Budget DebateText is incorporated into the Bound VolumeBudget Debate[Sitting date: 21 May 2014. Volume:699;Page:18174. Text is incorporated into the Bound Volume.]Budget DebateDebate resumed from 20 May on theAppropriation (2014/15 Estimates) Bill.Hon HEKIA PARATA (Minister of Education): Ātēnā koe Mr Speaker.Otirāhurinoaitōtātou Wharetēnā koutou katoa. Mewhakanuitātouitēneitahua-pūtea.Kua kite katoatātoui te pai me tehuamōngāwhānau katoa o Aotearoa.[Thank you Mr Speaker. Greetings indeed to all of us throughout our House. We must acknowledge this Budget. We have all seen the value and benefit in it for all New Zealand families.]I am pleased and proud to be standing to speak in this Budget debate 2014-15. It is the kind of Budget that is absolutely apposite to its circumstances. We have had six Budgets that have had to be delivered over the course of this Government and each one has been putting in place the building blocks for a stronger economy a richer wealth of society more support for the families and children who need it the most and investing in the sustainability of our country and of our people long term. This Budget delivers all that it should. We have come out from the mess we inherited from the Opposition and from the global financial crisis deftly managed by the Minister of Finance. Each year we have had the right amount of stimulus and the right amount of borrowing balanced against the right amount of investment because we understand unlike those Opposition benches that money does not magically pour through a hole in the sky. It comes from investing in businesses and backing those companies to make greater investment choices themselves to employ more people to offer more jobs to articulate what skills they need and to make sure that our education system delivers on that.This Budget reflects our main priorities: strengthening our economy getting more growth out of it and getting better public services of the kind that my colleague StevenJoyce was just mentioning. We do not simply fund departments to keep existing; we fund them to deliver better services and we are getting better services from our very experienced and capable Public Service. We are also working in a more focused and integrated way amongst Ministers across all portfolios. Again we understand unlike the Opposition that people do not live their lives in sectors; they live their lives. As a result of that you can see that at the heart of this Budget is a big heart for families and children.We are extending paid parental leave and the parental tax credit while at the same time investing more into early childhood education—$155 million which caters for the growth we are already having in early childhood education which itself is a sign of growth in the economy as parents are going back to work and as more people are finding jobs and seeking better and higher-quality early childhood provision for their children. But alongside this at the heart of this Budget is a significant health investment: extending free doctors visits for those up to 13 years old and providing for those prescriptions. We have been able to do this over time because we have built the base to make that possible. Together that $500 million package at the heart of our Budget shows how much this Government cares for is concerned about and is prepared to make an investment in the families and children of this country that we as a country can afford to make.I want to talk a bit more specifically about education. We have had some questions in the House today about why youth unemployment particularly in Pasifika and Māori communities is at the level that it is at. The answer is simple. Those young people if they do not have the skills they need cannot get the jobs that are available. Eighty-four thousand jobs have been created in the economy in the past year. That means more people are getting back to work and of that nearly 11000 are young Pasifika people. We want to see more young people getting the opportunities to get into work and to make a life for themselves and for their families. But that has to be off the back of a sustainable investment which is education. That is why in our portfolio we have for the first time gone over $10 billion. This Government puts its money where its mouth is. It knows that good-quality early childhood education puts our young people on the best learning trajectory possible.We have a Better Public Services target of 98 percent of all new entrants in 2016 having participated in early childhood education. We are at about 96 percent. Both the Pasifika and Māori communities have increased their participation and that is great because it means they can move on into primary school with a stronger set of skills—socialised eager and keen to participate in their own learning. We see improvements across primary schools as well as into secondary schools and on into secondary-tertiary transitions or at least on into training into apprenticeships into more academic courses and into employment.That happens because we do thisunsexy but necessary job of ensuring that five out of five children get the best possible education they can get. That means working away at the system. It means as I have already indicated that we have nearly doubled the investment into early childhood education. We have taken it from $800 million to $1.5 billion over the last six Budgets. At primary and secondary schools we have increased the investment by about 45 percent. The flagship investment of $359 million which the Prime Minister announced in January was the single biggest item in this year’s Budget. That is directed at how we raise the quality of teaching and leading in our schools so that we get more kids across the line and more kids able to make choices for themselves about the kinds of lives they will live.In addition we have recognised that our schools need day-to-day support in their operational funding—$85 million in this Budget. That $85 million keeps pace with theprojected cost of inflation which is only one factor but an important factor. In the last 6 years this Government has put over $600 million into providing that day-to-day support for schools. We know how important it is that schools are able—and this is all their discretionary spending. That is in addition to all of the other investments that we make into schools for professional learning and development for curriculum support and for the very strong investments we are making in properties. New schools are being built in this country.In Christchurch of course about 28 new schools will be built over the next 10 years and 115 schools in all will support a refresh of the education network there—one of the four priorities of this Government. We can expect to see that becoming a leading education network in New Zealand but I think in Australasia as well because of the support we have given to that community and because those education leaders in Christchurch have risen to the many many challenges that they have had to face over the last 3 or 4 years. That has been supported in a wider sense by the investments that my colleague the Hon Gerry Brownlee has made across Christchurch. Our Government has not once resiled from its commitment to ensuring that those communities will be rebuilt that they will continue to be a priority to us and that we will put money in there as it is required and it will be invested wisely to sustain the growth of that community. Education is one part of that story.We are also putting investments in education into the School High Health Needs Fund into Reading Together and into Computers in Homes. These three programmes together will support some of our most needy families. There is $3 million over the next 2 years for Computers in Homes. We expect to be able to help 1500 more families. The Computers in Homes programme does two main things. It helps families to become acquainted with and confident about skills to engage in the digital world. They learn how to use a computer they learn how to access the internet and they learn how to design their own CVs to Google jobs online and to get the information they need. At the end of the programme they receive a computer and 12 months’ access to the internet. But the second equally important and powerful contribution that Computers in Homes makes is that it connects with their children who are more and more being exposed to the opportunities of digital learning in our schools. This Government has invested $700 million into making sure that our kids can participate in 21st century learning. Of that we have invested in ultra-fast broadband to the school gate and we have ensured that the schools are wired to benefit from that connection.My colleague the Hon Amy Adams has been relentless in ensuring that not only are our contractors on time to ensure that this is happening in schools but actually they sometimes get ahead of our timetable. Led by my colleague the Hon Nikki Kaye we have invested in the Network for Learning. This is a managed network that brings data into schools—good quality high speed free 24/7—to support the best possible 21st century learning unlimited and uncapped. This is a $700 million investment and we are continuing to invest in that space making sure that our properties are modern learning environments; that they are fresh light flexible spaces; that they are earthquake-proof; and that we are dealing with leaky buildings. Minister Kaye has overseen a renewal of that very important part of the education portfolio.Our Government has prioritised five out of five learners and this Budget invests to make sure that that becomes a reality every day in classrooms and early childhood centres up and down our country. We are back in black.Le’aufa’amulia ASENATI LOLE-TAYLOR (NZ First): Talofa lavamalo lesoifua.Fa‘afetaitele mo leavanoailau afioga a le Speaker. It is evident that this Government has reassessed its stance on the Pasifika party vote and has indicated in no subtle manner how it hopes to win the hearts of the Pacific population. The decision toput a Pacific face to the role of Minister paved the way for deliberate visits to church services to appeal to the Pacific mass. Even Judith Collins managed to attend a Samoan Catholic mass in South Auckland inMāngere at theMalaeola accompanied by her Asian and part-Samoan husband and followed by a Samoan entourage—an over-the-top display. It was—[Interruption] Sorry I hear somebody.Tim Macindoe: This is the Budget debate.Le’aufa’amulia ASENATI LOLE-TAYLOR: It is. It is coming. It was a masquerade and artificial mana to somehow woo the hearts of the congregation.The National Government clearly expects to take Pasifika votes for granted. You may fool a few but it is not hard to see the underlying game played by National. As we watch the game play unfold there is no real hope given from Budget initiatives that yet again are titled with empty promises of improvements and of a brighter future. The strategy is clear—let us skim enough Pacific party votes to win this election. Let us make them feel good by attending their churches for the first time in numbers and in the year of the election. The problem with this strategy is the undermining of Pacific communities in their ability to see through the facade and recognise good policies that give concrete results to all. Why is it that Pasifika are always—always—on the extreme spectrum of negative statistics yet the last to benefit from Government interventions?The Minister of Pacific Island Affairs has made it clear that the Pacific language is not a priority for this Government. He needs to tell the Prime Minister that language is a very important aspect of learning. It is considered a very important part of the Pasifika culture and schools should be allowed to incorporate languages into their curriculum. New Zealand First will encourage Pasifika to speak their languages. The problem this Government has is that it knows exactly what the needs of Pasifika are but it is reluctant to follow through with any real commitment.It is simple. Pasifika want to earn a stable and fair wage through employment. Pasifika have lost almost $90 a week in their overall weekly income since 2009 yet the cost of living has gone up dramatically. Last year’s Budget saw a pathetic 3000 trade training initiatives introduced to appeal to young Pasifika. A 2014 pre-Budget announcement of $20 million for 6000 more apprenticeships for all New Zealanders shows an increasing demand in priority trades. There needs to be a decrease in the number of Pasifika “neet” youth. Those are the youth who are not in employment not in education and not in training. You would think that with a surplus more would be invested to encourage trade training particularly in the area of rebuilding Christchurch and housing construction in Auckland which would benefit the New Zealand economy.Housing affordability is now at its worst and it is impossible for any of the Pasifika people to access homeownership. It is now at its all-time low of almost 19 percent. Well what can anyone expect with a 20 percent deposit now required and the cost of houses starting from $400000 upwards? The 41 new special housing areas in Auckland will not be effective for many. This Government is out of touch in its belief that the average family can afford over $400000 for a new home.Pasifika do not want handouts. They want the opportunity to work hard in order to earn a living to support their families. You may boast about a surplus but I can tell everyone listening to and watching this debate right now that Pasifika communities are not as excited. One can only hope that the $20 million to $25 million expected spend on Pasifika futures will not end up in the same dubious business asWhānau Ora. Public accountability is imperative in making sure that taxpayers’ money is not being spent on or used to finance projects that deliver unsuccessful outcomes. Pasifika need worthy projects that deliver jobs affordable housing education and good health systems. It has been said by many Pasifika orators of our time: “O le manuusupona temauauma iaanufe o letaeao.”