Dean Jacqui: Budget Debate 
Dean Jacqui: Budget Debate 
[Volume:655;Page:4304] 
JACQUI DEAN (National—Waitaki) 
 I am very pleased to take a call following on from the previous member for Otaki who delivered a predictable and very unexciting speech. He touched on the Budget maybe once maybe twice and even then both times he got it wrong. I will tell the House why I believe that that member the previous member for Otaki got it wrong. When I am on the streets knocking on doors and talking to people do members know what people think about the National Government Budget? People think it is a great Budget. Do members know why? Because it is about jobs. This Budget is an economically responsible Budget. It is about the creation of jobs. 
I want to touch on one small Budget initiative that I think illustrates the intention of this Government. It was raised by the previous member for Otaki in a laughing kind of way. That initiative is the cycleway. Do members know why that previous member for Otaki raised the issue of the $50 million allocated to create a series of regional cycle tracks? It was because Labour members do not get it. They do not understand that regional development is very very important for the economic recovery of New Zealand. They do not understand that a shining example is right in front of them right in my very own electorate of Waitaki which has proven over the past 10 years that economic recovery and economic welfare are achievable through initiatives such as the Otago Central Rail Trail. This initiative was by the way a winner in the 2008 Trustpower Community Awards and deservedly so. 
Let me tell the House about the Otago Central Rail Trail. That community organisation has turned round the economy of Central Otago. It has done that by creating an opportunity out of what was a liability. The organisation worked in partnership— 
Hon Lianne Dalziel 
: That’s right. 
JACQUI DEAN 
: I am glad to see the member opposite Lianne Dalziel is agreeing with me. Maybe there is one member from Labour—[ 
Interruption 
] Maybe there are two members from Labour who agree with me. This is marvellous! Labour members are supporting this initiative and I think that is fantastic. They must tell their colleague Darren Hughes because he does not get it. I am very pleased to see that at least two members opposite understand that an investment of $50 million in regional cycle tracks can and will make a difference to the regional economies of New Zealand. 
A number of jobs have been saved through this initiative. A number of women and men for example who have spare accommodation on their farms have turned that accommodation—old shearing quarters and old barns—into accommodation for cyclists thereby creating work not only for themselves but also for other people in the community. That is the key. It may sound like a small thing in the context of this wonderful Budget but it is good news when we can create two three or four jobs—where there were none—out of a single accommodation industry. In such a small but important way this initiative encapsulates why this Budget the first of this National Government is all about jobs. 
I want to pick up on a fantasy that was expounded by a couple of earlier speakers. Mr Trevor Mallard was one of those speakers who claimed that National should have known that the economic situation was getting worse. We should have known that the situation was as severe— 
Hon Lianne Dalziel 
: You did know. 
JACQUI DEAN 
: Members opposite are saying that we did know. Did we? Did Labour know? Could anybody have known? The Budget 2008 forecast which was made in May of last year showed a surplus of 0.5 percent of GDP or a $1 billion surplus. A little over a year ago the country had a $1 billion surplus. It was the golden weather of 9 years of a Labour Government. Labour members were still very full of themselves at that point—a little over a year ago. 
However when the Pre-election Economic and Fiscal Update was announced in October 2008 the situation had changed. We were then looking at a deficit of 0.9 percent of GDP. That was a $1.7 billion deficit. How quickly that happened. Then we moved forward to the December 2008 forecast. By then the deficit had grown quickly from 2.2 percent of GDP to $4.1 billion. So much for 9 years of a Labour Government; so much for 9 years of stunning Labour economic management. Do those members have a plan? No they do not and no they did not. 
But the news just gets worse. The Budget 2009 forecasts from May this year show a deficit of 4 percent of GDP or $7.7 billion. Who could have seen the sharp combined impact of the international downturn and the economic recession? That means that over the next 3 years alone the New Zealand economy following 9 years of Labour stewardship will lose around $50 billion of output. Compare that with the forecast in the 2008 Budget. Who saw it coming? 
After 9 years of a Labour Government after 9 years of fair economic times what did Labour members have to say about it? Their claims now are so hollow. The claims of the two previous speakers I have heard this afternoon that National should have seen it coming are so hollow. Just listen to these two quotes. One is from the  
New Zealand Herald  
in September last year: “Finance Minister Michael Cullen thinks the worst of the economic recession is probably over—and that Labour’s tax cuts will help to push the economy back into positive growth just as voters head to the polls.” That is what Labour hoped. Unfortunately that was not to be because the people of New Zealand voted for a National Government and now I am so proud to be standing here today talking about the first Budget of the National Government. But I have one more quote to share with members again from the  
New Zealand Herald 
 
in October 2008. When was the election? 
Hon Member 
: November. 
JACQUI DEAN 
: This was just before the election. This was on 1 October 2008 just a week before the election: “Finance Minister Michael Cullen is optimistic that Congress will ultimately approve a rescue plan. Cullen sees no need to urgently reorder Labour’s spending plans to take account of the deteriorating conditions.” Labour’s words are absolutely hollow. I want to finish my contribution to this debate— 
Hon Member 
: Thank goodness. So do we; we want it to finish as well. 
JACQUI DEAN 
: Labour members have loved my speech. I have turned a couple of members over to the National side. Whereas the two previous speakers rubbished the cycleway initiative two members of Labour two former Cabinet Ministers have this afternoon come over to National’s thinking and now support the national cycleway. I welcome that. I welcome their continued support for the project. 
I am very pleased to have had a speech in this Budget debate. Thank you.