✨ Speech from the Throne
9 NOVEMBER 2005
NEW ZEALAND GAZETTE, No. 187
This approach will continue to be applied to a range of policies and programmes aimed at lifting the quality of life and standard of living for all New Zealanders.
My government believes that the talents of all must be deployed in the drive to transform our nation.
It is important to build a broad consensus about the way ahead. Divisions within the community, perceived or otherwise, must not be allowed to get in the way of the transformation of New Zealand, to a prosperous, confident 21st century nation.
My government intends to work – as it has over the last six years – in partnership with people from across sectors and communities to advance New Zealand’s interests.
Honourable members,
The strong economic growth of the last six years has seen the emergence of significant skill shortages in key sectors of the economy.
In more recent years, growth has been led by domestic demand. That has been further fuelled by bank lending based on offshore borrowing. This in turn has helped to keep the New Zealand dollar at high levels for much longer than in any previous cycle since the dollar was floated. That has further increased consumption and inflationary pressures, translating into the need for tighter monetary policy.
Breaking this cycle is not going to be easy. It certainly means that significant fiscal loosening – either by way of large expenditure increases above those already signalled or by way of significant tax cuts – cannot be considered. The government will continue to maintain over the short to medium term a firm fiscal stance with substantial operating surpluses.
In these circumstances, the most effective contribution my government believes it can make to improving economic performance is to place even greater emphasis on the importance of savings, productivity, education and skills, science and innovation, and export growth.
The KiwiSaver scheme will be established in 2007 and legislation to that end will be submitted to Parliament early next year. Work will continue on relevant taxation regimes to ensure that they are conducive to the promotion of savings, while also paying appropriate attention to the maintenance of the tax base.
New Zealand is not aiming to compete with the low-cost manufacturing giants of China and India. The security of the New Zealand economy in the 21st century will come from the ability of our firms to be part of a high skill, high productivity, and high wage economy. New Zealand’s transformation demands the move to new business models of higher value and more sophisticated products.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 187
Gazette.govt.nz —
NZ Gazette 2005, No 187
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Speech from the Throne at the State Opening of Parliament
(continued from previous page)
🏛️ Governance & Central Administration8 November 2005
Governor-General, Parliament, State Opening, Economic Growth, Fiscal Policy, KiwiSaver, Education, Innovation