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Foreword

I am pleased to present this Supplement to the inaugural 2010 Investment Statement of the Government of New Zealand (Investment Statement).

The main objective of the Investment Statement was to facilitate better understanding of what the Crown owns and owes on behalf of the public. It sought to promote a Crown-wide investment perspective and provided an overview of the significant assets and liabilities on the Crown's balance sheet and how they are forecast to grow over time. The Supplement reinforces those objectives. It:

  • provides greater transparency, with a focus on areas of relative weakness in the Investment Statement such as sources of funding, and social asset performance information, and
  • indicates the Government's investment intentions, updated for decisions in Budget 2011, especially around using existing capital more efficiently and the Mixed Ownership Model.

The Supplement will facilitate efforts to ensure that the management of the Crown's balance sheet is properly aligned with the Government's broader fiscal strategy and policy objectives. In particular, the overall allocation of capital can be better managed. The Government therefore intends to make changes to future Budget processes to increase the transparency of capital investment decisions, especially over how existing capital is reinvested, and to improve our approach to major investment decisions.

It is the Government's intention that the balance sheet should be actively shaped over time consistent with our overall social service, infrastructure and other priorities. We will be faced with choices on how best to invest our capital - making those choices in a more transparent and informed environment will assist us to deliver better outcomes for New Zealanders and assist our efforts to raise New Zealand's potential growth rate in the years ahead.

Hon Bill English
Minister of Finance

19 May 2011

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