Budget set for May 28

Pattrick Smellie

Wednesday 18th February 2009

Finance Minister Bill English announced that he will deliver his first Budget for the current administration on Thursday, May 28.

"This will be a responsible Budget," English said. "It will continue the government's jobs and growth initiatives to both protect New Zealand from the worst effects of the recession, as well as getting the economy ready for recovery and higher productivity over the medium and long term."

"We know that 2009 will be difficult, but this Government will continue to show the economic leadership needed to help businesses and communities through these difficult times."

English told Parliament's Finance and Expenditure Select Committee today that New Zealand's economic and fiscal situation had again deteriorated since the December economic and fiscal forecasts. This was driven largely by worsening outlooks for the country's main trading partners.

"We know this presents a significant challenge," English said. "But the Budget will deal responsibly with those challenges by creating a more competitive economic environment that opens up opportunities, encourages capital investment and rewards people with good ideas and the right skills."

Answering journalists' questions after the hearing, English poured cold water on suggestions that there is a formal Treasury "watch list" of major New Zealand corporates that could require government assistance in coming months.

The watch list suggestion appears to have been extrapolated from comments by PM John Key at his post-Cabinet press conference on Monday this week.

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