Mr English said the Government would be putting a heavy emphasis on the economy and expected the public to start paying more attention to it.
“A 4 percent fiscal impulse emphasis shows we are taking it seriously, now that I stress is a Treasury estimate, but it is still significant.”
Details of how the package would be presented and whether it coincided with Treasury’s update of the economic and fiscal forecasts were still to be decided, but it would not be a mini-budget.
Parliament resumes on December 8 and the package is expected to be announced within a fortnight of that taking place.
It’s good to have a plan, I suppose, but it would be nice to know what it is. I’m not sure I see the point of announcing that they’re going to do stuff, the public needs to pay attention to it, but they can’t quite tell us what it is they’ll be doing or what we’ll be paying attention to.
I was also interested in this statement of English’s:
The essential difference between New Zealand and countries such as the United States was the “extreme volatility” in their financial systems.
“They have to deal with that in the best way they can, whereas our financial sector has been relatively stable and our focus has been more on the real economy.”
We did just see the majority of the nation’s finance companies collapse, wiping out the retirement savings for much of the middle class. On the other hand, the collapse of the US financial system has been so spectacular I guess you can argue that we’ve been ‘relatively stable’.