Robertson GrantAPPROPRIATION (2017/18 SUPPLEMENTARY ESTIMATES) BILLIMPREST SUPPLY (FIRST FOR 2018/19) BILLSecond ReadingsHon GRANT ROBERTSON (Minister of Finance): I move That the Appropriation (2017/18 Supplementary Estimates) Bill and the Imprest Supply (First for 2018/19) Bill be now read a second time. I thought it might be helpful at the outset to let members know exactly what these two bills are. The Appropriation (2017/18 Supplementary Estimates) Bill makes new appropriations and changes to appropriations in the 2017-18 Estimates to reflect decisions taken by either the previous Government or the current Government since the 2017-18 Estimates were finalised in April 2017 prior to Budget 2017. The Imprest Supply (First for 2018/19) Bill provides interim bulk spending authority for the first two months of the 2018-19 financial year until the Appropriation (2018/19 Estimates) Bill is passed in August. So just to be absolutely clear what the National Party just voted against was making sure that there's money to pay public servants for the next two months. So just to be really clear on what the National Party—Hon Member: And beneficiaries.Hon GRANT ROBERTSON: And people and superannuitants and enough money for Housing New Zealand and all of the above is what the National Party just chose to show New Zealanders that they didn't want to approve of for the Government to have enough money to run for the next two months. Fortunately the very unified Government on this side of the House casts the votes to make sure that passed.But the main thing I want to talk about today is the other bill the Supplementary Estimates bill. This is essentially looking at what happened in the 2017-18 financial year that needs to be tidied up because it wasn't part of the original appropriations. Because we've had a change of Government there's rather a lot to do in this area. In particular the majority of the large changes to appropriations and capital injection authorisations relate to the Government's 100-day plan because being a busy and active Government who wanted to get on with the job the moment that we arrived here there was a certain amount of expenditure that needed to be appropriated and capital amounts to be injected into the economy. Probably the one of those that's here in this bill that I want to speak first about is the restarting of Government contributions to the New Zealand Superannuation Fund. So the bill makes the appropriation of $500 million within the Supplementary Estimates. That is the first payment from the Government to the New Zealand Superannuation Fund since July 2009—Hon Member: When?Hon GRANT ROBERTSON: July 2009 when the last Government decided they were going to put up the shutters on Government contributions to the super fund.Andrew Bayly: Oh but you didn't want us to take on debt did you?Hon GRANT ROBERTSON: Now Andrew Bayly may be—I can't quite interpret but he may be saying there was a global financial crisis and perhaps that would have been a reason to have suspended Government contributions and in fact the then finance Minister Bill English went on television and he said When the Government books get back into surplus we will restart these Government contributions." Hon Member: Did he?Hon GRANT ROBERTSON: So we might have differed but that was—it's in here. It's in here—for this appropriation the $500 million that we're putting in here in the Supplementary Estimates. The reason we have to do that is because the previous Government didn't put those contributions in. They said they were going to do it when the books got back into surplus but when the books got back into surplus—no Government contributions; not prioritised. So it is good that we are able through this legislation today to make the necessary financial adjustments to reflect that contribution. The Prime Minister and myself had the great honour of going across to Treasury and going to the big internet bank in the sky and pushing the button that saw that contribution go through. I have to say it was quite a scary moment actually just in case we hadn't got the right account number because there was some concern that if they'd entered the wrong account number $500 million was winging its way—actually in fairness it was $70 million; they do it in contributions.Chris Bishop: Don't worry Grant. It's only money.Hon GRANT ROBERTSON: Chris Bishop wouldn't notice an extra $500 million in the bank account out there in Hutt South but the rest of us would.I'm sure the New Zealand Superannuation Fund's very grateful for that. What that means is that across the forecast period of this Budget there will be $7.7 billion extra going into the super fund. By the time we get to the end of the forecast period the fund is estimated to be worth $63 billion. So the fact that the Government can continue to make contributions under this coalition Government I'm very pleased about.The other area I just want to mention within this Supplementary Estimates bill is the money that's required for this year to get the fees-free policy under way and going. I want to congratulate my colleague the Hon Chris Hipkins on the fact that he was able to pull this together so quickly. It relied upon some cooperation and collaboration with the tertiary institutions in New Zealand and the amount that we are bringing across here turns out to be around $254 million. There are some ups and downs in terms of costs that we are expecting to face but in terms of the 2017-18 year that's what's required. What that policy means is that we are opening up the opportunities not just for young people to go to university but for people who have never trained beyond school before to be able to take that up be that in the trades be that doing an apprenticeship or be that in workplace training. And it is important to note too that because of the cost structures that are around apprenticeships that means that actually it's worth two years' free fees for the apprentice and the employer. We want to make absolutely certain that we are giving every New Zealander the opportunity to train and retrain. This policy is an important plank underneath that. Yes it will help school-leavers but it is also about looking ahead to a future of work where we know people who work in industries that are changing that are being affected by technology need that opportunity to go and do courses and programmes. They won't be three-year degree programmes necessarily; they may be short modular courses—six weeks six months. That facility is provided for in this policy and funded through the Supplementary Estimates that are in front of us here today.There are also a range of other changes here. The large ones that I should mention particularly the reinstatement of the Main North Line in the South Island—the $140 million there to help meet the costs pending KiwiRail's insurance claim. Now this is very important because KiwiRail is going through the process of one of the largest ever insurance claims that New Zealand has seen for the rebuilding of that line. They do not have that insurance claim back and the very reason why we have Supplementary Estimates like this is that we can provide that money in the short term to make sure we get on with the job of giving that vital transport link what it needs.Equally for the people of Christchurch there is a transfer around money for Southern Response who are the insurance body responsible now for all of the old AMI claims down there. There is a need ongoing for funding there and $137 million needs to be transferred across here. There are also the regular changes that are needed for things like IRD to be able to move forward with its work in terms of student loans and the capital injection that it needs as well.The other item I want to mention is around school property portfolio management and this is an area where the Minister of Education and myself are well aware that we are facing a situation where the schools in New Zealand did not get the investment they needed for the last nine years. The Minister during the Budget process as he uncovered more and more about what hadn't been funded has raised with me the importance of us taking a long-term view of how we make sure we have the school facilities that we need. In this bill here we've got around $180 million being moved forward for the Supplementary Estimates to make sure that we are able to meet the costs of a number of school property projects where there's been revaluation. We have to do this here in this bill now for today but it represents just a small part of what we need to do to make sure that our school property portfolio is up to scratch.There are several other appropriations that have been put in place here—Kieran McAnulty: What about tarmac?Hon GRANT ROBERTSON: Not so much on tarmac in this one Mr McAnulty. That comes under a different heading. But here what we're doing is tidying up the accounts so that they are ready to go for the rest of 2017-18 and indeed the imprest supply bill—that will cover us off for the expenses of the Government through to August when the appropriations come back. I have much pleasure in recommending these bills to the House."