19 Mar 2009

Better productivity key to NZ recovery, says PM

5:03 am on 19 March 2009

Prime Minister John Key says improvement in productivity is critical to New Zealand's chances of coming out of the recession stronger than other countries.

But he is ruling out further major changes to employment law being called for by some groups, including the Business Roundtable.

Mr Key says fulfilling National's pre-election pledge to bring in a 90-day probation period for new workers is important for the economy.

However, he says future productivity gains will have to come from other areas.

The Council of Trade Unions says more investment needs to go into infrastructure and skills training.

Mr Key says investment in these areas is important, but will be of little use if workers lack basic skills.

Investing in basic numeracy and literacy as part of apprenticeship training will be a priority for the Government.