KEY POINTS:
Many may find the new Government's initial programme, outlined to Parliament in the Speech from the Throne yesterday, a trifle bland for the times. National has come to office in economic circumstances it describes as the worst financial crisis since the Great Depression.
But despite the parliamentary urgency it has invoked for its election promises there appears to be no particular urgency to meet the crisis.
The speech delivered by the Governor-General added little flesh to the bare bones of policies announced before the election or agreed with National's supporting parties more than a fortnight ago. The stimulus package that the country expected, no matter which of the major parties was elected, has not materialised yet and there was no hint from the throne that one is imminent.
The Government would "move quickly to provide much-needed fiscal stimulus to the flagging economy", it declared, "in the form of personal tax reductions and a step-up in infrastructure investment". But it did not bring forward the April date for its first tax cut and specified no new projects for the programme that will, it says, "create much-needed jobs, unclog the arteries of the economy and improve productivity".
They are fine intentions, if compatible, but beyond the broadband network promised long ago, nothing is specified. National is still talking in general terms of roading and public transport projects and improvements in school property. Perhaps more should not be expected after a few weeks in office but previous governments elected in crises have moved faster.
Caution, though, is probably the wiser course this time. While international conditions remain critical, the New Zealand and Australian economies appear stronger than those of the United States and Europe at the moment. Our banks were not as exposed to the worst of Wall St's carelessness, our governments have been running good surpluses and we entered the recession with low levels of public debt.
At the same time, wage growth has been strong in recent years and while house values here have fallen as heavily as those anywhere, households may be well placed to weather the recession. Business might not be as well placed if households curtail their spending too much but the new Government confirmed yesterday that it stands ready to rescue even well-off households in the event of job redundancies.
A relief package, to be announced before Christmas, would be "designed to help people who have worked hard and who have big aspirations for the future but who will be, through no fault of their own, coping with a big financial blow". This, too, was introduced during the election campaign and no further detail was given yesterday.
The Speech has given Parliament a clear indication that the needs of the economy, as National sees them, will dominate the legislative programme of this term, and no "social distractions" will be entertained. That is a reference to measures such as the anti-smacking bill that took up inordinate time last year. But the bill was a Green MP's initiative and National may need to remember that, like Labour, it relies on partners with different priorities.
The calibre of a new government cannot be judged from its opening salvo, but caution, moderation and care appear to characterise this one, in deed if not in word. If the crisis is as serious as it says, its action so far may be too cautious. But if the recession is not going to get worse, which remains a slim possibility, caution is the wisest course.
