Lu NancyNANCY LU (National): I'm grateful for the opportunity to stand and add my contributions about the Budget Policy Statement (BPS) which reflects our commitment to restore fiscal discipline revitalise our economy and redefine Public Service efficiency in New Zealand. The National-led Government is very clear about what it wants to achieve as the Budget Policy Statement sets out our overarching goals are to build a stronger more productive economy to deliver more efficient effective and responsive public services and to get the Government's books back in order.Under the stewardship of finance Minister Nicola Willis this year's Budget Policy Statement outlines our approach to navigate through economic challenges with prudent fiscal management and strategic investment. It marks a pivotal shift from the last Labour Government's policies because it requires us to be prudent and responsible with New Zealander's' hard-earned money and taxes that they pay. It steers us towards sustainable economic health and ensures long-term benefits to all New Zealanders.In 2023 our Government was elected on the promise to rebuild New Zealand's economy. Kiwis voted for the National-led Government to fix the economy because they are suffering and they know it will have to be a National-led Government to be prudent with the taxes that they pay and a National-led Government to reconnect New Zealand with our existing trading partners around the world and also connect with new regions and new countries to create new revenue opportunities for Kiwis.The 2024 Budget in eight sleeps will be a blueprint for delivering on this promise. And the core of our strategy is to cut the Government's wasteful spending stimulate growth while improving public expenditure and improving public health to reduce the burden on our future generations.The New Zealand economy is at one of its worst and its weakest with the double-dip recession with this structural deficit with a continued high official cash rate. It doesn't need economists or experts or data analysts to tell us that our economy is suffering. Just simply talk to people around us in our community up and down the country and ask about how they feel about the economy about their living and about their cost of living in New Zealand right now. Ask them for some examples with what they face when they have to pay at the supermarket checkout when they have to juggle between the children's expenses and how much more they have to pay for their rent or their mortgage interest how much more they have to pay for transport costs simply to get between places.So our economy is not good—period. Our state of the nation is not good—period. Our Kiwis are suffering—period. I have received so many questions and messages from constituents who have asked me about the status of our country and they asked Really how bad are we? How come New Zealand has so much debt now? How is it possible that the Government now pays more on finance costs?" And on this I must share the shocking shocking financial data again which I repeatedly shared during the Finance and Expenditure Committee and also to many of the constituents that I met in the community—that the New Zealand Government now pays $1 billion more this year than the spending that we give to Defence Police Corrections and Customs combined. We pay more on finance costs simply to service our nation's debt more than these four combined.I've also been asked by so many people about structural deficit. It's a word that we constantly used in our select committee and I'll take this opportunity to explain it for you. It means our country's expected revenue is consistently below its expenditure. That means even in the periods of economic growth our Government does not generate enough revenue to cover its spending. [Interruption] It also means for the members opposite for you to understand that our Government's ability to respond to future crises is limited because we have committed spending to our country but we have less fiscal headroom to address the unforeseen events such as economic downturns such as natural disasters such as public health emergencies without further increasing debt.So the National-led Government is laser-focused on rebuilding our economy by cutting down wasteful Government spending enhancing revenue investing in growth and implementing structural reforms. And by focusing on these areas this is how New Zealand can actually shift from a structural deficit to a fiscal surplus improving the country's long-term fiscal sustainability and economic resilience.Since becoming an MP I have had many opportunities to hear from Kiwis from the top of the North Island to the bottom of the South Island literally. I've been in communities held public meetings knocked on business doors to ask them one question: "How are you going?" There is one consistent theme and repeated words: "hard" "tough" "doomed" "challenging" "expensive" "pressure".I remember speaking to a motel owner in Invercargill and he said "Business is hard and people are not travelling. Hiring staff is hard because the last Labour Government have raised the minimum wage too high." I asked a business executive in Napier and he said "I've just returned from overseas on business trips and things are buzzing out there. Businesses are active people want to trade productivity is high new technology new energy. But coming home back to New Zealand was hard because things are expensive we can't afford to export and our products are more expensive and losing our competitiveness." I asked a tourism operator in Rotorua and he said he's never been under so much stress because international tourists are simply not coming back enough even compared to before the pandemic; whereas many other countries in the world are simply crying out for having way too many tourists. I also asked international students in Auckland and they said they're very disappointed with their experiences in Auckland. So many shops are permanently closed it's more expensive to travel within New Zealand than to travel to Australia. They have no confidence in finding a job in New Zealand that will give them a clear pathway to residency and finally calling this country home.I have so many more stories that I can share from day to day Kiwis who are struggling in the state of the economy we are in right now. And everyone that I spoke to has asked me one question: "Can you please fix the economy and fix it fast? I don't know how much longer we can hold on to this."So I see the BPS as hope. The three main takeaways from the BPS for me—and I've always been sharing this with the communities outside of this Parliament building first—the Government will deliver meaningful tax reduction responsibly and affordably. Tax thresholds have not been adjusted for 14 years. New Zealanders are suffering with cost of living pressures so tax relief is coming. Tax relief will be funded from within a new operating allowance for Budget 2024 and we won't be borrowing extra for tax relief and will not be adding to inflationary pressures.Second we are putting a strong focus on supporting and expanding front-line services that day-to-day Kiwis desperately need like health education and law and order. Thirdly the mess that the last six years of Labour Government created for New Zealand will take more than one Budget to fix. It will take several Budgets. This is because there need to be structural changes to cut red and green tape to turn around the ship that has been sailing in the wrong direction and soon make it right again.We also need to rebuild New Zealand's economy because special economic and tax forecasts prepared by the Treasury for the BPS showed that Treasury has downgraded the expectations of economic growth for New Zealand. This has a flow-on effect into forecasts of tax revenue and the ability for New Zealand's economy to rebuild.So our response is that the Budget Policy Statement is more than a fiscal document. It is a declaration of our Government to uphold fiscal responsibility stimulate economic recovery and restore the prosperity of our nation. So thank you for the opportunity for me to speak in support the BPS and to all New Zealanders hope is coming."