Kuriger Barbara: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeKuriger Barbara: Oral Questions — Questions to Ministers[Sitting date: 07 June 2016. Volume:714;Page:11686. Text is incorporated into the Bound Volume.]3.BARBARA KURIGER (National—Taranaki - King Country) to the Minister of Finance: How is the Government’s investment in public infrastructure in Budget 2016 helping to build a stronger more productive economy and deliver better public services?Hon BILL ENGLISH (Minister of Finance): In the Budget $2.1 billion was allocated to public infrastructure. School property is a key part of the package—around $882 million—which will deliver 480 new classrooms nine new schools and two school expansions. This includes $168 million for the Christchurch schools rebuild programme which is now in its third year and has completed six schools with a further eight under construction.Barbara Kuriger: How does the public infrastructure package support transport particularly in the regions?Hon BILL ENGLISH: The Budget funded previously announced transport projects to the value of $115 million in Gisborne Marlborough and Taranaki under the Government’s Accelerated Regional Roading Package. This includes funding for bypasses of Mount Messenger and the Awakino Gorge tunnel in Taranaki which will open the region up to the rest of the upper North Island. The Government’s regional roading programme is one of our core transport priorities. This funding is the second tranche of a $212 million package announced in 2014. In addition in respect of transport KiwiRail will receive $190 million for the operation of the national freight network the second part of a 2-year package to help it improve its performance.Barbara Kuriger: What support does the public infrastructure package give to our tax administration system which is now over 25 years old?Hon BILL ENGLISH: Budget 2016 provides a net $857 million to modernise and simplify the tax administration system to ensure it meets New Zealanders’ needs reduces compliance costs for businesses and helps people get their obligations and entitlements right first time. The money will fund the change in technology as well as a complete revamp of one of our largest Government departments. It will give people greater ability to manage their tax affairs online. The Inland Revenue Department’s (IRD’s) current system is 25 years old. We need to move to where businesses find that meeting tax obligations is part of the normal business processes not a separate specialised activity.Rt Hon Winston Peters: Arising from the original question why was 45 percent of the Future Investment Fund not spent on schools hospitals and roads but rather diverted to slush fund - type expenditure like $41 million on Mighty River Power share loyalty bonus schemes the Genesis Energy public offering $23 million to the passports memorandum account $12 million to the RealMe account—Mr SPEAKER: Order! Bring your question to a conclusion.Rt Hon Winston Peters: —and $23 million for New Zealand’s contribution to the World Bank subscription?Hon BILL ENGLISH: Well I certainly disagree with the member’s description of the New Zealand Government meeting its international obligations to multilateral institutions and other important aspects of our capital investment. The $4.7 billion from the sale of the electricity companies meant that we did not have to borrow $4.7 billion to meet long-term high-quality investment propositions within the Government.Barbara Kuriger: What other steps is the Government taking to improve the tax system particularly for the benefit of small businesses?Hon BILL ENGLISH: The revamp of the IRD system will allow us to move to a more real-time type of taxation which means that small businesses whose workload and cash flow fluctuate will have the opportunity from 1 April 2018 to pay their tax when they have cash. The current provisional tax system often requires them to pay tax when they do not have cash. I must say many small businesses have expressed their appreciation for the fact that the Government is investing in digitising government and making their lives a bit easier.iqsImmigration Auckland—Housing Infrastructure and Services