Joyce Steven: Supplementary Estimates — Imprest Supply DebateText is incorporated into the Bound VolumeJoyce Steven: Supplementary Estimates — Imprest Supply Debate[Sitting date: 26 June 2013. Volume:691;Page:11297. Text is incorporated into the Bound Volume.]Supplementary EstimatesHon STEVEN JOYCE (Acting Minister of Finance): I moveThat the Appropriation (2012/13 Supplementary Estimates) Bill and the Imprest Supply (First for 2013/14) Bill be now read a second time . These bills continue the Government’s economic and fiscal strategy and provide the funding for the Government to operate until the 2013 Budget is passed. Budget 2013 is about responsible management of the Government’s finances and I am proud to report to the House that we are on track to return to surplus and begin to reduce debt by 2014-15. Budget 2013 is also about building a competitive economy for New Zealand businesses to succeed and grow. We are investing in a package of growth and innovation measures we are speeding up the provision of new housing and we are reducing ACC levies. Through the Future Investment Fund we are making several key investments in New Zealand’s infrastructure. Budget 2013 is about delivering Better Public Services. Ten priority targets have been set for the Public Service where there are opportunities to make a substantial difference. Investment is being carefully targeted to support these Better Public Services targets.Importantly Budget 2013 is about rebuilding Christchurch. The Budget has provided an extra $2.1 billion for the Christchurch rebuild taking the Crown’s total contribution to around $15.2 billion. Since 2008 New Zealand has been impacted by the global financial crisis and an international recession. Around the world many countries continue to grapple with low growth high unemployment and soaring Government debt. Directly or indirectly this has affected every New Zealand household and business. On top of that New Zealand has had its own additional challenge which is of course dealing with the earthquakes in Christchurch and the economic cost of the city’s rebuilding. Of necessity we have had to take on extra debt to protect the vulnerable through this period to maintain living standards and of course to support Christchurch’s renewal.However unlike many other countries our economic recovery is gathering momentum. Our debt remains very manageable and we are on track to return to surplus by 2014-15. There are 50000 more jobs in the New Zealand economy than 2 years ago and household disposable income has risen by 20 percent over the past 4 years. Now that the economy is recovering we need to bring down the Government’s debt bring the books back into balance and start to pay down debt. This is crucial for New Zealand’s long-term prosperity. You only have to look at the drama still being played out in Europe on a daily basis to know how excessive borrowing and debt ends and the ultimate economic and social cost that it creates. That is why we have also set out a clear strategy and path to bring the Government’s books back into balance. We set out a plan we have stuck to that plan and that plan is working for New Zealand. We are not engaging in the harsh Budget cuts that we are seeing in other countries notably insouthern Europe. To the contrary we are spending more in areas where a difference can be made and we are also spending much more effectively.The 2013 Budget provided new operating spending of $5.1 billion in the current year and over the next 4 years. This includes significant new spending that will benefit Kiwi families in areas such as early childhood education aged care welfare reform tertiary education and healthy homes. We have also allocated $1.5 billion of capital spending through the Future Investment Fund including $426 million for the redevelopment of Christchurch and Burwood hospitals. Looking forward we also allocate $1 billion to investment in 21st century schools and new classrooms and a further $1 billion to priority health investments.With the Business Growth Agenda we have set the specific goal of lifting our exports to 40 percent of GDP by 2025. Through initiatives in building export markets building innovation building skills providing safe workplaces building public infrastructure building natural resources and building capital markets the Business Growth Agenda is a comprehensive plan of work which is working to achieve a better platform for New Zealand businesses to compete on the world stage. Achieving our export goals requires New Zealand to develop stronger linkages with international markets and be a stronger player in research and development. It is particularly important to develop these linkages with emerging markets as relative consumer power moves swiftly from west to east. We need to further develop our relationships in China India South-east Asia Latin America and the Middle East. To achieve those goals the Government in Budget 2013 announced a $400 million internationally focused growth package. This includes investing an additional $50 million a year in science and innovation across business research and development commercialisation and core science research. Forty million dollars a year is going into New Zealand’s tourism and events industry to attract and increase earnings from high-value international visitors. Ten million dollars a year will go towards marketing our international education sector to raise the profile of New Zealand’s quality education system overseas and there is $2 million this year for the development and launch of the New Zealand Story.The Government has a very balanced programme involving sound financial management carefully targeted spending and investment and improved public services for all New Zealanders. If I can make a brief comment about today’s events before I conclude I say that there are many confused people around wondering why it is that the Government is polling so well when for various reasons they think that the Government should not be polling so well. Well I think that more than anything else New Zealanders New Zealand families recognise that this Government has a very strong and focused economic and fiscal strategy for New Zealand. It is notable to say that since Bill English went through his Budget in May of this year the Government’s fortunes with New Zealanders have continued to improve and increase. The New Zealand public is endorsing this programme of the New Zealand Government. The Government will continue to require careful and sometimes difficult policy choices to ensure growth prosperity and jobs. The New Zealand public know that we will face up to those decisions and we will take those decisions well and that is what they are supporting through this Budget and through the economic and fiscal decisions that this Government is making.