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Building a strong economy

ECONOMIC growth without a fair distribution of its dividends is not a recipe for long-term success, Finance Minister Michael Cullen said in his first major speech of the year.
His comments were made to an Auckland Chamber of Commerce luncheon attended by 200 business people.
"We all benefit from a stronger, more cohesive country. One, where all families, young and old, can share in the benefits of economic transformation," said Dr Cullen.
"We need a societal consensus for the direction of economic growth. If the benefits of growth are shared inequitably, we undermine that consensus.
"When we have more poor families we incur more costs in health care, welfare and crime, because poor families are more likely to be a source of - and victims of - crime.
"In short, a fair society underpins a strong economy. This set of values underpins many of this government's policies."
Dr Cullen said the Labour-led government's economic strategy aimed to position New Zealand for long-term challenges such as globalisation, an ageing population and climate change.
He said the government was prepared to take some well judged risks to help rebalance the economy towards exporting.
"Where I think this leads you is that you have to get your hands a bit dirty, especially when the rest of the world is doing just that."
The government's priorities included business tax changes to drive improved productivity and competitiveness and efforts to develop a savings culture.
"There is little point in complaining about increasing foreign ownership of the New Zealand economy if we are continually saving far less than our investment needs.
"I particularly want to encourage savings by those of modest means, difficult though that is for many. That is because inequalities in income translate into much greater inequalities in wealth over time."