—a bird that gets up early will inherit all the worms in the morning.When the Samoans translate that into oratory wisdom it is that early and well-prepared hunters will catch all the goodness available. A Government with advanced strategies will achieve its expected outcomes if there is genuine commitment for Pasifika which is not the case.Bill English and Nick Smith rambled on and on last year about how the Warm Up New Zealand: Healthy Homes programme was expected to insulate around 46000 homes. Well why do they not come to South Auckland and explain to the Pasifika constituents why many of them are endlessly on the waiting list or forever waiting on the 0800 lines for somebody—anybody—to listen to their housing concerns? Why does the Minister not tell them why waiting for 4 months after speaking to an 0800 line robot about urgent maintenance issues is standard process under his Government? Why does the Government not tell those affected by rheumatic fever asthma and meningococcal disease that it is sorry but to toughen up and to continue to live in an unhealthy unsafe and overcrowded housing situation? Why does Tony Ryall not explain to them why they have to basically prove that they are on their deathbed before anyone will address their health issues?No doubt you will try to cover these issues with the recent release of the $4.3 millionMatanikolo Project to provide 22 families with a better living situation. What a joke. That is a complete joke.The ASSISTANT SPEAKER (H V Ross Robertson): Order! I am sorry to interrupt the honourable member. I just wish to advise members that courtesy is contagious. There is far too much background chatter and unless it relates to parliamentary business I would urge members to take their private conversations outside the Chamber.Le’aufa’amulia ASENATI LOLE-TAYLOR: That is a wonderful comment. Thank you very much.The ASSISTANT SPEAKER (H V Ross Robertson): Order! The member must not comment.Le’aufa’amulia ASENATI LOLE-TAYLOR: I know that 22 families down one street alone are crying out for help. They are crying out for improvements in their quality of life and future prospects. Too many families will be crammed together on small sites and many of the special housing areas are in places where families are large. Yes indeed you have targeted low-income households but not for any other reason than to ensure that they are left at that end of the spectrum. When you see the struggle of living every day for these struggling families and the overwhelming amount of debt that these families are unable to climb out of there is no light. Why has it taken so long for an initiative to expose the current dire situation of the loan sharks in this country who have preyed upon the vulnerability of low-income families for far too long? Pasifika are often the targets of these low-life lenders who care only about profit margins with no regard for the social implications. Dodgy loan sharks should be held to account and there should be a cap on interest rates.Many of the community may still be excluded if they do not meet basic requirements. Given the harsh reality of the current housing market situation even with this initiative low-income Pasifika families will not be able to afford their own homes. Pasifika parents are put in an uncomfortable situation when schools recommend compulsory school payments and donations. There are also requirements for them to buy laptops and modern technology. Does this Government understand the level of debt a Pasifika student is left with after seeking the rewards of higher education?New Zealand First will lift the minimum wage to $16.50 an hour and the free general practitioner visits should be implemented immediately not next year. Is the election game plan worth playing out when it continues to put many in the back pocket?National might demand the Pasifika vote. It might demand the Pasifika people’s vote but do not tell me that you honestly deserve it because you do not. Thank you.Hon CHESTER BORROWS (Minister for Courts):Tēnā koe Mr Assistant Speaker. It is a privilege to be able to stand in this Budget debate. I had an interesting week last week. On Monday just gone I went and spoke to Grey Power South Taranaki. We had a really good discussion. Grey Power South Taranaki is a pretty feisty bunch of people. They are always happy to take it to you and ask you the hard questions when you are there to speak to them. But the fact is that South Taranaki and Wanganui over the last few years are experiencing something they have not experienced before and certainly not under other Governments and that is that they are experiencing a higher level of GDP per capita than they ever have before and funnily enough inWanganui’s case a higher level of employment than is the national average. This is because both areas within my electorate are built on the back of the export industry. What we know is that under the previous Government there was not a single job grown in the export sector for 10 years. Looking at where that sits now this Government is focused on providing some certainty around financial policy and some certainty around people investing in the economy particularly in the export sector.The economy of Taranaki and South Taranaki as it comes into the Wanganui electorate is built on the back of dairy farming and the oil and gas industry. Those people involved in oil and gas receive a higher level of remuneration than those employed in similar jobs in other sectors. That is the nature of the industry and it has been very very good for our part of the world and very very good for our country. In respect of dairying though that as people know has been undergoing a purple patch over the last few years in terms of reward for those who are involved in the industry not only farm owners and operators but farm workers as well.The big threat here comes from those promises we have already had from the other side of the House in terms of a Labour-Greens Government. What we know is that there will be a change to personal income tax. It will go up under a Labour-Greens Government. We also know that commercial tax rates will go up under a Labour-Greens Government. We also know that there will be changes to the labour sector—for instance the loss of the 90-day trial and the increase in minimum wages to $15 heading towards $18 after that. We also know that there will be changes to ACC and changes to the Resource Management Act. We also know that there will be the imposition of a capital gains tax and we know that there will be increased charges for carbon. So what we know then is that electricity prices will go up as well and the cost of doing business in this critical export area of dairying is going to become very very heavily taxed and levied. The average dairy farm milking about 400 cows for 140000 kilograms of milk solids is expecting then that it will pay well in excess of $2000 per week in excess taxes and levies and the averagedrystock farm about $1000.This is a critical thing for our electorate. Those people whom we are working with and whom we are speaking to have got their heads around that very very well indeed. The response for instance at the Wanganui riverside market was interesting too. Wanganui as people will know is an area that has struggled in some aspects. Its demographics are such that it has a higher than average older population. That population does not keep in as good health as other relative populations. It has a lesser number of people who are well educated and they are involved in less remunerative work. So the gains that we have made from health care for instance are very very near to the hearts of those people in Wanganui. While many developed countries are freezing or reducing health funding National is spending more on health than any other Government in New Zealand’s history—$1.8 billion of extra investment over 4 years—and taking health spending next year to a record $15.6 billion.It is interesting to note that over the last few years of the Labour Government the Whanganui District Health Board struggled. It struggled to meet its targets it failed in a number of areas and it was in the media for all the wrong reasons. Yet over the last 6 years it has been in the media for all the right reasons. When you look at the measures and when you look at the traffic light index of where those hospitals are required to perform it is meeting all those targets and sits in about the top five of all district health boards around the country except for a couple of measures which are mainly around smoking cessation and others.When we look at the education sector in Wanganui we do very well with our schools there albeit after a lot of depopulation; there are more schools than are required for the population and there are a number of empty chairs. What we do know is that the schools that operate within Wanganui do incredibly well. It is good to note too that the Government is investing heavily in education and recognising the expertise of teachers and principals and their ability to share their expertise around the community in which they work. As every electorate MP knows you may have many many schools within your electorate and they operate at different levels. You can walk into some schools and they are absolutely humming; you walk into other schools and it is like putting on a big wet duffel coat. To share that expertise around those schools in order to make sure that every child has the opportunity for the best possible results in their education is a great thing.I would like to talk a little bit about my portfolios in respect of courts and youth justice. Over the last few years we have invested in courts and invested in savings and we are seeing the results of that which are fantastic. We have invested in the modernisation of courts and I know that across the House we have received support for the investment we have made. Implementing the use of technology within our courts has been a high priority for us and we would like to one day achieve the status of a paperless court. That is some way off; nevertheless it is an ambition that we hold dear. It seems ridiculous to me that the way New Zealanders interact with their banks pay their bills book their hotels and air travel and do a number of other things is all online but when we have to deal with the courts it has got to be a paper-based system. We are moving very quickly in order to be able to change that. An example of that for instance was the Environment Court’s 5-week hearings in relation to theDenniston Plateau where the whole of the court hearing was held oniPads. There was not any paper used through that court process whatsoever.But the big bugbear in courts is reducing waiting times and work on hand. So overall in the last 12 months we have seen an 8.9 percent drop in the time it takes for a court case to move through the District Court system. That is a 16-day reduction. In the criminal jurisdiction it is up to 18.3 percent or a 23-day reduction in the average time of work on hand. Disputes tribunals have sped up just over 21 percent or 17 days quicker than they were before. We are seeing this reflected all the way through our court system and we have firmly between our teeth the bit that is going to take us to an even more efficient system. In collections for instance when we came into office we inherited a debt book of unpaid fines. It was $806 million when we came into office in 2008 and now it is down to $554 million. That is $554 million that is incredibly frustrating because you cannot get your mitts on it. It is like knowing there is $100 stuffed down the back of your couch but you cannot quite get to it. We are doing everything we can to ensure that we can get our mitts on it.I want to finish off with a bit of a story around our youth justice results. When we came into Government in 2008 we set about changing the way we were delivering youth justice to our young people. We received a lot of stick for that. As the legislation went through the Social Services Committee we had a lot of stick about the initiativeswe were taking in the youth justice sector to extend the periods for supervision with activity and supervision with residence and to bolt on to the back of that the ability to have therapeutic treatments around drug and alcohol violence and abuse and those sorts of things. Probably the hottest one was around the introduction of military activity camps. Just to bring Parliament up to speed in respect of our results there in the first 12 months post - military activity camp 79 percent are reducing their frequency of offending 16 percent are not offending whatsoever 81 percent are reducing the severity of offending and there is a 53 percent reduction in violent offending. It is good to note that the heat has now gone out of this debate. Labour the Greens and all parties on the Opposition side are fully in support of the youth justice initiatives that we implemented in 2008 because we are seeing the benefits of them. Thank you.JACINDA ARDERN (Labour): I always enjoy the build-up in your introductions to the next speaker Mr Assistant Speaker Robertson. For all of the rhetoric in this House in the aftermath of the Budget I think it is still important to reflect that ultimately Budgets should be about one thing. They should be about people. It is easy to get distracted by all of the different debate around appropriations and year-on-year comparisons but underneath it all people are ultimately what a Government’s Budget should be about. At the end of the day there is no better measure as to whether a Government is serving the needs of the country the needs of the people in the country than whether the Budget is directed towards the immediate needs that those people are facing. If we were to distil down those needs I think it is pretty simple to see through all of the media coverage around people’s concerns at the moment and the worries that families have—and even when you are a politician and youdoorknock you know immediately at the top of your mind what people are worried about in their day-to-day lives.That is what this Budget should have been about. The things that people are worried about are really simple basic needs. Firstly they are worried about whether they can afford to live in a decent house—and not just whether can they rent it but whether they can ever aspire to live in their own home—and whether the home they are living in is warm and dry and that their kids are well and safe inside it. Secondly they are worried about whether their kids are generally getting a good start—the best start—in life and having all of the opportunities that they had as parents. No matter what and no matter how you paint parents from across the spectrum underneath it all almost every single parent without doubt wants better for their kids—without doubt. Thirdly people those individuals we are talking to on the doorsteps are worried about whether they have the kind of job that enables them not just to get some satisfaction from getting up in the morning and going and doing that job but to provide for themselves—that is whether they can sustain themselves with the income and the wages that they are receiving in that work let alone provide for a family.So in that context based on those three simple needs how did this Budget perform? Well the Government has talked a lot about the needs of families. I think probably it detected that there was a desire amongst people to see something for families in this Budget. I think that as Labour members we did a pretty good job of raising the profile of the needs of family members. We set the bar with the Best Start policy. We challenged the Government to do something also. But the challenge was based on evidence. There are 285000 children living in poverty in New Zealand. That is roughly 27 percent. But if you break that down even further for all of the Prime Minister’s rhetoric about what he has done for Pasifika people in New Zealand one in three Pasifika children is living in poverty. They are one of the major groups who are suffering particularly at present in that regard. We know also that of that group 10 percent are living at what has been called the hardest end of poverty. That means theyare living on even less than what the poverty line is established at which is 60 percent of median income. We also know that three out of five children living in poverty will live there for a long time. They are most likely to live there in their youngest years so under the age of somewhere around 4.When we know all of that what did this Budget do for that group? The Minister of Finance talked about tackling the hardest end of poverty. He said that last week in the House before the Budget came out. He said that that is what his Government was going to do. But did it? I almost find that there is an irony in this—that the Government stated that this is the very group that needed a targeted response but the targeting happened precisely around them making sure that they were the only ones almost who were excluded from the Government’s Budget measures. The Government extended the parental tax credit by an extra 2 weeks so families get it for 10 weeks now and it upped the rate a bit to $220 a week. That is all good stuff—not quite as much as we would have liked but all good stuff. But the Government then said the parental tax credit will not go to anyone on an income-tested benefit yet the majority of families living in poverty are those exact families. So unfortunately the notion of it being a “fudge-it Budget” started right at