Barker Rick: Budget Debate 
Barker Rick: Budget Debate 
[Volume:608;Page:5943] 
Hon RICK BARKER (Minister of Customs) 
: 
 It is with considerable pleasure that I rise to speak in the Budget debate. I want to say that this will go down as one of the all-time great Budgets. 
Dr Wayne Mapp 
: Oh! 
Hon RICK BARKER 
: Mr Mapp can scoff. But I say to him that there will not be for a long long time a National Party Minister of Finance and a National Party Minister of Finance will not deliver a Budget that has 4 percent-plus growth registered in the economy— 
Government Member 
: It’s 4.4 percent. 
Hon RICK BARKER 
: —yes 4.4 percent—substantial surpluses money put away for superannuitants’ pensions in the future increases in health funding and increases in education funding—increases everywhere. We had the dead hand of Bill Birch giving Budgets for a long time. The dead hand of Bill Birch built an economic theme park of disasters around this country. The dead hand of Bill Birch cut slashed and burned into services in this country and left a legacy of financial debt and social debt. This is the first time we have had a series of Budgets that has invested heavily in the economy our social infrastructure and our people. 
The point I want to start with in this Budget debate is about the Customs Service. I have the privilege of being the Minister of Customs and the Budget is a very good-news Budget not just for the Customs Service—which has had substantial investment—but also for New Zealand security for regional New Zealand and for our international trade. I do not think that many people have reflected upon the consequences of the September 11 event in New York. One of the consequences has been that the United States has become very conscious of security issues. It has made dramatic changes in its border agencies and it will make further changes. The United States is also very concerned to ensure that what goes into the country is exactly what it says it is. In the review of its security after September 11 the US came to the conclusion that millions of containers are going into the United States and that it has very little knowledge as to the contents of those containers. As a consequence of that the United States now requires overseas countries to give an assurance about those containers—from the port or the country they go from. 
New Zealand has over $4 billion of trade with the United States. We send 70000 containers there. If we do not meet the security standards of the United States on the container trade we put that trade at risk. There is another issue: if we cannot assure the Americans about the contents of those containers and that they are secure then the Americans will in fact do the work themselves and that could mean New Zealand – sourced containers sitting on a wharf in the United States for between 3 and 5 days. So this is a trade issue for New Zealand. New Zealand exporters could not afford to have their containers held up on US wharves for over 1 week possibly. To meet this demand and this issue for New Zealand the Government has invested in this Budget a $9 million increase to the Customs Service for its operating expenditure. This funding will employ up to 130 additional staff and give them the resources necessary. The Government has also budgeted for an increase in X-ray technology of between $15 million and $25 million. With this investment the New Zealand Customs Service will be able to have a non-invasive inspection of containers that are of interest to the New Zealand Customs Service or to the United States customs service to ensure that the paperwork about those containers actually reflects what is in the containers. 
 But better than that the New Zealand Customs Service is developing a whole-of-Government approach to ensure the supply chain. In the past the United States customs service has made agreements between itself and ports. What we in New Zealand are asking for is for the customs service in the US to have an agreement—which we have with it; an interim agreement—for the New Zealand Customs Service. Without this some of the trade from some of our smaller ports would be put in jeopardy because they would simply be too small to be able to comply with the requirements of the United States. 
Simon Power 
: Tamihere is nodding. 
Hon RICK BARKER 
: The National Party member scoffs at this issue but I ask him this: how is he going to be able to sustain for example the port of Timaru or the port of Nelson to be able to export containers to the US? If he could not what would that mean for the viability of those ports? If the economic viability of those ports is not of interest to the National Party I can assure the member that it certainly is of interest to this Labour-led Government. We are going to invest heavily in container security to ensure that we are able to guarantee our exports to the United States. So there are reasonable development issues with this and there are also trade issues. 
The other point I would like to make is this: in the event of a terrible disaster in the United States if we have such an arrangement with the United States about container security and we are able to offer them the certainties or the sureties that are necessary our trade will continue or is very likely to continue. If we are unable to give those assurances to the United States customs service then our trade will be put at risk. I will repeat the figure—we are talking about $4 billion worth of trade. Another very important improvement for the Customs Service in the Budget was $1.98 million to employ a further 16 new investigators at the border for drug enforcement. I was the Opposition spokesperson on customs during the 1990s and I am sorry to say that I witnessed the decline in funding in the Customs Service under the National Government. That decline in funding has left the Customs Service very hard-pressed to meet its commitments. One of the areas of great concern to the general public is the rise in the use and sale of methamphetamines and P-type substances. The New Zealand Police have successfully raided about 150-odd laboratories in the last 12 months but it is also of concern to the Government that these drugs may be coming across the border and there is strong evidence to suggest that is the case. The Customs Service has had a dramatic increase in the number of seizures of methamphetamines and P-type substances. The increase of almost $2 million to the drug investigation teams will ensure that we have an increased capacity to be able to catch the people who bring the drugs into New Zealand and not only intercept the drugs but also prosecute the people concerned. 
The other point I would like to raise concerns Work and Income for which I have delegated responsibility. I am pleased to see that there has been a substantial increase in investment in the Ministry of Social Development. There is $42.75 million of new money which will enable us to develop more long-term sustainable plans for people who are on our records. We will be able to help people get into jobs identify the skill shortages help people gain the skills that are necessary to get the jobs and generally improve on the work that has already been done. It is with some considerable pleasure that I can say to the House that we have seen the number of registered unemployed steadily fall under this Government. Every month there has been a steady fall in the number of unemployed. Contrary to the assertions of the National Party the total number of people on a benefit in this country is fewer and fewer every month and that is something that the National Government in the past could not achieve. 
In conclusion I would like to say that this Budget is not only good for the Customs Service and the people of New Zealand generally; it is also very good for the Hawke’s Bay electorate of Tukituki that I represent. There is increased funding for education and health. We now have a primary health organisation established in Hawke’s Bay. There is better funding for mental health in my area and the mental health services in Hawke’s Bay after decades of foregoing the client are on the turn-round. There have been improvements in funding for innovation. There is more money for my people to be certain about their superannuation. Income-related rents continue to be a policy of this Government meaning that people on a benefit and who are in a State house have more money in the hand. We are also seeing housing upgrades. We have security of our exports. There have been improvements on every front. I can honestly say that in the decade I have been the Hawke’s Bay member of Parliament for both Hastings and Tukituki I have never seen the province so prosperous and so looking forward to the future. This Government has been fantastic to Hawke’s Bay and I expect it to continue to be re-elected.