Government agenda focuses on economy

By VERNON SMALL deputy political editor

The Government has outlined a three-year programme light on social reform but heavy on plans to boost economic growth.

After implementing widespread changes during its first term, the new Labour-led Coalition is promising stability and a continuation of present policies.

In the speech from the throne, written by Deputy Prime Minister Michael Cullen but delivered by Governor-General Dame Silvia Cartwright, the Government said the election showed "very limited support for a reversion to the policies of the 1990s or for any radical change of direction".

The 55-minute set-piece speech, which opens the new session of Parliament, was mainly a catalogue of decisions already announced.

On economic management, the Government said conservative and predictable fiscal management delivering budget surpluses would help to lift New Zealand into the top half of the developed world.

A new agreement with the Reserve Bank would move monetary policy closer to Australia's and bring more flexibility to allow maximum economic growth.

Investment in "human capital" through education would be a priority, including easier access to tertiary education, expanded numeracy and literacy programmes and improved staffing ratios in early childhood education.

But other social policy areas, such as health and social welfare, were relegated to brief mentions.

In a sideswipe at NZ First's immigration stance, the Government said it would need migrants, who brought diversity and dynamism, to fill skill gaps.

The Government would "resist and oppose any attempts to make migrants the scapegoats for whatever social and economic problems we face".

In contrast with the previous Government's opening statement in 1999, there was no mention of "Closing the Gaps" by improving the lot of Maori and Pacific people.

In a nod to its union backers, the Government will change employment law to protect employees when a business is sold or a contract transferred. The Holidays Act will be amended to provide extra pay for working on statutory holidays and to separate rights to sick and special leave.

Paid parental leave will be extended, when resources allow, to cover the self-employed and those with more than one employer in the previous year.

In a significant constitutional move, MPs would be asked to consider establishing a final court of appeal in New Zealand to replace appeals to the Privy Council in London.

National leader Bill English said the speech showed no sense of urgency or conviction.

"The speech brushes over the problems accumulating in health and education, in particular huge hospital debts and [Education Minister Trevor] Mallard's debacle with the NCEA."

Laila Harre, the leader of Labour's previous coalition partner the Alliance, said it was a lost opportunity to deal with chronic underfunding in health and education.

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