Clark Helen: Budget Debate 
Clark Helen: Budget Debate 
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Rt Hon HELEN CLARK (Prime Minister) 
: 
 Was that it? What a lightweight! As my colleague said that speech makes a bird bath look deep. It contained no vision for New Zealand. It was a whole speech— 
Madam SPEAKER 
: I am sorry Prime Minister—please be seated. I do not mind the level of interventions but they have got to the point where it is impossible to hear. 
Rt Hon HELEN CLARK 
: A whole speech was spent promoting something that Mr Key’s finance spokesperson does not even agree with. The finance spokesperson is not allowed to go on  
Close Up 
 tonight because he is going around saying that big personal tax cuts are not affordable; his leader has just spent his whole speech saying the opposite. It was just another bankrupt Tory speech from a leader who would bankrupt New Zealand. 
Running an economy is not about taking short-term positions in the market. Running an economy is not about gambling our country’s future. That might be all right on the money markets for money traders but it is not appropriate for running a country’s economy. We know that if John Key had had his way last election right now New Zealand would be cutting its health spending and its education spending. Right now Kiwis would be paying much higher interest rates because National was prepared to promise anything regardless of the damage it did to New Zealand. The choices are very very clear. The choices are that one can write a Budget that backs investment and savings or one can write a Budget that squanders New Zealand’s economic potential—which is the National Party way. 
 This Budget is about growing and developing New Zealand’s economy and living standards. This Budget looks to the future and to supporting New Zealanders’ aspirations for prosperity and security. The National Party looks back to the 1990s—or was it the 1890s—as we have just heard. Its policies did not work then and they will certainly not work in the 21st century—they will not work. New Zealanders have got used to experiencing something much better under Labour— 
Hon Marian Hobbs 
: I raise a point of order Madam Speaker. I have very good ears I have this speaker on full bore but I cannot hear the Prime Minister. 
Madam SPEAKER 
: There are levels of disorder that cannot be tolerated. We know that the basic rule in this House is that people are entitled to be heard. Of course members may make their interventions—it is that sort of debate—but those interventions have now got to the area where in fact it is extremely difficult to hear anything. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. I hope that you are not going to listen to too many more appeals about this. At the very opening sentence of Mr Key’s speech Mr Mallard—sitting right next to the Prime Minister—practically drowned out the rest of the House. 
Madam SPEAKER 
: I thank the member. I listened very carefully when Mr Key was speaking and he could be heard. There were interventions— 
Gerry Brownlee 
: He couldn’t be— 
Madam SPEAKER 
: Mr Brownlee do you wish to remain in the House for the rest of this debate? If you do please do not intervene. 
Gerry Brownlee 
: Quite honestly no. 
Madam SPEAKER 
: Off you go then. Please leave the Chamber. 
Gerry Brownlee withdrew from the Chamber. 
Madam SPEAKER 
: As I said of course it is the type of debate where there should be interventions but every member in this Chamber is at least entitled to be heard. 
Rt Hon HELEN CLARK 
: All that latest exchange proves is that all the hollow men can do is holler—because they have no answers. 
The experience of the Labour Government has been an experience of long-term economic growth it has been the experience of low unemployment it has been the experience of rising living standards with high employment levels and support for families and it has been the experience of investing back into those all-important basics of education health superannuation law and order and infrastructure. This Government has turned New Zealand around—around from the nation that was demoralised and had no hope under a National Government. That was National’s legacy. There is no point even in having a poll that asks people what they thought about it; they know it was misery it went on too long and it must never come back. 
Not only has the economy been growing under Labour but it has experienced the second-longest run of continuous economic growth since the Second World War. We have seen benefit numbers tumbling—not just of those on the unemployment benefit but of those on the domestic purposes benefit and now sickness and invalids benefit numbers are falling as well. This Government has virtually eliminated the number of young people on the dole. It is down 92 percent—92 percent. All these things happen because of economic success under a Labour-led Government. Over there on the National benches members have been sulking for 7½ years—7½ years—and I say there are at least 7½ years to go because their legacy was to leave behind a broken-down economy and a shattered society. 
I ask members to look at what commentators are saying now about the 21st century economy. Perhaps Mr Key might like to consult the Hongkong and Shanghai Banking Corporation which last week described the New Zealand economy as the miracle economy. That is high praise. Members should look at this month’s monthly monitor from Business and Economic Research Ltd. Its economic indicators are at their most positive right now for any time in the last 5 years with 32 of the 42 measures higher than they were a year ago. So this Budget is written against a background of economic growth and development. 
The challenge before the Government is to write a Budget that makes that situation continue and that is best done by addressing the well-known imbalances in the economy. That means working to stimulate the export sector which has been hurt by inflation pressures particularly in the housing market. I am aware that although our exporters have shown considerable resilience some of them are hurting and they wonder how much longer they can carry on. We know also that those high interest rates and that high currency have made the current account deficit particularly high so the approach in this Budget—to promote investment and to promote savings—is the right approach at this time. It is the right approach at this time. 
The Minister of Finance has outlined the three big areas of initiatives in the Budget—firstly the business tax reform and assistance package of $3.4 billion promoting investment research and development and upskilling and exporting. There was a party over there on the Opposition benches that used to say it was the party of business. When did its members last deliver a business tax cut? It was not in living memory—not in living memory. 
Hon Member 
: 1960s! 
Rt Hon HELEN CLARK 
: It was in the 1960s with “Kiwi Keith” not with “Money trader John”. 
There is the $650 million rail infrastructure package and there is the $3.2 billion KiwiSaver package. That package is good for our families and it is good for the economy. It helps our families save for greater security in retirement it boosts our nation’s savings rates it makes us less dependent on foreign capital and it gives us greater control over our own destiny. It is good all round. 
