Archive - these pages are part of the continuing record of Executive Government - for the current Administration, see www.beehive.govt.nz

       

      COALITION GOVERNMENT PROGRESS -
      October 1996 to October 1997

      Corrections

        Drug testing in prisons: Recent changes to the Penal Institutions Act makes it an offence for inmates to consume drugs or alcohol and allows prison authorities to test inmates for such use.

        Prisoners to Work - Started developing a strategy to ensure prisoners work between 6am to 6pm, six days a week.

      Defence

        A full review of the NZDF's capital requirements is nearing completion. This review, the Defence Assessment, will determine the size and shape as well as the priorities for the NZDF into the next millennium.

      Education

        Budget ' 97: $500 million of additional education operational spending over the next three years with more expected in following budgets. Budget'97 funding to cover:

        Significant additional funding to support further development of the early childhood education sector [ $55 million extra over three years ]

        Special Education 2000 ($150-$200 million)

        School Operations Grants ($62 million)

        Teacher supply and school accommodation for the compulsory sector addressed. A more than a $40 million programme announced to ensure that the country has enough trained school teachers. During the next three years the investment includes: ? 1,500 extra places for teacher trainees ? Measures to increase the number of Maori and te reo Maori teachers ? Recruitment of overseas teachers ? Retraining available for up to 1,100 ex-teachers

        Other points:

        Additional capital expenditure for classrooms and schools: Nearly 1,000 more classrooms and 10 new schools($120 million new money)

        Commitment to voluntary direct resourcing and exploring with education sector groups ways to improve the formula to remove anomalies.

        Tertiary Education Review Green Paper released - sets out a range of options designed to improve opportunities for tertiary study for New Zealanders, lift quality of courses and accountability and management of tertiary institutions.

      Employment

        New Employment Strategy - Budget '97 committed $21.766 million in 1997/98 to the new Employment Strategy. Extensive work is in progress on developing the details of the three components of the Government's Employment Strategy:

        - the integration of employment, income and training related services,

        - a more regionally driven approach to achieving employment policy objectives, including the appointment of Regional Commissioners, and

        - maximising the involvement of job seekers in community work and training together with the replacement of the Unemployment Benefit with a community wage or training allowance.

        Community Taskforce participation expanded - Over the next 12 months the number of people participating in CTF will increase from approximately 5,000 to between 17,000 and 20,000.

        Expansion of Limited Service Volunteer Scheme announced - increasing the number of places for young disadvantaged job seekers from 720 to 1250 annually, with an additional commitment of $1.5 million.

      Energy:

        More competition in electricity generation and retail - Reviewing competitive arrangements in the sector with a determination to increase competition in both retail and wholesale markets. Likely to involve the separation of line and energy businesses in power companies.

      Environment

        Preservation and enhancement of the environment together with protection of our natural and historic heritage has been boosted by $45.87 million over three years.

        Resource Management Act - New funding has been provided to investigate and improve practice in applying the Resource Management Act. This involves sharing examples of innovative 'good practice' with users. Aspects of the Act which are not working well are being investigated and solutions will be developed.

        Priority given to Biosecurity - New focus on Biosecurity by funding new programmes which address the threats to our ecology, our health and our economy posed by the introduction and establishment of foreign pests, weeds and diseases.

        Created a new ministerial portfolio of Biosecurity and the formed a Biosecurity Council to improve coordination in this area. A comprehensive biosecuirty framework is also being developed.

      Exports And International Trade

        Announced that tariffs will be cut to benefit exporters and consumers, including removing tariffs well within the 2010 deadline set by APEC.

        Passed into law the Trans-Tasman Mutual Recognition Act to assist in doing business in Australia and New Zealand

        Concluded 'open skies' aviation agreement with the United States.

      Foreign Affairs

        An additional $13.7 million added to NZ ODA budget, bringing as a percentage of GNP around 0.25%. Total ODA to the Pacific will reach its highest ever at $71.5 million. Well over half of New Zealand ODA will go to the Pacific

        Hosted Bougainville peace talks and played brokering role in release of PNGDF hostages.

        Active involvement in process to negotiate a treaty on landmines

      Health

        Transitional Health Authority set up 1 July 1997 replacing the four Regional Health Authorities.

        Free doctors visits and prescriptions for children under six years olds implemented 1 July 1997.

        In 97 Budget $15m extra pa, allocated to address major issues in delivery of mental health services

        The Mental Health Commission has been established with its legislation now introduced.

        Work on track to remove the competitive profit focus for hospitals, replacing it with a requirement to carry out their activities in a businesslike fashion.

        Income and asset testing for public hospitals abolition announced in 97 Budget to be implemented 1 October 1998.

        Asset testing for private hospitals abolition announced in 97 Budget to be implemented 1 October 1998.

        Abolition of user charges in public hospitals was announced in the Budget and took effect from 1 July 1997.

        Increased health spending:

        97/98 98/99 99/00

         

        $300m

         

         

        $480m

         

         

        $750m

         

        Police / Law and Order

          200 extra sworn police towards the 500 positions committed to in the Coalition Agreement.

          Increased Police funding to its highest ever level.

          Toughened up the Harassment and Criminal Association Bill to provide more powers for Police to tackle gangs and criminal organisations. This Bill:

          • widens the Police capacity to use electronic surveillance against organised crime;

          • deals with criminals consorting;

          • ensure that the Police and local government have the powers to remove gang fortifications without delay;

          Evaluating legislative options for changing the current firearms licensing regime. This will probably include a return to the licensing of individual firearms.

