1. Budget 2017—Social and Public ServicesBRETT HUDSON (National) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSBudget 2017—Social and Public Services1. BRETT HUDSON (National) to the Minister of Finance: How is Budget 2017 helping support social services over the next 4 years?Hon STEVEN JOYCE (Minister of Finance): Budget 2017 is making a big contribution to the investment in social and public services over the next 4 years. The Government in Budget 2017 announced an investment of $3.9 billion over 4 years in the health sector $1.1 billion in schools and early childhood centres—that is in operational funding—and $1.2 billion in law and order taking the total additional investment in public services to $7 billion over the next 4 years. As well as making those additional investments we of course want to ensure they go further which is why the Productivity Commission's current inquiry is to look at how to get better value for money again out of all the Government's expenditure.Brett Hudson: How does this investment help the most vulnerable in New Zealand?Hon STEVEN JOYCE: The theme of Budget 2017 was delivering for New Zealanders and that includes helping the most vulnerable in our society to improve their circumstances—for example through the Family Incomes Package. That is also why as part of the Budget the Government is investing $321 million over the next 4 years in specific social investment initiatives which include 14 initiatives to tackle some of our most challenging social issues. Key to this is helping vulnerable children and their families with $68 million being invested to deliver more tailored support for children in need.Brett Hudson: What are the Government's future intentions for investing in public services?Hon STEVEN JOYCE: Budget 2017 laid out the operating allowances over the forecast period. For example the annual operating allowance over the next 4 years is $1.8 billion meaning Ministers have allocated $7.2 billion over the 4 years. The operating allowance is at $1.7 billion in 2018 $1.7 billion in 2019 and $1.77 billion in 2020. Taken together this means the Government is committed to $17.5 billion in additional expenditure over the next 4 years.Grant Robertson: Why did Budget 2017 prioritise $400 million of tax cuts a year for the top 10 percent of earners rather than funding health to meet the actual cost pressures identified by the Ministry of Health or funding early childhood education to make up for the $110 per child cut on his Government's watch?Hon STEVEN JOYCE: The member is finishing the session with as much fabrication as he started it I see. The simple facts are that the health budget additions in this Budget are the highest in 11 years—highest in 11 years—and the education budget is funding all roll growth in both schools and early childhood centres. In regard to the member's reference to tax reductions I know he hates the idea of increasing the amount of income available to middle-income families people on $48000 or $52000 a year but I notice he is in favour of $3000 baby bonuses for people on $250000 a year.Brett Hudson: How is the Government able to fund these commitments?Hon STEVEN JOYCE: Well we are not paying baby bonuses to people on $250000 a year for a start. The Government is able to improve public services pay down debt invest in infrastructure and lift family incomes because of the strong economy. It is important to highlight the link between the economy and the Government's decisions. The New Zealand economy has grown in 24 out of the last 25 quarters and this along with spending control means the Government's books are in surplus—almost unique in the Western World. Sticking with the Government's economic plan will ensure we are in a strong position to make further investments in public services in the future.