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12 March 2009
Key Notes No.44

JOB SUMMIT – UPDATE

I’ve enjoyed reading your comments about the Job Summit. It was a really useful day and it sparked some great ideas. Now we’re focusing on putting the best of these into action.

Yesterday I announced that the Government will provide financial assistance to businesses to encourage them to keep workers.

The Job Support Scheme is aimed at private sector businesses with more than 100 full-time staff.  Employers, workers, and unions will be able to negotiate voluntary agreements to reduce their hours of work to a nine-day fortnight. The Government will pay employers $12.50 (the adult minimum wage) an hour per worker, for up to five hours a fortnight.

While workers are in the scheme they can’t be made redundant.

I’d like to thank business and the unions for working with us to develop this idea. It will give struggling firms some extra time to ride out tough conditions and retain jobs.

The Job Support Scheme is just one of the ideas from the Summit. On Monday, Cabinet allocated more than 40 other ideas to Ministers to drive forward.

Some of these may not stack up. But I think that many will lead to real actions we can get done quickly to save and boost jobs. Others – like the National Cycleway – are likely to take a bit longer to put in place.

BOOSTING TRADE

With the global recession dominating the headlines, we shouldn’t lose sight of some of the opportunities we face.

Last week I met with Lee Myung-bak, President of South Korea, and we agreed to start negotiating a Free Trade Agreement between our two countries.

This followed the signing of the agreement to establish a free trade area between New Zealand, Australia and ASEAN – which includes countries like Indonesia, Malaysia, the Philippines, and Vietnam – and a separate agreement with India to launch bilateral Free Trade Agreement negotiations.

I’m excited about these developments. Over time they’ll bring a huge benefit to New Zealand. Our businesses stand to gain better access to hundreds of millions of consumers in some of the world’s most exciting and rapidly-developing economies. My challenge is to make sure that New Zealand can make the most of these opportunities.

CELEBRATING SUCCESS

Our success as a country relies on people from all walks of life stepping forward, helping others, seeking new ways of doing things, and reaching for their dreams. And we should acknowledge and celebrate those people who make an outstanding contribution to that success. They enrich the lives of us all.

That’s why, on Sunday, I announced that the new Government is reinstating titles in the New Zealand Honours system. The titles of Knight and Dame Grand Companion (GNZM) and Knight and Dame Companion (KNZM/DNZM) will return in time for the Queen’s Birthday honours list in June.

It’s a great pleasure to reinstate these titles. I’m looking forward to celebrating outstanding New Zealanders who have given such great service to their communities and their country.

SUPPORTING COMMUNITY LAW CENTRES

It’s important that everyone has access to justice – not just a privileged few who can afford it.

Community Law Centres do a vital job providing legal information and advice to hundreds of Kiwis every week. They are even more essential in the current environment because a growing number of people are finding themselves in financial difficulty.

Much of the funding for the centres comes from the Lawyers and Conveyancers Special Fund which has had a drop in income thanks to falling interest rates and a slowing housing market. That’s why, earlier this week, Justice Minister Simon Power announced that the Government will ensure community law centres get the same funding this year that they received last year. He is also working to make sure Community Law Centres have an enduring funding framework in the years ahead.

I’m really glad we’ve been able to help struggling New Zealanders get the legal support they need.

OUT AND ABOUT

Maths is a lot more fun than when I was at school. Last week I visited Thorndon School in Wellington with Education Minister Anne Tolley to launch World Maths Day in New Zealand. It was great to spend some time with the schoolchildren and exciting to see how engaged they are when they are learning with computers. Click here for video of that visit

I was in Rotorua on Thursday – as Minister of Tourism – with local MP Todd McClay. We visited the Tourism Upskilling Cluster at the Te Puia Maori Arts and Crafts Institute, before meeting the pupils at Owhata school, and taking a ride on a luge.

On Saturday I’m looking forward to heading to the Pasifika Festival at Western Springs in Auckland. It’s the largest Polynesian event in the world and a brilliant way to enjoy the music, dance, and food of our many Pacific cultures. Perhaps I’ll see some of you there?

