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'I think the OECD is saying the Government should spend more money': PM

The Prime Minister has dismissed a call by the OECD for the Government to do more to ease the burden of housing costs on low income families in New Zealand, saying it addressed the issue in the budget.

Prime Minister John Key says the OECD believes New Zealand isn't spending enough. Source: 1 NEWS

John Key. Source: 1 NEWS

The recommendation was made in the Paris-based organisation's economic survey of New Zealand.

In its 2015 report card on New Zealand, it notes the economy has been growing faster than most of the other OECD countries in recent times, and is enjoying strong broad-based economic expansion.

However it also notes there are bottlenecks in housing, inequalities in living standards and rising environmental pressures that all pose risks to the sustainability of New Zealand's growth.

The report's authors acknowledge that the Government is moving to address the concerns raised.

In relation to raising the accommodation supplement for low income families, John Key pointed to the fact they had increased help for those struggling in the latest budget, with a benefit increase of up to $25 a week.

"I think the OECD is saying the Government should spend more money," Mr Key said. "I appreciate that but on the other side of the coin we're working pretty hard to get the books back in order."

The Organisation for Economic Co-operation and Development is made up of 34 of the world's richest nations.

The report also suggested imposing more road tolls to ease congestion.

Mr Key said tolling new roads was an idea the Government was open to.

"In terms of existing roading, we're more cautious about that."