Robertson GrantHon GRANT ROBERTSON (Minister of Finance): I firstly just want to acknowledge the Hon Tim Macindoe for an excellent little spell in the Speaker's Chair that he's just had. He was unfortunately melding into the sheepskin behind you in a way that made him look a little unusual but he did a very good job.SPEAKER: The member knows that he doesn't bring the Speaker into the debate although I might say he merges less than he would've a few weeks ago.Hon GRANT ROBERTSON: All right Mr Speaker. The member opposite the Hon Paul Goldsmith started out pretty well in that contribution. He started out by endorsing a number of actions that the Government is taking in response to COVID-19. In particular I think it's very important at the outset to note that the first response to COVID-19 has to be a public health response. That is what New Zealanders expect of us. That is what we have prioritised.He made a comment at the end about not being sure that the priorities in the Budget Policy Statement fitted with where we were at in terms of COVID-19. Well I would say we're very proud on this side of the House of the additional investments we have made into our health system. It is our health system our health workers who are at the front line of ensuring the wellbeing of New Zealanders during the COVID-19 outbreak and that is one of the priorities in this Budget Policy Statement. So I think on behalf of certainly the Government I want to be able to take an opportunity to thank our front-line health workers who are currently under quite a high degree of pressure doing a great job in making sure that not only is New Zealanders' health and wellbeing being protected but also that information is flowing.As I say the member while he started out well then ended up in a typical Negative National" rant—not about the positive things that are happening in our economy not about the things in the Budget Policy Statement that actually are about lifting productivity are about making our economy more sustainable are about making sure that more New Zealanders are included in our economy and benefit from the prosperity in our country and that is at the core of the Budget Policy Statement. But obviously it is clear that we have this debate today in different times than when the Budget Policy Statement was written in December 2019 and those times mean that we do at all points need to assure ourselves that what we're doing in the Budget is in the best interests of New Zealand at this time. Over the coming weeks we will be refining the Budget which is delivered on the basis of this Budget Policy Statement in line with what has occurred with COVID-19.But the good news for New Zealanders is that we entered into this period in good shape. Our economic plan was showing benefits right across the economy and in the face of the global headwinds we'd seen in the last couple of years with the US-China trade war and Brexit we were coming through particularly well. We have been growing at a faster rate than many of the countries that we typically compare ourselves to including Australia Canada the UK the eurozone and Japan. Looking across fiscal and monetary policy across our labour market across consumer confidence and even in the last months of 2019 business confidence we saw that the economy was on the improve.The Government's accounts for the six months that ended December 2019 were strong. We had a surplus over the first six months of the fiscal year and we were sitting $500 million higher than we expected. That's due to a strong economy. That's due to more revenue coming in as a result of more businesses doing well making profits and paying corporate tax of more people being in work of more people earning more and paying their taxes in that regard and of more people spending because they have confidence to spend in the economy. All of those things were ahead of forecasts at the end of December 2019.We also had labour market statistics highlighted in the Budget Policy Statement where we now have 4 percent unemployment—historically low levels of unemployment. All of these things are signs that we enter into the face of COVID-19 doing well.We often compare ourselves to Australia in this regard. Australia's unemployment rate is actually back up to 5.3 percent. In New Zealand and the Budget Policy Statement outlines this we saw record wage growth in terms of the last 10 years in the period covered by year with around 3.6 percent. We also saw Statistics New Zealand data in the last few days showing us that the total volume of manufacturing sales had its strongest quarterly rise in six years in the final quarter of 2019. We also saw trade data that showed that terms of trade hit a record high in the December quarter.So all of those things are the reason why we say we are in good shape going into this challenging situation. We particularly say that because we have kept levels of net debt low. We have net core Crown debt now at 19.5 percent—19.5 percent of GDP. That is less than the 22 percent of GDP that we were left with when we came into office. That is what gives us the fiscal space to be able to respond to be able to make sure that we protect the health and wellbeing of New Zealanders and plan for what may come in terms of the economy.But the significant announcement made at the time of the Budget Policy Statement was the New Zealand Upgrade Programme. This is the $12 billion boost to New Zealand's infrastructure. We're able to do that because debt is low because the cost of borrowing is low and because the projects are there to do. This is a fully funded programme. This is not a wish list. It's not a series of promises. It's not a media statement put out just before the election. It is a fully funded programme and it's a programme that does get the balance right in our transport system. Yes it supports major roading projects but it also supports significant investment in our rail sector in walking and cycling.It also supports core investment in our education and our health systems. It is those hospitals right now that know that they've got a Government that's got their back and has invested in them as they lead New Zealand's public health response. That's what a responsible Government does. It ensures that we invest in our health system. After nine years of neglect of that health system we have come through with significant boosts both in terms of what we're building in hospitals and the support we're giving be it through the wages for nurses or be it through the increased investment in our DHBs. So that New Zealand Upgrade Programme that infrastructure boost puts us on the right footing as we move forward into this challenging period.We've covered several times in the House in the last couple of days what we're doing directly in response to COVID-19 of supporting our business community of getting alongside workers through the Ministry of Social Development through Inland Revenue through making sure that the Government departments pay their bills on time. That issue of cash flow was raised directly with us by Kirk Hope of Business New Zealand. He said "What's one thing we can do? It's make sure those bills are paid on time by the Government." We signed that off within three days to respond to exactly that. We continue to develop the business continuity package alongside the business community.Most businesses understand that right now we're in the phase where it's targeted responses that are needed tailor-made responses that deal with the industries the sectors and the regions who are facing the brunt of this. At the same time we plan. We plan for the possibility that this may go on longer that the impacts may cut deeper. We are ready for that and we have the fiscal space to deal with it.But all of the things that we're doing for COVID-19 which we must prioritise and we are prioritising stand alongside a Budget Policy Statement that fundamentally delivers on what the Government came here to do. Yes we need a strong economy and we've got it. Yes we need to manage the books carefully and we are but we must deliver to our people and to our environment. That is why the Budget priorities that are in here are the ones that we must stick through no matter what is happening.Yes we have to grow jobs. Yes we have to make sure that we're investing in our small businesses. All of that's being done but we must continue to deliver and prepare make sure that the economy is able to get ahead in terms of climate change make the most of the opportunities that exist there address the future of work support Māori and Pasifika aspiration make sure we lift children out of poverty. We've seen the statistics that are proving that we're doing that and investing in our physical and our mental wellbeing.I am extremely proud that we are now getting the focus right. Yesterday in the House James Shaw in his tribute to Jeanette Fitzsimons raised the question of her views around how we needed to move beyond GDP. We are doing that. Yes it's important to grow our economy but it is also important that we care about who shares in the success of that economy that we measure our success in the wellbeing of our children the health of our environment our mental health and our success in terms of work. All of those indicators are now clearly laid out in a Budget Policy Statement that gives a feeling of confidence to New Zealanders that we are on the right track that we have the plans in place to make sure that they and their families feel safe and secure. We are in challenging times but we are in very good shape to handle them."