McClay Todd: Debate on Budget Policy Statement 
Text is incorporated into the Bound Volume 
McClay Todd: Debate on Budget Policy Statement 
[Sitting date: 13 March 2013. Volume:688;Page:8477. Text is incorporated into the Bound Volume.] 
TODD McCLAY (Chairperson of the Finance and Expenditure Committee): 
 I move  
That the House take note of the report of the Finance and Expenditure Committee 
on the Budget Policy Statement 2013 
. The Budget Policy Statement for 2013 outlines the Government’s plan for Budget 2013 and subsequent years. We heard from the Minister of Finance at the Finance and Expenditure Committee that the Government intends that Budget 2013 will focus on a number of key priorities: managing public finances responsibly building a more productive and competitive economy delivering better public services within tight financial constraints and rebuilding Christchurch.  
The statement reiterates the Government’s commitment to controlling spending tightly and returning the public accounts to surplus by 2014-15. I quote from the select committee’s report: “A modest surplus of $66 million is forecast for that year increasing thereafter provided there is no further deterioration in world economic conditions.” The Government is focused on getting our books back to surplus by 2014-15 and we will do this through more responsible spending of Government funds delivering more for less and looking out for taxpayers and their best interests. 
I want to commend a number of Ministers in areas of policy where this is evident to all New Zealanders: Tony Ryall in the area of health where more people received operations in this financial year than in any time previously under any other Government; and Hekia Parata in the area of education. Hekia Parata has more passion in education than any Minister of Education from the party opposite has had. No member opposite when Minister of Education has had more passion and determination for New Zealand children. She is a Minister who has built on the great work of Anne Tolley over the 3 previous years. 
I commend Judith Collins in the area of law and order. She has helped the move forward with reductions in reported crime throughout New Zealand in all electorates which is good for New Zealanders making them safer in their homes. I recognise Anne Tolley as our Minister of Police for the great work that she has done delivering more on behalf of New Zealanders and I recognise the great work our police officers do every day on what is important for Kiwis making them safer in their homes and safer in their streets. 
In this Budget the Government’s focus will continue to be as it has been for the last 4 years on doing away with the wasteful and economically frivolous policies of 9 years of a Labour Government which caused all sorts of disaster for New Zealand. You see in the 9 years Labour was in Government it had $20 billion worth of surpluses—$20 billion worth of surpluses—and as David Clark so often likes to say it left us with a mess of long-term unproductive spending commitments some of the worst commitments in 50 years. 
I want to quote from the committee’s report again: “Core crown expenses are forecast to fall to 30.3 percent of GDP by 2015/16 having peaked at 35.1 percent of GDP in 2010/11 as the Government sought to cushion the impact of the recession”. When we came into Government in 2009 the forecast for Government spending for the 2012-13 year was $76.1 billion. The actual spend is forecast to be $72 billion—a $4 billion saving. In 2009 when we came into Government the forecast for Government spending in the years 2014-15 was $83.3 billion and the actual forecast today is $73.6 billion. That is tens of billions of dollars of recurrent spending that the Labour Government recklessly put in place that would harm New Zealanders—spending associated with these forecasts under Labour that would be dangerous and reckless for New Zealand. 
This Government is about less borrowing more fiscal discipline and greater focus on what is important. One need only to turn up to this House on any given day and listen to the drollery from the other side of the House to realise that New Zealanders know this and they get it right. This is a busy Government with a busy economic programme including reinvigorating and reforming our capital markets and the mixed-ownership model. Almost 300000 New Zealanders over the last 2 weeks have expressed interest in these shares to be offered. [ 
Interruption 
] I say to my colleague the hard-working MP for the electorate of Rodney that that is 300000 New Zealanders in a 2-week period. 
We will be investing in productive assets for New Zealanders with the funds that come from the mixed-ownership model. Can I say that at a time of drought when we find good use for our water it is more apparent that we need to free up funds to invest in productive assets on behalf of New Zealanders and not to borrow more as parties opposite would have us do. Through the Business Growth Agenda we are working closely with businesses. Work is under way detailing large initiatives across six areas. They include export markets—members opposite do not like it—innovation and they do not know what that word means; skills; and safe workplaces. There is rhetoric but not a lot of work on their side. They oppose everything the Government brings forward. The initiatives also include infrastructure natural resources and our capital markets. 
Where have we come from? We had the global financial crisis. In a speech yesterday we heard that the members opposite in the Labour Party are global financial crisis deniers. We have a recession that saw the worst economic conditions in New Zealand for 50 years. We inherited some of the worst financial outlooks of 50 years—[ 
Interruption 
] The former member from—what is the electorate that you beat that member over there in? 
Hon Kate Wilkinson 
: Waimakariri. 
TODD McCLAY 
: Waimakariri. You remember where that is Mr Cosgrove. The member from Waimakariri says that it is embarrassing. Well what is embarrassing is what was left to New Zealanders after a $20 billion surplus over the period of time you were a Minister in that Government. We were faced with many years of large fiscal deficits and rising debts. We have had the Christchurch earthquakes we have had droughts and we have ongoing international uncertainty. I am proud to stand here today as part of the John Key - led Government and say that New Zealand is making good progress. Our economy is growing and we are on track to surplus. Business confidence is improving. Companies are more competitive. Wages are growing. Inflation is lower. Net household disposable income is around 20 percent higher than it was 4 years ago when we inherited a mess from those members opposite who seem proud of that here today. 
Compared with mid-2009 there are 60000 more Kiwis who have jobs. Unemployment is dropping but it is still too high and we on this side of the House are willing to recognise that. Here is another 50-year experience for David Clark. Interest rates are at a 50-year low under this Government saving New Zealanders thousands and thousands of dollars on their mortgages and on their loans. The $30 billion Christchurch rebuild is now well under way. We are investing in high technology. 
We are exporting and we are negotiating free-trade agreements. We are working for the Trans-Pacific Partnership and the trade agreements that will bring more jobs to this country. We are attracting investment to this country and I say to members opposite that we are not ashamed of investment from foreigners creating more jobs in New Zealand. Billions of dollars are being spent on infrastructure: roads rail ultra-fast broadband and rural broadband—members opposite do not know about that because they do not have any rural seats but rural broadband is important to an important part of this country. 
We have 14000 more apprenticeships over 5 years. Since we launched our new scheme for apprenticeships a few weeks ago 2500 young New Zealanders have signed up for apprenticeships straight away. This is a hard-working Government that is focused on what matters: a strong plan for the country and a strong plan for the economy. I commend this report and I commend this Government to the House. Thank you.