that place for the families who needed it most. And what did the Minister of Finance say those families would get? Well they should celebrate because apparently they got a CPI adjustment and that is about it.The Government has come back and said in defence of itself that it has made free health care for under-13-year-olds universal—starting next year I should add. Well I would wager that probably what the Government did was go away and do a rough calculation. Since National has come into Government we have had 40000 preventable hospitalisations for children. If you want to save money for the taxpayer one simple thing to do would be to try to put a bit more money into primary health care and see whether you can prevent those hospitalisations. It is a simple measure. It is a simple act to take. But as Dr Nikki Turner has said free doctors visits do not solve the root causes of poverty and therefore they will not resolve poverty-related diseases. And what are those poverty-related diseases? They are respiratory illnessesbronchiectasis and illnesses like that; more and more infectious skin diseases; and of course the one that gets batted around the most rheumatic fever. All of those illnesses come out of the basis usually that we have children living in damp cold overcrowded houses. So if you genuinely wanted to get to the root causes of those issues and therefore help those at the hardest end of poverty as the Government purports then you would have been dealing not only with the housing issue which we know that this Budget did not but with the fact that ultimately parents want to be able to manage their own circumstances. Where is their economic independence? Where is the focus on ensuring that they have the wages and the salaries required to make sure that they are able to ensure that their families are growing up in an environment that prevents those illnesses?But what else did the Government set out as its own measures for success in this Budget? We had veneer—the facade I guess—of wanting to support families but next was the surplus. The Government set up a goal that basically said that if it achieved surplus then it would have achieved every goal it needs to achieve as a Government—end of. That is all that needs to be done with this Budget. And yes the Government got there. But how did it do it? Well by holding on to ACC levies at a higher rate than it needed to by cutting down spending for the Christchurch rebuild—which by the way is meant to be our primary economic stimulus—and by reframing New Zealand Transport Agency spend as loans. It is doing that in the context of having already clocked up $56 billion in debt. We are paying $10 million a day in interest on the debt this Government has accrued. What a shameful thing that is.But what we have argued and Labour is strongly putting forward as a counter is a plan for surplus that at the same time resolves some of the systemic issues that the Government chooses to ignore. On poverty for instance we need to act immediately. We need immediate relief for those children living at the hardest end in their early years. The Best Start package does not help for 10 weeks; it helps those families for 3 years because we know that those are the most important years. The second thing is immediate action on low wages. We will lift the minimum wage and we will support a living wage but we will also recognise that we need to lift wages generally. We need a high-wage economy and you achieve that through investment in research and development through a monetary policy that supports exporters and our manufacturers and by just generally acknowledging that we have to do things differently if we are going to give our families the economic independence they deserve. On housing—because it is after all about kids about jobs and about housing—the market has failed. It is obvious. Everyone knows it; everyone has seen it. We are going to get stuck in. We will ourselves as the Government build 100000 affordable homes. We will introduce a capital gains tax so that our tax system is fairer and we will move away from a housing market that is dominated by speculators. We will say that if you want to own a home in New Zealand you need to be a resident here. That is fair enough. And we will make sure that we have the social housing we need to support those who need it most.Budgets should be about people. We know that New Zealanders want New Zealand to be the fair and equal place they grew up with it being. We can return to that. We can do it by making sure that every child has the very best start in life that every family has a warm dry home and that everyone has a job that keeps them supported and gives them dignity. That is a Government you could believe in and that is what Labour will deliver.JAMI-LEE ROSS (National—Botany): The Prime Minister was right when he said in question time that the Labour Party used to care. The Labour Party used to care about a growing economy. The Labour Party used to care about the welfare of New Zealanders. The Labour Party used to care about those who were down on their luck and needed help from the Government the most. But when we hear Labour Party MPs questioning popular and necessary Budget initiatives like free general practitioner visits for those under 13 when we hear Labour MPs wanting to impose more costs on New Zealanders wanting to buy homes when you hear Labour MPs now complaining about the fact that New Zealanders are voting with their feet and are staying in this country you have to wonder why the Labour Party is in such dire straits right now. It is because it simply does not get it any more.The Labour Party simply does not get it any more but New Zealanders do. New Zealanders get it right now because they understand that this economy is growing. They understand that more children are getting an education in this economy. They understand that more children are getting the health care they require and that more operations are taking place. They understand that crime is coming down and that the law and order situation in this country is so much better than it ever was under Labour. And they also understand that wages are rising and that it is going to become even easier to get into a home in future years. They know that it is working.Jacinda Ardern was the last individual speaking from the other side. Jacinda Ardern is the police spokesperson for the Labour Party. I have heard her make comments about the police budget in recent weeks. The fact of the matter is that when it comes to the police our police are doing such a good job that crime is down 20 percent.Hon Annette King: You wait.JAMI-LEE ROSS: Those members do not like to hear it. They like to cackle from the other side of the House but crime is down 20 percent. We have the lowest crimerate in 33 years. When Annette King was in Government crime actually started to rise just a little bit in Labour’s last year. It actually started to rise in her last year when she was the police Minister. Crime has now dropped by 20 percent. Reoffending in this country is coming down. Reoffending is down 12.5 percent in this country because of the investment of time and effort that Ministers like Judith Collins and Anne Tolley have put into the police and corrections budgets. New Zealanders know that that is the situation. They know that it is successful. They know that it is working.Jacinda Ardern also talked about housing. I am glad she talked about housing because I live in the Botany electorate where some of the important special housing areas that are going to get Auckland housing moving again are taking place. Nick Smith just recently a couple of weeks ago announced the largest of the special housing areas in Flat Bush near where I live. In the Flat Bush special housing area 4500 houses are going to be built—4500. The people living in that area are seeing housing taking off. They are seeing the builders getting out there and working. They are seeing the developers getting out there subdividing the land and increasing the supply that we desperately need in this country.And then we hear the Labour Party talking about its 100000 houses over 10 years. Well guess what! That is 10000 a year. Under National we are already building 13000 right here. Thirteen thousand houses a year are going to be built under National under the housing accord and the special housing areas. The Labour Party’s big idea for housing is 100000 houses 10000 a year. That is fewer than are being proposed and it is happening under the special housing area policy that this Government is implementing. And that 13000 is only in Auckland. The Labour Party’s plan is supposedly for across the whole of the country. Labour simply does not get it. Its numbers are wrong and it actually will not do anything under the policies it is proposing. If it really cared about housing it would get in and support Resource Management Act reform which this country desperately needs—Resource Management Act reform that is being blocked by the likes of the Labour Party and being blocked by the likes of the Green Party. Those are policies that should be taking place.If we look at a capital gains tax those parties believe that that is the grand panacea for housing. Well it is being done in Australia right now and guess what! It is not working. Under Labour housing costs went up by 96 percent. In the past 5 years they have gone up by only 28 percent. Compare that 96 percent with 28 percent. If you want to ask New Zealanders whom they believe on housing just look at the statistics. They know that the Labour Party has got it absolutely wrong.I also want to talk about jobs because jobs are what is going to get New Zealanders wealthier. The jobs are what is going to get New Zealanders out of welfare and on to a better track for their lives. I listened a little bit to Asenati Lole-Taylor and Jacinda Ardern lamenting the fact that there are individuals out there who do not have jobs lamenting the fact that there are individuals out there who are in difficult circumstances. That is absolutely right.There are people in this country who need a helping hand. There are people in this country who need to get back on their feet. The only way they are going to get back on their feet is if we have a growing economy if we get more jobs for them if we help get them better educated and if we ensure that law and order is sorted out in this country. Those are the things we are doing. Those are the things that are going to get people out of the poverty trap. The extra 170000 jobs that will be created over the next 4 years will get those people out of the poverty trap. The 84000 jobs that were created in the past year are helping to get New Zealanders out of the poverty trap. Fifteen thousand New Zealanders are coming off welfare right now. Fifteen hundred a week are coming off welfare right now. In the last year 30000 fewer children ended up living in benefit-dependent homes. Thirty thousand children are no longer living in benefit-dependent homes. Those are the children who are going to be the success of the future. Those are the children whose parents have been able to get into work and who will be better off because of it. For everyone else who is on welfare right now we should be doing everything we possibly can to help them get a job help them get better educated and ensure that they and their children are healthy—that is the way to a prosperous New Zealand.Those people on the other side might like to think that we over on this side are all just rich Tories and everything like that. Well I have to say I remember growing up in South Auckland with a young mother and no father in a poor household. You know the best thing I was taught when I was growing up was to work hard get educated and do what you can to get ahead in life. If every New Zealander who wants to get ahead in life just worked hard got educated and put their best foot forward with help from the Government to get into jobs that is the way New Zealanders get ahead in this country.I am particularly proud of being a National member of Parliament when we are seeing more kids getting educated. When we came into office 67 percent of children were getting National Certificate of Educational Achievement level 2; that is now at 77 percent.Hon Trevor Mallard: Standards are dropping.JAMI-LEE ROSS: Standards are not dropping. National standards are ensuring that we can actually measure how things are working properly. Trevor Mallard the failure of an education Minister never cared about properly measuring children. It took Anne Tolley to sort that system out. It took Anne Tolley to put in place a national standards system so that New Zealanders actually know how their children are faring.I am also proud of being part of a Government that is investing properly in Auckland transport. There is hundreds of millions of dollars of money being invested through this Budget and in past Budgets into Auckland transport. We are fast-tracking development in Auckland transport over the next 10 years. The Prime Minister last year announced $10 billion worth of investment in Auckland transport. That has been reflected in this Budget and New Zealanders living in Auckland know that as well.ACC levies are coming down more jobs are being created more kids are getting healthy and more kids are getting an education—that is what this country wants. And if you want to see how much New Zealanders appreciate the fact that this country is in a much better shape just look at how they are voting with their feet. Under Labour 3000 New Zealanders a month were leaving for Australia; now it is only 350. Labour wants to change the immigration system as it stands. It wants to change it completely. It is actually a bit confused about it. But right now the statistics are showing that New Zealanders are voting with their feet. This country is in much better shape because of the John Key - led Government and I am proud to be a part of it.BRENDAN HORAN (Independent):Tēnā koe Mr Assistant Speaker. I welcome the Government’s move to fund doctors visits for children under 13. That is required urgently. However the detail of the implementation requires scrutiny. For under-6-year-olds parents will find that doctors visits are not truly free and still incur significant charges. How many parents understand that New Zealand’s children will have to wait another 13 months before free doctors visits come into effect? The legislation is required immediately. How many children will suffer in the next 13 months because of this delay? We all agree that there should be free medical care for children under 13 and I call upon this Government to advance the legislation to come into effect before the House rises on 31 July. I welcome the move to extend paid parental leave to 18 weeks but again parents will have to wait nearly 2 years for the 18 weeks to apply.I turn to education. Sure money has gone in but most of it is being used to fix leaky buildings and to create a restructuring—executive teachers executive principals. Where in this Budget is the planning for 2020? Steven Joyce has been quoted as saying that ultra-fast broadband will revolutionise the way we trade the way we operate and the way we communicate and he is right. But the reality is that New Zealand is seriously lagging behind the rest of the world on two fronts: planning and infrastructure. We need ultra-fast broadband immediately. Where in the Budget is there money to upskill our children young people and the existing workforce to provide us with the digital literacy that is required?We are fast moving into a world of predictive computing wearable computing and quantum computing where computers will mimic and synthesise in seconds information that currently takes months. Retail as we know it is changing dramatically. We are moving from a world where the