Chauvel Charles: General Debate 
Chauvel Charles: General Debate 
[Volume:642;Page:12451] 
CHARLES CHAUVEL (Labour) 
: 
 I would like to direct my comments to Labour’s economic management because there are some very good things to say on this score. We have enjoyed the longest period of economic growth in this country for 30 years. Average growth rates since 1999 have been higher here than in Europe Japan the United States or the United Kingdom. Company tax returns show that recent profit growth has averaged over 20 percent a year. Business is doing very well in this country. 
New Zealand has also consistently been rating highly in international comparisons of openness competitiveness and ease of doing business. Again this year in the ease of doing business measure from the World Bank we were rated second in the world and we came first in the world for transparency and lack of corruption in the recent survey in  
The Economist 
. Let us compare that to the dismal economic performance of the 1990s which included two recessions. Labour success; National failure. 
Let us also think about reduced unemployment. Labour-force participation and employment are at all-time highs. Unemployment is at its lowest level ever at 3.6 percent. More Kiwis than ever are in jobs. Our unemployment rate is one of the lowest in the world and it is the second-lowest in the OECD. I watched John Howard call the Australian federal election on Sky News over the weekend. One of the things he said he would strive to do if he were re-elected was to try for an unemployment rate that started with a “3”—the very thing that we have had here for the last 3 years. Again we can compare this with the record of the 1990s when we had record high unemployment. Labour success; National failure. 
It was interesting to hear Mr Tremain talk about tax earlier. I think we should consider the record of this Government particularly in business tax reform. As we heard Dr Cullen note during question time this Government has introduced the most comprehensive package of business tax reform in 20 years. The $3.4 billion involved in the business tax reform package included cutting the headline corporate tax rate tax credits for research and development and measures to help New Zealand companies grow their connections around the world. If we add that to the targeted tax reductions in the Working for Families package and those under the portfolio investment entity regime we see that there are now real incentives for private savings. These are sensible targeted tax cuts which this Government deserves credit for. We can compare this to the record of the 1990s when there were untargeted irresponsible personal tax cuts under the National Government and to the fact that Bill English is still promising come what may to cut taxes and fund that by borrowing. No wonder Jo Doolan in the  
Independent 
 today has called for the National Party to release its true tax policy. No one knows what it really is. Again—Labour success; National failure. 
Let us look at KiwiSaver. This Labour-led Government has established KiwiSaver to give New Zealand families greater security by helping Kiwis to save for their retirement and for their first home. KiwiSaver will also help fund New Zealand investment in New Zealand and will reduce demand on other forms of capital thus taking pressure off interest rates. More than 200000 New Zealanders have already been helped with their personal savings. Let us compare the record of the 1990s when there was no action to promote savings—Labour success; National failure. 
Superannuation tells a similar story. There will always be New Zealand superannuation for people’s retirement under a Labour Government. We have invested heavily in raising the rate of New Zealand superannuation for married couples to 66 percent of the average wage. This year we removed discriminatory situations for those with partners in care and we continue to phase out asset testing. Labour will not back down on its universal superannuation and it will not let the level of superannuation fall to the shameful level of 60 percent of the average wage for the married rate as it was in the 1990s. Again this is Labour’s success in the economy and National’s failure. 
Finally I come to the matter of keeping costs down. The consumer price index rose just 0.5 percent in the September 2007 quarter. Statistics New Zealand told us that the lower than expected result came from lower prices for pharmaceutical products early childhood education and general practitioner fees. This Labour-led Government has helped to keep down the cost of living. Our reduction in the cost of prescription drugs to $3 per drug the introduction of cheaper doctors’ visits and the 20 free hours early childhood education policy have had a significant impact on helping people make their dollars go further. Let us keep the country moving forward not going back under this excellent record of economic management.