News release

3 Comments
17 November 2008
NEWS: National's Ministry focused on growth, prosperity

The National-led Government's Ministry will be focused on growth to deliver prosperity for all New Zealanders, says National Party Leader John Key.

Mr Key today announced the line-up of his new Ministry, which will be sworn in on Wednesday morning.

"The National-led Government takes office at a challenging time for the country. The growth outlook is weak, and international and domestic difficulties abound.

"This Government will concentrate on boosting economic growth because that is what will lead us out of these challenging times.

"Part of the right response is to tackle the infrastructure blockages. To that end, Bill English has been appointed Minister for Infrastructure, as well as Minister of Finance and Deputy Prime Minister.

"National's No. 3, Gerry Brownlee, will be Minister for Economic Development and Minister of Energy and Resources, as well as Leader of the House.

"And National's No. 4, Simon Power, has been given the State-Owned Enterprises, Commerce, and Associate Finance portfolios to go with Justice.

"As previously indicated, I have decided to take the Tourism portfolio, given its importance to the New Zealand economy.

"Steven Joyce will become Minister of Transport, Minister for Communications and Information Technology, and Associate Minister of Finance and Associate Minister for Infrastructure. Both he and Mr English will be responsible for driving our plan for the rollout of ultra-fast broadband.

"This cluster of Ministers and related portfolios demonstrate that getting the economy going will be front and centre of our priorities in office.

"I am also determined to drive improvements in the delivery of public health services and education standards.

"Tony Ryall will be Minister of Health as well as State Services, while Anne Tolley will be Minister of Education and Minister for Tertiary Education.

"National campaigned on improved efficiency and effectiveness of spending in the health portfolio, including boosting frontline resources.

"In education, National wants to set agreed national standards in literacy and numeracy as part of a crusade to improve literacy and numeracy standards.

"I am acutely aware that the economic challenges we face include forecasts which show rising unemployment. National wants to provide New Zealanders with some financial security in hard times. That is why we announced the transitional relief package during the election campaign to help those worst hit by redundancy, and why it will be implemented in government.

"The implementation of the package will be one of the tasks for the new Social Development and Employment Minister, Paula Bennett. She also picks up responsibility for Youth Affairs and Disability Issues. I have handed her a big responsibility, and have every confidence in her abilities.

"Christopher Finlayson will be the Minister Responsible for Treaty of Waitangi Negotiations, Minister for Arts, Culture and Heritage, and Attorney-General. He will be responsible for keeping up the pace of Treaty settlements which we have seen in recent times.

"Georgina te Heuheu will be Minister for Courts, Pacific Island Affairs, Disarmament and Arms Control, and Associate Minister of Maori Affairs.

"When Parliament meets in early December, one of the first items of business will be to elect a Speaker. National will be nominating Dr Lockwood Smith for the position.

"Today's announcement includes the full list of Ministers outside Cabinet, including the five MPs from the three support parties. I look forward to close co-operation between all Ministers in all relevant portfolios.

"New Zealanders should have confidence that the new government will be ready to embrace the challenges ahead.

"I am confident that the team I have announced today has the necessary skills, expertise, and determination to tackle the issues that matter to New Zealanders.

"Our government will be totally focused on that task over the next three years."

Click link to download the Ministerial List in PDF
http://national.org.nz/files/2008/cabinet/2008_Ministerial_List_for_Announcement.pdf

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#1 - Brian 2008-11-28 11:23 - (Reply)

Tax changes. Leave 39% rate in place, increase threshold from $64,000 to $80,000, cost about $450m (p.a.). Lower 33% rate to 30%, cost about $400m and increase threshold from $42,000 to $50,000, cost about $1,100m. Lower 21% rate to 20%, cost about $400m and increase threshold from $14,000 to $20,000, cost about $300m. Lower 12% rate to 10%, cost about $450m. Lower GST from 12.5% down to 10%, cost about $2,000m. The lowest tax rate 0f 10% is available only through the low income tax rebate which would be adjusted to come in at incomes less than $20k and reducing by 1% for every additional $3k over $20k until ending at $50k. Those earning %50k + have a starting base rate of 20%, cost unknown. Total cost of changes $5.1b plus rebate changes. Approximate costing worked out using the Treasury website ready reckoner, which hasn't been updated for Octobers tax changes, but I have taken into account. Both National and Labour are offering less and costing it to between $7 and $10b, so not sure why my fiqure so low, but I'm no accountant. Kiwisaver and the NZ Fund must stay, as over time they will provide the local funds necessary to reduce foreign ownership of local companies, commercial property etc. They may even allow partial floats of Government trading interprises while keeping the shares firmly in NZ hands. Some interesting facts, if Muldoon had left the Labour/Douglas super scheme introduced in 1973 in place, even if modified to allow others to offer competing schemes, it is estimated that it would be worth $240b+ today. Its a good bet that later assett sales wouldn't have been necessary to prop up the country, and a more carefully carried out process would have seen those assetts remain in NZ hands. Norway, which has slightly more people than NZ, has a NZ Fund type of scheme where the government has been investing oil revenues, and it is valued at over $US1.3 trillion, or was before the current melt down. Still, a 1% return is $US13b. To contrast, NZ has total earnings of about $170b, and the Government takes in about $55b per annum.

#2 - Adam 2009-01-13 20:56 - (Reply)

What are your plans to solve inflation, Our dollar will always drop, Whats wrong with thinking up a debt free way of living for humanity

#3 - Ross Calverley 2009-02-02 21:50 - (Reply)

Our dollar will always drop? As a student of Economics, I fail to see where you are coming from. I think the Number 1 reply does have a point. Why is it that the cost is so high of both party's tax plans. Is there something that they are not telling us?


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