Boosting savings and investment

New Zealand needs to save more, spend less, and reduce our reliance on foreign debt. That's the only way we can deliver the jobs, higher incomes, and better living standards that Kiwi families aspire to and deserve.

Improving savings and investment is central to National's economic programme, designed to tilt the economy towards savings, exports, and investment, and away from excessive borrowing and government spending.

The Prime Minister signalled last week the Government is prepared to lift its own savings. We’re working to reduce borrowing and get back to meaningful surplus by 2014/15 – a year earlier than forecast.

We are also considering the viability of a mixed-ownership model for four energy SOEs. This would reduce the amount we need to borrow to boost Government assets such as schools, faster broadband, and better transport infrastructure.

These are just some of the steps the Government is considering to boost New Zealand’s national savings. The Savings Working Group, which delivered its final report this week, has provided a wide range of other practical options worth considering.

The report will help the Government consider its next steps in building a stronger economy. It will also encourage an informed and open public debate on the national savings challenge facing New Zealand.

Any immediate policy decisions are likely to be included in the Budget.

More information: http://national.org.nz/onepager/Boosting_Savings_and_Investment.pdf