Best wishes

Hon John Key
Prime Minister


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#1 - Steve Southall 2009-03-12 19:51 - (Reply)

Hi John - it's good to see ideas coming from the Job Summit getting early traction. What's refreshing about your Government is that you and your team are prepared to stand up, speak forthrightly and get things moving. A refreshing change from the previous Government. I'm particularly excited about the Cycleway - it has huge potential both for tourism and to gainfully employ low-skilled workers. Can I ask you to please engage with CAN (Cycling Advocates Network) as a key stakeholder. CAN have a long history of working with Government agencies and Councils, and can bring both design expertise and a cyclists perspective to the project. Keep up the good work. Cheers Steve

#1.1 - Helen 2009-03-12 21:01 - (Reply)

Another idea for the Job Summit. I believe during our last depression many people were put on the job of planting our forests. With so many forests having been cut down recently, couldn't people be put out to work re-planting them if something hasn't already been organised.

#2 - Tom & Molly Hodgson 2009-03-12 20:43 - (Reply)

This Govt has not put a foot wrong so far -keep going- We wish to put forward suggestion NOW to ensure ALL NZ rs get an hour and half SLEEP PER DAY they ARE MISSING OUT ON ! If one rises @6,lunch@ 12,eve meal & 5, O.K.-BUT if Govt legislated for rise @4-30,lunch 10-30. eve meal @3-30-RIOTS-But that is exactly what is in force now !! -CAUSE WE WILL SAY OF LOT OF CRIME ,GRUMPINESS, ANGER , NO BREAKFASTS,BINGE DRINKING,GOING TO SLEEP WHILE DRIVING,MARRIAGE BREAKUPS,ETC,ETC.

#3 - Ria Perry 2009-03-12 21:01 - (Reply)

John, Just gonna frustate what I think can be changed within society and old school parliament. I am with a partner who has a child, he met with IRD and had his finances rechecked..hes got credit galore and mortgage and living... But hes one of the ones who just got a letter from IRD and his child support for 1child is now up to $ 160 pw!!!! MY GOD!!!! I know guys that do less than him and are only paying $15pw... its not fair on me! a new partner no kids and my finances are going towards this solo mother whose child is at school and shes milking it not working!!! and were paying for her!When we went through this exercise - we provided both out financial documents then we get abusive texts and phonecalls from his ex and family coz IRD provided the mother our application and our financial details!!! thats WRONGGG!!!! its private! now hes scared to approach IRD again! Tell you what! decrease the IRD child support payments and you watch the solo mothers who milk food grants, not working and benefits...make the lazy ones work! ive worked since 15 and have never claimed tax or a benefit so why do these capable people who can work get away with it???? it'll bring money back in to the jobs that are being lost...IRD needs a BIG boot and overhaul especiallyy on this topic! and I think Privacy - IRD need to stop giving this to the ex partners as they are seeing information that has nothing to do with them...make them work and stop miliking the fact they have kids! COMMMONNNN

#3.1 - Ross Calverley 2009-03-12 23:29 - (Reply)

Although I think that it would be a good idea to reduce welfare, its hard for a government to do it. Perhaps in the dole scheme, a criteria for being willing to work if and when a job is suitable should be implemented.

#3.2 - Ian M 2009-03-13 06:57 - (Reply)

What do you expect! It is his kid! It costs more than $160.00 a week to support a child sounds like you are getting a bargain! Do you want the taxpayer to pay more for your partner's relationship failure.

#3.2.1 - Laurie Bell 2009-03-13 16:19 - (Reply)

Okay then give the child to him and let her go out and work and pay him.Watch her responce to that suggestion.If it is good enough for one it should be could enough for the other.There are a great deal of women out there who still can make time to work and look after their children,receiving some help in benefits but more importantly for them,giving themselves pride that they are not just expecting the tax payer to pay fro every thing.There are to many young girls out there milking the system who have no intention of working to give their children a better way of life.

#4 - Don Gallagher 2009-03-12 21:23 - (Reply)

You are doing a great job - keep up the pressure. Make your team work hard for you and our country. When you are ready to look at fibre optics please remember the people of West Harbour. Our broadband runs at 9kb per sec. Telecom say it is because of old equipment in the local exchange. They have no plans to upgrade the exchange. My old dialup ran at the same speed. Very poor for a new subdivision.

#5 - David Fleming 2009-03-12 21:28 - (Reply)

The summit was a great idea and I hope the ideas promoted will be acted upon rather than be buried. I wasn't invited, so here is my tuppence worth: Wouldn't it be great if we could produce cheap (or even free) energy. Imagine all the companies that would come to NZ to take advantage of it. Imagine the employment opportunities it would present. Well, there is a way. Geothermal energy: Please check out this site: http://www.bassfeld.eu/ There is a pdf file there that is worthwhile downloading. Briefly we drill down (1 well) up to 5 kilometers deep anywhere in NZ and geothermal heat is obtained for energy generation. This can be done alongside any area such as a city which would mean few transmission lines. Also no pollution and constant energy. This would allow overseas companies to set up here with cheap power, helping our unemployment problem.

