Duncan Helen: Budget Debate 
Duncan Helen: Budget Debate 
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HELEN DUNCAN (NZ Labour) 
: 
 This is the fourth Budget presented by the Minister of Finance Dr Michael Cullen and it continues the fine tradition established by his previous three Budgets. This Budget is built on the strong foundation he has laid and it ensures that even in a very difficult global environment our country can maintain its strong position. This Budget is not only about providing fiscal certainty in an uncertain world but also about providing balanced policies—policies that demonstrate that this is a Government that keeps its word unlike a lot of previous Governments. They are policies that are not afraid to invest in the future of Aotearoa-New Zealand. They ensure that our economic growth rate which is currently one of the strongest in the OECD is maintained. They provide for surpluses to be used to ensure the long-term fiscal stability of this nation. 
This is a Government that keeps its word. More New Zealanders are now in work than ever before. Since December 1999 there has been an increase of 132000 in the number of New Zealanders in paid employment—that is keeping our word. We are reducing the cost of primary health care: 34 primary health organisations have been established throughout the country providing high-quality lower-cost integrated health care to 40 percent of the New Zealand population—that is keeping our word. This Government has made superannuation more secure by establishing the New Zealand Superannuation Fund to help to meet the cost of supporting baby boomers in their retirement. 
Lindsay Tisch 
: I raise a point of order Mr Speaker. I do not want to interrupt the member but either she is speaking very loudly or the microphones are very loud because there is an echo. The member is either too close to the microphone or it is too loud. I am trying to help the member and not trying to interfere. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: The point is well made. Perhaps the person who does the audio in the House can take note. 
HELEN DUNCAN 
: Or perhaps some of the people on the other side who are shouting out inanities might stop then I could speak a little more quietly. 
This Government has made superannuation more secure by establishing the New Zealand Superannuation Fund to help meet the costs of supporting baby boomers in their retirement—that is keeping our word. We are extending the Gateway initiative in our secondary schools so that the pupils and businesses involved in that scheme can benefit from work-based learning—that is keeping our word. As of 31 March 2003 over 5000 young New Zealanders have taken up Modern Apprenticeships and we are well on track to meet our 6000 target by December 2003 and that is keeping our word. 
This Government is working to improve the sustainability of our infrastructure in transport energy water and technology. We are prepared to make the investment that will pay off for the New Zealanders of the future. We have established the Tertiary Education Commission to steer development in the tertiary sector. We have put in place the growth and innovation strategy that will strengthen our Government’s capacity to grow. 
What Budget 2003 shows our nation is an integrated whole-of-Government approach to lifting our sustainable growth rate and improving life for all New Zealanders. This Budget offers certainty and stability amidst a threatening confused and insecure world environment. It reinforces the reputation of this Labour-led Government for fiscal prudence and economic pragmatism. The Government accounts are in excellent shape and if events unfold in line with Budget forecasts there should be room in next year’s Budget for sustainable new initiatives that will particularly be aimed at assisting low and middle-income families to smooth the transition from welfare to work. 
We are exceeding all of our fiscal targets. Our economic growth at 4.4 percent is one of the strongest in the OECD. Although negative international influences will probably see that growth dropping back to around 2.2 percent next year growth is then expected to rebound in the following year and will still be above the OECD average. That is a not bad sort of a record to have. The big bogey “inflation” which has been targeted over many years by some who shall remain nameless is expected to ease back to below 2 percent in both 2004 and 2005. The economic outlook is very good. 
It is interesting that a lot of Opposition speakers have gone on and on about the surplus. Although Dr Cullen has said that the paper surplus is just over $4 billion when one includes the revaluations and accounting changes it gets about two-thirds lower than that. It is prudent to ensure that those surpluses are sustainable before they are spent. This Government believes that future surpluses will be sufficient to maintain our infrastructural investment which is something that was not done in the previous 9 years so there is a lot to catch up with. We have to deal with the infrastructural deficit we inherited but we think that future surpluses will enable us to do that meet our debt targets and finance the contributions to the New Zealand Superannuation Fund. All in all the economic picture is looking pretty rosy which should not surprise anybody because traditionally in New Zealand history Labour Governments have repaid debt got the economy on a good footing and put New Zealand in a better financial situation. 
I just want to spend a little time talking about something very dear to my heart and that is education. Education like health has been a winner in this Budget. Educating for a successful innovative economy is a crucial theme of Budget 2003. If I can paraphrase Peter Fraser—and I know he would have liked this Budget—education is about the development of each individual to his or her full potential and about the pursuit of values that cannot just be expressed in monetary terms although I do not expect anybody sitting on the opposite side of the House to realise that. Total education funding rises by $393 million to $8.2 billion for the 2003-2004 year and further increases are provided for the other policies that start early next year. 
One of our first priorities is to reduce the inequalities in educational achievement that beset our country. We want to make sure that every New Zealander can reach his or her full potential regardless of background. We will start by putting a lot of money into early childhood education because that is where it all starts. If we can get the children of New Zealand off to a really good start with a really good early childhood education system that good start will show up through the primary years the secondary years and—as research shows—even through to tertiary education. So a lot of money will be spent on early childhood education most of it going into making sure that there is access to early childhood education for children who currently do not have it. Money will go to the developing centres fund and there will be capital funding to implement new centres. There will be extra grants to continue our commitment to assisting the upgrade of staffing qualifications in the early childhood sector. Education is a winner in this Budget and New Zealand will be the winner because of it.