consumer goes to the market to one where the market goes to the consumer. Thousands of jobs will be lost but thousands more will be created. Where is the identification of and planning for the skills and competencies of children young people and the existing workforce to operate and to face these challenges? By 2020 we will have 3-D printers just like—Hon Trevor Mallard: He should have read it through first out loud.BRENDAN HORAN: —we used to have fax machines. They will be ubiquitous. There is a word for you—sorry Mr Assistant Speaker; it was Mr Mallard I was referring to. And manufacturing as we know it today will end. We need money in the Budget so that New Zealand businesses can compete in the new world that is coming. Our workforce needs these skills and competencies and so do we. So where is the plan?I turn to housing. In the Budget the shame of housing is Christchurch. It is a stain on the soul of New Zealanders that the people of Christchurch are still suffering. Last week I met a couple—a 70-year-old and a 74-year-old—who after 3 years are still living in unhealthy conditions because of the bureaucratic failure of the Earthquake Commission and Southern Response. This couple had their first claim turned down because inspectors were too lazy to lift the carpets so a 70-year-old and a 74-year-old had to do it themselves. Then they paid over $20000 to private engineers and found that the concrete flooring slab had cracked and that the waterproof membrane was breached promoting an osmotic effect and lifting the water up into the house. How can these people still be suffering after all this time? They are still fighting for fairness.The truth is that there is a complete lack of accountability in Christchurch. Who is accountable for the bungling bureaucracy that has forced people in Christchurch to live in squalid and unhealthy conditions for over 3 years? Who is the person responsible for holding up the cheques to the people in need? Who is the person responsible for ensuring that work done meets the required standards? Who is responsible for Southern Response’s low-ball settlement offers? Who is responsible for the Ministry of Business Innovation and Employment guidelines that were supposed to provide uniformity for reinstatement? These guidelines actually breach the Building Act because they provide for a lower level of repair and reinstatement than that Act requires. The citizens of Christchurch have been treated with contempt.We need an urgent inquiry into building practices and into billing by contractors. I know of jobs being overcharged. Here is an example: $200 worth of materials $600 worth of labour and finally the Earthquake Commission being invoiced for over $15000. Added to that the Government is saving money off the backs of suffering New Zealanders breaching trite law by operating to section 9 of schedule 3 and substituting that section of the Earthquake Commission Act ahead of the primary definition which is to reinstate homes to as similar a condition as when new. Trite law requires that an Act must be read in its entirety but the Earthquake Commission is reading andoperating section 9 of schedule 3 in isolation. In Christchurch we need accountability and we need it now.I turn now to Vote Parliamentary Service. Recently I have received information that raises real questions about the use of parliamentary funding by a party. I am writing to the Speaker asking that the Parliamentary Service investigate these matters and report to him. There was a clear precedent for this when in December 2001 the then general manager John O’Sullivan reported to the Speaker on the Alliance electorate liaison unit. That report swept aside any uncertainty that might have existed and clearly stated the rules. The leader of New Zealand First cannot claim to be ignorant—Richard Prosser: I raise a point of order Mr Speaker.BRENDAN HORAN: —but in the past 18 months has ignored the rules—The ASSISTANT SPEAKER (Lindsay Tisch): Order! There is a point of order.Richard Prosser: The Budget debate is around the Government’s allocation of funding for various means and the use of that funding—The ASSISTANT SPEAKER (Lindsay Tisch): No. Look—[Interruption] Order! The member will sit. The member in opening talked about Vote Parliamentary Service. That is what he is speaking on and he can continue in that vein. I am listening very carefully to what he is saying. That comes under Speakers’ rulings. I am inviting Brendan Horan to continue.BRENDAN HORAN: It is good to see he had a voice there but it is a shame he does not have vertebrae.The ASSISTANT SPEAKER (Lindsay Tisch): Order! That is completely out of order. That is an attack on the integrity of a member of this House. The member will withdraw and apologise for that comment.BRENDAN HORAN: I withdraw and apologise for that comment.The ASSISTANT SPEAKER (Lindsay Tisch): Brendan Horan—continue.BRENDAN HORAN: He has deliberately withheld information from the board of the New Zealand First Party. The New Zealand First Party—Andrew Williams: I raise a point of order Mr Speaker. Under Standing Order 117 “Personal reflections” “A member may not make an imputation of improper motives against a member an offensive reference to a private member’s affairs”—Standing Order 117.The ASSISTANT SPEAKER (Lindsay Tisch): Look I know that this is a very interesting subject. This debate is about the spending not the person. We are in a debate on Vote Parliamentary Service. Anything to do with the appropriation and the way that money has been appropriated how it is being used and how it is being spent is a matter for debate and that is what we are on now. So Brendan Horan will continue.BRENDAN HORAN: The New Zealand First Party is using taxpayer-funded computer software for party political purposes such as campaigning and fund-raising. The program code named Vanguard—Barbara Stewart: I raise a point of order Mr Speaker. Again Mr Horan is transgressing Standing Order 117 making a personal reflection against a member or a—The ASSISTANT SPEAKER (Lindsay Tisch): No no. The member has talked about a party. He has not mentioned any individual in this matter.Hon Annette King: That’s cute.The ASSISTANT SPEAKER (Lindsay Tisch): Sorry? And if we look at Standing Order 117 it says that “A member may not make an imputation of improper motives against a member an offensive reference to a member’s private affairs or a personal reflection against a member.” I am listening very carefully to this. The member must keep focusing on the appropriation to the Parliamentary Service the use andappropriation of that money and any concerns that the member may have if that is the way that his speech wishes to continue.Andrew Williams: I raise a point of order Mr Speaker. The Speaker has in the last 2 weeks on numerous occasions advised members that if they have any issue in this regard it should be referred in the normal manner through the Privileges Committee or through other official channels; it should not be raised in this House. The Speaker has made that ruling on numerous occasions. We would like that to be upheld.Brendan Horan: I raise a point of order Mr Speaker.The ASSISTANT SPEAKER (Lindsay Tisch): The member will sit. It may well be the case that there is a referral to the committee but this is a debating chamber and members in this House have freedom of expression freedom to express their views. I am listening very carefully to this. I will ask the member to focus on Vote Parliamentary Service. As I have mentioned before the debate is about the appropriation of the money and the use of that money and the member should not bring into account the integrity of any member of this House. All members are honourable members. I will ask the member to focus on that.BRENDAN HORAN: Vote Parliamentary Service—the New Zealand First Party is using taxpayer-funded computer software for party political purposes such as campaigning and fund-raising. The program code-named Vanguard is a constituent relationships management system that stores personal details of voters and is used for mass mail-outs. Other political parties have these programs too—Barbara Stewart: I raise a point of order Mr Speaker. This program has not been launched. It is not part of—The ASSISTANT SPEAKER (Lindsay Tisch): That is not a point of order. I will ask members that on points of order they be relevant to the matter. That is not a point of order.BRENDAN HORAN: Other political parties have these programs too but they are funded by the parties themselves and operated outside of Parliament. New Zealand First paid tens of thousands of dollars out of the leader’s budget to develop this software and has its parliamentary staff working to run the program for election year. This is a clear breach of Parliamentary Service guidelines.An internal party strategy document dated 9 March 2014 states under the heading “Funds”: “Campaign fund request first 2 weeks April—Self-funding after initial distribution followed by use of Vanguard appeals to focus groups.” A memo to the party board by the president Anne Martin dated 10 March 2014 states: “The director of operations canvassed the use of Vanguard computer program. Suggest board advised of its uses including candidates’ college program as well.” This use of parliamentary resources for fund-raising appeals and political campaigning is more than questionable especially from the New Zealand First Party which promised a fair go in the last election. The public have a right to know what their money is being used for and whether it is being used legally.A company called Lone Star Market Research was registered on 1 August 2012. The company’s sole director is New Zealand First’s director of operations in Parliament and is a member of the party’s campaign committee. The company was set up with the intention of conducting political activity for New Zealand First. New Zealand needs an assurance from the Parliamentary Service and the leader of New Zealand First that Lone Star Market Research has not received one cent of taxpayer money nor had the use of parliamentary resources.Barbara Stewart: I raise a point of order Mr Speaker.BRENDAN HORAN: The New Zealand First—The ASSISTANT SPEAKER (Lindsay Tisch): Order! There is a point of order from Barbara Stewart.Barbara Stewart: This information is totally incorrect. It is just fantasising and although I realise it is a wide-ranging debate—The ASSISTANT SPEAKER (Lindsay Tisch): No no; I do not need any help. I have indicated that anything relating to Vote Parliamentary Service is in order. If the member ties that into Vote Parliamentary Service that—Barbara Stewart: But it’s wrong.The ASSISTANT SPEAKER (Lindsay Tisch): Whether it is wrong or right is a matter for debate. This is a debating chamber. It is not for me to judge the accuracy of the information that has been presented. So long as it ties into Vote Parliamentary Service it is in order. Brendan Horan has 1 minute remaining.BRENDAN HORAN: Vote Parliamentary Service—the New Zealand First Party membership secretary present at board meetings and recorded in the minutes of those meetings is paid by Parliamentary Service for a full-time out-of-Parliament support role in the New Zealand First office in Bank Street Whangarei. That is a clear conflict of interest. This paper trail leads down the pathway to inappropriate use of public moneys serious conflicts of interest secrecy and a lack of transparency and accountability and all from a party that purports to hold everyone else to task. There seem to be clear breaches of the Speaker’s directions on the provision of services to MPs and parties. Staff would seem to be in breach of the Parliamentary Service code of conduct. I call upon the leader of that party to open his leader’s budget accounts to the scrutiny of the Speaker first and then to the public of New Zealand.The ASSISTANT SPEAKER (Lindsay Tisch): I call the Hon Chris Tremain. [Interruption] Point of order Brendan Horan.BRENDAN HORAN (Independent): I seek leave to table an email received on 6 May 2014 stating facts regarding Vanguard.The ASSISTANT SPEAKER (Lindsay Tisch): Leave is sought for that purpose. Is there any objection? There is objection.BRENDAN HORAN (Independent): I seek leave to table the minutes from the New Zealand First board meeting on 2 March 2013.The ASSISTANT SPEAKER (Lindsay Tisch): Leave is sought for that purpose. Is there any objection? There is objection.Brendan Horan: I raise a point of order Mr Speaker.The ASSISTANT SPEAKER (Lindsay Tisch): How many points of order do you have?Brendan Horan: Well there are a number. [Interruption]The ASSISTANT SPEAKER (Lindsay Tisch): Order! Look—[Interruption] Order! One moment. Look points of order will be heard in silence. I am asking the member how many points of order he is intending to bring forward.Brendan Horan: Three more.The ASSISTANT SPEAKER (Lindsay Tisch): OK.BRENDAN HORAN (Independent): I seek leave to table a New Zealand First memo to electorates in mid-July.The ASSISTANT SPEAKER (Lindsay Tisch): Leave is sought for that purpose. Is there any objection? There is objection.BRENDAN HORAN (Independent): I seek leave to table a report to the board by Anne Martin of 10 March 2014.The ASSISTANT SPEAKER (Lindsay Tisch): Leave is sought for that purpose. Is there any objection? There is objection.BRENDAN HORAN (Independent): I seek leave to table a report of a strategy meeting on 19 March 2014 entitled “Use of Vanguard for fund-raising”.The ASSISTANT SPEAKER (Lindsay Tisch): Leave is sought for that purpose. Is there any objection? There is objection.Hon CHRIS TREMAIN (National—Napier): It gave me huge pleasure to return to the Hawke’s Bay after the Budget was announced last Thursday and to share it with family friends and constituents. It was extremely well received in the Hawke’s Bay. People have seen unlike the Opposition how we have gone through a very difficult recession over the last 6 years and how this Government has progressed through that recession and has landed this economy in a superb position to go forward. They are seeing the results of that now in terms of job growth in terms of the economy going forward in leaps and bounds and most particularly in terms of the turn-round in immigration. If there is something that says that this country is going ahead it is when the migration statistics turn round and all of sudden we see net positive migration back to this country.This will be my last Budget debate speech before I leave Parliament. I am extremely proud to have been part of this particular Budget. I am extremely proud to be a New Zealander and extremely proud to be a member of this House and of the National Party supporting this Budget which was delivered last Thursday. National came into Government on the promise of delivering a brighter future. We have delivered that brighter future through our actions over the past 5 years and through the outstanding Budget of which I speak.Do not take just my word for it. International commentators around the globe are watching New Zealand become an economic prosperity story in the South Pacific. Take Standard and Poor’s for instance which cut New Zealand’s credit rating in 2011 after the Canterbury earthquakes and which has now said of this Budget that the Government is on track to meet its targeted operating surplus in 2015 which would improve the fiscal balance consistent with its AA currency rating and stable outlook. That is just one international commentator.Secondly Standard and Poor’s has also said that the Government is consolidating its fiscal position partly reflecting its ongoing efforts to reduce its cost base while maintaining public services. I think that is what Kiwis understand. Throughout the nation be it in Wanganui Auckland or Hawke’s Bay we have got through this without cutting the guts out of public services. We have