Jones Shane: Debate on Budget Policy Statement 
Jones Shane: Debate on Budget Policy Statement 
[Volume:629;Page:1583] 
SHANE JONES (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 2006 
. This document is replete with fantastic ideas. It is premised on three key themes. The first theme is economic transformation the second is families and the third is identity. The document was dealt with by the very competent—and more than adequately chaired—Finance and Expenditure Committee and was the subject of a very lucid presentation by the Treasurer. It is offered at a time when the economy is going through a cycle of less than fantastic economic growth. However this cycle was foreseen was looked at by Treasury and comes as no great surprise.  
What is the Government doing in this document? In contrast to the Opposition we have something very rare on that side of the House: ideas. These ideas are focused on growing families and investing in infrastructure. Why is that important? It is important because we need a strong economy. A strong economy will deliver the living standards that our children and our grandchildren expect of us. How well has this economy performed under the fantastic stewardship of the Government and Dr Cullen? Obviously—and it will come as no surprise to the Opposition—it has grown 25 percent over the past 6 years and nowhere is the growth happening at a greater pace than in those areas where technology looms large. I shall say more on that shortly. 
In regard to a very innovative policy that we reflect in this document and in which we have great pride—and I hope all the university students are listening to this very good speech—from 1 April 2006 we will have our interest-free student loan scheme policy. Why is that good? That is good because it will no longer beggar and belabour families who want to see their children go on to tertiary education and those children will be able to add to the march of people enriching the productivity of the economy. 
In addition to that what else are we doing? Unlike the Opposition we have not forgotten about families. In fact we are expanding the Working for Families package. It is a fantastic policy and people are clapping up and down through the four winds in Aotearoa for it. 
In addition to that the policy reflects the fact that our export sector has not performed as well as exporters would have liked. Why is that? Amongst other reasons is obviously a high dollar. That brings us to the point reflected in this Budget Policy Statement: a high dollar cannot coexist with profligate fiscal policy similar to that which has been promoted by various speakers from the Opposition benches. For those reasons I have no doubt that during the upcoming Budget rounds fiscal discipline and prudence will be a major point of interest. That is because too much loosening feeds inflation inflation feeds interest rates and interest rates worsen the prospects for our exporters. 
However let me continue with some of the brilliant policies that are reflected in our document. In the New Zealand superannuation scheme for married couples there is an adjustment to 66 percent of the average weekly wage. What we have is a seamless approach: the retiree community has been well and truly listened to the working community has been well and truly catered for through our policy of focusing on families and the rangatahi—the young people—are well and truly catered for through a student loan scheme. Also through the policies that we will introduce there will be a focus on childcare. Those policies reflect the seamless approach that this document is overwhelmed with. 
I will continue in relation to capital expenditure. An additional $1.9 billion we have heard has been allocated for capital expenditure. 
Hon Member 
: Borrow for education. 
SHANE JONES 
: A point has been raised as to why we do not have more borrowing. Well fortunately we will not get caught up in failed schemes such as those we have seen in Australia where essential infrastructure was handed over to private enterprise. Rather we will continue to observe the necessary fiscal discipline and where there is cash-flow operational capacity it will be put into enriching the capital expenditure needs. Why? Because we lived through a deficit in the 1990s when unwise decisions were made in the belief that the market would simply deliver. There is no better example of where the market did not deliver in the 1990s than in the debacle of our railway sector. 
In addition to that one of the most visionary policies which is now acquiesced in by the Opposition is obviously our Superannuation Fund. That is forecast to increase in value from 4.3 percent of GDP in June 2005 to 12 percent in June 2010. Operating surpluses are predicted to be sufficient to meet the Government’s contribution to the fund over the forecast period. This indicates the very long-term strategic focus that this document reflects: taking care of business for the future enabling more young people to educate themselves and not be saddled with unreasonably high levels of debt and providing for a capital fund that contributes to the costs of an ageing population. 
In respect of technology we need to be able to grow our export sector given that the entrance of labourers into the labour market is about to drop by 50 percent over the next 15 years. So how ought an economy to deal with that fact? Obviously it is by productivity and by investing in technology. Therefore technology—which people will no doubt hear about—will loom large as we continue onwards throughout this particular period of time. I think it is important to bear in mind that people throughout society including doyens from the business community have identified how comprehensive constructive and visionary this document is. So I tell those members who constantly prattle on and moan that we are being left behind by Australia that it comes as no surprise that Ralph Waters one of our better chief executive officers in the construction sector tells people that things are really good in Aotearoa land. 
Now let me continue in relation to those rather negative things that are constantly said about there being indications pointing to a business downturn. I need to quote from Jason Wong from First NZ Capital. What does he say? He says that business confidence is a coincident indicator. The surveys give rise to some consternation which is exaggerated by members opposite. Those members worsen that consternation because they do not have a string of ideas. 
The National Party had an opportunity last year to sell to the New Zealand public and to the electorate a series of ideas that blended social cultural and economic ideas. What did National members do with social ideas? They got members of the Exclusive Brethren to write their policy for them. What did they do with cultural ideas? They decided to demonise stigmatise and undermine the contribution of the Maori community to society. And what did they do in relation to economic ideas? They fled backwards and promised to shrink the State which is why we are transformational whereas they are transistors. They would slash spending and try to recreate the failed policies of the 1990s. That did not work then. They have not contributed any ideas other than moaning and diversionary tactics because deep down this document has captured the imagination and the support of the electorate. And nowhere was that better reflected than in the election result. 
So what are we going to see in the upcoming Budget round? Well that lies at a detailed level with Dr Cullen. However to recap there will be ongoing investment in our students. Those students know who their friends are.