Bold Decisions Economic Decisions Needed

October 14, 2009 New Zealand FinanceNew Zealand Taxation

John Whitehead, Secretary to the Treasury, has stated that bold policies and tough decisions need to be made for economic recovery to occur.

In order for New Zealand to reach income levels comparable to that of Australia by 2025, New Zealand will require an estimated economic growth rate of 3.3%. According to John Whitehead, for this to become a reality, bold decisions would need to be made in New Zealand’s tax reforms and economic situation.

John Whitehead, conveyed these sentiments at an Institute of Directors workshop in Queenstown on the 25th of September, the notes of which were released by the Treasury on October 7th. Key points from the speech included that New Zealand needs to address the status quo, or choose to accept it, and that productivity growth needed to be accelerated and encourage the unwinding of its economic balances. In regards to current debate, John Whitehead regarded it as concerned with the short-term and that the focus needed to be changed.