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The Organisation for Economic Co-operation and Development has confirmed New Zealand’s macroeconomic policies strike the right balance between supporting the recovery and ensuring sustainable medium-term growth, Finance Minister Bill English says.

In its Economic Survey of New Zealand for 2013, the OECD also notes the economy is gaining momentum, with post-earthquake reconstruction in Canterbury, and business investment and household spending gathering pace.

A stronger economy is underpinning tax revenue and, combined with responsible control over spending, kept the OBEGAL deficit below $4 billion in the 10 months to 30 April, Finance Minister Bill English says.

The $3.99 billion deficit is $664 million smaller than in the latest forecasts finalised before the Budget.

Finance Minister Bill English and Revenue Minister Peter Dunne have welcomed the Australian Government’s announcement today that it has completed legislative steps to allow New Zealanders to transfer their retirement savings between complying Australian superannuation schemes and KiwiSaver.

The new arrangements take effect from 1 July, 2013.

Finance Minister Bill English and Reserve Bank Governor Graeme Wheeler have signed a memorandum of understanding on measures aimed at further protecting the economy and financial system from boom and bust cycles.

Low-income families receive considerable further assistance in Budget 2013 to improve their quality of life, Finance Minister Bill English and Whānau Ora Minister Tariana Turia say.

Mr English, who chairs the Ministerial Committee on Poverty, says taxpayers already spend billions of dollars on social services, and the new spending in Budget 2013 is a combination of extending proven programmes, and new initiatives targeted at supporting vulnerable New Zealanders.

Budget 2013 contains an ambitious and comprehensive package of measures aimed at making houses more affordable and improving access to social housing, Finance Minister Bill English and Housing Minister Nick Smith say.

Schools, Christchurch hospitals, KiwiRail and irrigation are four of the biggest recipients of new capital allocated from the Future Investment Fund in Budget 2013, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

The Government is taking the next step in its share offer programme and preparing Meridian Energy for partial sale later this year, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

This follows the successful listing last week of Mighty River Power on the New Zealand Stock Exchange.

Budget 2013 has freed up a further $1.5 billion by redirecting spending to where it delivers the best results, Finance Minister Bill English says.

This takes the total amount of reprioritised government spending since Budget 2009 to $14.9 billion.

“At a time when the Government’s finances are constrained, reprioritising spending allows significant additional funding for new or proven initiatives that get better results for New Zealanders,” Mr English says.

“It’s about spending well, not spending up.”

Choosing sound fiscal and economic policies, and being disciplined in adhering to them, means the Government’s books are in good shape as it presents its fifth Budget, Finance Minister Bill English says.

Budget 2013 forecasts an operating surplus before gains and losses of $75 million in 2014/15 – a sharp improvement from a deficit of $18.4 billion in 2010/11.

Progress in the Government’s programme while on track to surplus

Budget 2013 confirms New Zealand is on the right track, with forecasts of economic growth, more jobs, rising wages, and a return to surplus by 2014/15, Finance Minister Bill English says.

Mr Speaker,

I move that the Appropriation (2013/14 Estimates) Bill be now read a second time.

It’s my privilege to deliver the National-led Government’s fifth Budget.

When I stood up to deliver the Government’s first Budget, in 2009, New Zealand faced challenges I think we’re only able to fully appreciate with the passing of time.

The world had entered the worst financial crisis since the Great Depression, from which it has yet to fully emerge.

The International Monetary Fund has confirmed that the Government’s economic plan strikes the right balance between supporting growth and limiting public debt, Finance Minister Bill English says.

In its final staff report issued this morning, the IMF endorses New Zealand’s balanced and pragmatic economic management.

“Coming out the day before the Budget, this is a strong vote of confidence in the Government’s programme over the past four years,” Mr English says.

The Government will launch an update of its Budget app for smartphones and tablets on Thursday with interactive features that allow users to see how much tax they pay and how their tax dollars are spent, Finance Minister Bill English says.

“This is a refresh of the Budget app which was successfully launched last year and is part of the Government’s continuing focus on delivering innovative and better-value public services,” he says.

“The Budget can reach more people when it is digital and accessible.”

113,000 New Zealanders will become shareholders in Mighty River Power following a successful share offer, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

The final price will be $2.50 per share.

Of the shares issued, 86.5 per cent will be New Zealand owned: 26.9 per cent by New Zealand retail investors, 8.6 per cent by New Zealand institutions and with the Crown retaining a majority 51 per cent shareholding. That leaves 13.5 per cent for overseas institutions.

Ladies and gentlemen,

Thank you for the invitation to be here, it’s always great to be out of the Beehive.

I often say to the Treasury officials – when are they going to start delivering me some better work stories? And I point across to my Defence officials who in the past 18 months have delivered better work stories in the form of trips to Afghanistan, all sorts of exciting transport modes, and more recently a very special visit to Gallipoli for ANZAC Day.

The Government’s finances continue to improve with higher than forecast tax revenue contributing to the operating deficit now being lower than forecast in the Half-Year Update in December, Finance Minister Bill English says.

The operating deficit before gains and losses for the nine months to 31 March was $5 billion, or $273 million smaller than the $5.2 billion deficit forecast in December.

The Government and Mighty River Power are filing a supplementary disclosure to the Mighty River Power offer document, say Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall.

The document is being lodged with the Registrar of Financial Service Providers this afternoon.

"The existing MRP offer document already outlined the principal risks associated with an investment in MRP shares," Mr English says.

The Mighty River Power share offer opens for business tomorrow with New Zealanders having three weeks to apply to buy shares.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall today confirmed that the share offer will proceed, with Mighty River Power expected to be listed on the stock exchange for the first time on May 10.

The Budget on 16 May will confirm the Government remains on track to surplus in 2014/15, Finance Minister Bill English said today.

It will also confirm the need for responsible fiscal and economic management beyond then so the Government can start repaying debt and investing more in priority public services.

Good afternoon. It’s great to be with you today.

New Zealand retail investors in the Mighty River Power share offer will receive one loyalty bonus share for every 25 shares they hold for two years from the offer, up to a maximum of 200 bonus shares, Finance Minister Bill English says.

"The loyalty bonus scheme that I am announcing today is another way to encourage widespread and substantial New Zealand ownership of shares in MRP," Mr English says.

"It also recognises the loyalty of those New Zealanders who retain their shares and contribute towards the country's savings culture."