Smith Lockwood: Budget Debate 
Smith Lockwood: Budget Debate 
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Dr the Hon LOCKWOOD SMITH (National—Rodney) 
: 
 I want listeners to the debate today to know that the member who has just resumed his seat is no other than Shane Jones who is Labour’s great new hope. He is Labour’s great new hope to replace its tired front bench. Today we heard a tired performance from Michael Cullen. We heard a tired performance from Helen Clark. The Prime Minister was just winding down; she was so tired. But I say to Shane Jones that I think he actually makes a better job of asking his patsy supplementary questions at question time than he made of that speech. He is sitting in the Prime Minister’s seat now. We know he has grandiose aspirations but I will give a bit of friendly advice to Shane Jones: the patsy questions are a good thing for just a little bit longer because he has more to do. I know that the current members of Labour’s front bench are very tired very poor performers but he has a wee way to go yet. 
The Prime Minister was all smoke and mirrors trying to claim that this was an investment Budget. We have heard it all before. I guess if one calls spending on chippies and Coca-Cola investment one could call this an investment Budget. Of course Michael Cullen and Helen Clark argue that spending on chippies and Coca-Cola is investment—investing in one’s future obesity! I guess one could claim it is investment. That is what the Budget will produce—an obese flabby Government here in New Zealand. 
The Australian Budget which was delivered the other day offered something totally different. That is why we call Dr Cullen’s Budget the “Bondi Budget”. This Budget will be far better for Australia than for New Zealand. 
Dr Cullen told us in his Budget speech that the latest estimate of the Government’s surplus was $8.5 billion—one of the biggest surpluses I think in New Zealand’s history. But that is not enough to give hard-working Kiwis a tax break. The surplus is $8.5 billion but that is not enough to give hard-working Kiwis a tax break! Dr Cullen said he could not give people a tax break because the economy has turned down a bit. It will grow at only 1 percent next year so he cannot give people a tax break. But of course in the last 2 or 3 years the economy has been bubbling along and surpluses have been fantastic but he still found excuses not to give Kiwis a tax break. 
The truth is that Dr Cullen and Helen Clark do not believe in giving New Zealanders a tax break. Dr Cullen and Helen Clark simply do not believe that people should get the benefit of having more of their own money. They believe they know best. They will tax New Zealanders as much as they think the ballot box can cope with. Dr Cullen and Helen Clark will tax New Zealanders to just under the level that they will revolt against. They will do that because philosophically Helen Clark Michael Cullen and the Labour members believe that they know how to spend our money better than ordinary New Zealanders. That is incredible arrogance. Members on this side of the House say to all the ordinary hard-working New Zealanders who are listening today that they deserve a reward for their efforts. They deserve a Government that takes less of the money they earn. 
We need only contrast this with what is going on in Australia at the moment. The Australian Budget gave the people of Australia A$37 billion in tax cuts. That is NZ$45 billion. Everyone in Australia is saying that is great for the economy and for the people as everyone shares in the country’s success. I lived in Australia for 6 years and I know that Australians are great at sharing and celebrating success. All Australians say those huge tax cuts are great for their success. 
Hon David Carter 
: Even Kim Beazley. 
Dr the Hon LOCKWOOD SMITH 
: Even Kim Beazley and the Australian Labor Party said that the tax cuts were great for Australia. In fact Mr Beazley said they should have come sooner. 
Here in New Zealand we have a Labour Government. Helen Clark and Michael Cullen know better. They do not believe in letting people have the chance to pursue their own dreams. No Helen Clark and Michael Cullen know better. Everyone in Australia is saying the tax cuts are great because Australia will be able to attract more skilled people. This “Bondi Budget” is like a huge magnet sitting off Australia’s coast and pointing towards New Zealand. It is just sucking people out of New Zealand and into Australia. 
Young skilled people in New Zealand who are going upwards in life earn about $60000 to $75000. In Australia the tax rate at that level is 30 percent. In New Zealand it is 39 percent which is 30 percent higher. Members should listen to this—we in New Zealand have a 30 percent higher marginal tax rate than Australians. That is why we call this Budget the “Bondi Budget”. 
In the last 3 years the number of people leaving New Zealand to go to Australia on a permanent basis—the net permanent loss to Australia—went from 10000 3 years ago to 15000 last year which is a rise of 50 percent in 1 year and in the last 12 months 21000 New Zealanders have gone. In the last 3 years under this Labour Government the number has doubled. New Zealanders are voting with their feet and they are going. This “Bondi Budget” will see more New Zealanders go to Australia. 
It is not just about the tax differences. The growth projection in the Australian Budget was over 3 percent a year over the next 3 years. In New Zealand it is 1 percent next year. That means Australia will have more jobs higher pay more health-care better education and even more broadband because these things relate to standard of living and higher income. 
National does not accept Dr Cullen’s excuses. Dr Cullen says that New Zealand is inherently not as good as Australia. He says that we cannot dig coal out of the ground and that we are inherently not as good. Members on this side of the House do not accept that view. We say that Labour should remove the roadblocks such as the tax burden the tightening straitjacket of regulation and the failing infrastructure. It should get rid of the roadblocks in order to let our economy grow. 
The surplus in this Budget is huge. The sum of $8.5 billion just rolls off the lips but it does not mean a hell of a lot. However $8.5 billion is almost $6000 for each and every household in this country. That is how much money Dr Cullen is taking from our hard-working New Zealanders who should have the chance to use that money to pursue the hopes and dreams they have had over the years. Instead they have to suffer the political programmes imposed on them by this Labour Government. Government members say that Working for Families is nirvana; that it gives money to hard-working families. The problem is that when people try to get ahead and earn another dollar this Government takes most of it off them. The Government almost totally controls people’s lives now. Nothing destroys people’s hopes and dreams more than the destruction of the opportunity to earn another dollar and to do something better for their children and their families. This Government takes that next dollar off those hard-working families and leaves their dreams trodden under its political feet. It is time this country had a better Government and that would be a National Government.