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Budget 2014 focuses on managing New Zealand’s growing economy by returning the Government’s books to surplus next year and making important investments in families and public assets, Finance Minister Bill English says.

“The Government has moved from managing our way out of recession to managing a growing economy,” he says. “We’ve made significant progress in recent years that is delivering more jobs and higher incomes.

Australian and New Zealand Governments will improve the strong trans-Tasman economic relationship through their response to a report by their two Productivity Commissions.

The joint report by the two commissions, released in December 2012, highlighted the high degree of integration between the two countries. It showed that many of the broad initiatives in the economic relationship had been completed and few easy-wins remained.

An improvement in revenue and firm spending control left the Government’s financial accounts closer to forecasts in the nine months to 31 March, Finance Minister Bill English says.

The operating deficit before gains and losses was $1.66 billion for the nine months – or $199 million larger than forecast in the Half-Year Update in December.

The deficit had been almost $900 million larger than forecast in the eight months to February.

A week on and still no word from Labour's David Parker on how his self-proclaimed “big tool” will actually work, Associate Finance Minister Steven Joyce says.

“Mr Parker has still not answered the straightforward question of how much KiwiSaver contributions would have to go up for wage and salary earners in order to stop a 1 per cent rise in interest rates for everyone,” Mr Joyce says.

Labour's David Parker needs to front up on how much he would squeeze wage and salary earners with his KiwiSaver jack up plan, Associate Finance Minister Steven Joyce says.

Mr Parker couldn't answer a simple question today on how much KiwiSaver contributions would have to go up for wage and salary earners in order to stop a 1% rise in interest rates.

"Surely you must be able to answer that question.  If you can't, it's not a policy, it's not even an idea, it's just a David Parker thought bubble.

Labour’s plan to use New Zealanders’ retirement savings as a monetary policy tool would hit low and middle-income New Zealanders hardest, and not achieve what Labour thinks it would, Finance Minister Bill English says.

“This idea mixes up people’s own retirement savings – which require certainty over a long period – with the Government’s monetary policy, which the Reserve Bank reviews and can change every six weeks. The two are completely different and should stay that way.

The Labour Party's attempts to talk down New Zealand's economic performance have hit a new low this weekend with David Parker making at least nine factually incorrect statements in one short interview, Associate Finance Minister Steven Joyce says.

Genesis Energy will have the third-largest New Zealand share register on the NZX when it lists tomorrow, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

More than 68,000 retail investors have been allocated shares in the energy company’s initial public offering – the final IPO in the Government’s share offer programme.

Good afternoon. It’s a pleasure to be with you again today.

I would like to thank John and Raewyn and their team at the Wellington Employers’ Chamber of Commerce for inviting me to speak to you again this year.

I also want to acknowledge the Chamber’s work in promoting the Wellington business community and in grappling with issues affecting businesses in the capital city.

It’s great to see measures of business confidence in Wellington rising.

The average annual wage is expected to increase by $7,500 to around $62,200 a year by 2018 if New Zealand achieves its economic growth forecasts over the next four years, Finance Minister Bill English says.

This follows a $3,000 increase in the average wage to $54,700 a year over the past two years.

In a pre-Budget speech to the Wellington Employers’ Chamber of Commerce today, he notes that Treasury expects the economy to grow by between 2 per cent and 4 per cent a year out to 2018.

A new and innovative alternative to the way social services are delivered has come a step closer, Minister of Finance Bill English and Health Minister Tony Ryall say.

The Government last year agreed to a social bonds pilot and people are now able to register their interest in becoming an intermediary in the pilot programme.

An intermediary is a person or group who brings investors and service providers together. The intermediary uses their skills in project management and finance to raise funds and drive performance to achieve agreed outcomes. 

Associate Minister of Finance Jonathan Coleman departs New Zealand today for Washington to attend this week’s G20 Finance Ministers and Central Bank Governors meeting.

“This is an important opportunity to meet with finance ministers from the world’s largest economies to discuss key economic challenges, including strategies for growth and employment, and building a resilient global economy,” says Dr Coleman.

