Key John: Budget Debate 
Key John: Budget Debate 
[Volume:608;Page:6024] 
JOHN KEY (NZ National—Helensville) 
: 
 The Minister of Finance Dr Michael Cullen promised that the 2003 Budget would be a boring and predictable event. For once in his life he under-promised and he over-delivered. This was a big surplus—a whopping $4 billion. That is $4 billion earned on the hard work and good economic policies of the 1990s introduced by a National Government. That is why the surplus is there. There are also a couple of other factors: a low exchange rate high commodity prices and good times down on the farm. There was a $4 billion surplus on the back of the hard work by the National Government and what did the Minister do? Did he stop for just a moment and consider the hard-working people of New Zealand the small businesses up and down the land the corporates the backbone of this country who produce the jobs and pay the taxes? Did he consider them for just one moment? No he did not. 
We on this side of the House waited and waited very patiently I might add for Dr Cullen to pull a nice juicy rabbit out of the Budget hat. If he pulled a rabbit out of that hat it must be a virtual rabbit. I am still waiting to see that rabbit because this Budget produced nothing absolutely nothing for the hard-working businesses and people of New Zealand. It is no wonder the Government has found this to be an arduous debate over the last 14 hours. It is no wonder the Minister did not get a single clap during his speech. I reviewed the tapes and looked at the  
Hansard.  
Even Bill Birch not known for being the most animated Minister of Finance often had members in raptures when he delivered his Budget. He had them on their feet roaring and cheering him on. There was not a single clap for Dr Cullen even though the Labour members were under orders to do so. Not a single cheer came from the Government benches. 
It is no wonder Susan St John gave that Budget a D minus. Dr Cullen has never had a D minus in his life. Susan St John delivered Dr Cullen a D minus. In a time when he had the opportunity to send the growth message and when he had the opportunity to give cuts in taxes and compliance costs what did the Minister deliver? The Minister delivered a subsidised bean counter. That is what he said to small businesses: he told small businesses that the Government would not do anything about compliance but that it would give them a subsidised bean counter to help them fill out the forms. That was an anti-growth Budget. That is what that Budget delivered. But I ask what it did not deliver—because the list of what it failed to deliver is so much longer than anything it delivered. It did not do anything for the roads of my home town of Auckland. Not a single dollar of extra spending went to fix— 
Dr Paul Hutchison 
: Not a skerrick. 
JOHN KEY 
: Not a skerrick! There was nothing for those poor Aucklanders many of whom will be stuck in a traffic jam right now. They are ruing the day they read this Budget. They are asking where the extra spending is for them. 
What about the corporates? Was there a tax cut for them? Was there anything to say: “Good on you for doing a good job! Thanks very much for producing a $4 billion surplus. Thanks for everything you do for us day after day after day.”? No sir. There was nothing. 
What about the entrepreneurs? Where was the message they should have got by cutting the top personal tax rate and saying: “Get out there and do it again for us. Get out there and bat again for the good old home team New Zealand.”? There was nothing there. 
What about the Defence Force? Whenuapai Air Base—as long as it lasts—is in my electorate. Was there an extra dollar of spending for defence? Despite the fact that the world is undergoing one of the most tumultuous times in terrorist activity worldwide there was not a single dollar for defence spending. 
Was there an apology to the sherry and port drinkers around the country who had $18 million snatched from their pension-books a few days earlier? No there was no apology to the sherry and port drinkers. What about a helping hand for those suffering from the energy crisis—in other words the whole country? What about those people? They got their message a few days later when the $200 million energy tax was announced. That is what they had delivered up for them. What about growth? Was there anything in the Budget to make us rise in the OECD? Was there anything to help us compete relative to Australia? There was absolutely nothing. 
What did the 2003 Budget—of predictable stability—deliver? It delivered more money being thrown hopelessly at the health system into primary health-care which has failed to deliver. It gave an additional $34 million for a boat race in Auckland despite the fact that it will be held in the Northern Hemisphere and despite the fact that the Government could give it only $5 million when it was held here in the Hauraki Gulf in our own backyard. It gave $6.5 million to the political spin machine to spin just a little faster on the Treaty of Waitangi. That is what the Budget delivered. 
This Budget was very quick to point out that the world that we live in is a rapidly changing environment. Severe acute respiratory syndrome (Sars) a killer virus is in play at the moment. There is worldwide terrorist activity and plummeting confidence in global equity markets. The solution from the Government is to send $1.8 billion to the New York stock market. It does not matter that worldwide equity prices are going down. Do not worry about that. Do not worry that the Prime Minister would not give support to our traditional allies because the Minister of Finance Michael Cullen will step into the breach and send $1.8 billion over to the New York stock market? It has not fooled us in the Opposition and it did not fool Robert Zoellick the trade negotiator when he told us that we are so far off the table it is not even funny. That was what he said. Why did Dr Cullen not give some of those hard-working businesses corporates and entrepreneurs— 
Hon Georgina te Heuheu 
: He’s saving it up. 
JOHN KEY 
: Exactly. Why did he not give them any money? Because he is saving it for the biggest lolly scramble that members have ever seen in their lives. 
Dr Paul Hutchison 
: Bribery! 
JOHN KEY 
: I do not want to use that word. A huge lolly scramble is coming down the pipes. He called on the caucus and said: “Please don’t criticise me. I don’t mind if you don’t give me any applause. I don’t mind if you don’t clap. Don’t worry about the fact that I’ve done absolutely nothing for Auckland roads. Don’t worry about the fact that this is the most anti-growth Budget that has been delivered for some time in this House but please please just stay at bay because don’t worry in 12 months’ time I’m going to spend everything that’s in the cupboard and some. I’m going to try to buy our way in for a third term.” 
It will not work. Hard-working New Zealanders will see through that. They will not fall for that stuff. They are sitting in their cars at the moment ruing the day they read this Budget. 
Dr Paul Hutchison 
: His last cue. 
JOHN KEY 
: It probably will not be his last Budget but it will be nearing the end of his term. This Budget has been a failure for New Zealanders. The Labour Party has squandered a wonderful opportunity earned by the National Party through its good stewardship of the economy in the 1990s. The Labour Party has a lot to thank us for and I will wait for Dr Cullen to deliver that thankyou and gratitude personally of which the National Government was so deserving in the 1990s.