King Annette: Budget DebateText is incorporated into the Bound VolumeKing Annette: Budget Debate[Sitting date: 21 May 2014. Volume:699;Page:18192. Text is incorporated into the Bound Volume.]Hon ANNETTE KING (Labour—Rongotai): That was a very very ironic speech from a member Chris Tremain who is bailing out of the National Party. He is not willing to stand again in Napier because Stuart Nash is going to beat him at the next election. And what is he doing now? He is now helpingStu Nash win the seat for Labour. That is what that member is doing. So I found that speech very interesting when he wanted to name the Labour members who wanted to retire forgetting that he was doing that himself.I actually have found it almost cringe-making to listen to John Key Bill English and now Chris Tremain today crowing about how much better New Zealand is doing than Australia under a National Government. They did it on Budget day. Chris Tremain did it today. Well you know they remind me of one of those cricket commentators we have in New Zealand. We win one test out of four and suddenly we are the world champions. The National Party members think that because for one year we have a better record in some things than Australia we are now doing far better than that country.Well I say before they get too cocky and make us look like fools let us have a look at just a few facts. The unemployment rate in New Zealand after 5 years of the National Party is now on a par with Australia. The Australian GDP per capita is around $48000 in US dollars and New Zealand’s is 30 percent below. That is today. The New Zealand Government’s surplus was at 3.7 percent of GDP in 2007 and it went to a deficit of 5.1 percent in 2010 while the Australians had a surplus of 1.5 percent in 2007 and they ended up with a deficit of 5 percent of GDP in 2010. In other words the last Labour Government left the National Party in a much better state to handle the global financial crisis in New Zealand than any other country.I have to say have a look at the growth projections in the New Zealand Budget and have a look at the growth projections in the Australian Budget. In 2015-16 the growth projections in Australia pass New Zealand. In 2016-17 there is an even bigger projected growth in Australia compared with New Zealand and in 2017-18 it is the same. I have to say one swallow does not make a summer and one year when we might have beaten Australia does not mean that we are now in a better position. I cringe when we go into that sort of behaviour. The Aussies must be having a good old laugh over there as well.One of the things that John Key has been saying about this Budget is that 12 percent of households now pay 76 percent of all net tax in New Zealand. Well I need to tell the members opposite that there is no such measure as net tax. What he is saying is totally untrue because he ignores GST. Forty percent of our tax take comes from GST. Who pays most of the GST in New Zealand? Those on middle and low incomes. In factthose on low incomes spend almost all their money and that means they pay GST on everything that they buy.I want to turn to the health budget and say now for some real facts about the health budget. Here are some truths abut what has been happening to health funding under Tony Ryall. I think it is now time to put aside the political slogans that have been posturing as a health policy and look at the impact of six Budgets under this Minister of Health.Did the members opposite realise when they were clapping and cheering on Budget day that the health budget has been reduced in real terms by 2.3 percent in this Budget? They are not my figures; they are Treasury’s own figures and they are in the “blue book” if members want to go and look at them. If they take the time to read the shape of health in the future under a National Government if it is re-elected they will see that it does not look good at all—not my figures; Treasury’s figures. And they are not old figures either. They are the latest figures and projections in the Budget document put out by Treasury which we heard today from Mr Joyce—when he wanted to quote Treasury—we should be listening to.So let us have a look at what these figures are. We have got 2.3 percent less in this health budget—that is in total expenditure—and we are going to have when we look at 2015-16 3.7 percent less. In 2016-17 it will be 3.6 percent less and in 2017-18 it will be 3.1 percent less in real terms.I have to say that those figures are from the Budget projections in the National Government’s own Budget. Did New Zealanders know that? Did they know that National has not only cut this year’s health budget by 2.3 percent in real terms but is projecting a cut in the health budget out through the years? That is the truth. That truth needs to be reported in the media. I am really disappointed that a fact like that which is going to affect people’s health through the services the Government provides—and perhaps affect the way that people vote—is not being portrayed in the media.Those are big cuts in health when you consider that all but one Budget under Tony Ryall has cut the health budget. We now know what is happening in health in terms of the provision of services. Then next year should the National Party win people are going to say: “Oh my goodness! Oh no! There’s been a cut in health care. My I’ve heard that my mum can’t get an operation on her dodgy hip.” or they will find that her home help has been cut. Well I have to say wake up New Zealand. The National Government has cut the health budget. If you vote for those members they are going to cut it every year in the foreseeable future.In this Budget we did welcome the free doctors visits for under-13-year-olds but the devil is in the detail. The questions I was asking today were not meant to criticise the fact that there was free health care for under-13-year-olds. After all after the Budgets of the 1990s when we had had affordable health care and the subsidies were taken away by Ruth Richardson and the National Government I was the Minister of Health who brought them back in. I am very committed to affordable primary health care. But what this Government has not provided to our doctors is what the level is of that subsidy that is going to be provided in order to give that service to children for free.I have to tell you that the New Zealand Medical Association has said publicly that it may have to cross-subsidise and charge adults more if the amount paid per child per visit each year is insufficient. The question I would then ask is what impact that will have on our old folk—those who are on a fixed income. They live on the pension. They have nothing else and many of them are saying to us now: “Paying $45 $47 or $50 for a doctor’s visit is already too much from our pension.” If the association is going to cross-subsidise for children what is the impact going to be on those people who are important people in our community?So it is up to the Government now to tell us what the subsidy is that is going to be provided. Will the $30 million per year over 3 years cover the cost? There is no doubt in my mind that doctors are not just going to do it for free. There is no free ride here. Somebody is going to have to pay for it.Another feature of this Budget as the Minister of Health said is that there is going to be another $100 million for elective surgery. Well I have to tell you that it is $100 million over 3 years—over 4 years; not 3 but over 4 years—David Shearer: What?Hon ANNETTE KING: —$100 million over 4 years—is $25 million a year across 20 district health boards and that is about $1.25 million that each district health board will receive. Do not expect to get your hip done any time soon. Then we come to public health which is $1.25 million per district health board each year—Hon Members: More.Hon ANNETTE KING: —$1.25 million more—and $1.25 million will not pay for many hips. As for public health under this Government it has cut $16.2 million—Hon Anne Tolley: No.Hon ANNETTE KING: —out of public health. Have a look at the figures Anne Tolley. Do not shake your head. That is what this Government has done and then it has the cheek to talk about obesity and stomach stapling.