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Budget 2012 includes further steps towards an innovative, efficient public sector delivering better results for New Zealanders within tight financial constraints, Finance Minister Bill English says.

“This Government is focused on getting better results, rather than just increasing inputs. It’s time to measure success by better outcomes, rather than by how much extra money we are spending, as was the case for much of the 2000s,” Mr English says.

Schools, health, science and innovation, and transport all benefit in Budget 2012 from the Future Investment Fund set up to invest proceeds from the sale of minority shareholdings in four SOEs and Air New Zealand, Finance Minister Bill English says.

"The Government is committed to investing in modern infrastructure that helps build a faster-growing economy with more exports and more real jobs, without borrowing more from overseas lenders,” Mr English says.

Budget 2012 makes changes that will further improve KiwiSaver and lift investor confidence, Finance Minister Bill English and Commerce Minister Craig Foss say.

The Government will launch a smartphone and tablet app for Budget 2012 on Thursday, providing more ready access to Budget material and helping to reduce the need for printed documents, Finance Minister Bill English says.

“This is a good example of the Government’s focus on delivering better, more innovative, public services,” he says.

“It’s also in line with the Prime Minister’s expectation that New Zealanders will interact increasingly with the Government in a digital environment.”

A new legislative framework for the issuance of covered bonds by New Zealand registered banks will provide greater clarity for investors and depositors, Finance Minister Bill English says.

The Reserve Bank of New Zealand (Covered Bonds) Amendment Bill, introduced to Parliament today, provides for the Reserve Bank to maintain a register of banks’ covered bond programmes and provides greater legal certainty for investors in the unlikely event of a bank defaulting.

Finance Minister Bill English has welcomed a report from University of Otago researchers, which analyses changes in income and deprivation between 2002 and 2009.

“The report confirms there was substantial income mobility over the period, with many New Zealanders moving in and out of different income bands.

The Budget later this month will confirm the path back to surplus in 2014/15, despite lower than forecast tax revenue in the Government financial statements in the nine months to 31 March, Finance Minister Bill English says.

Core Crown tax revenue was $1.6 billion below the Pre-Election Economic and Fiscal Update forecast and overall revenue was lower by $1.8 billion. However this was offset by lower core Crown expenses of about $1.8 billion.

Budget 2012 will set out balanced decisions to ensure the Government remains on track to surplus in 2014/15, Finance Minister Bill English confirmed today.

In particular, it will address a $1 billion deterioration in the forecast operating balance before gains and losses in 2014/15 between the Budget Policy Statement in February and preliminary Budget estimates.

The Government intends to strengthen the Public Finance Act so there are more checks and balances on ministers’ spending decisions and their long-term effects, Finance Minister Bill English says.

“The fiscal responsibility provisions of the Public Finance Act, which include a high degree of public reporting and transparency, have served New Zealand well in terms of maintaining a focus on low debt since 1994,” Mr English says.

“However, the global recession and events in the years immediately preceding it point to the need for a broader focus.

Good afternoon. Thank you to the Wellington Employers’ Chamber of Commerce for inviting me back to speak to you again this year – it’s a pleasure to be here.

Our ministers value opportunities like this to share ideas about how we can meet the challenges we face as a nation - and how we can grasp the many opportunities we have.

So I look forward to your comments and questions at the end of this session.

The Government has received the Productivity Commission's final report on international freight services and will provide a thorough response once it has considered it in detail, Finance Minister Bill English says.

“International freight issues are vitally important to New Zealand as a nation of exporters, located a long way from major world markets," Mr English says.

“Increasing our export competitiveness is a critical part of achieving better productivity growth and ensuring New Zealanders maintain and increase their standard of living.

The increasing number of Australian companies investing and creating jobs in New Zealand is good for the economy and will help increase incomes, Finance Minister Bill English says.

“For the first time in quite a few years, Australian businesses are seeing competitive opportunities in New Zealand,” he says. “This reflects a number of issues, ranging from the exchange rate, lower business costs, an improving regulatory environment and the positive direction of economic policy.

Labour continues to make expensive spending promises it could not afford without borrowing hundreds of millions of dollars more from overseas lenders, Finance Minister Bill English says.

