“The economy faces longer-term challenges, like the impacts of climate change, an ageing and changing workforce and technological changes”
The Coalition Government’s Economic Plan is transitioning the economy to be more productive, sustainable and inclusive to tackle New Zealand’s long-term challenges.
“New Zealanders value a strong economy that provides decent jobs, higher incomes and more opportunities for current and future generations,” says Grant Robertson.
“Our economic fundamentals are strong, with low unemployment, rising wages, a Government surplus and low debt. But we are currently facing a number of headwinds, including global volatility and low productivity.
“The economy also faces longer-term challenges, like the impacts of climate change, an ageing and changing workforce, and technological changes. Fixing and facing up to these issues now will turn them into economic opportunities,” says Phil Twyford.
“This Economic Plan provides a one-stop-shop for business and government agencies to view the Government’s long-term plan and see how different policies contribute to it. It identifies eight economic shifts for a more productive, sustainable and inclusive economy:
• Moving the New Zealand economy from volume to value with Kiwi businesses, including SMEs, becoming more productive.
• Ensuring people are skilled, adaptable and have access to lifelong learning.
• Making deeper pools of capital available to invest in infrastructure and grow New Zealand’s productive assets.
• Strengthening and revitalising regional economies.
• Enabling a step-change for the Māori and Pacific New Zealand economies.
• Developing a sustainable and affordable energy system.
• Utilising our land and resources to deliver greater value and improve environmental outcomes.
• Transforming our housing market to improve productivity growth and make houses more affordable.
The economic shifts will enable New Zealand to achieve the four economic priorities in Our Plan announced by the Prime Minister last year.
“These economic shifts represent a broader approach to economic policy than used by the previous Government,” Grant Robertson says.
“We understand that improving the health and wellbeing of our people, protecting and enhancing our environment, and strengthening our communities will allow us to achieve our potential.”
“For example, a well-functioning housing market is important for businesses that want their employees to live near their workplaces. A city’s housing market should not be a disincentive for workers to take on a new job. Our Economic Plan also recognises that New Zealand needs to shift investment out of unproductive assets such as housing,” says Phil Twyford.
“The two business tax changes we are announcing today are practical examples of how delivering our Economic Plan will help businesses move from volume to value,” says Grant Robertson.
“These measures will also help to deepen the pool of capital invested in New Zealand’s productive assets, by incentivising innovation. This is all part of a 30-year plan to make the economy more productive, sustainable and inclusive.”
The Treasury, New Zealand
Photo of Wellington: Pixabay
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