Choudhary Ashraf: Budget Debate 
Choudhary Ashraf: Budget Debate 
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Dr ASHRAF CHOUDHARY (NZ Labour) 
: 
 Firstly I congratulate Michael Cullen and this Government on presenting a very balanced and careful Budget. This Budget reinforces the Government’s reputation for fiscal prudence and economic pragmatism guided by its social conscience. I am proud to be part of this Government. 
This Labour-led Government has a clear set of policy priorities. Those are to achieve higher living standards for all by restoring New Zealand to the top half of the OECD in terms of per capita income to support a cohesive society by funding good public services and to achieve socio-economic outcomes that we can all be proud of. This Government has consistently pursued those objectives since taking office 4 years ago and this year’s Budget takes some further important steps in that direction. 
This Budget has put more money in the Government’s investment in the education sector and in the growth and innovation framework and continues its record of strong investment in health and social development which is an investment for the future of this country. This Budget shows an integrated whole-of-Government approach to lifting the sustainable growth rate and it offers certainty and stability amid a threatening confused and insecure world environment. It is about educating for a successful and innovative society; implementing the growth innovation framework; creating opportunity and security which are key to a successful society; and creating infrastructure sustainability through transport energy water and technology. I will concentrate my contribution on the education and science areas because I believe that the economic health of a country is pretty much dependent on education and innovation. 
Education is important for the opportunity it provides not just to individuals but also to the economy. This year’s Budget has provided nearly $1200 million—a 6 percent increase—in new education spending over the next 4 years plus a further $128 million for capital investment. More specifically we have put a lot more money into early childhood education we have increased operating funds for schools and we have provided $400 million for new school buildings and over $400 million to increase the student component of tertiary funding which will increase by 3 percent in 2004. We have also introduced a new fee maximum policy at tertiary level which will both provide long-term fee predictability and contain fee increases and which will give surety to a lot of students in terms of what they will have to pay. 
The Budget also contains $23 million over 4 years for bonded scholarships and research fellowships to attract people into specialised professions that are critical to our success. It is very important to make sure that good students are welcomed and well regarded. There is additional money in the Budget to provide for 774 teachers which includes funding for teacher supplies. The Tertiary Education Commission has been set up to steer development in the sector. So there are a whole lot of new initiatives in the education sector. 
I will talk just briefly about industry training and Modern Apprenticeships. This Budget allows an increase in the number of industry trainees from 100000 to 150000 by the year 2005. We have an additional $14.6 million for Modern Apprenticeships. There is a whole lot of new money for training in the Gateway programme and so on. Additional funds are going into research technology and science. 
This Budget continues the Government’s commitment to the innovation and growth framework to strengthen the economy’s capacity to grow which is important. For example I know that a huge amount of money is going into the new research science and technology area. There is funding for a pre-seed accelerator funding programme and that is very important. As a scientist I know that I had difficulties in years gone by—one could have a good idea that one wanted to promote but there was no funding at the pre-seed level that could be used to promote one’s particular idea and to take it to the next step in terms of commercialisation. It is very important to encourage scientists to actually bring their technology into the commercial arena. 
We recently announced $6.4 million to increase the highly successful business incubator programmes and that is very important also. It will encourage new initiatives in terms of innovative parks and regional development and it will create more employment. 
The Budget provides $44 million to attract migrants to New Zealand with the skills that the economy needs. It is very important for us to target funding to get people who can contribute to the economy or who can be employed before they actually arrive in this country. 
In addition there is a whole lot more money in terms of biotechnology information and communication technology and design and screen production. I am delighted that a whole lot of innovative initiatives are taking place in the industry and also in small and medium-sized enterprises. This Government is putting together a package to assist small and medium-sized enterprises which will include some clever and highly practical tax changes. A special forum will be held next year to discuss those changes and a small advisory group will be established. 
I now want to talk briefly about ethnic New Zealanders. I have heard a lot about Asians and other ethnic people coming under attack from the other side. It is a shame to hear those attacks over and over again. Someone on the other side just mentioned Singapore for example saying that it has done well and that it is going ahead. I am aware of that but who are Singaporeans? They are Asian people and members should not forget that. 
This Government has taken steps to recognise the growing ethnic and cultural diversity of New Zealand. Our country was built on a bicultural foundation but today it is home to many peoples. There are about 400000 ethnic New Zealanders and some like early Chinese settlers have been a part of our society for almost 150 years. We recognise that some migrants and especially refugees may have high settlement needs. It is important to address those needs and to ensure that ethnic people feel accepted in New Zealand so that they are able to integrate into our society and contribute to its culture growth and prosperity. I am delighted that the Labour Government has established the Office of Ethnic Affairs as a permanent policy and advocacy body for ethnic people. Since its beginning in 2001 the office has expanded and consolidated its resources and now has branches in Auckland and Christchurch. That initiative aims to encourage participation by ethnic people in all spheres of life and to recognise those individuals who have left a mark on New Zealand society. 
We have recently launched the language-line pilot—that is the Government’s 30-language free-to-use telephone interpreting service which is intended to allow ethnic people easy access to Government agencies such as the Police the Accident Compensation Corporation the Immigration Service Work and Income and Housing New Zealand. We have also recently launched a policy on English for speakers of other languages. There are 50000 non-English speakers in this country and that strategy will allow those people access to learn the English language and it is very important that that is being done. 
Finally this Budget has allocated over $21 million over 4 years to improve the employment services for migrants and refugees through an Auckland metropolitan migrant and refugee strategy—that too is important. A key component of the strategy is the establishment of specialist migrant and refugee work track and work action programmes. 
I am delighted that this Government has taken initiatives that are very balanced that look forward to growth in the economy and that put money into education and science in particular.