VZCZCXRO2153
RR RUEHDT RUEHPB
DE RUEHWL #0409/01 3442017
ZNR UUUUU ZZH
R 092017Z DEC 08
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 5571
INFO RUEHNZ/AMCONSUL AUCKLAND 1810
RUEHBY/AMEMBASSY CANBERRA 5346
RUEHDN/AMCONSUL SYDNEY 0776
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS SECTION 01 OF 02 WELLINGTON 000409 
 
SIPDIS 
SENSITIVE 
 
STATE FOR STATE FOR EAP/ANP 
PACOM FOR J01E/J2/J233/J5/SJFHQ 
 
E.O. 12958: N/A 
TAGS: PGOV ECON PHUM KDEM NZ
SUBJECT:  NEW GOVERNMENT PROMISES AMBITION 
 
WELLINGTON 00000409  001.2 OF 002 
 
 
¶1. (SBU) Summary.  As the new Parliament opened December 9, the new 
National-led Government laid out its program for the next three 
years along lines familiar from its election campaign.  Prime 
Minister John Key's immediate priorities are to address the pressing 
economic challenges facing New Zealand; in the longer term he will 
seek to rebuild infrastructure and productivity to enable growth and 
prosperity in the future.  It reflects many of the traits that 
voters found so attractive in Key at the election: moderation, 
ambition, compassion and understanding.  It will be hard for the 
opposition Labour Party to successfully attack this program.  End 
Summary. 
 
Government Program Outlined 
--------------------------- 
¶2. (SBU)  On December 9, Governor-General Anand Satyanand opened the 
49th New Zealand Parliament with the traditional 'Speech from the 
Throne' by where he outlined the program of the new Government under 
Prime Minister John Key.  The government divided its objectives into 
two parts: fixing the immediate economic problems facing New 
Zealand; and rebuilding infrastructure and increasing productivity 
in the longer term to make New Zealanders more prosperous. 
Foreign Policy Features Only Lightly 
------------------------------------ 
 
¶3. (SBU)  The Government reaffirmed it will essentially continue the 
foreign and trade policy of the previous government.  In the speech 
it was stated that the "Government will ensure that New Zealand 
exercises a free, independent foreign policy that reflects the best 
interests of New Zealand.  It will have a bipartisan approach to 
foreign policy and it will be driven by a considered evaluation of 
New Zealand's evolving international interests.  This will include 
an ongoing commitment to trade liberalization and the pursuit of 
bilateral, regional and world-wide free trade agreements." (Comment: 
commentators will likely jump on the Government's promise of an 
"independent foreign policy" since that was Labour's code word for a 
policy which stayed at arms length from the U.S. End Comment.) 
 
No More Missed Opportunities 
---------------------------- 
¶4. (SBU)  In a dig at the previous Labour-led government, Key 
asserted that "if New Zealand's past ten years were to be described 
as the decade of missed opportunities, then the next ten years must 
be the decade of maximized opportunities."  He warned that the 
Government will run an operating deficit certainly in the short-term 
and most likely in the long-term as well.  To provide much-needed 
fiscal stimulus to the flagging economy, the Government will reduce 
personal taxes.  To increase productivity and growth investment in 
infrastructure will be increased.  This will include an accelerated 
roll-out of an ultra-fast broadband network across New Zealand.  In 
a conscious gesture to Labour's constituency, the Government 
emphasized that New Zealand is a country built on a sense of 
fairness and thus it will duly provide an assistance package to 
those worst hit by redundancy. 
Tightening Government Spending 
------------------------------ 
¶5. (SBU)  In a drive for efficiency and fiscal discipline in the 
public sector, which PM Key believes the previous government failed 
to exercise, the new Government will carefully examine public 
spending and halt the growth in government bureaucracy ( Note. The 
MFAT briefing paper for Foreign Minister McCully, also released 
December 9, made it clear that this will freezing include the 
planned expansion in the Ministry of Foreign Affairs and Trade. End 
Note). 
Climate Change 
-------------- 
¶6. (SBU)  The Government promised to honor New Zealand's existing 
Kyoto Protocol obligations and to work toward further global 
alliances to advance the Kyoto agenda.  In approaching future 
international climate change negotiations the Government intends to 
work with other countries to find a pragmatic way to include large 
emitters, of which the Government signaled out China, India, Brazil 
and the United States.  However, the government has pledged to 
review the Emissions Trading Scheme (ETS) to "ensure the reduction 
of emissions in ways that result in the least cost to New Zealand's 
society and economy."  Additionally, the Government intends to 
advocate firmly in international negotiations for the appropriate 
recognition of New Zealand's unique agricultural-emissions-profile. 
Comment: Ambition, Pragmatism, Compassion Hold Forth 
--------------------------------------------- ------- 
 
¶7. (SBU)  The Government's program was a compilation of National's 
campaign promises combined with its response to the worsening 
economic downturn.  The speech blended ambition as to the 
possibilities that lay ahead and sobriety as to the challenges 
confronting the country.  A central message in the speech was that 
the new Government will drive an ambitious agenda. 
 
WELLINGTON 00000409  002.2 OF 002 
 
 
¶8. (SBU)  As one might expect, Key's program contained more 
specifics on the near-term plans to revive the economy and fewer 
details on the longer-term goals.  It epitomized the personal 
politics of John Key:  pragmatic and moderate.  The call for 
individual responsibility and the promise to help the most 
vulnerable citizens is a typical Key balancing act.  It will be 
difficult for Labour to challenge Key's ambitions, so they will be 
left to watch eagerly for the Government's performance to fall 
short.  End Comment. 
McCormick