Government sets out three-year plan

12.00pm

The Government today set out its programme for the next three years, with a strong emphasis on the need for sustainable economic growth to underpin social policy development.

The Speech from the Throne, read by Governor-General Dame Silvia Cartwright at the State opening of Parliament, said the Government had set itself tough goals during its second term in office.

"For decades our rate of economic growth per capita has been lower than that of many other countries. As a consequence, while our absolute standard of living has risen our relative standard has declined," Dame Silvia said.

"Previous governments have swung between the extremes of hands-on and hands-off government. It is now clear that the appropriate role for government lies between these two extremes."

There were no surprises in the speech and most of it dealt with previously announced initiatives.

In the economic area, the Government promised "conservative and predictable" fiscal management, delivering budget surpluses.

The new policy targets agreement with the Reserve Bank would express the need for sufficient flexibility to allow maximum economic growth.

In terms of monetary policy, it would "more explicitly move New Zealand closer to the practice of the Reserve Bank of Australia".

"My Government sees its most important task as building the conditions for increasing New Zealand's long-term sustainable rate of economic growth," Dame Silvia said.

"The appropriate mix of policies can, over time, return New Zealand to the top half of the developed world."

Achieving growth would need strong promotion of the "economic transformation" of human capital development, investment, innovation, export promotion and business and regional development.

Education was one of the keys, and the Government would build on foundations laid during its first term.

Among the main points of the three-year programme set out in the speech were:

* improved accessibility to tertiary education, further progress in improving staff:child ratios in early childhood education, and expanding numeracy and literacy programmes;

* doubling the number of apprenticeships, with the goal of having 250,000 people in industry training within five years;

* developing the capacity to recruit talented and skilled immigrants;

 passing legislation for major changes to land transport, including provision for public-private partnerships to finance large projects;



* a commitment to maintaining long-term majority ownership and control of Air New Zealand;

* seeking increased capital for investment, with existing agencies brought together into a single investment promotion agency;

* increasing funding for basic research, and consortium funding in conjunction with the private sector;

* establishing new support mechanisms for exporters, including help in targeting overseas markets;

* passing a Marine Reserves Bill to reform acquaculture legislation, with the intention that by 2010, 10 per cent of the marine environment would be included in a network of protected areas;

* ratifying the Kyoto Protocol on greenhouse gas emissions;

* improving the efficiency of the health system, with increased funding for primary health care and increased investment in mental health services;

* implementing the crime reduction strategy, with emphasis on early intervention and youth offending;

* increasing the state housing stock;

* focusing on better support for families and children, giving priority to increasing the maximum number of subsidised childcare hours;

* Amending the Holidays Act to provide additional payment for work on statutory holidays and separating out rights to sick and special leave;

* reviewing the paid parental leave scheme "with a view to expanding it as resources permit".

In the speech, the Government endorsed its previously-stated approach to genetic engineering and the lifting of the moratorium, a main point of difference between Labour and the Greens.

"The existing legislation with respect to the moratorium on the commercial release of GM organisms will not be extended but a strict regulatory framework will be maintained," Dame Silvia said.

The speech will be fully debated in Parliament during the rest of this week and probably most of next week.

- NZPA

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