It is good especially because it gives Kiwis an economic dividend from the growing economy without throwing fuel on the flames of the domestic economy. Members should make no mistake: the National Party approach outlined by Mr Key would see every family’s mortgage go up every business’s mortgage go up and the currency go up and it would make the imbalances in the economy worse not better. So this Government has set out to do what is right for New Zealand. 
We believe that the corporate tax rate cut will help our businesses invest for the future. We believe that the new tax credit for research and development will support our businesses and industries in going upmarket. We also have more funding in this Budget for Government grants for science and research—a lot of it directly helping our businesses and industries innovate in their products and services. There is new money in this Budget for industry training and for tertiary education; that is good for the economy too. There is extra support for exporters and that new funding going into the market development assistance scheme means a near doubling of the baseline support for those grants. That helps our exporters get out to market. 
The Government has long identified the state of New Zealand’s transport infrastructure as a brake on economic development particularly in Auckland. So this Budget is not only funding the commitment we made to the State highway programme but it is also acting to secure the future of rail and public transport in Auckland and Wellington. We are looking—over the next 8 years—to a 50 percent increase in per person public transport journeys in Auckland. We are prepared to play our part in investing in that. 
Our Labour-led Government is very proud of this Budget. Our philosophy has always been that the rising tide should lift every boat and that as the country’s economic capacity grows we must invest back into basic services—as our people expect us to. They expect Governments to deliver on health education superannuation and law and order. They expect those things to be looked after not cut as they have long been under National Governments in the past. 
In the health area we have been able to provide another $3 billion over the next 4 years. There is a particular boost for care and services for older New Zealanders and for people with disabilities. That might not matter to the National Party but anyone with aged parents and any aged person who needs that care and those services knows that it matters that workers are properly paid. We value and appreciate what they do and this Budget makes that possible. It never mattered to the National Party through the 1990s—and it does not matter to it now—that people then could not afford to go to the doctor. This Government’s Primary Health Care Strategy makes it affordable and 1 July is the last roll-out date of that strategy—lower doctors’ fees and lower prescription fees for every New Zealander. But we cannot have that and have big personal income tax cuts—those are the choices. Do we look after the basics and invest for the future or do we just squander tax as the “Money trader” would? 
Education is a very high area of priority for our Government. Come 1 July a very important policy will take effect which is the 20 hours’ free early childhood education policy—20 hours’ free. This is without doubt the greatest expansion of the public education system since the first Labour Government brought in free secondary education. That is how important it is. The policy has been constantly attacked by National because it prefers to give tax cuts to its rich friends rather than look after children’s education. We know where our choice is. 
The same thinking lies behind the big increase in this Budget of teachers and classrooms for small children. This Budget takes us well down the track to the implementation of the 1:15 teacher-pupil ratio in our new-entrant classes. That is the first time any Government has ever committed to that. Operations grants for our schools are up 4 percent in this Budget. Funding for student allowances is up which means that 12000 more students will have the opportunity to get a full or partial allowance. 
As well the Budget funds a very significant increase in New Zealand superannuation—a 5 percent lift in after-tax pension income. That was something negotiated with the New Zealand First Party after the last election. We have been prepared to fund it support parties are prepared to back it and it will make a substantial difference to our older people’s living standards. Also in the Budget is more support for respite care. Respite care is essential in giving a break to both carers and those they are caring for. 
We also see significant new spending in the law and order area—again that is something that has come out of the confidence and supply agreement with New Zealand First—as we put in place the 1000 new police. What will be seen from this side of the House is support for our police—not abuse—support for them to do their job. 
The Minister of Finance has focused on sustainability initiatives in the Budget and we are working on ways of helping households and businesses save money and contribute to a cleaner environment. The urban rail initiatives are all about sustainability as well as public transport and we are moving to promote greater energy efficiency in many ways. We have for some time been gearing up for a bigger programme to retrofit old homes that are not insulated. In this Budget for the first time we are looking to develop an interest-free loan scheme for a wider group of homeowners so that they too can save money on their power bills and have warmer and healthier homes. That is very very important. There will be a lot more promotion for businesses and homes generally about how to reduce their energy and water use and recycle their waste. I will also give a plug to public recycling facilities. Frankly some of the places whether local or international where our visitors visit are a disgrace in respect of rubbish. If we want our tourism image to be “100 percent pure” as the posters say we have to do something about cleaning it up and the Government has made a commitment to do that. 
Under the national identity theme of the Budget we are putting more resources into speeding up Treaty settlements. This House has passed legislation to close off historical claims by September next year but that means we have to resource the negotiations and the inquiries that make settlement by 2020 possible. We will do that. There is more support for public broadcasting including Maori television and radio and for our digital content strategy. 
There is more support for the Department of Conservation in respect of improved pest management around the conservation estate. Biodiversity is important to us. And we are supporting New Zealand’s representation and contributions offshore through extra support for foreign affairs defence police personnel and of course overseas aid. 
I know that this Budget could be written and delivered only by a Labour-led Government. Just think of what John Key had in mind. Just think of no new investments in health and education and no new investments in families and superannuitants but instead of cuts in those areas. Just think of not boosting the transport infrastructure out of taxation but tolling across the network as Maurice Williamson wants to do. Just think of not making investments in business growth innovations skills and exporting but of sitting back as National did for 9 years and letting market forces rip our country apart. 
That is not the future Labour sees for New Zealand and I do not believe it is the future that the support parties voting for this Budget see either. We are supporting saving investing and growth and development. We are working for New Zealand’s long-term health and prosperity off the back of considerable success from the time the Labour Government was elected. We look to lock in success through a better balanced economy and that is why I say with confidence that this is a good Budget for these times.