Chauvel Charles: Estimates Debate — In Committee 
Chauvel Charles: Estimates Debate — In Committee 
[Volume:648;Page:17467] 
CHARLES CHAUVEL (Chairperson of the Finance and Expenditure Committee) 
: 
 I apologise to the House—I have just been to the dentist so I might sound a bit strange but there we go. It is ironic to have heard the last two speakers on the economy and this is so for a number of reasons. The first reason is that National will not say how it will respond to the current global situation and that is the fundamental point to make in this debate in my view. Here at home people are feeling pain at the petrol pump and at the supermarket checkout but these problems are not of New Zealand’s making. On the other hand we need to do what we can to manage the economy through these challenges. Labour has put aside money during the good years and with that money is providing relief where relief is needed. But John Key and Bill English refuse to tell us what public services they would cut to pay for bigger tax cuts and John Key and Bill English refuse to tell us how much they would borrow to pay for those promises. 
There is another reason it is ironic to hear members on the other side speak on the economy and that is that their numbers do not add up. National will either have to cut public services or borrow to pay for tax cuts. Those are the two choices. It is as simple as that. 
It is interesting just talking about the record to hear Mr Groser distort the figures. Crown debt never dropped below 35 percent of GDP under National in the 1990s—so much for the halcyon age that he imagined existed then! Labour has paid back National’s debt and brought it down to sustainable levels and gross debt is now close to 20 percent of GDP. That is a very responsible level. This has saved the taxpayer billions in debt repayments and therefore the householder billions and billions in mortgage repayments. It has allowed Labour to run surpluses in the good years so that it can provide relief and economic stimulus when it is needed. The numbers from the other side just do not add up. 
There is another reason why it is interesting to hear members from the other side speak on the economy and that is that they clearly do want to increase debt. I refer to John Key’s words on radio recently. Kevin List the presenter asked: “What level of debt is acceptable then?”. The reply: “We’re sort of comfortable with a notional debt to GDP of around 25 percent.” Well increasing Crown debt to 25 percent of GDP would cost about an extra $700 million a year in debt-servicing costs alone and drive up the average mortgage costs for the householder untold. National is willing to borrow for tax cuts and it is happy to let our children and grandchildren pay for them. That is not fair. 
Last time the global situation worsened National cut superannuation and public services and on this side of the Chamber we know that it would do that again. When this Government came into power the economy was faltering make no mistake about it. Government debt was unsustainable and unemployment close to 8 percent. Mr Carter thinks it is funny but I remember the child poverty rates peaking at one in three New Zealanders in the 1990s. What sort of record is that to brag about in this Chamber and to try to distort the numbers? Remember that our hospitals our schools and roads were crumbling from decades of under-investment. I remember the cash registers in our public hospitals. This Government would never countenance that sort of travesty. 
Labour is responding to global pressures and providing relief to families. We have provided targeted support where it is needed most without cutting spending or borrowing to finance that support. Labour has also provided support for businesses families and savers. It has lowered doctors’ fees and prescription charges. The cost of most doctors’ visits has dropped by an average of $22. The prescription fee has been lowered to $3 from $15—cut by a factor of five. Labour has provided 20 free hours’ early education for 3 and 4-year-olds provided zero percent interest on student loans increased the minimum wage nine times in 9 years and increased superannuation. As I said we have put the money aside during the good years so that we can deliver relief when relief is needed. When there is a need to stimulate the economy when stimulus is needed it is done in a responsible fashion. 
On 1 October 2008 there will be a $10.6 billion programme of tax cuts delivered and fast-tracking boosts to Working for Families. We know that relief is needed as soon as possible and we are delivering it to hard-working Kiwi families. Our tax cuts are responsible and fair to workers. We are not interested in a bidding war. We will do the right thing because it is the right thing for families and the economy and by the third year of our tax cut programme we will be delivering $50 a week or more to around 50 percent of all households.