Calder Cam: Budget Debate 
Text is incorporated into the Bound Volume 
Calder Cam: Budget Debate 
[Sitting date: 30 May 2012. Volume:680;Page:2709. Text is incorporated into the Bound Volume.] 
Dr CAM CALDER (National) 
: 
 It is a great pleasure to rise and make a contribution on the Appropriation (2012/13 Estimates) Bill. I would like to make just a small comment. My esteemed colleague Maryan Street was concerned about the health budget. I have to say that I was hugely impressed with the financial reviews that we looked at—the Canterbury District Health Board and the West Coast District Health Board and also more recently the Waitemata District Health Board and the Auckland District Health Board. I heard about some excellent work being done by those district health boards. In particular I want to commend the Waitemata District Health Board which has actually turned round a very very difficult situation. It is now the nationwide leader in emergency department waiting-times cancer treatment waiting-times anti-smoking initiatives elective surgery immunisation and programmes to assess cardiovascular and diabetes risks. So there is a lot of good news in the health budget. There is a lot of good news in this Budget.  
I am proud to be a member of the Government that has presented this Budget. This is a strong Budget. It has been called a simple Budget but it is a strong Budget it is a disciplined Budget and it is a prudent Budget. This Budget reassures all New Zealanders that this National-led Government is a safe pair of hands. This Government assures the international credit agencies that New Zealand is governed by a team that realises that ever-increasing debt is unsustainable. The financial markets are intolerant of poor fiscal policy and any hint of profligacy would lead to higher interest rates and increased debt-servicing costs. It is pertinent to note that we on this side of the House have suffered a litany of opposition to any cuts that we have proposed such as targeted cuts in Government spending and retargeting in other areas where there can be more efficient use of the money. Any scheme to grow our economy has equally been stridently opposed by the Opposition.  
This is a responsible Government that is investing in New Zealand’s future. If we want to see an example of a lack of fiscal discipline we need only look at Europe. Weeks after an election there weeks after the first election led to no result and questions about Greece’s commitment to the eurozone fiscal compact these questions remain unresolved. The European Union and the European Central Bank as well as the IMF are holding their breath to see whether common sense rationality and a commitment to the eurozone will be affirmed at the next round of elections in Greece. As David Cameron observed on the deepening eurozone crisis either Europe has a committed stable successful eurozone with an effective firewall well-capitalised and regulated banks a system of fiscal burden-sharing and supportive monetary policy across the eurozone or we are in uncharted territory which carries huge risks for everybody.  
This Government’s responsible Budget means we are on track to return to surplus by 2014-15. It thereby reduces our exposure to the capital markets and helps us to be insulated from the ongoing European turmoil and global uncertainty. This is a Budget that invests in New Zealand’s future. This is a Budget that is looking to New Zealand’s future. We have in this Budget $4.4 billion of new initiatives. These initiatives will stimulate jobs deliver better services for families invest heavily in science and innovation and make our economy more productive and competitive. We have said—we have nailed our colours to the mast—we want to derive 40 percent of our GDP from export markets and this Budget will help us do that. It will also give New Zealanders the security they require in health and education whilst also allowing them to live in a state of security.  
The priorities in this Budget are simple. The priorities of this Government are simple. There are four of them: responsibly managing the Government’s finances—and we have talked about that a little bit already—building a more productive economy delivering better public services and rebuilding Christchurch. We have made much—much—of the fact that this Budget and our prudent financial management means we are on track to return to surplus by 2014-15. The Budget surplus forecast is not a huge surplus but it is a huge turn-round. It means that for the first time in a number of years the Government will be raising enough revenue to meet its commitments without having to increase debt. I will say that again because it seems to be something of anathema to the Opposition. The Government will be raising enough revenue to meet its commitments without having to increase debt. From that time on we can get our existing stock of debt down and further reduce our exposure to the ongoing turmoil in the global financial system. It is exposure that when you hear some of the contributions from the Opposition benches you would believe had never occurred. The global financial crisis—what is that? The eurozone problems—what are they? The earthquakes in Christchurch—merely a small diversion if you believe some of the Opposition contributions.  
Given the impact of the 2008 recession which we accept and acknowledging the ongoing global financial uncertainty which we on this side of the House understand is a problem and the Canterbury earthquakes our getting back to surplus by 2014-15 will be an astounding result. New Zealanders have appreciated our management of the economy in our first term in Government. They can see and understand that our responsible fiscal management—in particular our discipline around spending and capital management—is essential to strengthen our country’s resilience in these continuing times of uncertainty.  
As I mentioned before this Budget is crucial to maintaining New Zealand’s international credibility for economic management—a status that like a reputation is hard won and easily lost as many countries around the world can attest. We are a small country. Our economy is dwarfed by that of some large corporations. We are only 0.25 percent of the world’s economy so financially you can look at us like a small coracle bobbing up and down in the Caspian Sea. However despite our small size if we do it right and we do it well such is the state of global financial— 
The ASSISTANT SPEAKER (Lindsay Tisch) 
: I am sorry to interrupt the honourable member but the time has come for me to leave the Chair.  
Sitting suspended from 6 p.m. to 7.30 p.m. 
Dr CAM CALDER 
: Malo lava le soifua Mr Speaker. Despite our small size if we do it right— 
Hon Hekia Parata 
: I raise a point of order Mr Speaker. I seek leave to make a personal explanation. 
Mr DEPUTY SPEAKER 
: I would prefer if the member did it in 2 minutes after this speech rather than interrupt the member’s speech. Can the member wait that long? Thank you. I will hear the member then I will take the point of order if you do not mind. 
Dr CAM CALDER 
: Despite our small size if we do it right and we do it well such is the state of global financial mayhem that we will distinguish ourselves from the herd—and we already are. Growth in New Zealand over the next 3 years is forecast to be higher than in Europe the UK Japan the US and Canada. We are expected to have a similar growth rate to our nearest neighbour and greatest trading partner Australia. Our growth in New Zealand is based on strong fundamentals and we are producing the sorts of products and types of services that will be increasing demand across the world over the coming decades. Fortuitously we are now ideally placed so that 60 percent of our exports now go to Australia and East and South-east Asia which are some of the most vibrant and thriving nations in the world.  
This Budget provides a sound economic base upon which to go forward. In this Budget we are investing in research and innovation to help our exporters stay ahead of the competition. Over the next 4 years we will invest $166 million in the Advanced Technology Institute helping high tech firms improve their productivity. There is $60 million for the National Science Challenges solving fundamental issues that New Zealand faces. There is $100 million for increasing performance-based research. There is $59 million for more science and engineering tertiary courses. I commend this fundamentally sound disciplined Budget. 
Debate interrupted.