Bayly Andrew: Appropriation (2014/15 Supplementary Estimates) Bill Imprest Supply (First for 2015/16) Bill — Second ReadingsText is incorporated into the Bound VolumeBayly Andrew: Appropriation (2014/15 Supplementary Estimates) Bill Imprest Supply (First for 2015/16) Bill — Second Readings[Sitting date: 17 June 2015. Volume:706;Page:4521. Text is incorporated into the Bound Volume.]ANDREW BAYLY (National—Hunua): I am pleased to be able to speak on the Appropriation (2014/15 Supplementary Estimates) Bill that is before the House today. The terms of this bill make me proud to be a National MP as it is easy to see that the provisions of our Budget are so wide ranging reaching our regions reaching all sections of our communities improving our infrastructure and providing for better services.The Labour Party always presenting itself as the defender of low-income New Zealanders did not come close to providing the economic measures and planning that this Government was able to present to New Zealand last month. Labour notably short on social innovation had already made response to many of the improvements and packages to be introduced in order to make the lives of New Zealanders better. That response was always “Don’t do it. Don’t do it.” Well this Government thinks otherwise and we are determined to implement these measures designed to assist and relieve New Zealanders and their families in all areas of their lives with help as needed.It is perhaps just useful to recap on the main elements of the Budget. The first bit I think is an excellent piece of innovation. The $790 million child hardship package is a balanced piece which provides low-income earners and families with an increase in their benefit rates. It also increases the benefits in terms of childcare assistance and out-of-school care but balances this with the obligation to seek employment as soon as possible when children get to a suitable age. The Budget also puts significant new resources into health. There was another $1.7 billion taking the Health vote to a record $15.9 billion and an increase of nearly $700 million taking again the education vote to just under $11 billion. The social housing provisions were great particularly around the Tāmaki development increasingly seeing those 7000 homes that we want to see built there as soon as possible and some of the other funding initiatives that were related to that. There is the $500 million of ACC cuts that come in over the next couple of years which will be great not only for employers but also for working New Zealanders. This is all good stuff.I have on previous occasions spoken at length about what this Government has done to support working New Zealand families. Tonight I do not intend to repeat this other than to say that not only is there a social imperative for us as a Government to support our vulnerable families there is also a financial incentive. Quite simply it is good business to have a fairer society where every child growing up in New Zealand has the opportunity to pursue their own dreams and aspirations. Instead what I want to focus on tonight are two things: Government debt which our Opposition loves to talk about and growth rates including regional growth rates. These are two themes that I hear repeatedly coming forward from the Opposition.The first priority of this Government has always been to ensure that Government’s finances are responsibly and efficiently managed. We inherited accounts from the previous Government that showed that spending had risen by 50 percent over 5 years. This was obviously unaffordable; it was also unsustainable and also irresponsible. What our fiscal strategy has been is to support the economy in the short term by reducing deficits over time and we have succeeded in that. The Crown books are in good shape and are showing operating balances increasing over time and debt reducing. As at 30 April this year gross Crown debt stood at $85.5 billion but if you subtract the student loans and other such provisions we are talking about a net debt level of $64 billion or just under 27 percent of GDP. Forecasts show that by 2020 Crown debt will drop to 20 percent.I find it fascinating looking at this and comparing it with the debt figures of our major trading partners. Australia—apparently the Lucky Country—has a current debt to GDP ratio of about our level but by 2020 it will be at 40 percent of GDP. Forty percent represents double New Zealand’s debt levels. The UK economy is currently at about 90 percent of debt to GDP but by 2020 it will have reduced that only to 80 percent—i.e. four times New Zealand’s debt levels. That 80 percent is broadly in line with the EUthe European countries in total at four times New Zealand’s debt. Although the US economy is growing strongly it has even higher debt currently just under 110 percent of GDP and by 2020 in 5 years’ time it will be just over 100 percent of GDP. Those are staggeringly high amounts of debt and thankfully through good financial management by Bill English we are in a strong financial position to weather future financial storms and economic circumstances.The other area I want to turn my mind to is the GDP growth rates and the regional growth rates. The reality is that the New Zealand economy has been growing strongly and is expected to continue to grow strongly. As at 31 March this year we achieved a growth rate of 3.3 percent and the Reserve Bank’s recent forecast showed that over the next 3 years we will average 3 percent. That is a good strong consistent growth rate. The 2015 growth rate compares favourably when you look at our trading partners. Again the highest performing one is China of course which has been growing very very strongly and for the same period recorded a growth rate of 7 percent i.e. just over double ours and this year is forecast to be between 6 and 7 percent. Australia again—the Lucky Country which people love to quote—recorded a mere 2.3 percent which was close to America’s GDP growth rate of about 2.5 percent. But Europe again is growing poorly. Its growth rate is less than 2 percent and forecast to be still at those levels. Again all those rates are significantly lower than New Zealand’s current and forecast growth rates over the longer term.What is interesting is to look at the regional growth rates. Contrary to the uninformed view of the Opposition the regions are in general growing strongly. Based on the ANZ’s latest forecasts the areas growing most strongly are first of all Bay of Plenty at 4.8 percent Canterbury at 4.4 percent and Auckland at 4.3 percent. But Northland—and it is an interesting one that always seems to be quoted—is growing strongly at 3.4 percent Gisborne at 3.5 percent Otago at 3.3 percent and Southland at 4 percent. They all belie Opposition claims that this strong economic growth is being localised only in the Auckland and Christchurch economies.These comments by the Opposition actually do a disservice to the hard-working people of these regions. They are resourceful they are strong and they are getting on with the job. Where this Budget has helped to continue that growth in the regions is in the areas of the roads. We have announced another $100 million for regional highways. As for broadband we have got this massive spend. We have put in another $210 million into the ultra-fast broadband roll-out and another $140 million in the rural broadband roll-out. Health facilities—we heard earlier today how we have poured $140 million into Southern District Health Board over the last few years. The child hardship package the $790 million one—interestingly the member for Rangitīkei was saying the other day that he estimates that that will generate $1 million of extra income put into Taumarunui every year. That is a significant boost to that local economy. There is a focus on regionally based research institutes and there is $13 million that we have provided to help Māori people further develop their lands and make them far more productive.There is a whole suite of packages that is designed to help our regions grow. This is all about creating a fairer economy. This is a Government with a plan. This is a Government with a heart.