RETAIL DEPOSIT GUARANTEE - THE NEXT PHASE

This week I outlined the future of the Retail Deposit Guarantee Scheme. The current scheme ends on October 12, 2010. That scheme was put together in the midst of the credit crisis and an election campaign. Its wide coverage and moderate fees gave New Zealand's banking sector certainty in a time of turmoil.

The credit crisis has now largely abated. To reflect that we have made several changes to the scheme that will take effect from October 13, 2010 and run until December 31, 2011. You can read about the changes here .

The new scheme provides for an orderly transition back to relatively normal banking conditions and strikes a balance between the interests of depositors, institutions and taxpayers. For more information you can also click on the above video screenshot - or click here.

THE GOVERNMENT'S INFRASTRUCTURE PLAN

This month I gave a speech outlining our approach to infrastructure. Better roads, more secure electricity supply and faster broadband will help us increase productivity, grow exports and start narrowing the gap with our trading partners.

As well as almost doubling our investment in infrastructure to $7.5 billion over the next five years, we are looking at how to set clearer priorities and get the most out of our money. As part of this we want more innovation. To that end we are looking at how we can make greater use of private sector expertise (link to statement) when there are clear benefits for taxpayers and users.

The private sector is already contracted to build most of our infrastructure. Overseas experience shows that extending this through public-private partnerships can introduce new design, financing and maintenance techniques that provide better services and value to taxpayers.

SINGLE ECONOMIC MARKET WITH AUSTRALIA

Last week Prime Minister John Key and seven members of the Cabinet, including myself, headed across the Tasman to the Australia New Zealand Leadership Forum. The forum is an annual event that aims to foster closer links.

During the trip John Key and Australia's Prime Minister Kevin Rudd announced a lift in investment thresholds to make it easier for businesses in both countries to invest across the Tasman. The announcement followed discussions between Australian Treasurer Wayne Swan and myself on the issue last month. Trans-Tasman travellers will also welcome the leaders' announcement of plans to make border checks on trans-Tasman travel simpler and faster.

These are the latest of a series of initiatives aimed at eventually creating a single economic market with Australia. Closer links could result in big gains for our exporters and key industries like tourism. Watch out for future announcements.

CUTTING RED TAPE

As I said last month, this Government is committed to cutting the red tape that has been holding business back. Last week Regulatory Reform Minister Rodney Hide and I released the first Government Statement on Regulation (link to Beehive PR). It contains two key commitments:

• to introduce new regulation only when the government is satisfied that it is required, reasonable and robust and
  
• to review existing regulation to identify and remove requirements that are unnecessary, ineffective and excessively costly.

As I outlined in last month's newsletter , we are already well advanced on the second commitment with 15 reviews of major pieces of regulatory legislation underway.

GETTING AROUND THE REGIONS

When I get the chance I like to get out and about so I can hear from local businesses and their staff. This often gives me a better sense of how the country is faring than economic forecasts and advice from policy analysts.

During the recent recess I managed to get up to Northland for two days. As well as visiting local businesses I gave speeches and took questions at functions in Paihia, Kerikeri and Whangarei.

A few days earlier I was down in my own electorate for the opening of the new National Bank in Gore. The bank is one of the largest rural lenders in the South Island and the opening was a good chance to mix with members of the Southland farming community.

WHAT TO WATCH FOR

· Next week I'll be visiting Tokyo, New York and Boston to give presentations on New Zealand's economic plan to international lenders.

· The Reserve Bank will deliver its next Monetary Policy Statement on September 10.

· On September 18 I'll be talking to local businesses in Napier.

· In the coming weeks I will also release a draft of the Government's first 20-year-infrastructure plan.

I WANT TO HEAR YOUR VIEWS

I'm keen to hear your views. To comment on anything in this newsletter please click here . Your comments will be read by either myself or my staff and will be publicly available on the www.billenglish.co.nz website. If there are issues of particular interest to readers then I may comment on them in future newsletters. If you are not comfortable commenting in a public manner, you are welcome to email me at b.english@ministers.govt.nz .

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