          Community magistrates to be appointed in District Court to handle minor criminal matters

          In conjunction with the Department of Corrections, the Victim Notification scheme has been extended, and the Police have undertaken to inform all victims of crime of their right to be notified every time an offender appears at a parole hearing, so they have the chance to make submissions.

          It is planned to review the CYPF Act regarding repeat youth offenders, to ensure young persons are held more accountable for their offending.

        Senior Citizens

          Announced that the Superannuation Surcharge to be removed from 1 April 1988.

        Social Welfare

          Work test scheme requiring some beneficiaries to seek part-time work or training to enhance their employment prospects began on 1 April 1997.

          A review of the Domestic Purposes Benefit is being carried out as part of a wider programme of work focussing on sickness and invalids benefits and the DPB.

          Developing the Strengthening Families Strategy: Health, education and social welfare agencies are working together to help families in need to meet their responsibilities to support themselves and their families. At local and national levels there will be better coordination between services to families at risk.

          Reviewed and increased the Accommodation Supplement and Special Benefit payments. An extra $58M was allocated for housing assistance in the 1997 Budget, taking spending on the Accommodation Supplement alone to a record $760M.

          An extra $30 million over three years has been allocated to help the Children, Young Persons and Their Families Service deal with child abuse and youth offending.

          Additional $35.6 million over 3 years to help CYPFS further implement its residential strategy and provide more jobs.

        Transport

          Shortly to release a road safety package to target serious speed and drink driving offences, especially repeat offenders. This package will also include changes to the driver licensing system.

          The Road Reform package: The Coalition Government will be making decisions before the end of the year on the appropriate structure for the funding and management of the roading network, as a result of the Land Transport Pricing Study.

        Treaty Settlements

          Deed of Settlement signed with Ngai Tahu - $170 million, the actual return of 930 hectares of land and other assets like greenstone deposits.

        State Owned Enterprises

          Two non-strategic asset sales are being investigated - Government Property Services Ltd (GPS) and Vehicle Testing New Zealand (VTNZ).

          The Government is also considering the future of its shareholding in Auckland Airport Company and consideration is also being given to the Government shareholding in Tauranga and Nelson airports.

          Government considering future ownership of TVNZ.

        Tax Cuts

          The second round of tax cuts will come into effect on 1 July 1998.

          Given suitable economic and fiscal conditions beyond 1 July 1998, the Coalition intends considering further tax cuts in 1999/2000 and future years.

        OTHER PROGRESS

          Further deregulation of postal services.

          Freed up kindergarten teachers from the state sector to give local communities more control

          Established a Maori Health and Education Commission.

          A Retirement Savings Scheme option was designed and put to the public for a decision by referendum in September.

          Population Conference to be held on November 13 and 14 to help contribute to future immigration strategy.

          Adult minimum wage raised to $7

          Compliance costs: Seeking to lower compliance costs imposed by local government and central government regulations, by reviewing the interpretation of such laws as the Resource Management Act, the Employment Contracts Act , Building Act and Health and Safety in Employment Act.

          Hotels and taverns to be permitted to trade up to 3am on Sundays.

          Raised the age for buying cigarettes and tobacco from 16 to 18 years.

          New funding for high performance sport - Secured an extra $4.2 million funding for high performance sport, taking Government funding for the three year build-up to the Sydney Olympics to $9.5 million.

          Extra funding for the Sports Drug Agency - Secured a 40% funding boost for the Sports Drug Agency in the 1997 Budget, from $450,000 to $642,000 per year

          Thorough census of Kaimanawa horse population and muster for sale completed.

          Summit on kiwifruit industry - to be held in October 1997.

          Summit on the meat industry - to be held in early 1998.

        Export-led Growth

          The Government has a seven-pronged strategy to build medium-term export-led growth

          Principles

          • responsible fiscal management and ongoing tax reductions Over two years the middle income tax rate is being cut by 25%, from 28 to 21 cents; family tax credits being boosted by $300m a year
          • containing inflation
          • further trade liberalisation including actively seeking opportunities for improved trade access
          • reducing the costs of doing business to ensure New Zealand can retain its competitiveness with other economies
          • improving the performance of the education system so it will underpin a growing, high wage economy
          • promoting innovation by ensuring efforts of the research and science community complemented private investment in technology; and
          • reducing the social and economic costs of unemployment.

        BUDGET '97 - OVERVIEW

          The 1997 Budget showed that the Government can meet its commitment of a capped $5 billion extra in spending on health, education, and critical community services over the next three years, while still ensuring taxes are reduced again next year.

          The three-year plan also allows for a continuation of budget surpluses:

          1997/98$ 1.5 billion   
          1998/99 $ 1.9 billion   
          1999/20$ 2.6 billion   

          Net public debt is forecast to fall from 25.5% of GDP in 1997-98 to 20.5% in 1999-2000.

           

          ECONOMIC HIGHLIGHTS:

          Reserve Bank projections on the New Zealand economy were released on 18 September 1997 - continued low inflation, positive and increasing growth, lower unemployment, a lowering of the current account deficit, higher productivity.

          June quarter GDP figure showed growth of 1.2 per cent. The highest quarterly growth figure since September 1994. The 1.2 per cent growth for the June quarter was higher than the average annual growth rate between 1975 and 1990.

          The National Bank Business September Outlook Report reported that business confidence has not been at what they call "this stellar level since December 1995." The "increase in confidence was widespread, with all sectors recording large rises."


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