Finance Minister Bill English shared that finding additional savings is a challenging task that the Government and the public service are facing, after having managed two tight budgets.

He said, "Hope is not a strategy. And it won't work, because the New Zealand public wants to see evidence that the public sector is living within its means as New Zealanders are themselves".

Mr. English elaborated that Government faced five more years of budget deficits, while delivering speech to the Australia New Zealand school of Government in Melbourne. He added that high Government debt will need to be reimbursed and if there are additional finances, contributions will be made to the New Zealand Super Fund.

He added that foundations are being laid for a public service that chooses modernism and change.

He also added that the resources will be moved to the export and earning side of the economy, by which the lop- sided economy will be rebalanced. Government is more likely to lose jobs instead of creating them in the next five years.

The condition of New Zealand's government books with the Aussies is terrible, according to Mr. English.

Surpluses of at least 2% of GDP are required by the Government, before it considers boosting public expenditure.