Finance Minister Michael Cullen says the New Zealand government is effectively debt-free, for the first time since records began in 1972.
Dr Cullen says the government accounts issued on Friday for the nine months to March 2006 show the state's assets exceeded its liabilities by $400 million.
The government was previously heavily in debt - particularly during the 1980s as a consequence of heavy borrowing to pay for major energy projects dubbed "Think Big".
Government finances and debt started to be brought under control through the 1990s, initially under National finance minister Ruth Richardson.
Cullen says being debt free is an enviable status among developed countries.
Despite this, the minister says the next few years will be tight with $7 billion needing to be borrowed over four years.
The government's operating surplus for the nine months ended March 31 of $9.39 billion was 60% above forecast, the Treasury says.
The higher surplus resulted mainly from larger-than-expected investment income for government pension and investment funds as well as one-off income from the sale of an asset by the state-owned power company Meridian.
Crown revenue totalled $43.01 billion, 9.6% ahead of the same period last year, with expenses of $36.83 billion, up 13.4% on a year earlier.
The operating surplus before revaluations and accounting changes (OBERAC), which strips out unrealised investment gains, was $6.14 billion, $276 million above forecast.
Net government debt stood at $8.85 billion or 5.7% of GDP.
However, the Treasury says that when the assets of the NZ Superannuation Fund are taken into account, there is effectively no net debt but a surplus that equates to 0.3% of GDP.
Comments (0)
When the eight co-workers of the ConAgra Foods Plant in Lincoln won the record Powerball jackpot, they called Lincoln attorney James Hoppe, who continues to represent them.
Since winning, they’ve all taken care of their debt, many have gone on vacation and they all quit their meatpacking plant jobs, Hoppe said.
“They don’t have any credit cards anymore,” Hoppe said.
The winners each got about $15.5 million after taxes.
Quang Dao — who came to the United States from Vietnam in 1988 — recently donated $400,000 to the Linh Quang Buddhist Center.
“He’s all about giving back to the people who have helped him, and the remarkable thing about him, from what I know, is he was a lot like that before he won the money,” Hoppe said.
Dao also invested money to support his five children in the future, Hoppe said.
Dung Tran — who bought the winning ticket — has bought a house, and still lives with his mother, aunt, sister, wife and son with another on the way, Hoppe said.
Alain Maboussou bought a home in Omaha.
All three donated about $6,000 to the Lincoln City Mission last month, saying they wanted to give back.
Chasity Rutjens still lives in her same apartment, and is taking her time considering her future, Hoppe said.
Robert Stewart took a long vacation with his family before returning to Lincoln, Hoppe said.
Michael Terpstra worked at ConAgra for three weeks after winning, then quit and took a long vacation, Hoppe said.
Hoppe said Eric Zornes bought a large acreage, where he plans to build a new home. And Zornes took at least one trip to Las Vegas to see a NASCAR race, Hoppe said.
David Gehle has helped out some family members, and is quite happy, Hoppe said.
“I think David might be looking for a job if anyone has one for him,” Hoppe said with a smile.
The attorney’s office is cluttered with interview requests, including calls on behalf of Larry King and Barbara Walters, plus people seeking money.
And although he won’t say how much he was paid for his services, Hoppe said he’s been treated fairly.
“The experience was priceless, really,” he said. “If anyone else out in TV-land wins, I’m your man.”
Comments (0)