Key to set out Govt's next steps tomorrow

Prime Minister John Key. Photo / Steven McNicholl

Prime Minister John Key will set out the next steps in the Government's economic programme in a speech tomorrow.

He said today the Government's focus this year would be on savings and investment.

"We need to increase our national savings so we can control our destiny as a country," he said at his post-cabinet press conference.

"Our high level of foreign debt is New Zealand's biggest vulnerability."

Mr Key said his speech, and the one he would give when Parliament resumes on February 8, would show the difference between the Government's fiscally responsible approach to creating a sound economy and Labour leader Phil Goff's proposals.

Mr Goff made his "State of the Nation" speech today, announcing polices including a tax free zone for the first $5000 of income.

- NZPA