 billion in the Canterbury Earthquake Recovery Fund to pay for its share of rebuilding essential local infrastructure in Christchurch and its surrounds.

It will provide certainty to affected homeowners in Canterbury by finishing the red zone classification process. It will continue to release land for residential subdivision and ensure there is an adequate supply of land to rebuild on.

My Government will allow for choice in accident insurance covered through the Work Account, including an expansion of the Accredited Employer Scheme. It will consider the feasibility of introducing choice into accident insurance covered through the Motor Vehicle Account and the Earners’ Account.

Legislation will be introduced to implement a new “starting-out wage”, set at 80 per cent of the adult minimum wage, to ensure young people are not priced out of the job market. Legislation will also be introduced to extend flexible working arrangements and to improve collective bargaining.

The Government will progress legislation to overhaul securities law and to criminalise anti-competitive behaviour. It will introduce tougher consumer credit legislation to target loan sharks and protect consumers.

Honourable Members. My Government believes that balanced and sensible management of our resources will protect the environment while promoting stronger economic growth.

The Government will continue to advance the Fresh Start for Fresh Water programme, and will introduce new environmental reporting systems. Legislation will be introduced to set a six-month time limit for the consenting of medium-sized projects, and to improve the Resource Management Act as part of the second phase of reforms.

As agreed with the ACT Party, legislation will be introduced to ensure there is only one resource management plan in each district.

The Government will also introduce legislation to amend the Emissions Trading Scheme. This will include moving to full obligation in three equal steps for the energy, transport and industrial sectors. It will also introduce offsetting for pre-1990 forest land owners to enable greater flexibility of land use.

My Government will encourage oil and gas exploration with a competitive new system for processing permits. It will also progress legislation to better manage the environmental effects of activities in New Zealand’s Exclusive Economic Zone, and will introduce legislation to reflect the updated Liability for Maritime Claims Protocol.

As agreed with the United Future Party, legislation will be introduced to stop helicopter hunting on the conservation estate involving the shooting of game animals from helicopters and the herding and hazing of game animals as part of the hunt. The Game Animal Council Bill will be progressed.

Honourable Members. My Government will continue to maintain an independent and bipartisan foreign policy. It will further focus New Zealand’s aid efforts on the Pacific, and will campaign to win New Zealand a seat on the United Nations Security Council for a two-year term starting in 2015.

The Defence White Paper and Capability Plan initiatives will be implemented, and legislation will be introduced to ensure the three services of the Defence Force are able to work together more effectively.

The Government will continue to pursue high-quality trade agreements, ensuring as it does that New Zealand’s best interests are always served. There will be a comprehensive programme of Government-led trade delegations to China, India, and the Association of Southeast Asian Nations.

Honourable Members. My Government will continue to deliver high-quality public services.

It will work with local primary care networks throughout the country to provide free after-hours general practitioner visits to children under six. A comprehensive after-hours telephone health advice service will be developed.

The Government’s target is that 95 per cent of all eight-month-old children will be fully immunised with three scheduled vaccinations. It will also roll out a nation-wide rheumatic fever programme targeting vulnerable communities. Alcohol and drug treatment services for young people will be expanded, as will specialist mental health services for young offenders. The Voluntary Bonding Scheme will be extended.

More people will get elective surgery, and waiting times will be reduced for cancer treatment, first specialist appointments, diagnostic tests, elective surgery, and for people waiting in emergency departments.

As agreed with the Maori Party, further work will be done on plain packaging and other anti-smoking initiatives.

My Government will continue to ensure that State houses are located in the areas of greatest need, and are going to families who need them most, for the duration of their need. It will work to increase the supply of social housing, including progressing options for iwi housing providers.

The current home insulation and clean heating programme will continue, with a specific focus on low-income households, as agreed with the Maori Party. Every State house built before 1978 that can be insulated, will be insulated.

My Government will introduce legislation to strengthen sentencing, parole and bail laws. It will be harder for those accused of the most serious offences to get bail, the penalties for child pornography will be increased, and Civil Detention Orders will be introduced.

The Search and Surveillance Bill will be progressed, as will the Victims of Crime Reform Bill. The penalties for breaching a protection order will be doubled, and funding will be available for security improvements in the homes of family violence victims.

My Government will continue to progress the review of constitutional arrangements.

It will also continue to make the full and final settlement of historical Treaty of Waitangi claims a priority.

Over the course of the forthcoming Parliamentary session, other measures will be laid before you.

Honourable Members. The fact that this is the 50th Parliament gives us cause to celebrate. New Zealand can boast of an unbroken parliamentary democracy stretching back to the 1850s, and universal suffrage from 1893.

My Government is privileged to have won the trust and good will of New Zealanders for a second Parliamentary term.

It will seek to earn anew that trust and good will every day over the next three years.

PM to visit Australia with Ministers

nospam@example.com (admin) — Wed, 21 Dec 2011 16:33:35 +1300

Prime Minister John Key will visit Australia from 27 to 29 January 2012 for the annual Australia-New Zealand Leaders’ Meeting and a joint meeting of senior Cabinet Ministers.

This will be the second time the Australian and New Zealand Prime Ministers have convened a joint meeting of senior Cabinet Ministers – the first was in 2009.

Mr Key will be accompanied by Deputy Prime Minister Bill English and six other Ministers - Steven Joyce, Judith Collins, Tony Ryall, Hekia Parata, Jonathan Coleman and Craig Foss.

The travelling Ministers, several of whom have new portfolios with significant trans-Tasman responsibilities, will also have the opportunity to engage individually with their Australian counterparts.

In addition, the Ministers of Health and Commerce, Tony Ryall and Craig Foss, will take part in the first meeting on 28 January of the Ministerial Council to oversee work on establishing a joint therapeutics agency.

“The annual Leaders’ Meeting provides an opportunity for both countries to start the New Year with a focus on issues of mutual interest in domestic policies, the bilateral relationship and regional and international affairs,” says Mr Key.

“That Ministers on both sides of the Tasman have found time to participate in these meetings in January demonstrates the closeness of the trans-Tasman relationship.”

Prime Minister Julia Gillard has invited Mr Key and the New Zealand Ministers as guests of the Australian Government.

Parliamentary Private Secretaries appointed

nospam@example.com (admin) — Wed, 21 Dec 2011 12:33:19 +1300

Prime Minister John Key has appointed Parliamentary Private Secretaries to assist the Minister of Foreign Affairs and the Minister of Ethnic Affairs.

John Hayes will be Parliamentary Private Secretary to Murray McCully for Foreign Affairs and Melissa Lee will be Parliamentary Private Secretary to Judith Collins on Ethnic Affairs.

Parliamentary Private Secretaries (PPS) are MPs appointed to assist Ministers but, unlike Under-Secretaries, are not part of the Executive. They receive no extra remuneration.

“This is an important position that ensures a strong link between the Minister and the caucus and gives back-bench MPs valuable experience,” says Mr Key.

“The main role of the PPS is to use their expertise, and act as a sounding board and advisor to the Minister. They would be heavily involved in the caucus policy process in the area they are working – for instance, chairing the caucus committee in the relevant area.

“The Minister can not delegate any statutory roles or function to a PPS, however it is expected that the PPS represent their Minister at public events and deliver speeches on occasions when the Minister is not available.

“I congratulate both Mr Hayes and Ms Lee on their appointments,” says Mr Key.

The appointments are effective immediately.