Surplus another step forward

Columns
Thursday, October 29, 2015

Four years ago, following the Canterbury earthquakes and Global Financial Crisis, John Key and Bill English set a target of achieving a surplus for the 2014/15 year.

 The final numbers are in, confirming the Government’s books are back in surplus. This is a significant milestone and one we can all take great pride in. The $414 million surplus in the year to 30 June 2015 is a huge turnaround on a more than $18 billion deficit New Zealand faced in in 2011.

It makes us one of the first developed countries to get its books back in a strong position following the Global Financial Crisis.

By setting a path back to surplus and running a clear economic plan to support growth, more jobs and higher incomes, our country is seeing more opportunities for New Zealanders and their families to get ahead.

Getting back to surplus is an important part of building an economy that is far more productive, more efficient, and more globally connected than ever before.

Our economy recently registered its 18th consecutive quarter of expansion to deliver annual growth of 2.4 per cent in June 2015. We’ve also had 11 straight quarters of job growth, with 69,000 more jobs in the last year.

The average annual wage is now over $57,000 for the first time – $10,000 higher than in 2008.

We’ve recorded five years of positive household savings – the first time this has happened in a generation. Low interest rates are helping households and businesses as well as our high labour market participation and strong employment rate. 

We’re rolling out ultra-fast broadband across New Zealand, investing in infrastructure, and in research and development. We’re also opening up our country to more global markets through agreements like the Trans Pacific Partnership and Korea/NZ Free Trade Agreement.

The outlook continues to be for ongoing moderate growth delivering jobs and higher incomes for New Zealanders. Providing we stick with the plan that’s working for New Zealanders we can build on the good progress we’ve made over the past seven years.
 
Jami-Lee Ross
Member of Parliament for Botany