John Key's statement: main points

Prime Minister John Key outlined his Government's programme for this year in Parliament today.

Key points included:

Tax:

* Closing tax loopholes allowing property investors to avoid paying tax. How this will be done will be announced in the budget.

* Consideration of a "modest" increase in GST, possibly as high as 15 percent. It is currently 12.5 percent.

* Any increase in GST to be balanced by "across-the-board" personal tax rate reductions.

* Ruled out are a land tax, comprehensive capital gains tax or risk-free return method for taxing residential investment properties. * Consideration of how to stop rich families getting Working for Families tax credits.

Public services:

* Continued constraint: "Most agencies will see no additional funding for several years."

* Improvements to management of Crown assets and liabilities.

Science and Innovation:

* Changes to how Crown Research Institutes (CRI) are funded.

* Investments in primary growth partnership to continue.

* Funding for a network of open access food development and commercialisation facilities, investment in the domestic centre for Agricultural Greenhouse Gas Research and in the Global Research Alliance, and in Primary Growth Partnership.

* Business research and science capability one area to get boost in budget.

Trade * Continued efforts towards progress towards free trade agreement with the United States through the Trans-Pacific Partnership and for a successful conclusion of the for Doha round of WTO negotiations.

* Push hard for progress on a single economic market with Australia.

Regulation

* Continued regulatory reform including review of existing regulations.

* Holidays Act to be amended.

* Possible legislative changes relating to personal grievance cases.

Resources

* Proposed changes allowing some conservation land to be mined.

* A new Conservation Fund which would get some royalty from mining on Crown land.

* Removal of regulatory barriers to water storage.

* Second phase of resource management reforms.

Capital investment * Measures to promote investment in capital markets including response to Capital Market Development Taskforce report.

* Pursue proposal for New Zealand to become a hub for financial services in the Asia Pacific region.

Infrastructure

* Continued programme of investing in roading and fast broadband.

Defence

* Defence Review and White Paper to be completed this year.

Education

* Implementation of national standards at primary schools.

* Development of a policy on how national standards information is used after concerns about league tables.

* Measures to get those children missing out on early education into it.

* Changes to give secondary students better access to trades training.

* Shake up of tertiary education sector. Areas of concern are courses with high drop out rates and students who fail courses.

Social Services

* Reduced bureaucracy in provision.

* Development of whanau ora policy changing how the Government funds and coordinates social service contracts.

* First stage of whanau ora to be included in budget after the taskforce considering it reports.

Welfare

* Continued reforms including tighter checks on sickness beneficiaries; tougher reapplication for unemployment benefits and getting people on the domestic purposes benefit into work or training.

* A working group to be set up to look at how long-term welfare dependency can be reduced.

Housing

* An advisory group to be set up to look at state house waiting lists and problems of some tenants having bigger houses than they need.

* Changes to Residential Tenancies Act aimed at better management for owners and more security for tenants.

Justice and Law and Order * Pass the Sentencing and Parole Reform Bill which includes a three strikes policy.

* Reform of criminal justice system including legal aid, court processes.

* Liquor licensing law reform.

* Implementation of policies targeting youth offenders including boot camps.

* Opening up two prisons to private management.

Health

* Continuation of reforms to reduce duplication across district health boards.

* Continued efforts to deliver more and better elective surgery, cancer care and emergency care.

* Continue home insulation programme.

Treaty of Waitangi * Replace Foreshore and Seabed Act.

* Establish a group to consider constitutional issues.

* Introduce legislation for referendum on MMP.

 

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