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New Zealand gov’t plans outlined in Parliament opening

21 December 2011 02:51 (UTC +04:00)

Baku-APA. The New Zealand government opened its second term Wednesday with promises to reduce debt, create jobs and to raise incomes while making the economy more competitive, APA reports quoting Xinhua.

The promises were outlined by Governor-General Sir Jerry Mateparae in a speech at the new Parliament opening and set out the government’s legislative agenda.

The speech included concessions by the center-right National Party to support parties ACT, United Future and the Maori Party.

Mateparae said the government’s first term had seen New Zealand experience "three challenging years, including a major recession, the worst global financial crisis since the Great Depression, and a devastating series of earthquakes that destroyed whole parts of Christchurch."

"But in the worst of times we have seen the best of New Zealanders, as they have risen to these challenges."

The biggest risk to the New Zealand economy in the new parliamentary term was the European debt crisis, said Mateparae, who is the official representative of the Queen, New Zealand’s head of state.

The government intended to return to an operating surplus in the 2014-2015 financial year and start to reduce core government debt as a proportion of gross domestic product, he said in the speech.

"This will be achieved through tight fiscal discipline, including new operating allowances of only 800 million NZ dollars (614.48 U.S. dollars) in each of the next two Budgets."

The National-led government had agreed with the right wing ACT party, which has just one member of parliament, to introduce legislation to limit the growth in core government spending to a maximum rate equal to a combination of population growth and inflation.

Mateparae also mentioned plans to partially privatize four state-owned energy companies and reduce the government’s majority shareholding in the national carrier, Air New Zealand.

The National Party has pledged sell no more than 49 percent of the shares and to limit ownership by single entities, promises to be enshrined in legislation under its agreement with United Future.

Mateparae also outlined government intentions to clamp down on beneficiaries committing fraud and other crimes.

A ministerial committee on poverty would be established under the government’s agreement with the Maori Party.

The government would continue investment in infrastructure with 12 billion NZ dollars to be spent on state highways over the next 10 years as well as investment in ultra-fast broadband and new sea freight facilities, said Mateparae in the speech.

The government had set aside 5.5 billion NZ dollars in the Canterbury Earthquake Recovery Fund to help rebuilding infrastructure.

The government would continue its reform of securities law and legislation to ban anti-competitive behavior.

The Emissions Trading Scheme would be expanded to include the energy, transport and industrial sectors.

The government would also encourage oil and gas exploration.

Mateparae also said New Zealand’s 50th Parliament should be celebrated.

"New Zealand can boast of an unbroken parliamentary democracy stretching back to the 1850s, and universal suffrage from 1893."

The National Party-led administration was returned to power in general elections held on Nov. 26.