Russell DeborahDr DEBORAH RUSSELL (Labour—New Lynn): Thank you Mr Assistant Speaker. I am delighted to take a call in this debate on the Budget Policy Statement. The Budget Policy Statement draws on work that has been done in Treasury for some years now on the Living Standards Framework. It's integrated into the Budget Policy Statement—in particular through thinking about well-being. As part of the work that the Finance and Expenditure Committee has done in preparation for this well-being Budget we spent some time talking to absolute experts in the field. This afternoon I want to report to you in the context of this debate some of what Professor Marilyn Waring talked to us about when she came to the Finance and Expenditure Committee. She is of course a former National Party MP and an eminent economist and political philosopher. One of the interesting things that Professor Waring told us about was that GDP is a comparatively new measure. It was first really used in about 1934 and when it was first introduced it was controversial. There was a longstanding debate as to what got put into GDP and importantly what got left out of GDP—what counted and what didn't count. There's some interesting stuff that goes into that—for example carpentry was something that Professor Waring told us didn't make its way into being counted in GDP until the 1970s. That was when it crossed the production boundary—the boundary of what counted in GDP and what didn't. So it's rather interesting to think about what doesn't count in GDP. Primarily the sorts of things that don't count in GDP are women's work and work that goes on in the home. Here are some of the items that are not included in GDP—and this comes from an article by Paul Dalziel and Caroline Saunders. What doesn't count in GDP? The cleaning decoration and maintenance of the dwelling. What doesn't count in GDP? The cleaning servicing and repair of household durables the preparation and serving of meals the care training and instruction of children the care of sick infirm or old people—Hon Chris Hipkins: Unless you pay someone to do those things. Dr DEBORAH RUSSELL: —and the transportation of members of a household or their goods. As my colleague the Hon Chris Hipkins has pointed out those matters only count if they are paid—if someone pays for them—because that's the definition of GDP. It's the monetary measure of the market value of all the goods and services an economy produces but only—only—if there is a monetary value paid for by the market. GDP is an interesting and worthwhile measure. It is an important measure of what goes on in the economy but it does not measure all that is important in the economy. It does not matter what counts for well-being—what counts for enabling us to lead a flourishing and a happy life. The ancient philosophers concentrated on what it was to lead a flourishing and happy life and what counts for a flourishing and happy life? People say What is it? How do we know that?" Well we know that because it's been talked about for centuries. We know that what matters to people is good health. We know that what matters to people is social connectedness. We know that what matters to people is meaningful work. We know that what matters to people is standing in their communities. We know that what matters is people. That is what this Budget sets out to count. We are starting to answer Professor Waring's challenge. We are starting to answer that challenge of what really counts. That's why this well-being Budget is so important. Of course it will be hard to develop the measures. Of course this first essay into doing a well-being Budget will be difficult. But as it took nearly a century for the measure of GDP to settle down a bit it might take us time to get the measures of well-being right. But we are on our way and we are making an attempt at it and we have some concrete goals—concrete goals—because we know that what gets counted is what people work towards. So we will work towards productive businesses regions and an economy we will work towards a thriving nation through innovation and social and economic opportunities we will work to lift Māori and Pacific incomes skills and opportunities we will work to reduce child poverty and improve child well-being and we will support the mental well-being of all New Zealanders because we will work for well-being."