Auckland, economy top PM's list

Helen Clark says the most critical issue facing the Government this term is taking the next step in the "economic transformation agenda".

Back on deck after holidaying in Britain and Norway, the Prime Minister spelled out her third-term agenda to the Herald yesterday.

She indicated the Government wanted better value out of the dollars it spent on health, highlighting the need for tighter contracting arrangements.

And she also wants to retain a focus on getting things done for Auckland - "our leading international city".

Developing infrastructure, including transport investment, was also high on the agenda and she said that regulatory reform might be needed.

The third term was "all about the next term, the fourth term, and it's all about doing well enough to earn support for that".

"It's all about saying 'where are we endeavouring to position the country' and I've got a very clear view of that; it's all about New Zealand being clearly affluent, cohesive, dynamic, creative.

"I think the first term was very much one of resetting the compass, doing a number of corrections, but also laying the basis for economic and social transformation."

The second term was a matter of building on positive development, she said.

"I think the critical thing for this term is taking the next step in the economic transformation agenda.

"In that respect we have in recent months had a key chief executives process going, meeting with the frontbench and identifying challenges and where we need a new policy agenda worked up, and we're focusing on what it will take to get more globally competitive firms in this country, what it will take to develop world-class skills base and workplace performance."

Helen Clark said despite the focus the Government had already devoted to its growth strategy "it hasn't been necessarily well communicated or understood".

"What we are trying to do is define this New Zealand model of economic and social development."