Economic performance vital for New Zealand

The deepest global recession since the 1930s is touching every community in New Zealand.

National has spent the first eight months in Government putting in place measures to protect New Zealanders from the recession's sharpest edges and prepare for future economic growth.

We are maintaining income support entitlements - such as NZ Superannuation - and boosted spending on frontline services in education, health, and justice. We have also kept government debt from skyrocketing.

Attracting the right business migrants was highlighted as a priority at the recent Jobs Summit. 

It's important we attract migrants who want to invest in New Zealand, which is why the Government's new Business Migrant scheme will connect investors with existing business networks and create real jobs for New Zealanders.

There are signs we may start emerging from the recession soon.  We want to position our economy to make the most of the recovery.

The Government has six main policy drivers to lift our economic performance over the longer term:

• Regulatory reform
• Infrastructure investment
• Better public services
• Education and skills
• Innovation and business assistance
• A world-class tax system   

Regulation is a cost to households and business, and we're working to reduce this. We are overhauling the Resource Management Act.  We are also amending the Building Act, and reviewing electricity and telecommunications rules, and the emissions trading legislation.

Investment in infrastructure is an investment in jobs.  We are spending $7.5 billion over the next five years to build and upgrade schools, roads, housing, hospitals, and telecommunications. We are also developing a National Infrastructure Plan.

The Government is focused on delivering better, smarter public services within a limited funding increase. We have capped the number of core government staff and will continue shifting resources to frontline services in areas like health and education.

Our focus on education and skills is behind our drive to introduce national education standards in primary schools, and make sure children can read, write, and do maths.

We are building trades academies in secondary schools to give young people the ability to gain practical, hands-on skills. And our Youth Guarantee policy will allow 16-and 17-year-olds to study towards school-level qualifications at polytechs, institutes of technology, wananga, or private training establishments.

Driving productivity growth through innovation is another priority. We have established the Primary Growth Partnership - an ambitious public private partnership that will, over time, see up to $140 million a year invested in research and development in our primary industries.

The Government wants a tax system that gives people incentives and rewards hard work.

We reduced personal taxes on 1 April, and introduced a $500 million tax package that makes it easier and less expensive for smaller businesses to pay tax. We have also established a Tax Working Group to give advice on a tax system to help our economy grow.

National has a comprehensive plan to lift New Zealand's economic performance, help our communities recover from the recession, and build a brighter future for all New Zealanders.