Tuned to health needs

we would have both high petrol prices and a health system that was not set up to meet our needs.

‘‘Too often, the New Zealand economy has been run along those lines. Investment has been turned on and off in response to short term considerations.’’

He said the Government would keep in mind capacity constraints and the inflationary outlook with its fiscal policy however.

‘‘The spending that we provided to support the economy through Covid-19 was timelimited. Government spending as a percentage of GDP is about the same as after the GFC, and is set to reduce over the coming years.

‘‘We need to be conscious of the fact that the economy is experiencing capacity constraints. Skilled labour is scarce in a range of areas.’’

The speech comes after Prime Minister Jacinda Ardern and Immigration Minister Kris Faafoi unveiled New Zealand’s new reopening dates and immigration settings on Wednesday.

The speech comes ahead of both the Budget, and the country’s first emission reduction plan which will be unveiled by James Shaw on Monday.

‘‘If we decided against reforming our health system, we would not see lower petrol prices; we would have both high petrol prices and a health system that was not set up to meet our needs.’’ Grant Robertson

Finance Minister