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KiwiSaver default providers will retain the conservative investment approach because that is the most appropriate choice when the Government is taking decisions about other people’s private savings, Finance Minister Bill English and Commerce Minister Craig Foss say.

The ministers today announced a raft of decisions about KiwiSaver default provider arrangements following a comprehensive review which was agreed when KiwiSaver was launched in 2007.

Finance Minister Bill English today congratulated the New Zealand Superannuation Fund on achieving its tenth anniversary, and having built a world-class sovereign wealth fund in that time.

The New Zealand Superannuation Fund, which invests to assist in meeting some of the long-term cost of New Zealand Superannuation, started in 2003 with $2.5 billion in cash. Since then it has returned an average of 8.84 per cent per annum and the fund now stands at $23 billion.

The first ever snapshot of central government spending by region shows that taxpayers’ dollars are being evenly distributed across New Zealand.

Higher tax revenue and lower than forecast core Crown expenses helped to more than halve the Government’s operating deficit before gains and losses to $4.4 billion in the year to 30 June 2013, compared with a $9.2 billion deficit the previous year.

The result was considerably better than the $7.9 billion deficit forecast by Treasury at the start of the financial year in Budget 2012, and confirms the Government’s prudent approach to fiscal management is paying dividends, Finance Minister Bill English says.

Finance Minister Bill English leaves on Monday for the United States, where he will attend the annual meetings of International Monetary Fund and World Bank governors in Washington DC.

He will also meet senior representatives of credit ratings agencies and the New York Stock Exchange in New York and speak with investment and business leaders in Boston.

“The meetings will provide another opportunity to assess latest global economic developments and their likely impact on New Zealand,” Mr English says.

The Government has today tabled in Parliament the Reserve Bank’s review of the prudential regime for non-bank deposit takers, Finance Minister Bill English says.

The review, which was required after the Reserve Bank of New Zealand Amendment Bill (No 3) was enacted in 2008, considers whether any changes should be made to the Act as it relates to non-bank deposit takers.

“The review makes a number of recommendations and the Government will consider them over the next few months,” Mr English says.

A proposal to financially restructure Solid Energy has been agreed between the Crown, the company and key lenders, Finance Minister Bill English and Minister for State Owned Enterprises Tony Ryall say.

“As we have said previously, ministers were not prepared to expose taxpayers to on-going losses if Solid Energy’s core business was not considered viable,” Mr English says.

Associate Minister of Finance Jonathan Coleman and Commerce Minister Craig Foss welcome the signing of the Asia Region Funds Passport Statement of Intent at the APEC Finance Ministers meeting.

“The Asia Region Funds Passport is an excellent initiative that will provide real benefits to New Zealand and other countries in the region,” says Dr Coleman.

New Zealand’s economy continues to grow steadily, maintaining one of the higher annual growth rates in the OECD, Finance Minister Bill English says.

As expected, the severe drought earlier this year slowed economic growth in the June quarter, with statistics out today showing gross domestic product grew 0.2 per cent in the three months to June 30.

Associate Minister of Finance Jonathan Coleman is attending this week’s Asia-Pacific Economic Cooperation (APEC) annual meeting of Finance Ministers.

“It is important that APEC Finance Ministers come together to discuss the key economic development issues facing the Asia-Pacific region,” says Dr Coleman.

"New Zealand actively engages with our regional partners. APEC provides a crucial forum where nations can discuss issues, share new ideas and build common approaches.

Finance Minister Bill English will visit Vietnam and Singapore next week, where he will meet a number of business, investment and political leaders.

“South East Asia is an important trade and investment partner for New Zealand and it’s essential that we retain close relationships with this region,” he says.

The 10 countries of South East Asia took $4.3 billion of New Zealand exports in the year to June 2013.

Today I want to provide a bit of context for the work that you are doing now and will be doing over the next four or five years.

I think we all get very focused on the immediate demands that we face, and those of you with project management expertise have to focus on the details, because I was told over lunch time that when projects go wrong 30 per cent of the time it’s the project manager that gets sacked.

Even politicians have a higher survival rate than that. But it does mean that you have to focus.

The production of high-quality educational resources, including the renowned School Journal, will continue after the Government’s decision to wind down the operations of government-owned Learning Media, Finance Minister Bill English and Education Minister Hekia Parata say.

Learning Media today announced the decision because it is apparent the company is not financially viable.

As set out under the confidence and supply agreement between the National and United Future Parties, the Government has today issued a discussion document looking at the option of flexible superannuation.

The proposal would give New Zealanders greater choice about when they could first take New Zealand Superannuation, Finance Minister Bill English says.

Meridian Energy’s agreement with New Zealand Aluminium Smelters (NZAS) will provide greater certainty for Tiwai Point smelter workers, the wider Southland region and the New Zealand electricity industry, Finance Minister Bill English and SOE Minister Tony Ryall say.

Meridian this morning announced it had reached an agreement with NZAS on a new electricity contract for the smelter.

Associate Minister of Finance Jonathan Coleman says New Zealand’s Community Trusts have made a significant contribution across New Zealand during the last 25 years.

“I would like to congratulate all 12 Community Trusts on 25 years of grant-making in support of their local communities,” says Dr Coleman.

The Treasury’s Statement on the Long-Term Fiscal Position today confirms the Government’s careful fiscal management will keep debt under control and help the country prepare for an ageing population, Finance Minister Bill English says.

New Zealand’s tax and income support systems significantly redistribute incomes to households most in need, which was reinforced by the Government’s tax changes in 2010, Finance Minister Bill English says.

“The Government has maintained a redistributive tax and income support system that supports low and middle income families and helps New Zealanders through times of need,” he said in a speech to the Trans-Tasman Business Circle in Wellington today.

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

Since I last spoke to the Trans-Tasman Business Circle, New Zealand has made considerable progress in a world still facing many economic challenges.

It has not been easy. And there is still plenty to do.

Many households and businesses are still finding the environment quite challenging.

A further improvement in government tax revenue left the operating deficit before gains and losses $763 million smaller than forecast in the 11 months to 31 May, Finance Minister Bill English says.

“The improving economy suggests this lift in tax revenue is likely to remain through until the end of the financial year on 30 June,” Mr English says. “With the Government having locked in its spending track for the next few years, this pick up in revenue, as the economy and company profits improve, is flowing through into the Government’s books.

Associate Minister of Finance Jonathan Coleman is representing New Zealand at this week’s Pacific Island Forum Economic Ministers Meeting in Tonga.

“It is an important opportunity to discuss the economic development issues facing the Pacific,” Dr Coleman says.

“The Forum Economic Ministers Meeting is a chance for Finance Ministers to share experiences and develop collective responses to wider issues of economic growth and regional integration.

Gross domestic product data for the March quarter shows the New Zealand economy continues to grow despite the impact of the nationwide drought.

“This confirms New Zealand is on the right track, in line with Budget forecasts of economic growth, more jobs, rising wages and a return to fiscal surplus in 2014/15,” Associate Minister of Finance Jonathan Coleman says.

Finance Minister Bill English leaves for Europe and the United Kingdom next week, where he will meet government officials and business leaders, including senior staff at the Organisation for Economic Cooperation and Development in Paris.

“The visit will provide me with a direct insight into Europe’s economic challenges and their expected impact on New Zealand over the next few years,” Mr English says.

“I am also keen to talk to senior officials about using technology and innovation in delivering better public services.