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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%.

New Zealand’s economy remains one of the fastest growing in the developed world, confirming that the Government’s economic programme is taking New Zealand in the right direction, Finance Minister Bill English says.

The Government believes an OBEGAL surplus is achievable this financial year, despite Treasury’s latest forecast today predicting a $572 million deficit (0.2 per cent of GDP) for the year to 30 June 2015, Finance Minister Bill English says.

Government revenue continues to grow more slowly than forecast in the Budget, again highlighting the challenge of returning to surplus this year, Finance Minister Bill English says.

For the four months ended October 31, the operating balance before gains and losses (OBEGAL) deficit was $1 billion - $260 million larger than forecast in the Budget Economic and Fiscal Update in May.

Even though Core Crown tax revenue was $1.5 billion (or 7.9 per cent) higher than at the same time last year, it was $97 million lower than forecast in the Budget.

New Zealand households have together saved more than they spent over the past five consecutive years – the first time this has happened since 1989-94, Finance Minister Bill English says.

The latest revised annual National Accounts (Income and Expenditure) compiled by Statistics New Zealand show aggregate household savings – which includes the impact of debt repayment - totalled $2.8 billion in the year ended March 2014.

This represents a positive savings rate of 2.1 per cent of household disposable income.

Six iwi representatives have been appointed to the Whānau Ora Partnership Group Finance Minister Bill English and Minister for Whānau Ora Te Ururoa Flavell say.

“These iwi representatives are well-placed to contribute to the work of the group,” says Mr English.

The representatives, nominated by the Iwi Chairs Forum, are Raniera (Sonny) Tau, Naida Glavish, Rāhui Papa, Sir Mark Solomon, Dr Hope Tūpara, and Richard Steedman.

“We are delighted with the depth, wisdom, and iwi connections that these appointees bring,” says Mr Flavell.

New Zealand remains on track for solid economic growth, more jobs and rising incomes over the next few years, but falling dairy prices and low inflation will make returning to surplus this year challenging, Finance Minister Bill English says.

“Businesses and consumers are confident about the future, there’s a lot of activity in the manufacturing and service sectors, and companies are employing more people and paying higher wages,” he said in a speech to an ASB business breakfast in Auckland today.

The Crown accounts for the first three months of the current financial year are broadly consistent with forecasts, but at the same time highlight the challenge of returning to surplus, Finance Minister Bill English says.

For the three months ended September 30, the operating balance before gains and losses (OBEGAL) deficit was $725 million – $79 million more than forecast in Budget 2014.

The Government remains committed to its social investment approach to improve services for New Zealanders most in need, Finance Minister Bill English says.

“The Prime Minister has made clear that in this third term the Government will further focus on issues influencing children in material deprivation and hardship. Just as there are many and sometimes inter-related causes of hardship, there must also be multiple and sometimes inter-related strands to the solution. 

Associate Finance Minister Paula Bennett leaves Monday for Beijing where she will attend the Asia Pacific Economic Cooperation (APEC) annual meeting of Finance Ministers.

The meeting, on 22 October, will consider the current economic situation and outlook in the Asia-Pacific region, as well as discussing co-operation on infrastructure investment and financing, among other issues. The meeting will be preceded by a ministers’ retreat on Tuesday.