3. Fiscal Strategy—Budget Policy StatementTAMATI COFFEY (Labour—Waiariki) to the Minister of FinanceFiscal Strategy—Budget Policy Statement3. TAMATI COFFEY (Labour—Waiariki) to the Minister of Finance: What are the key priorities outlined in the Government's Budget Policy Statement?Hon GRANT ROBERTSON (Minister of Finance): The parties that make up this Government are not satisfied with the status quo. The Budget Policy Statement sets out how the Government will lift incomes to reduce child poverty protect the environment create more jobs and build affordable houses while running sustainable surpluses and reducing net debt to GDP. The Government's Budget Policy Statement clearly sets out how our priorities are different from the previous Government. Not all New Zealanders received the benefits of economic growth in recent years. Our Budgets led by the Families Package will ensure that all New Zealanders share in prosperity.Tamati Coffey: How will the Government's priorities as set out in the Budget Policy Statement affect families?Hon GRANT ROBERTSON: The Government's policy platform has families at its heart. Our Families Package which reverses the previous Government's tax cuts and better targets the spending at those who need it most will lift 88000 children out of poverty by 2021—39000 more than the previous Government's package which would have seen 20 percent of the benefit go to the top 10 percent of earners. This Government has different priorities. We will target our spending at the time of life and to the people who need it most.Tamati Coffey: What is the outlook for wage growth and house price growth in the Budget Policy Statement over the next four years?Hon GRANT ROBERTSON: Good news—wages are forecast to grow on average by over 3 percent over the next four years due to this Government's policies. This is stronger than in the pre-election update and it is also stronger than the forecast house price growth over the next four years. Our policies to increase wages stabilise and moderate the housing market and build affordable houses through KiwiBuild will be in favour of first-home buyers.Hon Steven Joyce: Can he confirm that it is still one of his priorities to lift the return from work for Kiwi workers; if so why is he planning to remove $1060 from average median-wage workers from 1 April next year which will not be compensated by his 3 percent wage growth?Hon GRANT ROBERTSON: The fact that that member believes that the way to increase wages is to cut taxes shows just how limited his vision is. We want to lift wages by building productivity building skills and having a workforce engaged in high-wage jobs.Hon Steven Joyce: Can the finance Minister confirm then that real money in the hand for Kiwi workers isn't real money if it's a reduction in tax and is only real money to them if it's actually a lift in wages in which case is he saying that they are on the wrong planet if money in the hand is important to them?Hon GRANT ROBERTSON: The tax cuts promised by the previous Government were never real money because they'd never come into force.Tamati Coffey: What does the Budget Policy Statement show about the Government's Budget responsibility rules?Hon GRANT ROBERTSON: The Government set its Budget responsibility rules to provide certainty to New Zealanders that we will manage the Government books prudently. The Budget Policy Statement shows that we will keep expenditure within its recent historical range we will run sustainable surpluses and we will reduce net core Crown debt to 20 percent of GDP within five years of taking office. We can deliver a better and fairer New Zealand at the same time as managing our books responsibly.