Field Taito Phillip: Budget Debate 
Field Taito Phillip: Budget Debate 
[Volume:608;Page:5939] 
Hon TAITO PHILLIP FIELD (Minister of State) 
: 
 That speech was very disappointing. Even the press releases by the National Party finance spokesperson suggested that this Government is spending too much money particularly in the welfare area. Yet we have other members of the National Party including its leader saying we are not spending enough. That party is completely confused. Some of the party are pulling in one direction and the rest are pulling in a different direction. No House divided against itself can stand and I suggest that divisions within the National Party also indicate that it has not got over its leadership problems. 
It has a finance spokesperson who in the dead of night at 5 o’clock—and I am just wondering who picked the slot for the National Party finance spokesperson and whether it was Bill English who picked the slot that is buried halfway or three-quarters through this debate—finally gets up to speak about the Budget. That is a very poor state for the once-proud National Party to be in and I am very disappointed that the former Governor of the Reserve Bank a financial spokesman of some repute ends up being buried three-quarters of the way through this Budget debate. I need to ask why he has this slot. I want to know who put him there. Was it Bill English? We are concerned about Her Majesty’s Opposition and the state it is in. Enough of that because the previous speaker is continuing to preach discredited economic philosophy and nobody really wants to take any notice. 
I want firstly to congratulate Dr Michael Cullen the Minister of Finance on a very responsible Budget. There is no question in the minds of most New Zealanders that the Minister of Finance in this Labour Government is very prudent and responsible and has absolute credibility when it comes to financial and economic management. As far as I am concerned a $4 billion surplus is an indication of the success of that economic management. There is no question that New Zealand’s strong economic growth under this Labour Government at the top end of the OECD countries’ economic performance list also indicates the Hon Dr Michael Cullen’s performance as an outstanding Minister of Finance. There is no question about that and when members start talking about performance they should remember we are already near the top of the OECD countries. That is something to be proud of. 
There is no question that there are problems in the world economy. We have just had a war in Iraq. We have had the severe acute respiratory syndrome epidemic. We have had a drought in New Zealand and certainly that is creating problems in generating electricity. We all know that. We also know there is an increase in the value of the New Zealand dollar and there is the uncertainty of the US and the world economy. It is obvious that we need to err on the side of caution. There is no question about that and this Budget represents that cautious responsible approach that we need to take to the management of our economy. 
Despite that responsible approach this Government I believe still shows New Zealanders that we have a heart. We do have a heart as a Government. 
Hon Richard Prebble 
: Will the member answer a question? 
Hon TAITO PHILLIP FIELD 
: The member wants to talk about hearts. Some of the things that ACT is coming out with indicate it is a heartless party but at least Labour continues despite responsible economic management to indicate that we do have a heart and we will deliver policies that are balanced and we will promote the interests of those who are most vulnerable in our communities. This Budget indicates a very coherent and highly credible programme not only for this year but for next year too. It strongly supports economic growth through innovation and through funds that support good public services and good infrastructure in terms of the initiatives we need to take to promote economic growth. Without economic growth we do not have the means to deliver on social policy. 
 Debt is another area shown up by this Budget. We inherited from the National Party Government a debt that was 36 percent of gross domestic product (GDP). That is a disaster. But this Government in the short time of 3½ years has reduced debt from 36 percent of GDP to 27 percent and it is projected that by 2003-04 that level will go down even further to 23 percent of GDP. That is a success story. It is certainly a success story that the National Party in its 9 years in power could not match and it is an achievement this Government can be proud of. 
This Budget is a responsible one that looks at key areas of welfare. Admittedly there have been only some small movements in those areas and some people in the community are not happy but there is no point in making significant changes that we cannot sustain in terms of benefits and changes to the benefit system. So I am pleased there has been some improvement particularly in the threshold of tax credits and in family support for those with the greatest need. I reckon that is a movement—already there is a signal—that significant changes will be looked at for next year to help significantly those with the greatest needs in our community. 
In the social area I congratulate the Hon. Steve Maharey on the initiatives he has put in place. I have been proud to work closely with him in social services. We are going to pursue those initiatives that are reducing unemployment and in this country that is another proud record this Government has achieved over the last 3½ years because unemployment is at the lowest level for 20-odd years. The unemployment level has dropped from the highs of 12 percent— 
Dr Wayne Mapp 
: Dr Cullen says it’s going to increase. 
Hon TAITO PHILLIP FIELD 
: For Pacific people I can tell the member that it is down to 7.5 percent. That is quite an achievement—dropping from something like 15 percent under National. The Maori unemployment rate is also tracking down and that is as a result of the initiatives that this Government has put in place. So we have laid the strong foundations for and bedded in over the last three Budgets a course that will maintain a strong position in these times of uncertainty. 
The funding that this Government has put towards health is something we can be proud of. The total spending particularly in the area of primary health-care is important for Maori and Pacific Island communities. I say that because an extra $435 million has been dedicated to the promotion of primary health-care. There are 34 primary health organisations established up and down this country and I am proud to have assisted recently in opening one of those Ta Pasifika which is already making positive contributions within the community. 
Those primary health organisations are making significant improvements in the situation of low-income people in my area. They have cut the cost of visits to the family doctor for those children and other low-income people. An illness like diabetes is an example of what is important about the Budget and what it is investing in—that is health and education for our low-income communities in particular for Maori and Pacific Island people. It is also an example of the importance of the money we can save through effective primary health-care. 
I want to quote a small extract from an article that indicates the seriousness of diabetes in our community: “Preventable diabetes-related hospital stays are costing taxpayers $500 million a year—more than twice as much as previously thought—a major health group says.” Diabetes New Zealand patron Don Beaven said that the figures are far more than what was originally estimated at $250 million and show that the Ministry of Health urgently needs to do more to halt a growing diabetes epidemic.” That is an important aspect of the programme this Government is putting in place in the primary health-care area. Prevention is better than cure and too many Maori and Pacific Island people are heading towards renal failure and then expensive treatment by means of renal dialysis. 
This Government can be proud of its record as a competent responsible economic manager in all sorts of areas and in particular in education. I compliment the Minister of Education on the millions of dollars that have been put into that area particularly the extra $55 million put into the promotion of early childhood education. That is very important for Pacific people because until our infant children get a good start their chances of failure in the education system will continue at a very high level. A 62 percent participation level by Pacific Island children is an appalling situation in terms of their chance of succeeding in our education system. I compliment the Hon Trevor Mallard on the $55 million he has dedicated to early childhood education particularly for Maori and Pacific Island children to get increased participation levels amongst those two communities. The investments are there in this Budget for the future of our economy and our country.