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The Government is taking extra steps to bolster the tax rules on property transactions – including those by overseas buyers - and to help Inland Revenue enforce them, Finance Minister Bill English and Revenue Minister Todd McClay say.

The tax measures are also expected to take some of the heat out of Auckland’s housing market and sit alongside the Reserve Bank’s latest moves to address associated financial stability issues, Mr English says.

The Crown accounts for the nine months to March 31 posted a deficit of $358 million, smaller than the $1.2 billion deficit forecast by Treasury in December, Finance Minister Bill English says.

The smaller deficit primarily reflects tax revenue coming in $844 million higher than forecast.

Good afternoon everyone. It’s a pleasure to be with you again this year.

Thank you to the Wellington Employers’ Chamber of Commerce for once again organising this pre-Budget lunch.

I also want to acknowledge the Chamber’s work in promoting the Wellington business community and in advocating policy to enable businesses in the capital to invest, employ and grow.

The Budget on 21st May will set out in detail the Treasury’s revised economic and fiscal forecasts as well as the Government’s decisions around new spending.

Ownership and management of approximately 2800 Housing New Zealand Corporation (HNZC) properties at Tamaki will be transferred to the Tamaki Redevelopment Company (TRC) to encourage regeneration of the area, Finance Minister Bill English and Housing Minister Dr Nick Smith say.

“Driving through some of the deprived areas of Tāmaki makes plain why the Government is determined to do a better job of social housing,” Mr English says.

On 21 May, Finance Minister Bill English delivered the National-led Government’s seventh Budget.

Finance Minister Bill English will visit Australia this week, where he will take the opportunity to hear first-hand from business and industry leaders their thoughts about the relative strengths and weaknesses of the Australian economy.

The Crown accounts have slipped back to a deficit of $269 million in the eight months to February, making the previous month’s flirtation with surplus short-lived but nevertheless encouraging, Finance Minister Bill English says.

The operating balance before gains and losses (OBEGAL) for the seven months to January showed a surplus of $77 million - the first time since 2009 that the Government’s books had shown a part-year surplus.

Comments from the State Housing Action Network that the Government is abdicating its responsibility to social housing tenants are completely incorrect, Finance Minister Bill English says.

“Our social housing reforms will provide more social housing for New Zealanders in need, and we will grow the community housing sector while maintaining Housing New Zealand as by far the largest provider of social housing,” Mr English says.

New Zealand’s economy continues to perform consistently well with another quarter of solid growth reported today, Finance Minister Bill English says.

Statistics New Zealand today released gross domestic product figures for the December quarter showing growth of 0.8 per cent. This took annual growth – from the December quarter 2013 to the December quarter 2014 – to 3.5 per cent, the highest annual rate since Sept 2007. Average annual growth to December 2014 was 3.3 per cent.

The operating balance before gains and losses (OBEGAL) for the seven months to January was a surplus of $77 million, driven by higher than expected tax revenue and lower than expected operating expenses, Finance Minister Bill English says.

“This is the first time the Government’s books have shown a part-year surplus since 2009. Although it is too early to say whether we will have a surplus for the full 2014/15 year, this result demonstrates the strides we have made in improving the Government’s finances,” Mr English says.

Leading credit rating agency Moody’s Investors Service has reaffirmed New Zealand’s Aaa sovereign credit rating with a stable outlook, noting the strength of the economy and improving government finances.

“This is a further endorsement of the Government’s responsible economic and fiscal programme,” Finance Minister Bill English says.

The Government is backing the recommendations of the NZ Data Futures Forum to make better use of public data and uphold privacy standards, Finance Minister Bill English and Statistics Minister Craig Foss say.

The NZ Data Futures Forum — an independent expert advisory group from the public and private sectors — was established by the Government last year to help drive further use of open data.

Recommendations in the forum’s final report included:

Good afternoon.

Thank you Michael and the Auckland Chamber of Commerce, and Steve and Massey University, for inviting me back to this annual event.

It’s a pleasure to be with you again today. I make this the sixth time I’ve spoken at this forum since becoming Minister of Finance.

With the National-led Government now into its third term, I’d like to update you on our priorities for the next three years.

We have three busy years ahead of us. And there is much to do.

Around 7,500 new houses are expected to be built in the Auckland suburb of Tāmaki over the next decade as part of the Government’s programme of increasing and speeding up new housing developments, Finance Minister Bill English says.

That will represent a net increase of about 5,000 houses after accounting for removals and demolition of older properties, he said in his annual speech to the Auckland Chamber of Commerce and Massey University in Auckland today.

Higher than expected tax revenue and lower than expected operating expenses contributed to an operating balance before gains and losses (OBEGAL) deficit of $990 million for the six months to December, Finance Minister Bill English says.

The OBEGAL deficit was $381 million better than the $1.37 billion deficit forecast by the Treasury in the Half-Year Update in December, driven primarily by core Crown tax revenue being $323 million above forecast.

Good afternoon.

This is my seventh opportunity to talk to this audience, which reflects both the stability of this Government and the opportunity provided by a clear election mandate to embed changes in public services.

I want to start by congratulating the public service.

While it maintains a necessary habit of self-criticism, the public service has achieved the targets this Government has set for it.

We have been able to live within small allowances for new funding.

The Government has set itself ambitious new targets including 75,000 fewer New Zealanders being on benefits by June 2018 as part of its Better Public Services drive, Finance Minister Bill English and State Services Minister Paula Bennett say.

Budget 2015 will be presented on Thursday, 21 May, Finance Minister Bill English said today.

“This will be the National-led Government’s seventh Budget and our ongoing commitment to spending restraint means the public finances continue to improve significantly each year.

“Since we were first elected in 2008, we have seen the economy move from a recession to sustained growth, and New Zealanders are now being assisted by low unemployment, stable low interest rates and wages that are growing faster than inflation.

The 2014/15 Open Data Barometer Global Report shows that New Zealand continues to be one of the best countries in the world at allowing open access to government data, Finance Minister Bill English and Land Information Minister Louise Upston say. 

“New Zealand leads the East Asia-Pacific region and ranks fourth-equal with France in the world behind the UK, US and Sweden,” Mr English says.

Open data is a key indicator of a country’s innovation, transparency and lack of corruption.

Lower than expected operating expenses and higher than forecast customs and excise duties contributed to an operating balance before gains and losses (OBEGAL) deficit $121 million better than forecast for the five months to November, Finance Minister Bill English says.

The OBEGAL deficit was $1.54 billion - down from the $1.66 billion forecast by the Treasury in the Half-Year Update in December, although tax revenue continued to be weaker than forecast.

Low inflation is helping New Zealand households get ahead, with wages on average continuing to rise faster than the cost of living, Finance Minister Bill English says.

Inflation was only 0.8% for the 2014 calendar year, according to figures released by Statistics New Zealand today. In the three months to December, New Zealand experienced negative inflation, with the consumer price index falling by 0.2%.