Another month of revenue running below forecast has again pushed up the deficit and reinforces the need for restraint in government spending, Finance Minister Bill English says.

“We remain committed to reaching surplus next year and Budget forecasts next month will confirm we are on track,” he says. “But today’s figures confirm what we have said repeatedly: It is a challenging task that will be achieved only if we remain disciplined.”

Confirmation from the International Monetary Fund that New Zealand’s growth prospects have improved and that its macro-economic framework remains sound is a welcome further endorsement of the Government’s economic programme, Finance Minister Bill English says.

As the IMF notes in its concluding statement issued today, New Zealand’s economic expansion is becoming increasingly embedded and broad-based. It forecasts annual economic growth will increase to about 3.5 per cent this year.

New Zealanders have the opportunity to buy the majority of available Genesis Energy shares when the offer opens to retail investors tomorrow morning, after the successful completion of the bookbuild.

The Genesis shares have been priced at $1.55 each, meaning total proceeds from the offer will be up to $736 million. Already, $620 million has been committed through the bookbuild, which was the first stage of the share offer.

The Government today confirmed that up to 490 million shares - or 49 per cent of Genesis Energy - will be available for sale through the share offer.

400 million shares – or 40 per cent of the company - will be available through the bookbuild, which opens tomorrow. This is the first stage of the offer, involving local and international institutions and New Zealand sharebrokers, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

Finance Minister Bill English leaves for Hong Kong tonight, where he will deliver a keynote speech to a major annual Asian investment conference and meet a number of business and investment leaders.

“Hong Kong and the rest of China are significant and fast-growing trade and investment partners for New Zealand,” Mr English says.

“It’s important that we build on our profile in these markets and remind businesses and investors of the opportunities available our growing economy.”

The economy continued to grow by more than 3 per cent in the year to 31 December, confirming that New Zealand remains on the right track under the Government’s economic programme, Finance Minister Bill English says.

Statistics New Zealand today reported gross domestic product expanded by 0.9 per cent in the December quarter and 2.1 per cent in the second half of 2013.

This took annual growth – from the December quarter 2012 to the December quarter 2013 - to 3.1 per cent. Average annual growth was 2.7 per cent.

An agreement allowing direct trading of the New Zealand dollar against China’s renminbi will help to build on the growing trade and investment ties between the two countries, Finance Minister Bill English says.

“The agreement announced by the Prime Minister in Beijing last night is a significant and welcome step forward in our economic relationship with China,” Mr English says.

The Government today released further details of the partial float of Genesis Energy, including a 1:15 loyalty bonus share incentive for New Zealand retail investors.

The Genesis share offer will open on Saturday, 29 March, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

The sale of Genesis shares, with the company expected to list on the NZX main board on 17 April, will bring to a close the Government’s successful share offer programme, Mr English says.

Good afternoon everyone. Thank you Wayne, for my introduction. I would also like to thank our hosts, the TSB Community Trust, for inviting me to speak to you.

It’s great to see you all here today. I know that many of you have day jobs and other responsibilities in your communities, and it speaks to your dedication that you have made the effort to be here today.

Despite stronger economic growth, government revenue continued to track below forecast in the seven months to 31 January, Finance Minister Bill English says.

“This makes it even more important for the Government to continue carefully managing its spending as we target a return to surplus next year,” he says.

The Government’s financial statements for the seven months show the operating deficit before gains and losses at $1.06 billion, or almost $640 million larger than forecast in the Half-Year Update in December.

Fletcher Building CEO and managing director Mark Adamson has been appointed New Zealand’s representative on the Australian B20 Leadership Group, Finance Minister Bill English says.

The B20, or Business 20, runs parallel to the influential G20 – the group of 19 nations plus the European Union - which meets regularly to discuss ways to strengthen the global economy and create jobs.

Australia this year holds the G20 presidency and Australian Prime Minister Tony Abbott has invited New Zealand to participate as a guest.

The Government has today confirmed that the Genesis Energy share offer will proceed next month with a different structure from previous Government share offers.

The Genesis offer is expected to open in the second half of March with the company expected to be listed on the sharemarket around mid-April, subject to market conditions, Finance Minister Bill English says.