“In the past week, it has proposed doubling paid parental leave entitlements, which would cost taxpayers another $150 million a year.

The fourth-ranked Chinese leader, Jia Qinglin, will arrive in New Zealand on Sunday for a four day visit to celebrate the 40th anniversary of diplomatic relations between the two countries.

Chairman Jia, who will be hosted in New Zealand by Acting Prime Minister Bill English, is chairman of the Chinese People’s Political Consultative Conference.

Vietnam Deputy Prime Minister Nguyen Xuan Phuc will visit New Zealand for bilateral and business meetings over the next few days.

Mr Phuc, who arrives in New Zealand on Saturday, is to meet with the Governor General, Lt Gen The Rt Hon Sir Jerry Mateparae, Acting Prime Minister Bill English, Justice Minister Judith Collins, Education Minister Hekia Parata, Attorney General Chris Finlayson, and Foreign Minister Murray McCully.

Acting Prime Minister Bill English will lead New Zealand’s ministerial delegation to the annual Australian New Zealand Leadership Forum in Sydney, which starts tomorrow.

He will be accompanied by Economic Development Minister Steven Joyce, Foreign Affairs Minister Murray McCully, Trade Minister Tim Groser and Commerce Minister Craig Foss.

The eighth Forum, which brings together senior politicians and business leaders from both countries, starts tomorrow night and concludes on Friday.

The Government has received the Productivity Commission's final report on housing affordability and will provide a thorough response once it has considered it in detail, Finance Minister Bill English says.

"Housing affordability is an important issue for New Zealand families and our economy," Mr English says.

"New Zealand experienced a sharp rise in house prices over the past decade, resulting in declines in housing affordability and home-ownership rates and large increases in household debt.

Acting Prime Minister Bill English has paid tribute to Sir Peter Tapsell, who passed away in Ruatoria on Thursday night.

“I was saddened to learn of Sir Peter’s death and my thoughts are with his family at this time,” Mr English said.

“As the first Maori Speaker of Parliament in 1993, Sir Peter’s considered and dignified manner was a positive influence on a tense Parliament preparing for the first MMP election.

“He was respected by MPs across the political spectrum for his independent, thoughtful and direct style.

Acting Prime Minister Bill English has announced that Hong Kong Chief Executive Donald Tsang will visit New Zealand exporters as well as meet our Ministers of Foreign Affairs and Trade next week.

“Mr Tsang is arriving in Auckland on Tuesday to discuss two-way trade and other bilateral issues and to learn about innovations in the export sector.

“He is particularly interested in Auckland’s waterfront revitalisation, in light of Hong Kong’s plans to upgrade its waterfront,” says Mr English.

The sale of AMI Insurance to IAG, completed today, will provide certainty for policyholders, strengthen the Canterbury insurance market and reduce the likely cost to the Crown, Finance Minister Bill English says.

The Reserve Bank today joined the Commerce Commission, Financial Markets Authority and Overseas Investment Office in giving approval to the sale.

As part of the deal, the Crown takes over ownership of AMI Insurance’s Canterbury earthquake related claims, while IAG will own and manage AMI's ongoing insurance business under the AMI brand.

An updated valuation of estimated Canterbury earthquake costs – including $450 million relating to the quake on 23 December 2011 – are reflected in the Government’s accounts for the eight months to 29 February.

Combined with core Crown expenses remaining significantly below forecast, and core Crown tax revenue continuing to track below forecast, the extra earthquake costs left a $5.5 billion operating deficit before gains and losses in the eight months, Finance Minister Bill English says.

Finance Minister Bill English has welcomed the International Monetary Fund’s assessment of the Government’s plan to return to surplus by 2014/15.

In its preliminary concluding statement on New Zealand, published today, the IMF notes the Government’s medium-term deficit reduction plan is aimed at limiting the increase in public debt to guard against future economic risks and contributing to lowering external debt.

The Government has tightened livestock tax rules to prevent farmers who change valuation schemes receiving an unintended tax break, Finance Minister Bill English and Revenue Minister Peter Dunne announced today.

Ministers said the current rules were too loose and allowed some farmers switching between the two main livestock valuation methods to receive an unfair tax advantage over those farmers who applied the rules as they were intended.