#6 - Peter Winquist 2009-03-12 21:37 - (Reply)

John, I believe that the Government is doing a really great job in trying times. But I find it concerning that this latest newsletter does not address a prime concern that many people have, that was highlighted in the press recently: that of the Superannuation Fund. If the Super Fund is not funded, this hits the pocket of every Kiwi who will retire. The inequitable part of this is that politicians receive (in my understanding) a full pension if they've been elected to two consecutive terms in Parliament. I cannot think of any other job in the world where less than 10 years employment supplies one with a full pension. If ordinary Kiwis are made to sacrifice, it seems only just that politicians' pension funds are also reduced...

#7 - Chaz Forsyth 2009-03-12 22:23 - (Reply)

Congratulations upon your decision to seek reinstatement of titles for Soverign's honours - the Upper House and its ability to bestow peerages was abolished in 1948 and I wonder if it is possible to reinstate either or both of those ? I appreciate the shorter term for government resulted from the changes made tehn.

#8 - Ian Johnson 2009-03-12 22:32 - (Reply)

I really support the re-introduction of the old honour system. theres a good word right there "Honour "I didnt even know that some of the NZers who were mentioned in the paer as now having the right to choose to become "Sir"or "Dame " had been mentioned in the NZ awards. but with a title like "Sir' we are reminded that these people have been and deserve to be honoured in our culture. NZ has had an issue about Honour and by re-introducing the Honour system it helps. Thank you and well done.

#9 - Mike Gill 2009-03-12 22:51 - (Reply)

The cycleway is a fantastic vision. Please start close to the main cities. In Auckland a great cycle fest will be held on March 28th when thousands of cyclists converge on Rangitoto-Motutapu for a brilliant 50k ride. Please, the government should make this into New Zealand's premier bike ride. Allow year-round access to these two iconic islands for bikers. Establish all-year gravel trails on Motutapu. Rangitoto already has wide scoria roads. The whole of Auckland will want to ride these island trails. Mike Gill.

#10 - Merv Grewar 2009-03-12 23:32 - (Reply)

Your item regarding supporting community law centres. I know right away I am asking you to put your hand once again into the countries coffers BUT what about Citizens Advice. They do a wonderful job and struggle to find funds at all times. Our particular group in Hokitika have had to struggle to get a new computer which is now a necessary tool for their job. They also struggle to meet rent payments and for money to advertise for more volunteers. Maybe the Government should be helping these people for after all they give out free advice to the needy and get no renumeration for the time the spend in their little rooms. I know many other branches struggle the same as ours. No, I am not a member but I do know of the wonderful helpful service they provide the community. Keep up the good work Merv

#11 - Mihai Dardaiac 2009-03-12 23:53 - (Reply)

Fantastic job so far ! But do not forget that's a long way to an end...I mean a perfect one ! Good initiative with The Queen's Honours ! I knew you're a true Regalist...I wish you all the best in the future and just keep going ! You've got an awesome vision about ASEAN countries and stuff... Your immediate neighbours are part of your life , of your life security...Once again,well done, great vision Prime Minister ! I'm proud of your governing style so far, Mihai Dardaiac

#12 - tim ford 2009-03-13 08:36 - (Reply)

Media tends to portray rather negative stories, I would like to see at least a page of celebrating success's stories, from across the social & industrial spectrum. a) To remind us all that in spite of various events there are a large number of things working. b) to inspire and potentially hopefully educate to a degree.

#13 - Stuart Goudie 2009-03-13 08:47 - (Reply)

Hi John -Very encouraged to see negotiations have commenced for establishing a free trade agreement with Korea.I have been doing business with this country for approx 40 years both in NZ and in Korea. The Korean people are enterprising,honest and very loyal. I have often reflected on the fact that once you have a Korean friend,they are your friends for life. Also most Koreans I talk to are very aware of the fact NZ soldiers fought and died for South Korea in the Korean war. Please try to fast track the Free Trade agreement so we can cement the excellant realtions that exist between our two countries.

