Ardern Shane: Budget Debate 
Ardern Shane: Budget Debate 
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SHANE ARDERN (National—Taranaki - King Country) 
: 
 It is a pleasure to rise to speak following my very good colleague the Hon Pansy Wong. She is the first Asian MP in this Parliament. She is the Minister for Ethnic Affairs and is now the member for Botany as well. She is an excellent colleague and she gave an excellent contribution to this debate. 
Since the last time we were involved in a Budget debate world circumstances have changed enormously. I was shown some figures today by a director of Fonterra that would suggest that what is happening internationally is a sharper drop from an economic point of view than was the case in the 1930s Depression. We are facing a very serious recession or depression—call it what you will. In the light of that this Budget would have to be described as an excellent response. One of the things in the debate that has been interesting and that I heard on the car radio as I was coming back from that meeting is Labour members saying that National is pretending it did not know that the economic circumstances were as bad as they are. That is an interesting concept. In this country we have what is known as the Pre-election Economic and Fiscal Update—the pre-election opening of the books. The interesting thing about that part of the debate is that we did not know about the economic circumstances because they were not stated in the Pre-election Economic and Fiscal Update. One has to ask why that is so. The law of the land states that the outgoing Government should declare the true state of the economy at the time it is going out of office but the previous Labour Government did not do so. That is the first thing. The previous Labour Government kept that information from the public of New Zealand. It should be ashamed of that. This downturn is certainly unprecedented. Labour knew about it but did not share it with the incoming Government so the surprises we have experienced since we have come into office are of no surprise to Labour.  
The world economy has changed substantially yet this Budget has still been able to put major investment into a whole range of areas. Let us have a look at some of those areas for a moment. For a start one that is very dear to my heart is the investment in research and development in the primary sector: $190 million going up to an average of $70 million per annum matched by industry by the year 2012-13. That will be the single biggest investment we can make in this country to help lift it out of the current downturn that we face.  
Hon Pete Hodgson 
: No the single biggest investment was the one you ditched. 
SHANE ARDERN 
: It is interesting to hear the former Minister interjecting from over there. He is the one who cut science money from the very area—from AgResearch—that would have benefited in regard to this debate now. 
Hon Pete Hodgson 
: Did not. 
SHANE ARDERN 
: The former Minister is telling me that that is not what happened? 
Hon Pete Hodgson 
: Yes I’m telling you that. 
SHANE ARDERN 
: Well I simply do not agree. The investment was cut during the term of the previous Labour Government and right now we are seeing investment going back into that area. That will be the single biggest area of investment. Our biggest company in this country Fonterra—a company that Labour likes to kick occasionally—will benefit enormously from that investment. The sector is offering to match that investment along with a major number of other primary sector industries that are prepared to invest including wool and arable production horticulture seafood and forestry and wood products. All of those industries have indicated so far that they are prepared to step up to the plate and match Government investment dollar for dollar in that area. 
Under the proposal the Minister has released a panel of eminent persons will be appointed who will figure out where to invest the money. The faster that happens I suggest to those listening the better off New Zealand will be. This Budget has gone a long way towards starting to keep the economy going amid what can only be described as global turmoil. New core spending of $2.9 billion in the Budget combined with recent tax cuts will support the economy. There is no question of that because it is quality spending. It is not because we are throwing money at it or because we are putting it on the bill like Labour did. Labour used to spend and hope and borrow and hope. It is because the Budget is putting money into areas that will ensure that the economy can be strong going forward. At the same time it will assure those who may be a little concerned because they are on fixed incomes like New Zealand superannuation recipients that their superannuation will be maintained at 66 percent of the average wage and ensure that Working for Families which was introduced by the previous Government is still there to encourage those who potentially are fearful of their future that there is a future in this country. 
To improve public services there is a $3 billion boost for health over 4 years that is focused on front-line services not on bureaucrats. I have heard some figures—and I am sure the Opposition will refute them—such as 1200 more people were included in bureaucratic procedures in health services over the 9 years of the previous Government. One has to ask how the previous Government could expect to get any return on health outcomes from putting so much investment into bureaucrats. For improvements to the Public Service $1.68 billion has been put into education. No doubt there is not a member in the House who would not agree that education holds the key to success in any growing and dynamic economy and $1.68 billion going into education is a very positive outcome from the Budget. 
There will be 600 more police. Our Minister of Police spoke earlier on. One of the biggest issues coming out of the election was the fact that in the public’s perception law and order has deteriorated and 600 new front-line police—particularly given the number we are proposing to put into South Auckland which is the area of greatest concern—can only be described as a good thing. To listen to Opposition members one would think some of this stuff was bad. The previous Labour Government has changed into an Opposition very well I have to say. I have said it before; I think Labour is better at being an Opposition than it was at being a Government. Labour is better at being an Opposition than National was; I think we should admit that. Labour is far more negative in its approach than National ever was when in Opposition. Even in our darkest days we were never as negative as Labour is. It is just not in our nature to be so backward-looking. We just cannot do it; it does not work for us. We come from backgrounds where we look forward and where the glass is half full not half empty. Labour cannot help it. Even having 600 more police is being condemned by the Opposition. It defies logic. 
At a glance if one looks at the Budget initiatives one sees things like insulating houses. The Green Party proposed that initiative. The Green Party proposed that it was going to spend $1 billion on insulation—unfunded of course in the Budget lead-up—and on the upgrading of houses. It was unaffordable. That is the reality. There is not an economy for it. I do not think even Dr Michael Cullen during the times of huge surpluses could have afforded that initiative. But there is a positive in the initiative. One does not have to go very far to find out that the biggest effect on children doing well in society is their health and education and one of the biggest governing factors in health is poor housing—cold damp houses—for low socio-economic families. It is interesting; there has been debate about leaky houses over a period of time. A lot of that debate came about through systemic failure in the houses and some of it came about because of the Green campaign against tanalised timber. Members will be well aware that the Greens said we cannot use arsenic-based preservatives in timber because it is bad for us. I will tell members what is bad for us. What is bad for us is a house that is damp mouldy and rotting because the timber was not tanalised or one that leaks. We need to be able to insulate and fix up some of our State houses. It is a disgrace that for 9 years under a Labour Government our State housing stock deteriorated to such a poor state. 
Dr Jackie Blue 
: Slum landlords. 
SHANE ARDERN 
: “Slum landlords” is the term my colleague uses. When I was a young sharemilker’s son we used to be envious of people who lived in State houses because the State houses were better than the sharemilkers’ cottages. That is the reality. We were envious because State houses were well-built and well-kept homes. But under Labour they turned into a poorer state than the sharemilkers’ cottages. 
All in all the Budget is good for the New Zealand economy. Labour hates the Budget because it adopts a lot of what it would like to have done. This is a good day for New Zealand and it is a good Budget.