Bill English. Photo / Mark Mitchell
Finance Minister Bill English returned from a trip to investor markets in Hong Kong and London saying that New Zealand and Australia are "flavour of the month".
"Relative to other OECD countries they see us coming out of the recession in better shape."
The reason for that was that New
Zealand and Australia did not have a banking crisis; their public finances were under control and "they see us as benefiting from the Chinese slipstream".
"Our pitch to them simply was that we are coming out of recession better than most, we need to borrow $40 billion over the next three to four years, we have got a high credit rating and we are willing to adapt to the market needs to make the debt attractive."
That is a reference to a few technical conditions that appeal to lenders.
Mr English was confident New Zealand would have no trouble raising the debt, though it would be paying a fair amount for it.
At least two potential sources were big investment funds trying to diversify away from United States debt, and the fact that other countries rates were so low made New Zealand look good - 5.5 per cent on a 10-year Government bond looked attractive.
The point of the trip and another to New York and Tokyo last month was "to get on their radar screen".
"It has been worthwhile to let them know we are there, tell them what we are doing, stimulate interest in buying our debt because the more of them who want to lend to us, the cheaper it will be."
Mr English also met British Chancellor of the Exchequer Alistair Darling, who Mr English said "had a bit of wisdom about him".
He also talked to Conservative shadow chancellor George Osborne, who had foreshadowed a rise in the age of eligibility for the British pension. "The public seem to understand the need for change," Mr English said.
The final Government accounts for the year to June will be released tomorrow and Mr English said they would demonstrate "the sheer momentum of spending increase that is in our system".
There would be no pleasant surprises.
The May Budget projected 10 years of deficit before the public books get back into the black.