#14 - Don Jones 2009-03-13 09:10 - (Reply)

I do not feel at all comfortable, a government which is prepared to guarantee finance company investors ( as distinct from bank depositors) If I had wanted to risk my money with a finance company I would have already done so and do not need the government I voted for, helping out the private sector, keep the money for the "we wanta" tribe. The Government guarantee to private finance companies will be a guarantee of a short term government, at least within my circle of small business aquaintances. The guarantee is incompetent, maybe corrupt, unfair, socialist and a thoroughly bad decision.

#15 - Dave MacInnes 2009-03-13 09:47 - (Reply)

Hello John, I have read through the list of idea's being considered with regard to creating jobs. I'm afraid most of them will be discussed and debated for hours but at the end of the day, will cost a fortune and amount to little or no help what so ever. The national party needs to be bold. When Labour took over from Muldoon, they made some drastic changes, not all being the right ones but broad and sweeping changes. This is what we need to see now. The majority if NZ'rs are sick to death of the hand outs and patronising politics of the socialised system. Give us something to work with! I am a small business owner, the JobSupport of 5 hours every 2 weeks is of no use to me, and little to those emplying more than 100. Its a drop in the bucket. If you are on your knee's and just about to lay 5,10 or 20 people off, why not front up to social welfare and present your case. If your business was sound and your history profitable, why not give that businessman the money you are going to have to shell out to the laid off staff on the benefit. The employer can then keep them employed and do research and developement, company maintanence or whatever, but the company team is kept together, kept employed and working and will be there ready to go when the storm passes. This makes good sense to me. Yes there will be those that take advantage but what advantage if the employees are atill going to work and not slipping into the depth sof depression brought on by un-employment. The alternative is the 20 or 30 staff members all show up at social welfare and pick up the money and go home and play video games. This costs the government nothing as the money would go out in either case, but in this scenario, the country reaps the reward when the recession passes.

#16 - Don Shute 2009-03-13 09:48 - (Reply)

Hi John Is there a way of making the Justice system more available without the cost of continually going through lawyers. I have recent experience where only our Lawyer was allowed to speak. The other party mentioned some items that were lies and my lawyer did not know the answer and the Judge believed what the other party said and made a judgment on that basis. Don

#16.1 - James Stewart said:
2009-03-13 11:02 - (Reply)

Good morning John, Re: The further employment subsidy for the legal fraternity "SUPPORTING COMMUNITY LAW CENTRES" Has any truly independent party ever evaluated the cost to the NZ tax payer of subsidising our legal industry? I firmly believe the result of such an investigation would show this subsidy (including legal aid and trials doomed to failure from their outset) to be equal to or greater than the cost of the unemployment benefit! The legal industry in NZ is self serving and self perpetuating. The latter is factually documented through their promoting the writing of new (and mostly unnecessary) law which is generally flawed costing millions to be tested by wasting time in our overloaded inefficient Court system. Law is necessary, however, there has to be a better more effective and economical way. I believe the answer lies totally in the creation of honest, simple and un-complex law designed with a line drawn in the sand - no smudging of the boundary by smart oratory. Sure there will be some losers; they will in the main, be the legal fraternity. The end result will be an astounding reduction in legal costs to the average ‘Jo Blow’, businesses and the tax payer – fantastic - just what your Government is trying to acheive! May the National Party keep up their good work and prepare for the next election.

#17 - Laurie Bell 2009-03-13 11:29 - (Reply)

One of the areas the government should be looking at to save jobs and money is the area of 4weeks holiday that was introduced.I have a factory of 16 staff who all want to work the extra week that was given because they can't afford to stay at home.They have mortgages to meet as well as bills to pay for their children at school.We engourage our staff who are parents to go on School camps with their children and help out where we can.The other side of the coin is the cost to the Employer with this extra week because if you have some one off work your production is down.We don't want to put extra staff on so you can see the dilemma most employers are in.It doesn't need to change forever but maybe a trial period of three years with the right to make it shorter if the economy comes right.This will not only help employers but also employees.

#18 - Jim Coleman 2009-03-13 15:03 - (Reply)

I think the allowance of $68 per day could go to reducing the retirement age to say 63 years. thus allowing more full time jobs to younger people.

