KEY POINTS:
This is an edited version of the Prime Minister's address to the Waitakere Business Club yesterday.
I stand before you early in my ninth year as Prime Minister, proud of what has been achieved on my watch, and looking forward to the challenges which lie ahead.
Our
Government does take pride in: leading the economy through its longest run of economic growth since the Second World War, building an economy now a third larger than when we were elected in 1999, the creation of 360,000 more jobs in the economy, the drop in benefit numbers by almost 140,000, the creation of greater security in retirement through setting a higher rate of New Zealand Superannuation, and establishing the New Zealand Superannuation Fund, and KiwiSaver.
And who wouldn't be proud of providing the huge family tax relief available through Working for Families, or the major investments in education, health, policing and infrastructure?
Successful leadership and government is about establishing a vision for what might be, and then taking the many steps forward which will make that vision a reality.
Without doubt our economy is now more resilient, and that's critical when there's global market volatility of the type experienced this year. This is not a time for gambling with our country's future.
So, where from here in our quest to provide more opportunity, more security and to build even more pride in this unique nation which I'm proud to call home?
For me the key concept is sustainability. What we build has to be solid and substantial - not a flash in the pan - and it has to endure.
ENVIRONMENTAL SUSTAINABILITY
This year we are the host country for World Environment Day, in partnership with the United Nations Environment Programme.
The theme is "kicking the carbon habit" - and there is a real sense of urgency about it.
Those who thought the concern about climate change was a hoax look progressively sillier as the consensus around the science and seriousness of the projections becomes rock solid.
The world's affluent consumers across developed and emerging markets will increasingly be making ethical choices about the goods and services they buy - and not least about their food and their travel.
Those two sectors on their own make up a substantial part of our foreign exchange earnings. So we must be on the side of the "angels".
ECONOMIC AND SOCIAL SUSTAINABILITY
The truth is that New Zealand is still paying the price of past years of economic failure and harsh social policy.
Broken families and shattered lives were the product of long term, intergenerational high unemployment and deprivation. Today's young violent criminals are the children of the "Mother of All Budgets" in 1991.
A magic wand can't wave that away - but by giving everyone a chance to succeed we can, over time, make a big difference.
We anticipate more growth and investment from last year's major business tax package, not least from the stimulus to business R&D.
There's huge investment going into public infrastructure across energy and transport - into power transmission and generation, and into roading, rail and public transport.
Infrastructure in the 21st century includes broadband - and the faster and cheaper it is, the better for our economic development, but more needs to be done.
We are encouraging private sector initiative - and looking at how government should best exercise its leadership role. We are updating the New Zealand Digital Strategy with stakeholder input.
An outward-looking economy like ours needs good market access - which is why so much time is spent on trade policy.
I hope soon to be able to report progress with China.
Twenty-first century infrastructure, telecommunications, innovation, a favourable business tax regime and investment, opening up markets, and a commitment to sustainability are all part of our package of change which is strengthening the economy and underpinning higher living standards.
But there's another critical ingredient - the direct contribution of our people through their knowledge and skills.
And realising the full potential of our people is not only good for the economy - it's transformational for our society too.
Investment in education is an indispensable part of building a sustainable New Zealand - and Labour's record in education is strong.
But it's time to do more to realise the full potential of our young people.
Currently around 71 per cent stay at school until their 17th birthday - but that means 29 per cent don't.
Around 60 per cent of our students leave school with at least an NCEA Level Two qualification - but 40 per cent don't.
Around half our current workforce does not have the education and skills needed to function fully in a knowledge economy.
In a time of near full employment, those without qualifications can still find work. But a low skills base stops us growing the value of the economy and lifting our living standards to their full potential.
EARLY INTERVENTION
Next week the Minister of Health and I will be launching the new B4 school health checks - aimed at all 4- to 5-year-olds. This is a big programme based on the simple philosophy that healthy children are the most likely to succeed at school. This programme has been trialled with positive results.
These preschool checks will also aim to identify early the estimated 5 per cent of children who have conduct disorder and/or severe antisocial behaviour.
Among [these children] will be some of the next generation of violent criminals if we don't act.
LIFTING THE EDUCATION AGE TO 18
The Government acknowledges the importance of lifting the level of both participation and achievement in education and training.
The policy I am announcing is for all young people to be in school or some other form of education or of training until they reach the age of 18.
In this day and age, boosting teenage participation in formal education is much more complex than simply lifting the school-leaving age. Yet the work of the Secondary Futures project strongly suggests that we can design and resource our schools so that they are able to retain a higher proportion of students.
Partnerships are needed with employers, tertiary educators, and private training providers and communities, to ensure that a range of options to meet student needs are available.
The Gateway programme being rolled out across all high schools is an example of the flexibility we have been building into the school curriculum. It works because employers and schools work together in the best interests of young people.
YOUTH APPRENTICESHIPS
In schools, students can enrol in youth apprenticeship programmes. This takes the Gateway concept a step further, giving structure to a course of study which could lead a student into a modern apprenticeship.
These apprenticeships will also offer ... the prospect of paid employment during school breaks and the ability to earn credits towards their apprenticeship while still at school.
That plan will address the need to invest in professional development, support engagement in Maori and Pacific communities, broaden the range of enrolment options, provide quality careers advice within schools, and establish clear links with iwi, business and industry to open up opportunities for young people.
Winning elections is about being believable, having a strong record, and presenting the most compelling and forward-looking vision for our country. And that's what I'm focused on this year as we work to build the best possible future for New Zealand.
