Wellington  - The New Zealand government announced Wednesday a 500-million-New-Zealand-dollar (about 260 million US dollars) stimulus package for the economy, which has been in recession for a year.

Prime Minister John Key, whose centre-right administration was elected in November, said a number of state housing, road and education sector projects would be accelerated in a bid to preserve jobs as the global financial crisis continues to impact on the local economy.

Money for most of the projects had already been allocated by the defeated Labour-led coalition but Key said they were being fast-tracked to keep New Zealanders working and construction companies and contractors in business.

The projects include 69 new state houses and renovations of 10,000 more, five new schools and five major state highway developments.

Labour unions welcomed the announcement. "The investment in schools and housing is exactly what is needed at this time," said Peter Conway, secretary of the Council of Trade Unions. (dpa)