Cunliffe David: Estimates Debate — In CommitteeText is incorporated into the Bound VolumeCunliffe David: Estimates Debate — In Committee[Sitting date: 21 July 2015. Volume:707;Page:5172. Text is incorporated into the Bound Volume.]Hon DAVID CUNLIFFE (Labour—New Lynn):It is a pleasure to take a quick call in the innovation and economic development part of this estimates debate. The model is not working and the Government is not being straight with New Zealanders. The housing market is not working particularly in Auckland but you would not hear that from the Government. The rural economy is falling in a hole and the Government is neglecting our regions. The numbers speak for themselves. In the last quarter GDP growth came in at only one-quarter of its forecast level at less than a quarter of a percent.Business confidence has gone negative for the first time since the global financial crisis recovery. Our dollar is plummeting like a rock just about as fast as business confidence—not that we want the economy to be falling in a hole; not that we want the economy to be failing. What is the Government’s reaction to this serious crisis of confidence? Well it has neglected the regions. New Zealanders are not fooled by spin—glossy publications glossy Minister Joyce. They want real projects. They want work that will create jobs in each region. They want each region’s strength to be built upon. They do not want shop fronts that are empty houses that are empty streets that are empty and polytechnics that are empty. That is not what they want.The Government has rushed out initiatives that Treasury told it were not ready. Two weeks ago Minister Joyce put out a regional investment plan that Treasury said was not ready to be funded and that it recommended be deferred. The Minister overrode that. Why? Because he knows and New Zealanders know that with dairy payouts starting with a three—as in $3-something which is a real possibility—too many farms will go close to the wall or to the wall. To bail themselves out under pressure from their banks they will take whatever cash they can get from whoever is bidding. You can bet your bottom dollar that a lot of those people will be offshore bidders—Brett Hudson: Oh here we go. Give the man a whistle.Hon DAVID CUNLIFFE: No this is colour-blind and it is real and if the backbench members of the Government want to ignore it they will be in Opposition very shortly. New Zealanders do not want our land sold out from under us. It does not matter whether it is going to Canberra or Cambodia—they do not want that to happen. Meanwhile the system remains unfixed. Callaghan Innovation which the Minister gave a few extra dollars to is still doling out money on automatic grant criteria for its growth grants which has seen it funding potential fraudsters foreign-owned multinationals and polluters who have not had environment consents and it even funded the Oracle America’s Cup challenge not Team New Zealand. Can you believe it? What a mess.Even leaders in the sector like the Government’s Chief Science Advisor have panned that Minister’s performance. The Chief Science Advisor says that the system is too reactive and Professor Hendy from Auckland University is saying that the bias is towards the old economy. We need to be building a new economy one where we have a reasonably high level of investment in research and development; where we diversify our economy; where we strengthen the smart stuff not just the farm stuff that comes raw; where we add value to our primary commodities; where we build on our primary sector just like Denmark does; where we strengthen our manufacturing and services alongside primary agriculture so that we are adding value information and smarts; and where we are known worldwide as the highest-quality most environmentally sustainable most traceable producer of fine food products anywhere in the world so that every housewife in Britain India or America who wants to buy safe sound food for their kids knows that when you buy from New Zealand you buy quality. But we are not there because the Government is racing to the bottom.The Government does not get it. It thinks that by just reinforcing the old economy and being nice to the foreign-owned banks it will all come right. Well Mr Joyce it is not coming right. It is falling in a hole and you have only got to go around the regions to have everybody tell you that. [Bell rung] New Zealanders know the truth and it is not—