actually continued to deliver them to make increases particularly in education and health and the public has seen the results of that particularly in the Better Public Services area which Chester Borrows spoke of earlier.In education on which Hekia Parata spoke—in early childhood education and in every area of education we have seen lifts. It is absolutely fantastic. We only have to look across the Ditch to Australia and its comparative Budget to see the chalk and cheese of South Pacific Budgets. On the one hand we have New Zealand which forecasts a $300 million surplus in 2014-15 and as a result provides positive choices for new spending debt reduction and/or potentially tax cuts into the future. On the other hand we have Australia which just a day earlier forecast a $30 billion Budget deficit massive expenditure cuts to its schools hospitals pensions and its foreign aid together with tax increases to arrest the deficit decline. That is the recipe that the Opposition in this House has delivered. That was the position that we came into in 2008 with ever-ongoing deficits forecast. The Australian situation is also the legacy of a Labor-Green Government and of uncontrolled spending. We saw it here when we came into office as I said previously.Putting that aside let us return to our Budget. It looks ahead building on the hard work done by Kiwis to 2 percent to 4 percent economic growth and a $372 million surplus growing to $1.3 billion in 2015-16 and $3.5 billion in 2017-18. That gives us real choices—$1 billion of new spending in this Budget and $1.5 billion in 2015. Government debt will peak at 26.4 percent way below where it was originally forecast in 2008 when we came in. We are seeing wage growth. The average annual wage is up $3000 in the past 2 years and is expected to rise by $7600 to $62300 by 2018. That is positive news. That is the economy going forward. We have also had forecasts of 170000 new jobs over the next 4 years and ACC levy cuts of around $480 million. That is significant. Consumer and business confidence is at an all-time high. That is to be celebrated. But as I said earlier of particular note is the turn-round in migration. If Chester Borrows and Dr Paul Hutchison reflect on where we were at in the mid-2000s the emigration out of this country was dismal. Now we are seeing net positive migration. That is a positive thing.I am particularly proud that as we have got choices we are now delivering for families supporting children and families through this Budget. As the economy grows of course we can deliver more jobs and better wages for those families. In particular there has been a $500 million package of practical support for young families particularly for vulnerable children. That includes free general practitioner visits and free prescriptions for all children under 13 4 extra weeks of paid parental leave increases to the parental tax credit and an additional $155 million for early childhood education. There we are seeing significant rises in Māori and Pacific Island children attending early childhood education and improving their results in school. We are also seeing $33.4 million extra to support vulnerable children which includes eight new Children’s Teams to work with at-risk children.This is a great Budget. It demonstrates a Minister of Finance at the top of his career. I want to congratulate Bill English and his team on their outstanding effort. Name for me a Minister of Finance with a better track record in the world at this point in time. Name for me a better Minister of Finance—I challenge you.The success of this year’s Budget has resulted in some very interesting and immediate political moves across the country and in the provinces. Firstly we saw the very hard-working Darien Fenton decide that she was retiring. Then interestingly we saw a range of Labour candidates announce that they would now not be standing for the list in Hawke’s Bay. Both Stuart Nash and AnnaLorck have announced they will not be seeking a place on Labour’s list.This is very revealing and it can be for one of only two reasons. Firstly they have read the tea leaves and they have realised they will be so far down on the list that they will not have a bolter’s show of getting into Parliament through that door or secondly they have been following the polls they have watched the Budget and where that has landed and they have realised that even with a good list position the chance of them getting into Parliament is remote. So they have decided to go for an all-out constituency—not list—contest. So what we now have if Labour did not already know are a couple of rogue candidates in the bay. Goodbye party vote; hello personal vote. Goodbye party vote; hello personal vote.Here is what is going to happen. Candidates will have wildly different policy positions and they will not put their leader’s photo on their billboards. That is for sure. Consider those billboards because this is where it gets really interesting. Some of you will recall that at the last election Stuart Nash went all out for the electorate vote as well. He thought Labour and its leader were so bad that he would not put Phil Goff on his election billboards. So he did not. Despite this strategy he lost and was tossed out of Parliament. What is the bet he will not put David Cunliffe on his billboards this year?He has got a track record in this space. And what about AnnaLorck? Will she have David Cunliffe on her billboards? Well with tweets like this one: “Can’t waittilCunliff turns up in HB… We haven’t forgotten he sacked our DHB…he’s no leader he’s a bully”—he’s no leader; he’s a bully. What a classic. She also refused to delete those tweets when she was challenged.So here is the wider question: will she put David Cunliffe on her billboards and how many of those in the Opposition will? Will Trevor Mallard put David Cunliffe on his billboards? Just imagine if the hierarchy in the Labour Party allows this to happen around the country. Just imagine if it allows rogue candidates like Nash andLorck to prevail against the unity of the party. If it allows this to happen Labour’s party vote will implode. I predict an absolute whitewash.This is a fantastic Budget. I am proud of what it has delivered for New Zealanders around the country and for families. It is outstanding progress for our country and it is fantastic to see the turn-round in migration. Thank you.Hon ANNETTE KING (Labour—Rongotai): That was a very very ironic speech from a member Chris Tremain who is bailing out of the National Party. He is not willing to stand again in Napier because Stuart Nash is going to beat him at the next election. And what is he doing now? He is now helpingStu Nash win the seat for Labour. That is what that member is doing. So I found that speech very interesting when he wanted to name the Labour members who wanted to retire forgetting that he was doing that himself.I actually have found it almost cringe-making to listen to John Key Bill English and now Chris Tremain today crowing about how much better New Zealand is doing than Australia under a National Government. They did it on Budget day. Chris Tremain did it today. Well you know they remind me of one of those cricket commentators we have in New Zealand. We win one test out of four and suddenly we are the world champions. The National Party members think that because for one year we have a better record in some things than Australia we are now doing far better than that country.Well I say before they get too cocky and make us look like fools let us have a look at just a few facts. The unemployment rate in New Zealand after 5 years of the National Party is now on a par with Australia. The Australian GDP per capita is around $48000 in US dollars and New Zealand’s is 30 percent below. That is today. The New Zealand Government’s surplus was at 3.7 percent of GDP in 2007 and it went to a deficit of 5.1 percent in 2010 while the Australians had a surplus of 1.5 percent in 2007 and they ended up with a deficit of 5 percent of GDP in 2010. In other words the last Labour Government left the National Party in a much better state to handle the global financial crisis in New Zealand than any other country.I have to say have a look at the growth projections in the New Zealand Budget and have a look at the growth projections in the Australian Budget. In 2015-16 the growth projections in Australia pass New Zealand. In 2016-17 there is an even bigger projected growth in Australia compared with New Zealand and in 2017-18 it is the same. I have to say one swallow does not make a summer and one year when we might have beaten Australia does not mean that we are now in a better position. I cringe when we go into that sort of behaviour. The Aussies must be having a good old laugh over there as well.One of the things that John Key has been saying about this Budget is that 12 percent of households now pay 76 percent of all net tax in New Zealand. Well I need to tell the members opposite that there is no such measure as net tax. What he is saying is totally untrue because he ignores GST. Forty percent of our tax take comes from GST. Who pays most of the GST in New Zealand? Those on middle and low incomes. In factthose on low incomes spend almost all their money and that means they pay GST on everything that they buy.I want to turn to the health budget and say now for some real facts about the health budget. Here are some truths abut what has been happening to health funding under Tony Ryall. I think it is now time to put aside the political slogans that have been posturing as a health policy and look at the impact of six Budgets under this Minister of Health.Did the members opposite realise when they were clapping and cheering on Budget day that the health budget has been reduced in real terms by 2.3 percent in this Budget? They are not my figures; they are Treasury’s own figures and they are in the “blue book” if members want to go and look at them. If they take the time to read the shape of health in the future under a National Government if it is re-elected they will see that it does not look good at all—not my figures; Treasury’s figures. And they are not old figures either. They are the latest figures and projections in the Budget document put out by Treasury which we heard today from Mr Joyce—when he wanted to quote Treasury—we should be listening to.So let us have a look at what these figures are. We have got 2.3 percent less in this health budget—that is in total expenditure—and we are going to have when we look at 2015-16 3.7 percent less. In 2016-17 it will be 3.6 percent less and in 2017-18 it will be 3.1 percent less in real terms.I have to say that those figures are from the Budget projections in the National Government’s own Budget. Did New Zealanders know that? Did they know that National has not only cut this year’s health budget by 2.3 percent in real terms but is projecting a cut in the health budget out through the years? That is the truth. That truth needs to be reported in the media. I am really disappointed that a fact like that which is going to affect people’s health through the services the Government provides—and perhaps affect the way that people vote—is not being portrayed in the media.Those are big cuts in health when you consider that all but one Budget under Tony Ryall has cut the health budget. We now know what is happening in health in terms of the provision of services. Then next year should the National Party win people are going to say: “Oh my goodness! Oh no! There’s been a cut in health care. My I’ve heard that my mum can’t get an operation on her dodgy hip.” or they will find that her home help has been cut. Well I have to say wake up New Zealand. The National Government has cut the health budget. If you vote for those members they are going to cut it every year in the foreseeable future.In this Budget we did welcome the free doctors visits for under-13-year-olds but the devil is in the detail. The questions I was asking today were not meant to criticise the fact that there was free health care for under-13-year-olds. After all after the Budgets of the 1990s when we had had affordable health care and the subsidies were taken away by Ruth Richardson and the National Government I was the Minister of Health who brought them back in. I am very committed to affordable primary health care. But what this Government has not provided to our doctors is what the level is of that subsidy that is going to be provided in order to give that service to children for free.I have to tell you that the New Zealand Medical Association has said publicly that it may have to cross-subsidise and charge adults more if the amount paid per child per visit each year is insufficient. The question I would then ask is what impact that will have on our old folk—those who are on a fixed income. They live on the pension. They have nothing else and many of them are saying to us now: “Paying $45 $47 or $50 for a doctor’s visit is already too much from our pension.” If the association is going to cross-subsidise for children what is the impact going to be on those people who are important people in our community?So it is up to the Government now to tell us what the subsidy is that is going to be provided. Will the $30 million per year over 3 years cover the cost? There is no doubt in my mind that doctors are not just going to do it for free. There is no free ride here. Somebody is going to have to pay for it.Another feature of this Budget as the Minister of Health said is that there is going to be another $100 million for elective surgery. Well I have to tell you that it is $100 million over 3 years—over 4 years; not 3 but over 4 years—David Shearer: What?Hon ANNETTE KING: —$100 million over 4 years—is $25 million a year across 20 district health boards and that is about $1.25 million that each district health board will receive. Do not expect to get your hip done any time soon. Then we come to public health which is $1.25 million per district health board each year—Hon Members: More.Hon ANNETTE KING: —$1.25 million more—and $1.25 million will not pay for many hips. As for public health under this Government it has cut $16.2 million—Hon Anne Tolley: No.Hon ANNETTE KING: —out of public health. Have a look at the figures Anne Tolley. Do not shake your head. That is what this Government has done and then it has the cheek to talk about obesity and stomach stapling.Dr PAUL HUTCHISON (National—Hunua): It is a great pleasure to take a call on this excellent Budget 2014 and what a coincidence it is that Annette King has just spoken about figures. She was the Minister of Health who presided over a doubling of the health budget over 9 years when there was a decrease in productivity and a decrease in surgical operations. Under this Government in just under 5 years there has been an increase in surgical procedures of 40000 per year. It is all very well for Mrs King to talk about more money. Health systems around the world are characterised by almost infinite demand but finite resources. Mrs King would never have enough money to be able to organise a health system properly whereas under National over the last 5 years we have seen huge gains in productivity and huge tangible gains in immunisation and surgical procedures; in radiation therapy which has become world standard; and in public health.But I just want to say that this Budget is a Budget worth celebrating and from right around the country we have heard commentators say how excellent it has been. In the electorate of Hunua which I represent just about every sector has been totally totally delighted by the Budget whether it has been the teachers whether it has been the farmers whether it has been the business people or whether it has been the doctors and the nurses. The business people of New Zealand have been very pleased by the National