Cosgrove Clayton: Estimates Debate —  
Cosgrove Clayton: Estimates Debate —  
[Volume:610;Page:7155] 
CLAYTON COSGROVE (Chairperson of the Finance and Expenditure Committee) 
: 
 I rise to speak in support of these estimates. I think that what these estimates prove is that this economy is in very good heart despite the international conditions. If we look at the statistics in respect of the economy we see as Minister Maharey outlined that we have the lowest unemployment since 1988 at about 5 percent. We have a $4.4 billion surplus as was outlined in the Budget and we have a Minister of Finance who is as many Opposition members have accused him of being tight on the fiscal purse. Given the international situation I think that is a good thing. 
I repeat what I said in my Budget speech and that is I could not quite believe the response of the National Party to these estimates. On the one hand the finance spokesperson Dr Brash said that Dr Cullen’s spending promises and fiscal constraint were about on target and on the other hand Mr English a Tory leader accused a Labour Government probably for the first time in history of being too tight on the purse strings. I see Mr Peters grinning and nodding; I know he has a sense of history as other members do. As I said in my Budget speech normally Labour Governments get accused of blowing the Budget and spending. For the first time we have a Tory leader who says that our Minister of Finance is too tight on the purse strings which I think should be noted down in history. 
It should also be noted that we have net Government debt below 15 percent of gross domestic product. 
Darren Hughes 
: What? 
CLAYTON COSGROVE 
: It is below 15 percent of gross domestic product. We have total Government debt below 30 percent which I believe is one of the commitments we made. If we go back to unemployment and compare our unemployment rate—5 percent—with the average unemployment rate under a National Government we see that it was for 9 years in the order of 8.2 percent. In examining these estimates we note that this economy is in good heart. This Government is a tight fiscal manager that believes in providing a stable platform for businesses and for our commodity sectors to advance and grow. 
But I want to refer briefly to page 7 of the Finance and Expenditure Committee’s report on the estimates—the minority report of the National Party and the ACT party. I note: “The National and ACT members are concerned at the increasing involvement of Government in business both through grants and taking ownership interests.” I think to translate the double Dutch that means they are concerned that we are not going to sell assets. I know that Dr Smith Mr Hide and others on the committee have expressed concern that we are not going to sell assets—and Dr Brash; I should give him credit for stating his view. On the other hand National members have firmly put their position especially in respect of the Tranz Rail purchase—if and when that occurs—that they would sell those assets. I think it was Mr Sowry who said that the New Zealand public would have to wait and see whether the National Party in Government if it ever got across the line would sell that particular asset and others. With regard to Air New Zealand the National Party has stated its position as has ACT—that it would go back on the chopping-block. I think that is something that should be highlighted and noted. I think the National Party and ACT wanted to bury it in the last two lines of the select committee report but we owe it to the New Zealand people to make that position very clear. 
Again there is a stark difference between the parties. The Labour Government is committed to asset management to getting growth and revenue out of those assets—Landcorp for instance has record growth—so that we can then redeploy that revenue for the good use of our people and our taxpayers. Contrast that with a National Government which would go back to the tired policies for which it was rejected in two elections—that is the sale of strategic Government assets. For what purpose we are yet to find out but I am sure Dr Brash will take up the cudgels and the challenge and outline it to us. I am sure the people of New Zealand as Dr Brash will also know are vehemently opposed to asset sales and that is outlined in Labour’s poll rating of 51 percent and a poll rating for Dr Brash’s party in the order of 20 percent. 
I think it is also worth highlighting that these estimates build on a stable platform of—[ 
Interruption 
] Listen to them. They babble like a bunch of headless chooks. There is one less head today I am told with Maurice Williamson gone. But instead of babbling interjecting and bubbling away over there like a lot of ninnies it would be nice if they made a positive contribution and told us what they would do in respect of their estimates if they had any and in respect of their alternative budget if they had one. As I said in my Budget speech we could then have a proper debate. The problem is that when we are debating Vote Finance when we debate these estimates it would be nice it would be productive and it would be helpful to the listeners and the people of New Zealand if some Opposition members stood and proposed some alternatives. If they say we are wrong if they believe that we are wrong they are entitled to that view. But in order to frame that view surely they have to have a solution or an alternative. 
Darren Hughes 
: What would they do with the cash? 
CLAYTON COSGROVE 
: That is very interesting. 
Mark Peck 
: Give it back to the rich. 
CLAYTON COSGROVE 
: That is probably true given that that is their track record. What they say is they will have tax cuts which the people rejected. What they say is they will have asset sales which the people rejected. But they do not tell us how they will spend the cash. I wait with bated breath for Dr Brash and Dr Smith to tell us about that. 
We are building on a strong platform in respect of these estimates. These estimates continue our commitment to the people to provide an environment where they can grow their businesses and where we can look after our people in respect of health and education—but we will not go into those areas of course. They build on a platform of 4 percent growth. What these estimates show is we do have a Minister of Finance and a Government that are prepared to tighten the fiscal purse strings in anticipation of a rocky road internationally. I would have thought and given the poll rating I think the people of New Zealand share my view that that was the prudent thing to do in respect of our economy and that that was the prudent management structure we should adopt when we do not really know what is going to happen internationally. I would have thought that a Tory party would agree with that. But of course we saw in Budget speeches and in other places that it does not. On the one hand National has a leader who says we should spend more. On the other hand its official spokesperson on finance Dr Brash says we are on the right track and we should spend less. 
I conclude by endorsing these estimates. I think they are sound. I think they answer the critics across the board and they provide a platform whereby people in this country can prosper and whereby we can be socially responsible and look after some folk at the same time as we build a foundation where businesses can grow. 
I finish with a small piece of advice for Opposition members. I am sure they could win some brownie points from the members of the public who are listening to this if they got up as their next speaker will—I am sure it will be their finance spokesperson Dr Brash—and told us in this Chamber and the people of New Zealand exactly what they would do. I respect their right to be critical of us. That is the role of an Opposition—weak as dishwater as it is. But part of the role of an Opposition I would have thought—not having been part of one—is to propose. 
Rt Hon Winston Peters 
: Won’t be long now. 
CLAYTON COSGROVE 
: Some genius over there said we will be the Opposition. I say to that genius whoever it was not to be so arrogant and to listen to the people and look at the polls. I wait with bated breath on the wings of angels to hear Dr Brash and his alternatives for this country as he tries to demolish a substantial fine and solid set of finance estimates.