Easy does it, says upbeat English

Deputy Prime Minister and Finance Minister Bill English expressed confidence about New Zealand's economic future at two presentations in Rotorua yesterday.
Speaking to the Rotorua Chamber of Commerce and the Federated Farmers' conference, English made it clear there would be no quick fixes for the economy, but he felt it was heading in the right direction as a result of "considered and consistent" decision making.
He also praised the resilience and positive attitude of most Kiwis.
"Previous recessions have become something of a national whinge-fest. But this time people have rolled up their sleeves and got on with what they needed to do."
Rebalancing the economy was a recurring theme in both presentations as the Government tries to reduce personal and national debt, while bringing the country out of recession and dealing with the aftermath of the Canterbury earthquakes.
English said there had been no "really big" decisions, but he felt the Government had made progress through considered and consistent, long-term decisions.

Debt

English said banks had become less willing to lend and people had become less willing to borrow, taking on board the need to repay debt, curb their spending and start saving.
"That's tough if you are in construction or retail. These industries have been waiting around for the usual [return to spending] to happen and it hasn't."
Exports are key to the Government's recovery plan and English said farming and its supporting industries were doing well, with export prices at their highest in decades. But he said the economic effects of this would not filter through to the general economy until farmers had repaid some of their huge debt.

Tourism
While commodity driven sectors were doing well out of the current high exchange rate, tourism was one export industry that had suffered more than expected.
Queenstown lies within his electorate and English said he was aware of the issues facing Rotorua's tourism sector, which he jokingly called New Zealand's second-best tourism destination.
"Tourism is very exchange rate sensitive. We have our highest five-year average exchange rate since World War II and tourism has been hardest hit - by the numbers of visitors and how much people are willing to spend here."
He said the Government recognised the need to bring the exchange rate down, but there were some factors it had little control over, such as the situation in the United States.

Jobs
Unemployment is down to 4 per cent for people 25 and older, leading English to suggest there would be no short or medium-term relief from skills shortages.
Youth unemployment is higher than in any previous recession and he said young people needed to be pushed into industries where there were jobs and business would be expected to play a role in attracting and training this incoming workforce.
"We cannot afford to leave them behind - we are going to need them all."