Government because it has set a very clear agenda and it has kept to its promises. One of its major objectives was to achieve a surplus and that is indeed what it has done.But it is quite extraordinary that Mr Parker the finance spokesperson for the Labour Opposition is suggesting that Labour too would have achieved a surplus. Well we all know that Mr Parker and Mr Cunliffe are prisoners to the Greens and the unions—to the Marxists and the socialists. They would spend more they would borrow more they would tax more and there is no way on earth that they would achieve a surplus under the current pressures that are facing them. The only way that the Greens and Labour could generate a surplus would be if they were to bring out Russel Norman’s franking machine—the money-printing machine—and away they would go. He was the champion of quantitative easing and what a shambles that would be.It is a curious coincidence of biology that we have just learnt that a little creature called the Tasmanian devil has become an endangered species. But if one really thinks about it the Tasmanian devil would cause absolute chaos if it was let loose in NewZealand. In fact I did get a description of it: “Its spine-chilling screeches black colour and reputed bad temper led the early European settlers to call this creature The Devil.” But really the Greens and Labour are a huge danger to the financial stability and sustainability of New Zealand and I am glad to report that the good people of Hunua absolutely recognise that fact.The doctors and the nurses around New Zealand are very much welcoming this Budget. Free access or taxpayer-funded access—there is no such thing as free access—for children is the best way to get early treatment and avoid hospitalisation. We have people like Dr Nikki Turner from the Child Poverty Action Group who is also head of the Immunisation Advisory Centre and has been campaigning for this for years and she is delighted that the National Government has delivered. We have got people like Professor Innes Asher a very distinguished academic from Starship who has written many papers on the fact that if children can be treated early for skin infections often they can afford lifesaving treatment which goes on for months for very very serious skin infections. This is a win-win. This is a win for the children and a win for the scarce health dollar.The farmers in Hunua have welcomed this Budget. They have welcomed it because the taxation base is broad and reasonably low. Hopefully it may go down even less but the clear signal is reward for effort. Inflation is 1.6 percent economic growth is destined to rise above 3.5 percent and interest rates remain relatively low. There is significant investment going into innovation and science in the agricultural sector and furthermore there is an investment of $40 million more into irrigation and water storage. I must say that up in the area that I live in in Hunua the drought this year has been worse than the drought last year and yet we have the Labour Party and the Greens opposed to more irrigation and opposed to water storage at a time when it is absolutely crucial for the backbone of our economy—the farmers the horticulturalists—to ensure that they do have access to water.The teachers in Hunua are also extremely pleased because they have seen an investment of a further $858 million over 4 years making a total of $10.1 billion in early childhood primary and secondary education. Indeed there will always be people like Annette King wanting more. But of particular interest to me and I would say the Health Committee is taking an investment approach in the very early years to allow children the maximum chance to achieve their full potential but also expecting them to exercise individual responsibility as adults. It was great to hear that there is a further $155 million for early childhood education which brings the total in New Zealand to $1.5 billion on early childhood education. That is something we would never have dreamt of 10 years ago but it will allow something like 98 percent of all children to be able to receive that early childhood education.There is no doubt that very early investment pays off and the Health Committee has indeed shown that in its latest inquiry and that has been backed up by international experts such as the winner of the Nobel Memorial Prize in Economic Sciences Professor James Heckman who has shown beyond doubt that front-loading pays off hugely compared with investment later on in life. There is no doubt that this National Government having put in place the Children’s Action Plan the Vulnerable Children Bill and the newborn legislation—they are all part of the investment approach. The $500 million package for families and children is far superior to the scattergun undirected half a billion dollar announcement that Mr Cunliffe made at the beginning of the year. Much of that would have been wasted. Personally I would challenge any Government anywhere in the world to keep focusing on the investment approach in the very early years whether that be through gold-standard services in reproductive health education maternity or postnatal care or in the area of nutrition.There was another great announcement by the Minister of Finance which was that the healthy New Zealand package to concentrate on exercise and good nutrition will be rolled out around New Zealand. This 2014-15 Budget can only be described as a littlebeaut.TE URUROA FLAVELL (Co-Leader—Māori Party):Tēnā koe Mr Assistant Speaker. Kia oratātou e te Whare. These are historic times to be speaking to the 2014 Budget as a strong and independent Māori voice in the Parliament of this land. In 2 days’ time we celebrate 10 years to the day since over 200 people gathered at Hoani Waititi Marae in Auckland. At that time representatives fromTe Tai TokerauNgātiWhātuaTāmaki-makau-rau Tainui Raukawa Waiariki Te Arawa in my areaMātaatua and Ngati PorouNgāti Kahungunu TeĀtiawaNgātiApa Whanganui Raukawa ki te Tonga and the New Zealand Māori Council journeyed across the country to attend a hui to discuss the need for an independent Māori political voice. It was that hui that mobilised over 200 Māori leaders to build on the momentum gained from thehīkoi opposing Labour’s Foreshore and Seabed Act 2004. This hui unanimously agreed that the people are ready to act collectively to bring to the fore Māori interests of value to all New Zealanders.So began the journey of the Māori Party a journey that has taken us through a 3-year term in Opposition and two subsequent terms in a relationship with the Government. Today I read a release from the Labour Party that talked about the Māori Party gains in this year’s Budget and it described them as being mere crumbs on the table—crumbs on the table. If the $100 million of new money for Māori development that we achieved in Budget 2014 was crumbs then the money received in times of surplus when Labour was in Government equates to a mere third of a crumb—a third of a crumb. I am thinking of the days of plenty in 2007 when theoretically Māori should have been at the very best we have ever seen. Times were good. In that memorable year Dr Michael Cullen announced a mere $35.6 million committed not just to Māori but also to Treaty-related initiatives—$35 million. I say it was memorable because of course 2007 was the year that Labour chose to vote against the United Nations Declaration on the Rights of Indigenous People citing opposition particularly to article 3—the right to self-determination. That happened on 13 September.One month later in the same year 2007 on 15 October more than 300 police carried out the dawn raids on a dozen houses all over Aotearoa in response to what they described as terrorist threats from the indigenous activists. So yes in the context of theTūhoe raids and the rejection of the Declaration on the Rights of Indigenous People I guess that even a third of a crumb is memorable. Comparing the two then we see $35 million in 2007 for Māori and the Treaty as opposed to $100 million of new money this year for the Māori Party initiatives. That is how it stacks up. But listen there is a bit more: $35 million in 2007 compared with $300 million across a whole range of votes in 2014—of both new votes and reprioritised funding which have tangible benefits forwhānauhapū and iwi. That is just a little bit over 10 percent of a crumb—10 percent of a crumb.That year was if you like a perfect storm. There was a rare combination of circumstances that came together to convince iwi Māori that the time had come for a new direction. That direction came some 12 months later with the relationship formalised between the Māori Party and the Government to form a coalition of the willing to negotiate a more successful future for all to enjoy. Budget 2014 reveals that the Māori Party has pushed this Government hard on a number of matters including a commitment to establish the $30 million Māori Information and Communications Development Fund in 2014-15 the establishment of a $5 million Te Mana o Te Wai Fund and the establishment of a centre of research excellence for the funding ofmātauranga Māori research. We recognise the relevance and effectiveness ofWhānau Ora as a lead social and economic transformation approach for Māori Pasifika peoples and other New Zealanders through the ongoing funding committed toWhānau Ora the work of three new commissioning agencies and the establishment of a Treaty-based partnership group comprising senior Ministers and iwi leaders to provide joint direction oversight and promotion ofWhānau Ora.I will go on. We are following up on the recommendations of Te Paepae Motuhake—the name of that report wasTe ReoMauriora—through to the Māori Language Strategy and the proposed amendments to the Māori Language Act which the Hon Dr Pita Sharples hopes to introduce into this House prior to the House lifting for the 2014 election. I note the aim to secure funding to invest in three economic development initiatives that will address some of the outcomes sought in the Māori Economic Development Strategy and Action Plan: He Kai KeiĀkuRinga. There is funding secured for Māori radio and TeMāngaiPāho for iwi Māori economic development and $16 million for the Māori housing fund to support the repairs and rebuilds of rural houses and developing Māori social housing providers. There is $90 million to provide free general practitioner visits and free prescriptions for all of our tamariki up to age 13. And most important and most exciting of all the Moving the Māori Nation national fund is about investing in capacity-building and development and support for sporting and cultural excellence. That is just a start.Do we believe in the collective rights of indigenous people? Well hell yeah—hell yeah. What is even more exciting about the 2014 Budget is that it shows the maturing of the relationship between the Crown and iwi—a relationship that has been evident through iwi leaders now being able to be intimately associated with the policy development process right across key portfolios of the Government. We are particularly proud of the Budget’s $5 million fund in respect of the package to support children and families as the absolute foundation of our nation. That is what having influence is all about.If I can in the last few minutes that are available to me to talk about the Budget I would like to just angle a little bit of discussion across to one who is leaving the House today Mr Shane Jones. Te uri o roto o TeAupōuriNgāiTakotoTararāanō hoki taerānō kitana tahaWēra. Kotētahimeakāorei tino pai ki a au ko te wero o te Māorināi a auotirā tePāti Māoriingātaukuahipaake noho kawaneitērāāhuatanga ki a auēngarikoinei teāhuatanga otēneimea o tetōrangapū. Wero atu wero maitohe atutohe mai ka nui te mihi ki a ia. E mihi atuana ki a iai temea kaputa iai tekuaha o te WharePārematai terāneikoiatērā.Mēnā kei tewhakarongo a ia ka nui te mihi ki a ia.Koiatēneiihara mainārungai teāhuatanga o tekāhui o tehungai haere ki Te Kura oTīpene. Ko Mahara Okeroatērā ko Hone Harawiratērā koahau koētahi atuihara mainōtērā ongā kura. Ka mihi ki a iamō teāhuatanga otana werotanawhakatakotokōrero ki rotoitēnei ongā WharePāremata.Ēharai temeai ratatonu atu au kiānakōrero katoaēngariiputanārungai teāhuatanga kitānai kiteai kitānairongonei e koretaea tekaroitērāāhuatanga. Kotōnangākau temeaiwhakaputainai rotoitēnei WharePāremata. Hengākau Māoriēharai temeai rata mai Te Ao Māori ki a ia.Āe hewāihapa hewāihēēngari ā kotātau te tangatatērā. Koētahi ēarānoa atungāhēēngariitōnamutunga mai kotānakaweiānakōreroi rotoitēnei WharePāremataiētahiwā kaāhua kawatonu kitana taha ki teReipa.Ākuakitea maiai e iaitētahi huarahi heiwhāinga.Nō reira e koremutuwāku mihi ki a iai a ia eputaneiitēnei WharePāremataahakoataku kore rata atu kiētahi owanakōrero heāhua kawanei ki a auēngarikoiatērāiwhakaputainairungaitānai kiteaiitānaiwhakaponoai āotirā otōnangākau.Nō reirakātiake koēneiētahipaku kupu ki a koe e te hoa te hoa o Te Kura oTīpeneotirā te hoa o te WharePāremata.Itōnamutungaahakoa ko koetērāitērā taha ko au kitēnei taha. He Māorianō hokitāuai rotoitēnei WharePāremata. Meputamā tewāhingaro koe e manaaki e tiakiirungaitō huarahihōu. Haere mengā manaakitanga o tewāhingaro.Tēnā koutou kia oratātau katoa.[I acknowledge the member of TeAupōuriNgāiTakoto Dalmatian and Welsh descent. One thing I do not particularly like is that Māori person challenging me and the Māori Party in years past; it is a situation I do not like but that is the nature of politics. There are challenges and debates and so I salute the member. I pay a tribute to the member because he will be exiting through the doors of Parliament. If he is listening then I salute him. He was here alongside other former students of St Stephens School such as Mahara Okeroa Hone Harawira me and others. I congratulate him on the way in which he presented his arguments in the House of Parliament.I did not agree with everything he said but it was based on what he saw and heard and who could argue against that. His spirit was expressed in Parliament. He has a Māori spirit even thoughMāoridom has not always liked him. Yes he made mistakes and was in the wrong but we are all human. Others have made many mistakes but ultimately his comments put him offside with the Labour Party.He has discovered other pathways to pursue and so I offer my endless congratulations to him as he departs from Parliament. I did not agree with everything he said but it was based on his perspective and what he believed in his heart. Therefore these are short sentiments expressed to you my friend from St Stephens School and indeed my friend in Parliament.At the end of the day and although we are on opposite sides we remain Māori in this House of Parliament. Exit and the unseen place will care and protect you on your new path. Farewell with the blessings of the place unseen. Salutations to you collectively and thank you all.]The ASSISTANT SPEAKER (Lindsay Tisch): I understand the next call is a split call—5 minutes Chris Auchinvole.CHRIS AUCHINVOLE (National): Mr Assistant Speaker I will seek your indulgence and perhaps get a bell at 4 minutes?The ASSISTANT SPEAKER (Lindsay Tisch): Yes.CHRIS AUCHINVOLE: Thank you. It is my great pleasure to speak in the Budget debate 2014. We all listened very keenly to the Budget speech given by the Hon Bill English. We have read Budget 2014 at a glance and the numerous very positive media reports about this ambitious robust yet quietly confident Budget carrying the stamp of integrity of a Southland farmer. But to be an effective politician it is not enough to simply listen to the sound of one’s own voice or indeed the voice of one’s leaders to read the good publicity and to pat ourselves on the back. No we leave that to the members on the other side who stay in their own silos not wishing and not being quite brave enough