The New Zealand economy is clearly facing short term challenges from the global financial turbulence. Labour will ensure that the current international crisis does not lead to a prolonged recession in New Zealand.

An effective Labour market policy can both underpin economic growth and ensure the fruits of growth can be shared fairly.

A sustainable economy requires a supportive macroeconomic environment.

A successful sustainability agenda implemented effectively should assist productivity. The main elements of increasing productivity are skills and infrastructure. Skills

A sustainable economy will be built on the following policy foundations:

First, National will improve productivity across the public sector by ensuring a strong focus on the provision of frontline services.

• Amend the New Zealand Superannuation and Retirement Income Act 2001 to allow the Minister of Finance to give a direction to the Guardians of the Fund in relation to the proportion of the fund which is to be allocated to New Zealand.