A step change in economic performance
Hon John Key
This week, I opened Parliament by outlining the Government's programme for the coming year.
In 2010, we're focusing on growing our economy, creating new jobs, and improving public services to better equip New Zealanders - and particularly young people - for the economic challenges they face.
National seeks a step change in economic performance.
We agree with the Tax Working Group that our tax system has major problems with integrity, fairness, and incentives. In Budget 2010 we will start reforming our tax system.
We want taxes that create incentives to work hard, save, and get ahead. We also want taxes that are fair.
The government is carefully considering a modest increase in the rate of GST, to no more than 15 percent. We are committed to reducing personal taxes and changing the way property is taxed. In the process, we'll maintain Working For Families, and compensate low to middle income earners for any increase in GST.
Our economic future relies on new ideas. This year we will help businesses grow by connecting them with our best scientists. We'll invest in more science and business research, drive research into agricultural greenhouse emissions, fund open access food development facilities, and reform Crown Research Institutes.
New Zealand's natural resources have huge potential to boost economic growth and create jobs. In 2010, we'll work to unlock that potential by reducing red tape. We'll drive a second phase of resource management reforms, investigate extending mining on Crown-owned land, remove regulatory roadblocks to irrigation, and reform aquaculture regulations.
We'll also promote investment in capital markets while strengthening protection for investors, and look at developing New Zealand as a regional hub for financial services. And we'll start new State Highway projects and lay the first fibre in our ultra-fast broadband initiative.
National's other major priority is significant social sector reforms. We'll lift achievement in our schools through National Standards. We'll work to make neighbourhoods safer by introducing ‘three-strikes' legislation for the worst violent offenders. And we'll continue to provide better, faster, more convenient healthcare across our public health service.
We will also deliver on our election promise to reform the benefit system. We want to help people back into work. We'll adjust the benefit abatement regime to encourage beneficiaries to take up jobs and make sure welfare spending gets to the people who really need it.
2010 will be a busy year. With a relentless focus on lifting our economic performance and improving public services, National is working hard to secure a brighter future for all New Zealanders.
