Smith Nick: Supplementary Estimates — Imprest Supply Debate 
Smith Nick: Supplementary Estimates — Imprest Supply Debate 
[Volume:640;Page:10172] 
Hon Dr NICK SMITH (National—Nelson) 
: 
 Our economy is being mismanaged. The core public services of health education and the police are in a mess. We have the extraordinary situation where for the first time ever in New Zealand history a former Labour Minister is in court on corruption charges. It is no wonder that every member of this Labour Government is wanting to talk and make up stories about National policy. All the way through question time and this debate the Labour Party members have not been talking about what they are doing in Government or about their ministerial portfolios; they have been setting up straw men about what National’s policies might be. If we want a sure sign that the Government is on the way out that is it. 
I want to talk about the first issue that is on the minds of ordinary New Zealanders as thousands of them receive letters from their banks about their interest rates being pushed up because I want Labour members opposite to understand what that means for those household incomes. At the weekend a constituent came to see me. He had just got a letter from the bank to say that its fixed-term interest rate had gone up from 6 percent to 9.75 percent. 
Darren Hughes 
: Their fixed rate. 
Hon Dr NICK SMITH 
: The fixed rate. It had come to an end. Mr Hughes might not understand this but fixed interest rates come up for renewal and that was the new rate. That meant for that family $135 a week. How do Labour members expect families like that tens of thousands of them to pay for those big increases in their mortgage bills? Why I ask Mr Hughes are New Zealanders paying the highest interest rates in the OECD? Silence. Are there any more bright words from the Labour Party? 
Jill Pettis 
: What did you do to bring interest rates down? Tell us what you did. 
Hon Dr NICK SMITH 
: Jill Pettis should get on her broom unless she can answer and tell this House why New Zealanders are paying 2 percent more in interest than an Australian 4 percent more than an American and 3.5 percent more than a Brit. Why? [ 
Interruption 
] Those members want to scream out but they are not prepared to answer that basic question that is on the minds of ordinary New Zealanders. 
It is not just homeowners that those high interest rates are having an impact on; it is also business. If people want to invest in their farms and their small businesses to build the machinery we need to increase New Zealand’s productivity and be better off then they need to borrow. Those interest rates mean that New Zealand businesses are less competitive than their competitors in Australia the US Canada and Europe. Members opposite have no answer. They do not understand. We have seen the figures on the affordability of owning one’s own home. It is harder now in 2007 than at any time in New Zealand history to be able to afford one’s own home and again Labour members simply do not understand. 
Yes I do want to talk about tax because a very important graph came out last week and I think it is worthwhile for the House to understand it. We know about tax freedom day. That is the day on which New Zealanders get to work for themselves. I have some updated figures on when it is. If we go back to 1990 we see that tax freedom day the day when New Zealanders got to work for themselves was 10 June. Labour as it always does when in Government had found ways to get its hands deeper into the pockets of ordinary New Zealanders. By 1990 after Labour had put up taxes in the late 1980s tax freedom day had gone out to 10 June. National worked hard in the 1990s. We pegged tax freedom day forward 31 days. By 1999 when National left office tax freedom day was 10 May. 
Darren Hughes 
: Pity wages didn’t go up. 
Hon Dr NICK SMITH 
: They went up by a huge amount. 
Darren Hughes 
: Wages? 
Hon Dr NICK SMITH 
: Yes they did. They actually went up and productivity went up I say for Mr Hughes’ benefit. But let us go back to where we are with tax freedom day. This year I say to Mr Hughes tax freedom day has gone all the way back to 10 June again. It has gone back by over 33 days. Every single year that Labour is in Government New Zealanders need to work more days before they are able to keep their own income. The real worry for New Zealand is this: while New Zealanders have to work through to the middle of June to be able to work for themselves in Australia tax freedom day is 10 May. 
Hon Judith Tizard 
: But they can afford to take their kids to the doctor. 
Hon Dr NICK SMITH 
: It is no wonder I say to Judith Tizard that every single week a 747 loaded with talented New Zealanders is travelling to Australia. They are leaving I say to Ms Tizard because her Government is forcing on them the highest interest rates in the world making the dream of homeownership more difficult here than in any other country and because her Government keeps wanting to tax them to death so that they cannot keep their own income. 
