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BUDGET 2013 Meridian mega-float to fund rail, hospitals, schools, irrigation

The country’s most valuable electricity company, Meridian Energy, will be partially privatised in the second of this year, assuming market conditions make it a good time to sell, Finance Minister Bill English announced in today’s budget. The widely anticipated announcement could see the government take in perhaps $3.3 billion for its so-called Future Investment Fund, with the state-owned electricity generator …

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BUDGET 2013 COMMENT – Overly conservative, with a good deal of risk

Bill English has been too conservative in reigning in government expenditure.  If he were confronting a bleaker fiscal picture, like the Australian government, I predict he would have done better. Total government spending in New Zealand is down by $1.4 billion on last year. In Australia total taxes to GDP is 22 percent compared with central government taxation of 32 …

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Telecom’s Gen-i slims down with Davanti sale to management

Telecom’s Gen-i has agreed to sell its Davanti Consulting business in a management buy-out the latest step to trim down IT services unit. Davanti Principal Consultants’ Justin Hamilton, Matt Farrar and Robert Carter have signed a conditional agreement for Gen-i’s Davanti unit for an undisclosed sum, and is expected to settle on May 31, Telecom said in a statement. Gen-i …

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BUDGET 2013 Debt Management Office trims $3 bln from borrowing programme

The New Zealand Debt Management Office will cut its borrowing programme by $3 billion over the next two years as the government looks to clamp down on its growing interest bill and build a buffer for future shocks. The DMO will cut its short-term Treasury bills on issue by $1 billion in the 2013/14 financial year and will reduce bond …

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BUDGET 2013 English signs off on Reserve Bank’s new toolkit

Finance Minister Bill English has given the tick of approval to the Reserve Bank’s new set of tools to cool asset bubbles, the most pressing of which is the country’s heated property market. The minister has signed a memorandum of understanding with central bank governor Graeme Wheeler granting the bank regulator the ability to require lenders to hold more capital …

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BUDGET 2013 COMMENT Plain sailing, but it’s no America’s Cup cat

Compared to the last four budgets, this year’s reflects an economy moving out of recession and into calmer waters. The global financial crisis is still a risk, but we’re not in the maelstrom anymore. For now, at least. Yet if the fastest annual growth rate we can expect over the next two years is 3 percent – – with the …

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