#19 - Pam Chubb 2009-03-14 09:49 - (Reply)

We are trusting you to think BIG to get us out of this mess! Nelson Mandela may be a controversial figure to some but I think you will agree with what he said when quoting Marianne Williamson (I believe it was) in the following: "Playing small doesn't serve the world. There's nothing enlightened about shrinking so that other people won't feel insecure around you. You were born to make manifest the glory of God that is within you. It's not just in some of us; it's in everyone. And as you let your own light shine, you unconsciously give other people permission to do the same. As you are liberated from your own fear, your presence automatically liberates others." I don't know whether we are ever totally liberated from fear in this life;for fear seems to be inherent in all of us to some degree. And while faith in God doesn't guarantee freedom from fear, it does empower us to defuse fear's control over us and free us to achieve all that God has envisioned for us to do and achieve. DV Pam Chubb

#20 - Andrew Atkin said:
2009-03-14 19:57 - (Reply)

Hello Mr Key, There is an Australian company developing a new form of geothermal energy extraction. It works by drilling a bore deep into the earth (about 2-3 km down) where the rock is hot (over 200 degrees celcius), and then driving water under high pressure into the bore. The heated water then rises to the surface through the rock as steam to drive turbines. It works in ground conditions where the rocks are porous and fractured enough to allow the water to "seep" up to the surface. Apparantly the company is achieving excellent preliminary results - it could be cheaper than coal. This could have huge potential for NZ because we don't have to dig too deep to get at very hot rock due to our volcanic regions. Geothermal is, potentially, the most sustanable, clean, plentiful and reliable energy source available to us. It could be a good project for NZ to look seriously at, in these economically challenging time? The more competitive we are the more likely we will be to attract international capital, of course. Also an idea: I think one of the most important jobs of our elected government is to "police" the public service, because if you guys don't then who will! I also believe that this must be very difficult for elected officials effectively because you don't have the time to study everything, of course. Likewise, I think it could be a good idea for the government to consider externalising personel operations for the public service, as follows. My model, in short, is to have a fully independant body responsible for all hiring/firing/promotion/demotion (from the bottom to the top of the organisation) that is *only* answerable to the appropriate Minister. This way you should help get rid of the 'insider culture' within the public service (and I think this exists in any institute to some degree) where people tend to make recruitment decisions primary to suit themselves, and not necessarily the company. It would also help make sure that the public service doesn't get infiltrated by dodgy people/organisations with "inappropriate" ideological learnings. -Oh, like the big bike-way idea. Should be a good bang for the buck.

#21 - Moana 2009-03-14 21:24 - (Reply)

Hi John, I think yourself and your team are doing a fantastic job. I am enjoying reading your key notes, thus keeping up to date with what is happening in our country. I would like to know what is happening to our beneficiary system in particular, unemployed and domestic purposes. I like many other hard working people, get infuriated with mothers who continue to milk the system by having child after child. I am concerned that our welfare estate is breeding ignorance and laziness. what are your plans in order to retify our 'hands out' society which mutiplies on a daily basis? regards Moana

#22 - Gavin 2009-03-16 13:21 - (Reply)

The bike way is a fantastic idea, please dont make it right next to the main roadway. I used to ride from Massey to Balmoral every day for work and home and used the Western motorway cycle track. Unfortunately everytime there was a vehicle accident the towies would sweep the broken glass to the side of the road and ultimately onto the cycle track. After a few months of frustrating punctures I decided to stop riding. Apart from the puncture factor the best parts of the ride are the sections where it deviates from the main roadway. Thanks for listening.

#22.1 - irene Neal 2009-03-24 08:08 - (Reply)

The cycle way is a wonderful concepts. Not state highway one though. Considered the trunk line please. It travels most of the country and would be so much safer for cylists and walkers than the main road. If anyone has cycled the rail trail I expect they would agree. thanks for listening.. Irene Neal

#23 - Warren Tosse 2009-03-25 08:40 - (Reply)

My comment is in the form of a question really. Has the government got any plans to give a subsidy to first home buyers as they do in Australia? Although I'm a fan of spending on infrastructure won't this only benefit a relatively small number of people in small pockets throughout NZ. If the government put retrictions on the criterior for giving a loan ie, 10% deposit and no more than 60% of the total family income to be loaned against, then surely this must be of interest to the banks as it would take away alot of the risk. It would also make people buy within there means. This would have a flow on effect in helping people keep there jobs whether it be in the people building the houses down to retail where people buy carpets curtains etc. I see that by investing in infrastructure to create jobs is a bit of the ambulance at the foot of the cliff syndrome as we should be helping protect people that are working as well. This includes small to medium business. This would benefit the whole country from northland to the Bluff. It may at least be something possitive because god only knows we as a country need it.


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