Economic Transformation: Progress to Date
14. We have made a lot of progress in implementing the ET agenda over the past year. The following section outlines some of our most significant achievements. A fuller summary is at Annex A.
World Class Infrastructure
- A new approach to developing the telecommunications sector through:
- the Telecommunications Amendment Act which will increase competition, and support the development of a better range and quality of competitively priced services to businesses and households;
- the planned operational separation of Telecom NZ, the revision of the Telecommunications Service Obligations and the facilitation of broadband wireless rollout; and
- implementation of the Digital Strategy.
- A clear strategic direction for the energy sector through:
- the NZ Energy Strategy;
- the New Zealand Energy Efficiency and Conservation Strategy;
- revision of the Policy Statement on Electricity Governance; and
- the Energy Research Roadmap.
- A sustained investment approach to transport through:
- An additional $1.3 billion funding package, announced as part of Budget 2006, to ensure delivery of the National Land Transport Programme (with more than $24 billion allocated to improve transport outcomes over the next 10 years);
- the completion of a number of transport infrastructure projects such as:
- the Auckland Central Motorway Junction upgrade;
- Wellington inner city by pass.
- Implementation of the Next Steps changes to planning and funding, and the regional petrol tax.
Environmental Sustainability
- Initiatives to respond to climate change, including:
- an emissions trading scheme; and
- developing a government-primary sector partnership focused on mitigating greenhouse gas emissions, adapting to the effects of climate change and business opportunities from climate change.
- Initiatives to manage our resources sustainably including:
- progress with the Sustainable Water Programme of Action;
- reviewing the East Coast Forestry Project to address sustainable land management issues; and
- establishing the Sustainable Land Management (Hill Country Erosion) Programme as a vehicle for progressing the concept of "total catchment management".
Innovative and Productive Workplaces underpinned by high standards in education, skills and research
- Tertiary Education Reforms including:
- improving the system for planning, funding and monitoring the provision of tertiary education;
- allocating $285 million of operating funding over four years to strengthen the ability of the tertiary sector to meet economic, environmental and social challenges.
- Expanding skills training through allocating $53 million to boost participation in industry training and address skills shortages.
- Supporting excellence and relevance in research, science and technology in the public sector through:
- increased funding for COREs;
- implementing the stable funding initiative for public sector research; and
- undertaking an OECD review of Innovation policy and performance.
Globally Competitive Firms
- A $3.4 billion package to encourage companies to grow and invest, undertake R&D, and expand internationally, including:
- a 3% cut in the company tax rate to 30% from the 2008/09 tax year;
- an R&D tax credit of 15% from 1 April 2008; and
- an announcement by the Government that it will remove tax on the foreign active income of NZ companies operating offshore.
- Initiatives to deepen and enlarge capital markets by changing our saving and investment environment, including:
- enhancements to KiwiSaver;
- increased funding for and development of venture capital investment; and
- reducing taxation on widely-held savings vehicles.
- Helping New Zealand companies break into international markets through:
- Export Year 2007 to improve long term export performance;
- implementing the Trade Strategy including an FTA with China; and
- implementing the offshore portion of the NZTE strategy with a strengthened focus on Asia.
An Internationally Competitive City - Auckland
- Launching the Metro Project action plan which takes an integrated approach to transforming Auckland's economy and provides 30 practical initiatives to boost Auckland's performance.
- Reviewing Auckland's governance, reaching agreement to develop an over-arching regional strategic plan, and establishing a Royal Commission of Inquiry.
- Completion of a number of significant transport projects, such as the Auckland Central Motorway Junction Upgrade, double-tracking between New Lynn and Henderson (Western Rail Line), and progress on State Highway 20 Mt Roskill extension and the Northern Busway.
- Commitment of $1b towards electrification of the Auckland metropolitan passenger rail network by 2013.
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