Bill English

Wellington, Nov 20 NZPA - The new government is working "flat out" on its assistance package for people who lose their jobs because of the economic downturn, Acting Prime Minister Bill English said tonight.

The package was promised by National during the election campaign, when party leader and now prime minister John Key said it would ensure people who lost their jobs were supported while they looked for new employment.

"The assistance will be available until they get another job and their circumstances improve, for up to 16 weeks," Mr Key said.

Tonight Mr English said it was being developed as quickly as possible and ministers hoped to have it in place before Christmas.

The Government has previously said that passing the legislation will be a priority when Parliament sits on December 8.

Mr English said existing safety nets would stay in place in the meantime, despite the Government's books being in the red.

He said 2009 was going to be a tough year.

"In 2008 the economy was flat, next year shows signs it could be just as flat if not a bit tougher," he said on TV One's CloseUp programme.

"We need to focus on the longer term, we can get through these tougher times if people have the confidence things are going to get better."

Mr English said the Government was working on bringing forward infrastructure spending and implementing tax cuts on April 1 next year.

Asked when infrastructure projects would begin, he said the Government hoped to see some action in the early part of next year.

"A good gritty Kiwi attitude is what we're going to need ... that's why we have to work so hard with real urgency in lifting the confidence of business to invest and create the jobs that will soak up those people who are losing them."

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