There are those who are claiming that the recession is officially over. Whether that proves to be true or not, the harsh reality is that the Government is having to borrow $400 million a week, half of it to maintain public services and entitlements. The Government has budget deficits of $10 billion and surpluses are projected to be ten years away.

That is why the Government has told the public sector departments to think hard about how they are going to live with little or no extra funding for the next three to five years. The Government is telling the public service that it is going to have to be as innovative, as everyone else is having to be - to deal with the reality that there is not any new money coming in.

New Zealand will be heavily indebted for years to come. The impact of this recession will be felt on the Government's books for 20 to 30 years.

The ultimate objective of the Government is to create an environment where jobs are protected and more sustainable jobs are created.

It is a huge responsibility, but a privilege to be entrusted with it by the electorate.