yet to venture out of their little coffee clutches.What we did over on this side of the House is we went and asked the West Coast community and the West Coast - Tasman area what they had taken from Budget 2014 and what was important to them. I spent last weekend going to places like Blackball and going to the more remote parts of the West Coast electorate and this is what they said. They said that the Budget was: “Steady as we go—a reliable set of hands on the economy.” “Ready to head into the next cycle of economic growth with an emphasis on health education law and order.” and “Good for young people and great to have such a commitment to broadband.” My colleagues in the same corridor as me Paul Goldsmith and Paul Foster-Bell would have varied ways of expressing the same thingwith a different degree perhaps of eloquence of vocabulary but basically the fundamental truths are there.Let us look at some of those items as they have particular relevance to the Coast such as the recent redevelopment of Grey Base Hospital. Two weeks ago Minister Ryall announced the business case for the new $67 million hospital bed facility in Greymouth. It is currently in the final design phase where virtually the whole hospital will be new. This is the biggest investment per head—the biggest investment per head—of population in New Zealand’s history in health and the Government is committed tofutureproofing the health services on the West Coast. Let us look at some of the facilities that are going to be made available. There will be a bigger maternity unit than currently exists a new emergency department a new intensive care unit three state-of-the-art operating theatres and an integrated family health centre on the Greymouth Public Hospital site and we know how well those integrated family healthcare facilities are working because of our experience up in Golden Bay. This is the highest health spend ever per head of population and it includes a boost for cancer services and elective surgery.The Budget contains many other things that are popular with the Coast people. The social housing boost is also specifically good for the Tasman region. There is $30 million to help the community housing sector to provide more homes for high-needs families. It is a family-friendly Budget.Paid parental leave is under discussion and is going to be lifted. I recognise that my colleagues on the other side—because we discussed this at considerable length at the select committee—wished to go further. My question to them now is which bits of this package would Labour not want to do or would want to cut out. Would Labour want to cut out the free doctors visits for children up to the age of 13? Would it want to cut the paid parental leave extension that we are providing? Would it want to reduce any of the many aspects of this Budget that are doing so much to help families? I think not—I think not. What we are doing is what Labour would normally do if it were being true to its own measures.This is a powerful Budget. I described it initially as having the drive and thrust of an effective farmer. Over the past 9 years we have had droughts financial deficits and natural and industrial disasters. But with strategic choices just as much pruning as was bearable and targeted policies—The ASSISTANT SPEAKER (Lindsay Tisch): Order! I am sorry to interrupt the honourable member. His time has expired.MELISSA LEE (National): It is a great pleasure to share the spotlight with my colleague to my left Chris Auchinvole who is such an articulate speaker but I seem to have taken 5 minutes off his time. I think that is a reflection of my very caring whip who realised that I had suffered the flu and been sick in bed for a little while so he thought he would be gentle with me. But I would have actually liked the full 10 minutes because this is such a fantastic Budget and we have lots and lots to talk about.As an adult who had been sick and who should really have gone to the doctor but who had been relying on the traditional herbal medicine that my mother concocted I reflected back to when I was a young parent a new parent. When my child was sick I was desperate to get to the doctor to make sure that my son was OK even though it was just a cold. As a young parent you worry about that. I reflect on the Budget that we have delivered this year for families. There is $90 million in this year’s Budget to enable general practitioners to offer free doctors visits and prescriptions from 1 July next year for children under the age of 13. What a fantastic thing we are doing for the families and the young people and those people who are in need in this country. Budget 2014 is a fantastically solid Budget. New Zealand is heading in the right direction withconfidence. Over this past 6 years National’s good management of the economy has meant that our books are back in surplus. Growth is at 4 percent. Wages are rising faster than inflation and there is more money for families and businesses and for the most vulnerable people.If we can go back let us have a look at what we got back in 2008. In 2008 this country was in a recession. It is now growing at about 4 percent—a fantastic record. In Labour’s last 5 years there was a 50 percent increase in Government spending which helped push mortgage interest rates to almost 11 percent and crippled the internationally competitive part of the economy. People complained about 11 percent but if I remember back to when I first bought a house I think I paid about 20 percent for my first house. People think the 6 percent we currently pay now is very expensive and very high. National has got Government spending under control and mortgage interest rates have come down.Food prices went up 10.9 percent in the last year under Labour. They have gone up only 1.5 percent under National. House prices went up 96 percent over the 9 years that Labour had the Treasury benches—Chris Auchinvole: How much?MELISSA LEE: —96 percent—and they have gone up only 28 percent under this National Government. People say that electricity prices are very high. Well let me tell you that under Labour they went up 72 percent—Chris Auchinvole: How much?MELISSA LEE: —72 percent Mr Auchinvole—and under National they have gone up only 20 percent.This Government is committed to protecting children from abuse and neglect. We have had a terrible record of that and I have spoken about that with previous bills in this House. I have talked about the 22000 cases of abuse and neglect of our children a year. More than 50 children have died in the past 5 years which is an appalling statistic in this country. I am very proud of the Vulnerable Children Bill which is before the House and as chair of the Social Services Committee I am pleased to see that the operating funding for 2014-15 is going to be strengthened with $33.2 million. There is $3.2 million for the implementation of the bill making five Government departments accountable for protecting and improving the lives of vulnerable children.This National Government is delivering on the promises we make. We are growing this country. We are making sure that those children the most vulnerable children are getting a fair deal in this country. The Children’s Action Plan is well under way and the new funding will see a further eight Children’s Teams being set up throughout the country over the next financial year. We currently have one in Rotorua and the other one is in Whangarei. Through the new funding of $13.7 million for Child Youth and Family we want to make a difference to young people’s lives so that they do not have to become a statistic so that they do not have to end up on welfare and so that we do not have a generation of children who are dependent on welfare. This is a great Budget and I commend it to the House.RINO TIRIKATENE (Labour—Te Tai Tonga):Tēnā koe Mr Speaker.Tēnā koutou engā rangatirahuriraunaitōtātou Whare.Tēnā koutoutēnātātou katoa. [Thank you Mr Speaker. Greetings to you collectively the leaders throughout our House. Acknowledgments to you and to us all.]This Budget is a mockery. It is a mockery of decency and common sense. It lacks aroha it lacks wairua and it has no mana—no mana at all. It is a Budget that has no love for the citizenry of Aotearoa. It lacks compassion. I will give you an example. The one commendable part of the Budget is the free generalpracticioner visits for our tamariki from ages 7 to 13. It is great on the face of it but as for thewhānau around themotu if their kids are sick right now will they be able to take advantage of that? No. Will they be able to take advantage of that next month? No. Will they be able to take advantage of that in June a year from now? No. They are going to have to wait until July 2015 before they can take their sick tamariki to the doctor.Iain Lees-Galloway: I thought it was in this Budget.RINO TIRIKATENE: That is right and the Government put it in this Budget. This is a “fudge-it Budget” as we have said. We have heard about the Government shuffling the figures shifting things around relabelling money. We have heard from Te Ururoa talking about this great bigpūtea that is coming to Māori. Look I do feel aroha for Te Ururoa because he was very selective in this 10-year history of the Māori Party. He failed to capture two very important events. The first was the walk-out from our whanaunga Hone in the creation of the Mana party. That was a very very significant event in the history of the party. But also he failed to mention the mountain of a man from the south who actually took out the seat of Te Tai Tonga.Ēhara te Maunga Aorakii te maunganekeneke. [The mountain of Aoraki is not exactly one that moves about.] This mountain is not going to be moved. He was very selective—very very selective—in that history.But getting back to this Budget we have thekōrero the famous proverb of our people: He aha temea nui o te ao? He tangata he tangata he tangata. It is about people. But if you look at the impact of this Government and its policies over the past 6 years the situation for all our people is getting worse and in particular for Māori. I want to focus on inequality because inequality in this country at this time is getting worse. Let us just roll by all of the main indicators and all the socio-economic indicators. Our people want a good job they want a secure job and they want to be able to work a decent day’s mahi to be able to support theirwhānau look after their kids and get them educated. It is not much that our people want.But what do we see? Māori unemployment under this Government has grown from 8.6 percent in 2008 to 13.2 percent today. That is an enormous increase. We have been into double figures for the past 5 years. Is that the great achievement that the Māori Party is so excited about and is celebrating wanting to let the whole world know that they have got so muchpūtea? There is 13.2 percent unemployment. That is an indictment. And what does that mean? That means that Māoriwhānau many of them out there have still got no jobs and are still struggling to make ends meet. What is even worse is that the Māori youth unemployment rate is far too high as 21.9 percent—you could say 22 percent—of our rangatahi are not in employment education or training. This is all happening under this Government. We remember back to 2008-09 the Job Summit and the urgency that was applied to the Māori Job Summit. I was at that summit and the pressing urgency there was in terms of how we could save Māori jobs. The proof is there: double-digit unemployment for the past 6 years. That is the record of this Government.I would like to move on to homeownership. That is a bigmoemoeā for manywhānau. They want to be able to work hard to get that whare get a house where they run around have their parties and have their kids grow up. That is a distant dream for many Māoriwhānau. If we look at the Māori homeownership rates 28.2 percent of Māori own or have an interest in their own home. If we flip that over that means that 72 percent of all Māori around the motu do not own their own home. They either rent or are staying with their ownwhānau to try to get by. Seventy-two percent of our people do not have the ability or the means to be able to get into their own homes. We know that the policies that have been applied in terms of loan-to-value ratios and other things are making that aspiration even harder to get to. So homeownership is a complete disaster.I want to move on to incomes. New Zealanders are not earning enough particularly Māori. People around the motu will know that just under half of all Kiwis—just under half of all Kiwis—have had no wage increase over the past year. They are actually going backwards. By the time you factor in inflation and the rise in the cost of various necessities they are actually worse off. So that is again an indictment. We have too many young people in low-paid positions and in insecure work and too many young people who are graduating with no decent jobs to go on to.We hear about this great rock star economy that we have. Sure I am very proud that when I go around the South Island there are lots of great things happening if you go into districts like Ashburton Gore and Mataura. I was in my electorate office in Invercargill the other day and the ambassador for the Philippines was there. The ambassador for the Philippines had travelled all the way down to Invercargill to process all of the visa documentation for the Filipino community. It was great to see so manywhānau there and I am sure they are making a wonderful contribution to those regions as they are in other districts around the South Island. But it got me to think why it is that we are having to bring in so manywhānau to do jobs when there is so much unemployment here in our own country. The reason is that employers can get away with it. They can get away with paying peanut rates for immigrant workers. They can get away with just changing any terms and conditions at will. They can get away with those things because this Government has allowed that to happen because it is looking after its base which is the farmers the rural sector. We know it has always been that way but there will be a change and that is why we need a change in Government.I know that Labour has the solutions. We do have the solutions. I do not like being overly negative but I do need to correct some things when they are raised in this House. Labour does have a range of solutions. We have our economic upgrade package. I would line up David Parker and David Cunliffe any day against any of the front bench of the National Government. We have got the best policy—well-thought-through and very responsible—and very prudent economic managers. We will implement that policy when we get into office.I just want to conclude by mentioning a speech that the Hon Dr Pita Sharples gave last night when he was speaking on the Budget. Mr Sharples referred to some obscure article that was written that gave the analogy that the Māori Party was the Road Runner in stealth mode—that it was somehow quick nimble and able to do great things. There was an analogy to that cartoon. There is only one animal in stealth mode in the Road Runner cartoon and we all know who that is. That is Wile E. Coyote. We all know what happens to him. He gets run over by a 10-tonne Tory National boulder. That is what happens to Wile E. Coyote. On every show he gets run over mowed down by the National freight train. That is what has happened to the Māori Party and that is what this Government has done. This is an atrocious Budget. I am looking forward to 20 September when there will be hope renewal and a change of Government and we will be in power. Kia oranōtātou.Hon PAULA BENNETT (Minister for Social Development): Mr Speaker might I say just how honoured I am that you are in the Chair for my contribution to the debate on this fantastic