O'Connor Damien: Budget Debate 
O'Connor Damien: Budget Debate 
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Hon DAMIEN O'CONNOR (Minister of Corrections) 
: 
 If there is one time in the year when we can sort out the Tories from the rest it is Budget time. It is the one time in the year when in terms of philosophy we can sort out those who live for money from those who think that money should be for living. National members think that we have to live for money that self-interest will drive every behaviour of every individual in this country and that tax is nothing but a cost on the individual. Well Labour thinks that money should be for living. Money should drive society and support the individuals in it. Labour believes that tax is not a cost on the individual but an opportunity for individuals to invest collectively in the future. That is exactly what Labour has provided in the Budget. 
National members speak of a surplus but I will explain the situation to them. If they were to run a household budget they would have some income there would be a cost of living—they would pay for their food and petrol—and there might be some money left over. The Tories would call that a surplus but Labour says that is money to be necessarily invested in the future. People might have to fix their fences paint their houses and even invest in their retirement years and that is exactly what this Government has enabled through the Budget. Yes there is a surplus because this Government has managed the economy well. Yes the Government will invest in the future because it has a responsibility as a responsible Government. 
That is not like the Tories. What would they have done? They would have offered massive unaffordable tax cuts and not invested in the future—not painted the house not fixed the fence and not put any money in for retirement. Those are the kinds of irresponsible policies that we saw through the 1990s and National would continue with them if—God help us—it ever got its hands on the reins again. 
I am proud of this Budget. Labour has a few objectives for this country. It wants to transform this economy because it believes it can improve productivity. I have never been able to understand the other Tory philosophy that says to increase productivity more money has to be paid to CEOs and less money to workers. I tell National members that wherever people come from and whatever their political philosophy human beings have the same basic drivers—that is incentives to improve their lives. Productivity will not be increased by driving down wages and by paying CEOs huge salaries. 
This Government has invested in infrastructure through this Budget because it knows it has to transform this economy and lift productivity to take us into the future. Members may ask what for. It is basically to improve the quality of life for Kiwi families young and old rich and poor—not just for those who are privileged enough to be able to grab the tax cuts that would have been put on the table by that Tory party over there—tax cuts that were rejected. National members have not yet realised that. Labour was voted in on the basis that it would take taxes spend them wisely and invest in the future—and that is exactly what this Budget has done. 
The third thing Labour is doing is investing in building the pride of this country. If members had wanted to hear the difference between the National Party’s approach to building pride and the Labour Party’s approach they should have listened to Don Brash’s speech on Budget day. What did he do? He talked up Australians and talked down New Zealanders. In my view that is treacherous behaviour in this House and it undermines the confidence of every young New Zealander who wants to get on with his or her life. 
Australians though are not that dumb. I say that because less than a week after the Australians’ own Budget which gave them billions of dollars of tax cuts a poll stated that two-thirds of them would rather have had the increased spending and investment in their economy than the $10 a week they got in that blind simple little political bribe offered by John Howard. The Australians are not that dumb; they saw through bribery. In fact New Zealanders saw through it at the last election when they voted Labour into Government. 
Labour has done a huge amount to invest in the future of this country through this Budget—not in a Tory way and driven by self-interest but on the basis that all New Zealanders want to build a better life for their children and grandchildren and to secure their retirement. That is why the Government has invested in roads hospitals education and ongoing training in the workplace. 
Would National have done that with its $11 billion worth of tax cuts? It would not because it would not have been able to afford to do it. How would it have paid for those tax cuts? It would have cut services for a start and it would have sold off—flogged—State assets as it did in the 1990s. That scandalous behaviour must be stopped at all costs. I fear for the time the National Party ever gets into power in this country—although I do not think it will thank God because like Australians New Zealanders understand the value in investing in the future through their taxes rather than frittering away money hard-earned through the tax system in tax cuts. 
If there is a place for tax relief then that relief should be given to working families rather than to wealthy people like Mr Bob Clarkson or the millionaires around the country—which is what the National Party would have done. I say that it should be given to hard-working Kiwi families. 
Do members know what? That is exactly what we did. Using the Working for Families package I will give members an example of what will happen. We have been able through wise management of the economy to give 350000 families in this country tax relief of about $1.6 billion. On average it is about $88 per week. We did not insult people with a $10-a-week bribe as the Australians tried to do. We did not insult them with something that would have been insignificant. No the Australian tax cuts in fact gave $52 a week to someone on $100000. With Working for Families on the other hand in order to help good hard-working Kiwi families this Government is giving to a family on $51000 with one child an extra $70 a week. If families have more children they will get more money often up to $150 a week. That is what we want to do. 
The Tories say we are robbing Peter to pay Paul. Well yes to some extent tax is taking from those people who can afford it and giving to those who cannot afford it. There is nothing wrong with that. There is nothing wrong with having a country that has equality of opportunity a fair justice system and good infrastructure and roading—because that makes for a country where people want to live. That is why people want to live in New Zealand. 
Bob Clarkson 
: Why are they going to Aussie? 
Hon DAMIEN O'CONNOR 
: People have always gone to Australia. I lived there for 5 years myself and I came back to try to work in this country and build on that for my children and their children. If that member wants to fritter away tax cuts and go to Australia then he should go. He Don Brash and all the others can go to Australia and let us get on with managing this economy and looking after those people who are loyal and patriotic. The Australians are not as stupid as that member. They have seen through tax cuts. They know that people cannot be fooled by cheap tax cuts and that we need investment in the future. 
This Budget has done exactly that for this country. Labour has invested in transforming the economy in protecting families young and old and in building pride in our identity. We will continue to do that as long as we are in Government and I hope that that is for a very very long time.