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Exporters will have access to improved support from the New Zealand Export Credit Office under changes announced by the Government today, Finance Minister Bill English and Trade Minister Tim Groser say.

The NZECO, which is based in The Treasury, is the Government’s official export credit agency. It provides financial guarantees and trade credit insurance to exporters and banks.

The main changes announced by the ministers today will:

The economy remains on track for moderate growth over the next few years, despite growth predictably easing a little in the September quarter, Finance Minister Bill English says.

Gross domestic product grew 0.2 per cent in the three months to 30 September. This took annual growth – from the September quarter 2011 to the September quarter 2012 - to 2 per cent, after revisions by Statistics New Zealand to reflect extra data.

The Government’s economic plan to deliver a faster-growing economy, more jobs and a return to surplus remains on track, despite ongoing uncertainty in many parts of the world, Finance Minister Bill English says.

Issuing the Half-Year Economic and Fiscal Update today, along with the Government’s Budget Policy Statement, he says Budget 2013 will focus on continuing to implement this plan.

The Government will increase the visibility and accessibility of its Half-Year Economic and Fiscal Update tomorrow through its smartphone and tablet App, Finance Minister Bill English says.

This follows the App’s successful launch in May for Budget 2012, which generated more than 10,000 downloads.

“The App is a new and flexible way of contributing to the Government’s goal of interacting with more New Zealanders online, as part of its Better Public Services programme,” Mr English says.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall today welcomed the High Court decision in favour of the Crown following last month’s High Court action regarding the sale of shares in Mighty River Power.

“The High Court decision confirms the Government can proceed to sell up to 49 per cent of shares in four state owned energy companies, in accordance with the legislation passed by Parliament earlier this year,” Mr English says. 

The latest Business Growth Agenda progress report, Building Natural Resources, sets out how New Zealand can build growth and jobs from sustainably using its natural resources, Finance Minister Bill English and Economic Development Minister Steven Joyce say.

Building Natural Resources sets out the 49 initiatives the Government is taking to improve the way we use and manage our resources. It encourages businesses to find ways to become more innovative to get the best results for the economy and the environment.

The Government has received the Children’s Commissioner’s Expert Advisory Group’s report “Solutions to Child Poverty”, and will consider its 78 recommendations, Finance Minister Bill English and Social Development Minister Paula Bennett say.

“The Government acknowledges that many families are finding times challenging, and I thank the group for its report, which feeds into a great deal of work that is already underway,” Mr English says.

The Government’s $2.87 billion operating deficit before gains and losses in the four months to 31 October was slightly larger than forecast, after core Crown revenue and expenses both came in below expectations.

“The latest figures confirm that the Government is continuing to control its new spending and getting better results from existing programmes, as we move towards our target of returning to surplus in 2014/15,” Finance Minister Bill English says.

Finance Minister Bill English leaves on Sunday for a first-hand look at the resources sector in Queensland and Western Australia.

The trip will include meeting the premiers of Queensland and Western Australia, as well as mining and resources companies and sector groups. Mr English will also visit the Port of Brisbane, Rio Tinto’s Tom Price iron ore mine in the Pilbara region 1500km north of Perth, and Woodside Petroleum’s LNG plant in the same area.

Finance Minister Bill English has welcomed news that the Australian Senate has passed legislation allowing New Zealanders returning home from Australia to bring their retirements savings with them.

It is expected the trans-Tasman portability of retirement savings will take effect from 1 July 2013.

The Government will issue its Half-Year Economic and Fiscal Update and Budget Policy Statement on 18 December, Finance Minister Bill English announced today.

“It will update the Budget’s economic and fiscal forecasts, and we will set out the Government’s wider economic programme in the accompanying Budget Policy Statement,” he says.

“The Government is focused on its target of getting back to surplus in 2014/15 and building a more competitive and productive economy so we can support new jobs and increase incomes.

Crown accounts issued today, showing core Crown spending and revenue slightly below forecast for the three months to 30 September, reinforce the need for careful financial management, Finance Minister Bill English says.

“The accounts confirm that the Government is keeping its spending under control, but that revenue can be affected by the uncertain global economic situation and its impact on New Zealand,” he says. “This effect will continue.

The Government’s Building Infrastructure progress report issued today sets out 67 infrastructure initiatives being undertaken to help build a more competitive economy, Finance Minister Bill English says.

“For businesses to invest in plant and facilities in New Zealand, they need to be confident that they will have access to infrastructure that supports their businesses – transport, energy, water and telecommunications,” he says.

The Government agrees with the Productivity Commission that housing can be made more affordable, and has embarked on a wide-ranging programme to make that happen, Finance Minister Bill English says.

The Government today issued its response to the Productivity Commission’s report on housing affordability.

“High house prices matter because many New Zealanders spend a large portion of their incomes on housing and that has helped fuel household debt and contribute to damaging imbalances in the economy,” Mr English says.

Finance Minister Bill English has welcomed strong investor demand today for the Government’s first issue of September 2025 inflation-indexed bonds.

“The strong demand for the inflation bonds is a vote of confidence in New Zealand, at a time when many other countries are dealing with deep-seated economic and financial problems,” he says.

“This will help us to continue borrowing at competitive market interest rates, so that we minimise the Government’s borrowing costs at a time when its finances are tight.

Iwi groups yet to complete their Treaty settlements will be offered the opportunity to participate in the Government share offer programme, Finance Minister Bill English and Treaty Negotiations Minister Chris Finlayson say.

Higher tax revenue, lower core Crown expenses and a large fall in annual Canterbury earthquake expenses helped to halve the Government's operating deficit before gains and losses to $9.2 billion in the year to 30 June 2012.

The Crown's annual financial statements published today show the Government is continuing to manage its finances responsibly and getting on top of debt, Finance Minister Bill English says.

Finance Minister Bill English leaves tonight for overseas meetings with business, investment and political leaders, which will include the annual meeting of International Monetary Fund and World Bank governors in Tokyo.

The meetings will provide another opportunity to assess latest global economic developments and their likely impact on New Zealand.

Finance Minister Bill English and incoming Reserve Bank Governor Graeme Wheeler today signed a new Policy Targets Agreement, which sets out specific targets for maintaining price stability.

The new Policy Targets Agreement takes effect on 26 September, when Mr Wheeler starts his five-year term as Governor.

The agreement continues to require the Reserve Bank to keep CPI inflation between 1 per cent and 3 per cent on average over the medium term.

Gross domestic product data issued this morning confirmed the economy posted solid and broad-based growth in the first half of 2012, despite ongoing challenges in many parts of the world, Finance Minister Bill English says.

GDP grew 0.6 per cent in the three months to 30 June. This took annual growth to 2.6 per cent – the highest rate since 2007, before the domestic recession and the Global Financial Crisis.

In the first six months of 2012, the economy grew 1.6 per cent, which compares favourably with the rest of the developed world.

Auckland-based company director Gavin Walker has been appointed as the new chairman of the New Zealand Superannuation Fund Guardians board, Finance Minister Bill English announced today.

Mr Walker replaces David May, who was the first chairman and has served on the board since 2002.

“I want to thank Mr May for his decade of service at the helm of the Guardians’ board,” Mr English says. “Under his leadership, the New Zealand Superannuation Fund was established and has grown to the successful $19 billion fund it is today.”