But this Government is also in trouble because its policies are in tatters. Let us take the issue— 
Hon Judith Tizard 
: You had cash registers in hospitals and there will be cash registers in schools under National. 
Hon Dr NICK SMITH 
: Ms Tizard should get on her broom. 
Hon Judith Tizard 
: I raise a point of order Madam Speaker. This is a robust Chamber but I deeply resent that member constantly using deeply sexist language. I really really resent my right as a member of Parliament being insulted because I am a woman and I want him to withdraw and apologise. 
The ASSISTANT SPEAKER (Ann Hartley) 
: No no. It is a robust debate. The member was also participating by— 
Hon Judith Tizard 
: It is not acceptable for him to be sexist. 
The ASSISTANT SPEAKER (Ann Hartley) 
: I am on my feet I say to the member. You do not call out when I am on my feet. The member will withdraw and apologise to me. 
Hon Judith Tizard 
: I withdraw and apologise. 
The ASSISTANT SPEAKER (Ann Hartley) 
: I think that if we get down to ruling out every term like that—this is a robust debate and the member was debating. 
Hon Judith Tizard 
: I raise a point of order Madam Speaker. Implying that any member of Parliament is a witch is not acceptable. The term “witch” has been used as a term of insult to women. Women were burnt because they spoke out. I deeply deeply resent the sexist language and the insult to every woman in this Parliament and every woman in New Zealand. 
The ASSISTANT SPEAKER (Ann Hartley) 
: Obviously the member has taken offence at that term. I ask the member to withdraw and apologise. 
Hon Dr NICK SMITH 
: I withdraw and apologise. Judith Tizard constantly interjects and when I tell her to get on her broom she gets all super-sensitive. I am not surprised because Judith Tizard told the electorate that there would be 20 free hours of early childhood care. I have to tell the member opposite that her Government is not delivering and New Zealanders are angry about that. The Government has broken its word. The reality is whether it is a surcharge or a morning tea fee Labour is not delivering what it said. 
Then we have the extraordinary situation of a formal report from the police saying that new recruits do not know the alphabet. Such is the deterioration of standards that new cops are sworn in and put out on the streets who do not know the alphabet. I simply say that that shows the degree to which the quality public services which the public rightly deserves are in trouble. What happened was that Labour in the middle of the last election campaign promised anything to save its bacon—20 free hours of early childhood education 1000 extra police—without actually ensuring they were not just slogans. The delivery is in trouble and as a consequence Labour is in trouble. [ 
Interruption 
] 
I raise a point of order Madam Speaker. I have the flu and I am struggling with my voice. I have put up with 5 minutes of constant screaming from Jill Pettis and Judith Tizard and I wonder whether you might bring the House to order so that I can give the House a quality speech. 
The ASSISTANT SPEAKER (Ann Hartley) 
: I agree with the member—[ 
Interruption 
]; silence during points of order—that constant barracking is not acceptable. 
Hon Dr NICK SMITH 
: This Government is in trouble in terms of health education the police and those record high interest rates. New Zealanders are looking for fresh new direction and there is none from this Government. They see failure they see broken promises they see a tired old Government that has done its day. 
From National they are looking for straight leadership they are looking for good-quality policy they are looking for the sorts of policies that will make homeownership affordable. They are looking for the sorts of policies from National that will see quality in areas like early childhood education—not the broken promises we have seen from this Government. They want policies that will not see New Zealanders paying the highest interest rates in the Western World. They want policies that will ensure we do not have police out on the street who do not know the alphabet. They want policies that will reverse the trend of 7 million trees being ripped up and not replanted over the last 3 years. They want policies that will see our health system put into decent shape. 
I say to members of this House that this Government is an incompetent Government it is a corrupt Government it is a Government that has had its day— 
The ASSISTANT SPEAKER (Ann Hartley) 
: The member knows very well that he cannot use that term. He will stand withdraw and apologise. 
Hon Dr NICK SMITH 
: I withdraw and apologise. We have the unhistorical scene which has never occurred before of a former Labour Minister being charged with corruption.