Lotu-Iiga Sam: Supplementary Estimates — Imprest Supply Debate 
Text is incorporated into the Bound Volume 
Lotu-Iiga Sam: Supplementary Estimates — Imprest Supply Debate 
[Sitting date: 26 June 2012. Volume:681;Page:3402. Text is incorporated into the Bound Volume.] 
Peseta SAM LOTU-IIGA (National—Maungakiekie) 
: 
 It is a great pleasure and honour to speak in this Budget debate and to give the final speech. It is quite an honour. I just want to say I support the Prime Minister the Rt Hon John Key as well as the Minister of Finance Bill English bringing this legislation to the House. 
Looking back 3½ years over this Government’s tenure New Zealanders know that we inherited an economy that had some of the highest interest rates and inflation rates in the Western World. The forecast for economic growth when we took over the Treasury benches was particularly grim. Treasury had forecasted deficits of Greco-Hispanic proportions—10 long years of crippling deficits. Labour’s great legacy—and Mr Hipkins knows this—which it likes to keep quiet was 5 consecutive years of export contraction. The prolonged global economic recession the Christchurch earthquake and Labour’s economic mismanagement have led to a long dark night in our history. However after a long dark night we all know that there is morning again and this Budget represents morning in New Zealand. It is morning because in New Zealand this Budget will balance the Government’s books by the year 2015. It is morning in New Zealand because this Budget will deliver better Government services. Finally it is morning in New Zealand because this Budget builds a more productive and competitive economy. 
Under this National Government the economy has steadily built up to the point where 2230000 New Zealanders went to work in this country today. That is more than at any time in our history. Interest rates are at historic lows—under 5 percent. They were well over 10 percent under the Labour Government in early 2008. In fact inflation was over 5 percent in mid-2008 and today it is at an all-time low of 1.2 percent. Finally I want to say that economic growth in the first quarter of this year—the figures were released last Friday—came in at 1.1 percent. That is the third-highest rate in the OECD. The Opposition might ask—Mr Mallard in particular—why it is important that we balance the Government’s books. Well it is important because as we look around the world—and my colleague Mr Yang referred to this—there are danger signs of countries where out-of-control debt has brought nations to their knees. In Greece crazy debt-levels led to a €130 billion rescue package for what is a €215 billion economy. Unemployment there is over 21.5 percent and the economy has shrunk. It shrank by 6.5 percent in the first quarter alone. Mr Yang also referred to unemployment in Spain. It has hit 24 percent. The banking sector there is in crisis and facing serious downgrades and a recession is imminent. In my view this National Government would not allow that situation to happen here. It is through fiscally responsible policies prudent economic management and sound common-sense leadership that we will make this country bolder brighter and better again. 
New Zealanders ask what this Budget does to balance the books. Well we have closed tax loopholes around livestock and mixed-use assets to save $293 million over 4 years. We have removed tax credits that were no longer serving their purpose and that will save $117 million. But what is critical with debt in mind is that the net core Crown debt will remain below 30 percent. This is a gold standard compared with the debt of other developed countries. 
Significantly we are reprioritising $4.4 billion over the next 4 years to ensure that New Zealanders receive better public services in health education social services and science and innovation. Why are we doing this? Why are we doing this? That is a particularly important question. We are doing this because these are the areas that actually matter to everyday New Zealanders. So in health—and I am glad the Hon Tony Ryall is here to join us in the House today—we are spending an extra $1.5 billion. Under his leadership we are spending an extra $48 million on more elective surgeries. That is right—more New Zealanders whose quality of life will be improved under this Government. 
Hon Tony Ryall 
: That’s right. Record numbers. 
Peseta SAM LOTU-IIGA 
: “Record numbers.” the Minister says. This Government will increase science and innovation funding across government to more than $1.3 billion by the year 2016. That is $166 million of extra funding which will go to develop the new Advanced Technology Institute. This is critical because these are the investments that support the high-value manufacturing and services sector. These businesses have the potential to create high-value exports and high-wage jobs while not requiring significant land-based resources. I see this in my own electorate of Maungakiekie through innovative companies like Rakon Buckley Systems Masport and Compac Sorting Equipment as well as Sistema. The recent GDP figures are testament to this with manufacturing up 1.8 percent in the March quarter alone. This represents the largest contributor to economic growth in this period. 
Finally just on the Future Investment Fund which will invest $5 billion to $7 billion from the partial floats of State enterprises—and I again commend the Minister for State Owned Enterprises who is in the House for bringing the legislation through which was passed yesterday—crucially it will contribute $33 million towards the fit-out of ultra-fast broadband in my schools in Maungakiekie but also in schools in the electorates of other members of Parliament here in the House today. We are also investing over $88 million in a number of hospital redevelopments across this country. So we are investing in our future by investing in our children and investing in their health and learning outcomes. 
What has been clear in this debate are the ideological differences between those tired pessimistic members on the Opposition benches over there led by Mr Mallard against these upbeat aspirational members on the Government benches over here. The Opposition is arguing what we cannot do while this Government is stating clearly what New Zealanders are capable of. The ideological divide is noted in a study by Harvard economists Alesina and Ardagna. Their conclusions were unequivocal. Fiscal stimuli based on tax cuts are more likely to increase growth than those based on spending increases. They added that spending cuts which is what this Government is about are much more effective than tax increases in stabilising debt and avoiding economic downturns which is what Mr Mallard represents. 
In closing it is morning again in New Zealand and under the leadership of John Key our country is bolder brighter and better. Why would we ever want to return to the profligate ways of the last Labour Government which emphasised tax spend and borrow but very little hope? This Budget sets this country on a path to surplus this Budget puts an economic framework in place for improved prosperity and this Budget provides opportunities for all New Zealanders to get ahead and succeed. I say again it is morning again in New Zealand and I commend this Budget to all New Zealanders and this House. Thank you.