Beaumont Carol: Budget Debate 
Beaumont Carol: Budget Debate 
[Volume:673;Page:19134] 
CAROL BEAUMONT (Labour) 
: 
 I too rise to speak on Budget 2011 and to oppose it. As the Labour list MP based in the Maungakiekie electorate before I do that I note in the House the tragedy that occurred in the Maungakiekie electorate on Saturday 4 June. An explosion took place on a worksite in Onehunga at a Watercare project when workers were attempting to reconnect the Hunua 4 and 3 pipelines. At that time a worker on site Philomen Gulland was killed. I extend my condolences to her family and particularly to her children who no longer have their mother with them. Also I extend my sincere thoughts and hopes for Ian Winson who remains in a serious condition in hospital. 
A number of other workers were also injured. My thoughts are with them their families and also their co-workers who were with them at that time and experienced the tragedy. They had to see things that many of us hope never to see. Local residents also were shocked and saddened by the events on Saturday 4 June. I also acknowledge the work of our emergency services. They did a brilliant job as they always do. They really were fantastic. 
Many questions remain to be answered in relation to this incident. I stress that fact and acknowledge my colleague Darien Fenton who referred to the issue of safety at work. When we go to work in the morning our family and friends expect us to return home safely at the end of the day. Sadly for a number of workers in Onehunga on Saturday that did not happen. 
I return to the Appropriation (2011/12 Estimates) Bill and Budget 2011. I rise to oppose this Budget. I believe it is a blueprint for more borrowing for asset sales for service cuts and for economic stagnation. After previous recessions we saw our economy rebound reasonably quickly; under this one the recovery is at best anaemic. We are as many commentators say sitting on the edge of a double-dip recession. That does not happen for no reason; it happens due to a lack of a plan and the deliberate choices of Government. 
There is no plan to grow our economy to create jobs or to invest in our people. In fact one of the things that always horrifies me is listening to the spin from the other side of the House. I listened to Peseta Sam Lotu-Iiga talk about the bill that brought into place the changes to KiwiSaver and Working for Families. He referred to alterations streamlining and modifying. They are cuts. He was talking about cuts; he was talking about cuts to KiwiSaver. In fact the bill itself talks about reductions and lower maximums. They are cuts. 
What does that look like for struggling families for low and middle income New Zealanders? The changes to KiwiSaver mean costs. It costs more to save for retirement. It also creates uncertainty and reduces confidence in what is an important savings scheme in our country. We probably all acknowledge the importance of savings. Working for Families cuts means that over 50 percent of families currently receiving Working for Families will get less. That is a cut. 
Those are some of the changes. They put pressure on families and families are already under pressure. It costs more to buy food. Domestic violence statistics have been going up at the same time as the Government cuts funding to domestic violence prevention services. All of those things should be worrying and the Government should be doing something about them. It should be offering a way forward. But this Government is out of touch with ordinary New Zealanders. It is out of touch with low and middle income New Zealanders. The Prime Minister talks about people having to go to a food bank because they make poor lifestyle choices. When Annette King and I visited the Salvation Army food bank in Royal Oak recently that was certainly not what the people there told us. They have unprecedented demand from people in the workforce as well as from those who are unemployed. I tell the Prime Minister to visit a food bank and then tell us about lifestyle choices. 
I look forward to telling people in the Maungakiekie electorate that changes in this Budget are not cuts; they are just alterations modifications and streamlining. That is typical National spin. In the speech announcing this Budget it was heralded as being stronger and more ambitious and building our future—building our future. We will not be building anything in this country given the skill shortages that we face the reduced industry training numbers the reduced numbers of apprenticeships and the fact that this Budget makes further cuts. It cuts $90 million over 4 years out of industry training. That is just ridiculous. 
Lifting the skill levels of our workforce has a number of really positive spin-offs. It provides opportunities to people to get work progress at work improve their wages and get greater job satisfaction. It provides an opportunity to lift our workplace productivity which is necessary to improve our economy and to get growth. It improves wages and conditions of work. It provides employment security and it gives people the opportunity to change as work changes and therefore to maintain employment. Investment in skill levels lifts levels of literacy and the education of the people in New Zealand. That impacts on families individuals communities and workplaces. It impacts on our economy. This Government is cutting the money that is spent on industry training and that is an absolute disgrace. 
What is meant by a “stronger more ambitious New Zealand.” and “building our future.”? As I said we do not have enough skilled people to quite literally build our country. Money has been invested into Christchurch—I acknowledge that as others have tonight—but the number of trainees in building and construction in this country has declined dramatically over the last 2 years. The number of people in industry training generally has declined over the last 2 years. The number of people in apprenticeships has declined and that is despite the need for rebuilding in Christchurch the need for rebuilding more houses in Auckland and the need to deal with leaky buildings. But fewer and fewer people are training in the building and construction sector. That is a disgrace as well. This Budget has no measures to counter that decline and we continue down a path of no investment in skills and training. I ask how we will fill that gap. 
I have to say that Budget 2009 and Budget 2010 were notable for the lack of new and significant initiatives in the skills area and in Budget 2011 we see $90 million of cuts in that area. Business groups unions and the wider community recognise this fact but there is still no plan. Phil O’Reilly from Business New Zealand who is often very positive about this Government has said that what the Government has announced so far is helpful with regard to Christchurch but we have not yet seen a strategy that he could discern or could put his hands around and say: “Here it is.” and “This is what we are going to work on.” Phil O’Reilly is saying there is no plan or strategy around skills and he is right. 
As Peter Conway from the Council of Trade Unions says the Government should say that jobs are a priority and therefore it should increase skills and investment subsidies. It should look at skills development programmes and really try to focus on getting people back into work and getting the economy moving. When I asked the Prime Minister today about the $90 million that has been cut out of industry training and how he thought it would help the 77000 young people who were not in school training or jobs he completely failed to answer the question. There is no answer: it is an absolute shock. 
Once again National has failed New Zealand and New Zealanders. The Government is not serious about ensuring growth and jobs. It is not serious about lifting our skills and productivity. That is in stark contrast to other developed countries including our near neighbour Australia which in its recent Federal Budget has invested enormous amounts more over and above the higher baselines.