18 Apr 2009

Country's debt levels being addressed - Key

7:05 am on 18 April 2009

Prime Minister John Key says next month's Budget will show the Government is already addressing debt levels warned about in an OECD report.

The Organisation for Economic Co-operation and Development has warned the Government it cannot continue to spend its way out of the recession.

The Paris-based group of wealthy countries says international investors could cut New Zealand adrift if it does not bring its debt levels under control.

Mr Key says concerns raised by the OECD about New Zealand's high current account deficit and dependency on foreign borrowing are not new and those factors have always been offset by a strong balance sheet.

The Prime Minister says the Government will take the steps necessary to restore the economy to surpluses and the Budget will point to the fact that New Zealand does not intend to live on a lifetime of debt.