Police hold back protesters during Key speech

Protesters outside the Langham Hotel where Prime Minister John Key was speaking. Photo / Greg Bowker

There was a strong police presence holding back protestors at the Langham hotel in Auckland where Prime Minister John Key was giving his post-Budget speech to a business audience.

Among the 100 or so protesters was former Green MP Sue Bradford and her husband Bill Bradford. The placards are protesting against austerity.

"Our austerity is their prosperity," one of the banners reads.

Mr Key told members of the Trans Tasman Business Circles that the Budget was "a very sensible Budget for very volatile times."

If he had been asked a month ago if there had been a chance that Greece would exit the Euro, he said he would have dismissed it and thought common sense would prevail.

"Now I'm far more uncertain."

"That uncertainty and volatility simply reinforces the Government's approach in this Budget and over all our Budgets."

He acknowledged that the surplus to be posted in 2014 - 15 was not the world's biggest surplus. But it was still an important milestone.

"For the first time in a number of years, the Government will be raising enough revenue to meet its commitments without having to increase debt. And from that time on , we can begin to get our existing stock of debt down to more prudent levels."

He said the last Labour Government increased new spending by a cumulative $20 billion in its last four Budgets whereas National had added a net $700 million in new spending in its four Budgets.

Referring to the protesters, some of whom were students, Mr Key later told reporters that people needed to be realistic.

"These are really challenging times for New Zealand... and if we don't take a responsible approach and continue to spend money we don't have the long term implications are very significant and particularly for students. They are fundamentally the generation that would have to repay that debt."