Kerry McDonald
May 2010 luncheon
Kerry McDonald chaired the Treasury driven 'Savings Working Group', this group did much of the hard work behind the scenes towards Budget 2011.
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Follow the release of the 2011 budget, the Southland Chamber Of Commerce were delighted to have the opportunity to host one of the main architects for the recommendations that formed the Governments financial policy for the coming year. |
| The lunchtime gathering at the White Heron Function Centre gave guests a unique chance of hearing Kerry’s thoughts on the state of the New Zealand financial landscape and its place within the worlds monetary woes. |
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As one of New Zealand’s top advisors, Kerry credentials are numerous and to hear the raw truth of how New Zealand is poised for the next few years, devoid of political or media spin, was certainly an eye opening experience.
| He told the group the economy was seriously weakened because of poor Government policies during the past 10 years, which allowed the housing boom to run unchecked, large incentives to invest in rental housing and a lack of response to the declining tradeable goods sector. |
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Because of this, NZ’s private and public debt - our borrowing and continued spending places us on the same portion of a graph as occupied by Greece, Ireland and Portugal and was a shock for most to see.
His opinion that the public, simply don’t realise we are “Eating next years seed and breeding stock” rung true with most in attendance on the day.
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In a lighter vein, his reasoning that we’ll find it a hard challenge to match Australia’s growth pattern raised a few smiles – Seems, in many ways we’re just a bit nice… Kerry drew the comparison between our two countries RMA practices and suggested that the very slow and tedious process in NZ simply wouldn’t be tolerated by our “get things done” colonial cousins next door. |
Kerry mentioned on more than one occasion, every New Zealand family should read the SWG report, or at least the Exec Summary, for a pretty clear message of how we stand financially in 2011.
Not a lot of cherry news in his address, but certainly some genuine home truths, and a very worthwhile presentation for the 40 people who attended the function.
To view the SWG 2011 report start here www.treasury.govt.nz and search SWG
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