Clark DavidHon Dr DAVID CLARK (Acting Minister of Finance): Well I think the interesting thing about that: that was a lecture on clarity and transparency by National's 11.7 billion dollar man". Once again I think Mr Joyce has revealed in the last 48 hours that he's not so hot on the numbers. That speech I can assure you was watched very very closely by the other speakers from National in this debate: Judith Collins and Amy Adams—the other people auditioning today for his job for the finance spokesperson's job. That's what's going on here today. Everyone in this House knows it. There's the three contenders for the finance spokesperson's job and I'm afraid that for Mr Joyce while today he was aiming for comedy unfortunately he only achieved tragedy.The Budget Policy Statement (BPS) was released on 14 December 2017 and it confirmed the Government's Budget priorities and fiscal strategy for Budget 2018 which will occur on 17 May. The new Government has signalled a desire for an economy that is fair and inclusive. We've talked about a shared prosperity. We want an economy that is beneficial for all New Zealanders. Too many of our people have missed out on the recent benefits of growth and as the previous Government has failed to make the necessary investments in public services and infrastructure to keep living standards high as Kiwis expect we are signalling a different direction in that respect. We will begin to address the social and infrastructure deficits that have built up over nine years.The Budget Policy Statement shows that Budget 2018 will make progress towards remedying these deficits through a clearly laid out set of priorities and these include: building quality public services for New Zealanders and improving access to core services taking action on child poverty and homelessness supporting families to get ahead and sharing the wealth generated by our economy with a wide range of New Zealanders sustainable economic development and supporting the regions and managing our natural resources and taking action against environmental challenges such as climate change.The Speech from the Throne which incorporated the coalition and confidence and supply agreements indicated the policy programme required to deliver on these priorities. The BPS outlines how Budget 2018 will secure the funding to allow for such a robust and ambitious programme. This Government takes seriously the need to invest in social and infrastructure projects to clear that deficit left by the previous Government but we've also committed to governing fiscally responsibly within a set of Budget responsibility rules. Within those rules we will deliver a sustainable operating surplus across an economic cycle. We will reduce the level of net core Crown debt to 20 percent of GDP within five years of taking office. We will prioritise investments to address the long-term financial and sustainability challenges facing New Zealand. The Government will maintain its expenditure to within the recent historical range of spending to GDP ratio. We will ensure a progressive taxation system that is fair balanced and promotes the long-term sustainability and productivity of the economy.Treasury's Half Year Economic and Fiscal Update was also released on 14 December 2017 and it showed that we are on track to meet the Government's Budget responsibility rules. The HYEFU as it's known had a few highlights that I'd like to share with the House. The highlights are that the economy is growing at a solid rate with growth expected to peak at 3.6 percent in 2018-19. Growth is slightly lower than forecast in 2017-18 and 2018-19 while we transition to a more sustainable productive and inclusive economy but then forecasts beyond that are looking incredibly strong and rating agencies have seen fit to comment on this. The Government's package of investment in social and infrastructure programmes—this signal direction is one that gives rating agencies confidence that this Government is going to see a growing economy strengthening further over time.Unemployment is expected to fall to 4 percent in late 2020—it's lower than the forecast 4.3 percent in the Pre-election Economic and Fiscal Update (PREFU). There is a lot of good news here. I am really really going to watch closely to see just how—how if in any way—the Opposition can manage to talk the economy down from here when the news is so good. Wages are forecast to grow at just over 3 percent on average over the next five years reaching 3.5 percent growth in 2021-22 around half a percent higher than average in the PREFU and underpinned by a tightening labour market building inflationary pressures and recovery in labour productivity growth. Lifting the minimum wage will further support this.Operating balance before gains and losses surpluses are forecast to rise reaching $8.8 billion in 2021-22. Net core Crown debt is forecast to decline down to 19.3 percent of GDP in 2021-22 within five years of office. This is a strong coalition Government that is delivering a strong programme for the economy and lowering debt at the same time—slightly slower than forecast in the PREFU but that's to make allowances for investment to start to address the social and infrastructure deficits that we inherited from nine long years of neglect under the previous Government.It is important that surpluses are maintained to allow us to meet the need for new capital investments and no one in this House—no one in this House—will dispute that. But nine years of under-investment by the previous Government will see the need for increasing investment in housing hospitals schools and roads. That is something this Government is committed to.We've also resumed contributions to the New Zealand Superannuation Fund so that our retirements can be sustainable. This is a responsible Government that is investing for future generations. More good news—watch them try to talk this down and audition for finance spokesperson at the same time. They've got their work cut out those two women opposite.Capital investment is expected to total $42 billion over the next five years significantly higher than the previous Government's plans because we are committed to addressing those deficits. By reversing the previous Government's tax cuts for the wealthy we can afford to make major investments in health education—Hon Amy Adams: Are you reading that speech? How pathetic.Hon Dr DAVID CLARK: —and infrastructure while paying down debt Ms Adams.The Budget Policy Statement outlines the operating and capital allowances for the next five years and these allowances provide the fiscal room to make the investments that are needed after that neglect. And they will be made. There are also extra free allowances beyond that—more free allowances because our allowances overall are larger than previous Governments. We make no apology for that because we are going to address those deficits as I've outlined.I want to speak also briefly about the 100-day plan because there's not much time left—not because there's not a lot to say about it. This Government has achieved much in its first 100 days and let's not forget that investment. Let's not forget what Treasury—somebody at Treasury let slip to me the other the day that they thought it was the biggest redistributive package since 1991 to make sure that families are well supported. And of course in 1991 redistribution was happening in the opposite direction. We're looking for a fair society.Ha ha! The Deputy Prime Minister's passed me a note just reminding me that they're sitting together across there because "misery loves company". I think he's hit the nail on the head. Perhaps a little unkind but woefully accurate I have to say Deputy Prime Minister.This Government is determined to invest for the good of New Zealanders. New Zealand may have experienced strong growth during the previous Government as house prices rose uncontrollably and as population growth inflated the figures but this headline growth came at a time of rising homelessness inequality a housing crisis regional deprivation and the opening of an infrastructure deficit that will take years to fix.Growth is one thing but shared growth is what we aspire to. The Budget Policy Statement delivered by this Government on 14 December is the starting point in our plan to deliver sustainable productive and inclusive growth for all New Zealanders."