Tremain Chris: Appropriation (2011/12 Estimates) Bill — Third Reading Imprest Supply Debate 
Tremain Chris: Appropriation (2011/12 Estimates) Bill — Third Reading Imprest Supply Debate 
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CHRIS TREMAIN (National—Napier) 
: 
 I rise to speak on the Appropriations (2011/12 Estimates) Bill as we move this bill and the Budget through the House today. I will commence my speech by replying to or rebutting Mr Robertson who used a number of quotes by Mr John Armstrong about the Budget and projections for its future. At the same time Mr Robertson forgot to mention that a number of economists throughout New Zealand—more than a number—believe that the Budget was relatively conservative and that it was infinitely achievable. 
What brings a lot of impetus and merit to these other projections and other comments is the growth rates for the January through March period the first quarter of this year. The forecasts were for about 0.4 percent growth for the economy but what did we achieve? We achieved 0.8 percent growth for that 3-month period. It was double the forecast. What is more officials went back and had a look at the growth figures for the period of October through to December and they bumped those up as well. On any measure that would indicate that the projections we had for this Budget were pretty conservative and on the mark. In fact those projections are being supported now by data—actual data—in our economy. Actual people and businesses are getting out there starting and growing new businesses employing more people and paying more tax in this economy. That is a fantastic way to continue with this Budget debate. 
Those projections and data deliver upon some of the key focuses of this Budget one of which was to get New Zealand back into surplus by 2014-15. What happens when we get back into surplus? We will not have to draw down the debt that we need when we are operating in deficit. It is a key function of the Government to operate in surplus as we get back into better times. I think that that underpinned by the data that has been shown in the economy means we are definitely moving in the right direction. 
The second thing about the Budget was that we based it on some pretty sound principles of home economics. The first principle is to spend less than we earn over the long term. 
Simon Bridges 
: Radical. 
CHRIS TREMAIN 
: I know. That is quite radical is it not? Yes. Secondly we should borrow only what we can afford to pay back. That is another quite radical policy but one that we put at the centre of the Budget. Ultimately we put ourselves into a position where we can save and repay debt. 
These basic economic principles have been sharpened as we have watched Portugal Ireland Greece and Spain struggle with debt mountains that seem—to them I am sure—insurmountable. Just in the last few weeks we have watched as the mighty United States has battled with its debt—trillions—and has been forced to curb its Government spending. It is simple economics once again. If we spend more than we earn over the long term eventually we get ourselves into a pile of muck. That is what these countries are doing. 
We on the other hand took a very conservative approach when we came into office in 2008. We had a look at where we needed to be. We were presented with forecasts and those were in the pre-election fiscal update before the election and then in the half-yearly fiscal update following the election. The previous Labour Government left us with projections for deficits over the following 10 years—deficit after deficit after deficit. That meant if we went back to our simple home economics example that we had a projection of debt continuing to rise and never coming down. That is what we were left with. 
I am proud to be part of this Government proud to be part of a John Key - led Government which has been realistic about the issues that we have faced and which has put the policies in place to make sure we can go forward as a nation and be quite frankly in the position we are now while other nations around the world are faced with huge cuts to their budgets— 
Simon Bridges 
: Riots. 
CHRIS TREMAIN 
: —and have riots in the streets—as citizens come to the realisation that they have to make a profit in the long term and as they face the reality that they have to live within their means. I mean this is pretty basic stuff but that is what is happening. I ask members of the House even members of the Opposition whether we are seeing riots in the streets in New Zealand. No we are not. It is because we are in a great position going forward and in excellent shape. 
New Zealand is in a different position from many of these other nations. Our total debt is comparable but where we differ is in the proportion that is owed by the Government versus the amount owed by private citizens. Net Government debt in New Zealand is about a quarter of our total national debt. That is fantastic. We are in a great position. I go back to the 1970s when Muldoon was in Government and we had a debt to GDP ratio of about 70 percent. That was high. But over successive Governments including the National Government through the 1990s—that was where the biggest dip in the debt curve came back—and the 9 years of the previous Labour Government the debt to GDP ratio has come back. Where the smoke and mirrors are is that the Labour Government claimed that it repaid debt. The reality is that the economy grew significantly. The Labour Government did not pay down a cent but the debt to GDP ratio fell as the economy grew. Those are the facts of the matter. 
Iain Lees-Galloway 
: You’re making it up. 
CHRIS TREMAIN 
: I tell the financial whizzes on the other side of the House to go and have a look at the debt position they inherited and at what it was when they left office. It did not change at all. The economy grew and the debt to GDP ratio fell. That is the reality so those members should stop trying to tell the New Zealand public that the Labour Government repaid debt. That is bollocks. 
Iain Lees-Galloway 
: I raise a point of order Mr Speaker. I think the speaker on his feet has made a lot of accusations— 
The ASSISTANT SPEAKER (Eric Roy) 
: No. That is not a point of order. The member will sit down. That is not a point of order. 
CHRIS TREMAIN 
: Thank you Mr Assistant Speaker Roy. Going forward this Budget reinforces the six-point plan that we have been driving right from the start of being in Government. That six-point plan is totally a focus on taxation and changes to taxation. Members have seen us make a big difference there by changing the incentives so that people who want to get out there and work will pay if they are earning under $48000 a year tax of no more than 17.5c in the dollar. Under any tax level compared with when Labour was in Government people pay less tax in this country when they go out and work. We have delivered a fantastic situation. 
The second part of the plan has been in infrastructure. We have invested significantly in infrastructure. I am proud to see the roll-out of high-speed internet through fibre being laid in the ground. In fact I was at a meeting in Hawke’s Bay on Monday along with Unison which did not actually get the contract with the Government but which is out there as a competitive fibre-network. We will end up with a wonderful fibre-network in Hawke’s Bay which is absolutely magic. 
Trade and innovation is the third part of our plan. We are out there organising a new free-trade agreement with India. That will be a wonderful opportunity to give more markets to our traders. Particularly locally in Hawke’s Bay it is fantastic to see that move. We have worked on getting apples into Australia and I think that within a very short space of time we will see the first shipment of apples into Australia. 
Skills in education have been a major focus for us and that is the fourth part of our plan. That has been a huge focus for us particularly with national standards and delivering upon those. This Budget delivers an additional focus on those particular standards in making sure that we deliver those going forward and in lifting the competence of children within our school system. 
The fifth area of the plan is Government spending in services where we have had a major focus. We are keeping the lid on Government spending and we are keeping a real focus on driving efficiencies in our Government departments. Earlier this afternoon Bill English complimented many of the chief executive officers of those Government departments on making a real difference in delivering better services for the same amount of money. 
Hon Steve Chadwick 
: Gutting the regions. 
CHRIS TREMAIN 
: To say that we have gutted Government services is absolutely ridiculous. I mean we can take health—and education where there had been budget education—we are now delivering more operations than at any time under the previous Government. What those Labour members struggle to understand is that Governments can be efficient can be more productive and can deliver more services with the same budget. I think that is a talent and a focus that Bill English has brought which is making a huge difference in this country. 
I will finish my speech there. We have a strong focus on building an excellent economy and National is delivering upon that with this Budget. Thank you.