3. Budget 2018—PrioritiesHon AMY ADAMS (National—Selwyn) to the Minister of FinanceBudget 2018—Priorities3. Hon AMY ADAMS (National—Selwyn) to the Minister of Finance: Does he stand by his statement It's a perfect Budget I knew it was"?Hon GRANT ROBERTSON (Minister of Finance): In keeping with my well-deserved reputation for modesty I made that comment in jest at the end of my post-Budget speech on Friday when there were no questions from the audience indicating that all 600 of them were happy with the Budget.Hon Amy Adams: Well if that comment was made in jest were the tax deductions only available to "good-looking horses" also meant to be a joke?Hon GRANT ROBERTSON: Absolutely not. The bloodstock tax initiative actually puts in place a policy that was first put forward between 2005 and 2008 that that Government failed to deliver on.Rt Hon Winston Peters: Could I—[Interruption]SPEAKER: Order! [Interruption] Order! Could the member resume his seat? The only reason that there are not a substantial number of deductions from the National Party for those interjections was the fact that there were a significant number from my right as well. I know the House is excited but I think it can just settle down.Rt Hon Winston Peters: Now that the subject has been raised by the Opposition is the Government's intention in its bloodstock policy with respect to races to pay the money out to horses that can look good or run fast?Hon GRANT ROBERTSON: The intention here is that horses that can breed other horses that can both look good and run fast will be supported.Hon Amy Adams: Does the Minister think it's perfect to be increasing Crown debt by billions of dollars in nominal terms during a period of rising surpluses and solid economic growth and under what economic conditions would he actually pay off debt?Hon GRANT ROBERTSON: We are beginning to pay off debt at the end of this forecast period which will indeed be the economic conditions we talked about. But as I've been going around talking about the Budget it's actually members of the business community who've been saying "We think you should borrow more because we've got a desperate need for infrastructure that wasn't funded by the previous Government."Hon Amy Adams: Is it perfect that he's planning to have 14 out of the next 15 years with residual cash deficits as shown in Treasury's Fiscal Strategy Model despite the solid economic conditions that he inherited?Hon GRANT ROBERTSON: Well the previous Government also had some residual cash deficits in their forecast as well. But I just repeat: there is a desperate need in New Zealand to invest in quality infrastructure all the way from housing to education to health to our transport system and we're getting on with the job.Hon Amy Adams: Does he consider it perfect that the Government offers nothing for the squeezed middle in the Budget with increased taxes no action on ending school donations no action on their early childhood education promises no universal cheaper GP visits and the Government already having taken $1000 a year off the average worker in cancelling tax cuts?Hon GRANT ROBERTSON: I'm interested in the member's recent conversion to universalism in the provision of social services and look forward to seeing some more policies in that regard. What I can say is that the Families Package reaches middle-income New Zealanders because we are actually restoring the funding for Working for Families that was undermined for years by the previous Government.Hon Amy Adams: Is he confident of the accuracy of Treasury's economic forecasts given that his future operating allowances and debt to GDP track rely heavily on those numbers or does he consider that Treasury are in the words of his colleague Phil Twyford "completely disconnected from reality"?Hon GRANT ROBERTSON: I think in general Treasury do good forecasting about the big GDP numbers. We'll always have differences of opinion with them from time to time but I'd also say to the member that every Budget that's been produced since the Public Finance Act was created is based on future Budget forecasts.Kiritapu Allan: Noting the various feedback that the Minister has had what negative responses has he seen to Budget 2019 announcements?Hon GRANT ROBERTSON: I'm sure the member means Budget 2018 as we haven't had the opportunity to do that. Naturally not all commentators are positive or well informed. I've received some commentary that Pharmac will be losing $200 million from its budget. Pharmac themselves announced that the combined pharmaceutical budget will be increased to a record level of $985 million an increase of just under $114 million. I've also heard reports that this Government will be reducing the level of services available to stop child exploitation material. The Department of Internal Affairs instead states that it's boosting the workforce from 15 to 27.5. I've further heard reports that instead of targeting spending on middle and low income families we should instead be offering to "return $1000 a week to the average worker" and early—SPEAKER: Order! [Interruption] Order! That's enough."