Budget. I see that the gallery is full. That is great. We have got ex-MPs here in the House who have all come along to hear my speech. I hope they stay for Shane Jones. I hope they actually stick around because there is another show on the road shortly. That is lovely. Shane Jones I feel like I am I do not know the entrée before the main the soup before the steak and chips you know. Yes I am the little entrée that sort of warms the crowd up for you Shane Jones. I hope that you are getting ready for your valedictory statement. Can I just say because I do have the opportunityto speak just before you that actually you will genuinely be missed. It is a sad day for some of us who have enjoyed you. But I get to talk about the Budget.I am delighted that there might be a few more people who are listening in than normally would. They get to hear about the fantastic work that we are doing for families and for children in this Budget. The list is long. I get to go for a good few minutes here to talk about just how great it is and the extent to which we have gone. The one thing I think has not been picked up as much as it could have been is that more than $1 billion in savings if you like have been made thanks to a lower welfare spend than what was projected in 2010. Shall we run through that again? More than $1 billion—the forecast is lower than what it was in 2010 and that is certainly due to an economy that is picking up but equally due to our welfare reforms. One hundred million dollars has gone into the welfare reforms in this Budget. That will be $25 million a year over the next 4 years and you can already see the kinds of returns we get from that. In the last 12 months alone since we introduced the reforms the savings in the benefit spend have been about $530 million. So it is absolutely significant. That support and spending on people earlier are what make the biggest difference.I am proud of this Budget. I am absolutely proud of the work that Bill English has done and I can tell you that there has been many a night when we have debated very long into the night on what this Budget would look like and how we would respond to some of the needs of families and children. The reality is that I loved that we were debating the stuff that matters—the stuff that really counts. The reality is that with data analytics like those we have now not only do we hold more information on the most vulnerable children and young people in this country than we ever have before but we have access to it. That means we can target our funding to the children and families that need it most. Unlike Labour which would like to scatter the money across every child and the Greens who would like to throw a bit to everyone even those who do not need it and hope that it might actually hit those who are most vulnerable in this country we have gotten smarter better and far more sophisticated in how we target the most vulnerable New Zealanders and get support to them earlier. For me the significant amount of $33 million in this Budget is to do exactly that.One of the best examples I can give of data analytics and the difference it makes is the changes we have made for teen parents. We have had a reduction in the number of teen parents by 39 percent over the last 4 years. To give you the actual numbers in 2008 there were 5200 births to teen mums; last year there were 3300. We have 2300 young mums who are on a benefit at any one time. We know their names and we know where they live and what we can do is we can wrap support around them early. What we recognised was that the Government was not the right place to do that. In fact every bit of evidence on the investment approach told us that keeping them away from the Government for as long as we can will make the biggest difference. So every single one of those young teen mums has wraparound support from an adult. They now start by having their money managed for them. Their rent or board is paid up front. Their power bill is paid. They get some money on a card and some pocket money but they can work their way to independence—and can I say what an absolute difference that is making in their lives.If we were not targeting if we were not using data analytics like we do we would continue to scatter and spray money around hoping that it hits the very children and young people who need it most. The reality is that this Budget looks at us targeting it even more to those who need it more. If you look into the details of the Budget what you will see is the money that is going into that vulnerable children’s package. It lets us have another eight Children’s Teams and that is important. We have the predictive riskmodel which is actually controversial in itself. So whether you like it or not we know a lot.We know whether a child’s parents have been in jail and whether the parents have been in a State house for all of their lives. We know their benefit use. We know whether or not there have been domestic violence incidents and whether the police visited the week before. We know the vulnerability level. We know the risk factors. We know where to put support and how to get it in earlier. The difference that that can make to the harder and more complex end of what we do is significant. Children’s Teams will have that kind of information. They can then wrap one plan around a child with one lead professional who can then actually follow through and there is accountability the whole way through which makes the biggest difference.I say that Labour forgets what actually happened. The reality for these kids is that if we kept spending and if it was just about more money for every child then we actually would have seen a greater reduction in the number of abuse cases involving children in the 2000s when Labour was throwing money at it and scattering it around. We did not. What we have seen for more than 10 years is a steady increase in the number of notifications and the number of substantiated cases of abuse and neglect. Unless we target unless we get in earlier and wrap support around them and know exactly what is happening we will continue to get the same sorts of results. This Budget steps up for those very vulnerable young children who need us and I am very proud of it.The Budget also does more for Child Youth and Family for therapeutic one-on-one support. It ensures that for those very high-needs and complex-needs children we are actually able to put far more money into them. There are a few children who literally cost us millions. There are some incredibly sad cases of young people who need 24/7 one-on-one support—and even in extreme cases two-on-one support—to make sure that they are actually safe themselves and that society is safe. So there are examples where we have young people who literally have a guard with them and a therapeutic placement person with them the whole time and that is expensive. So we needed to step up and make sure that we continue that and that we are actually backing the young people who need it.What we hear a lot actually is that unemployment has gone up since National came in. I was hearing just today that there are more Pacific people who are unemployed than there were back when Labour was in. What the Labour members forget of course is that for three consecutive quarters before National came into Government in 2008 numbers had been going up under Labour and it had done nothing. What they choose to forget of course is that we had a global financial crisis which saw this Government step up and help and support those who needed it most at that very time. So yes welfare numbers went up. Actually in some respects I am proud of that. That means that we support those who need it most.This is an outstanding Budget by a Minister of Finance who is doing an outstanding job. I am incredibly proud to stand up today and support it.CHRIS HIPKINS (Labour—Rimutaka): Can I thank all my parliamentary colleagues for coming along to this contribution in the Budget debate this afternoon. I feel a little bit like the Parliamentary Rugby Team playing a curtain-raiser before an All Blacks match. It might be a bit scrappy but you know that it is going to be passionate. I do want however of course to note the significance of today because not only are we going to hear from Shane Jones in his valedictory speech but also I can say that this is the first time this parliamentary term that Shane has arrived before time to a speech that he is going to do in the House. I think that that is an absolutely fantastic thing.It is my duty today to be the last speaker to talk about the Budget before we move on to matters slightly brighter on the horizon. I think nothing highlights the contradictionsand the mixed priorities in this Government’s agenda than the education contribution in this year’s Budget. Charter schools are getting an extra $6000 a year per student on top of up to $40000 a year per student that they are already getting while State schools are getting only $6000 to $7000 a year per student. How is that a level playing field? If this Government genuinely cared about raising student achievement for those students who are not doing very well it would not be putting money into charter schools; it would be putting money into every State school in the country. So why do we have charter schools? Because of a dodgy cup of tea deal with a party of political ghosts—a dodgy cup of tea deal with a party of political ghosts. It prised open the crypt and out they popped with the new-right playbook and we ended up with charter schools in New Zealand. We do not need charter schools. We need to be focused on making sure that every school in New Zealand is a good school and every student gets the opportunity to achieve their full potential.While the Government is lavishing money on charter schools in its ideological experiment cooked up with the party of political ghosts schools and early childhood education centres are barely getting enough funding to keep up with their rising costs. Schools are increasingly reliant on parental contributions and are not getting the funding that they need. Bill English who railed against the increasing costs of education to parents when he was the Opposition’s spokesperson has done absolutely nothing in 6 long years about that. Every year the financial contribution parents make to their kids’ education has gone up under this National Government. Yet parents are struggling to make ends meet and this Government is doing nothing about that.This Government has instead decided to pick a war pick a fight with every teacher in the country. Over the last few weeks we have sat in the Education and Science Committee and listened to submitter after submitter after submitter say that this Government does not value them does not respect them and does not even trust them to have a say over how their own professional body operates. I think that is absolutely disgraceful. Has the Government been listening? No it has not. It has not listened at all.But there is a better way. There is a better way and it starts with making sure that every child in New Zealand has the best possible start through paid parental leave through making sure their parents can make ends meet through the Best Start payments and through providing high-quality and freely accessible early childhood education to every child in the country. Those should be the priorities. Those are not the priorities of this National Government. We should have trust and respect—[Interruption]Mr SPEAKER: Order! The level of noise now coming from the Chamber is completely unacceptable. I require Mr Hipkins to have a reasonably fair go.CHRIS HIPKINS: That is all right Mr Speaker—I am pleased everybody is so excited by my contribution in the Budget debate today. We should have trust in and respect for education professionals. The best way forward for the education system in New Zealand is one that is based on collaboration not one based on a Government saying to teachers that they are not trusted they are not respected and they are not even respected enough to have control over their own professional body. It also means that we should pay attention to the factors outside the school gate that have an impact on kids when they get into school. If kids’ parents do not have jobs if they do not have adequate income and if they are not living in quality warm dry affordable houses then that is going to have an impact on kids’ readiness to learn when they get to school.Where did we see reference to that in this year’s Budget? We did not. We did not. The Government was silent on the major issues around housing affordability and job creation. The Government simply fudged it. It did not do anything about those major issues that New Zealanders are facing. If we want to get serious about making sure that New Zealanders have the brighter future that John Key promised them but hasabsolutely failed to deliver we should start with children. We should start with making sure they get the best possible start in life. The Labour Party is absolutely committed to that through increasing paid parental leave through making sure that children’s parents who need the financial support can get it through the Best Start payment and by making sure that early childhood education is available.This Government does not care about the quality of early childhood education. It has relaxed teacher quality requirements. It has relaxed the requirements for there to be fully registered qualified teachers in early childhood centres. I think that is absolutely disgraceful. If we are going to increase participation in early childhood education we should be making sure that it is quality participation in early childhood education. That is not something that this Government is delivering on. If we really want to lift the status of the profession we could start by making sure that we attract the very best people into the teaching profession in the first place and yet the Government has done absolutely nothing in this year’s Budget to make teaching a more attractive career for the best and brightest in our schools. We should definitely be focused on doing that.Why should somebody consider teaching as a viable career when this Government says that teachers cannot even be trusted to have control over their own professional body? We would not do that to lawyers we would not do that to accountants and we do not do that for doctors. We do not do that for almost any profession. In fact the National Party seems to care more about real estate agents. It mounted a filibuster against the regulation of the real estate industry because it thought that real estate agents should be regulating themselves and yet it will not allow teachers to do that. The National Party cares more about real estate agents than it does about teachers.This Budget has ignored the fundamental issues facing the education system. Instead it has sloshed money around into an ideological experiment like charter schools all because of the dodgy cup of tea deal with the political ghosts from the ACT Party. There may be one of them left in this Parliament now but I can tell you what. One of them is allowed to sit on this side of Parliament but there will not be any left in this Parliament after the coming election. Then we can finally put an end to the crazy madness that is the new-right ideological experiment of charter schools. Finally I am the final Labour speaker to speak before Shane Jones gets to deliver his valedictory speech to the House today so I would like to take the opportunity Matua Shane on behalf of the entire Labour caucus—and I know that I speak for all of us—to say that you have made an enormous contribution to our team. You have had a big impact on Parliament in a whole variety of ways. We will certainly miss you and we wish you all the very best for the future.Debate interrupted.