Robertson Grant; O'Connor GregAPPROPRIATION (2022/23 ESTIMATES) BILLThird ReadingIMPREST SUPPLY (SECOND FOR 2022/23) BILLSecond ReadingHon GRANT ROBERTSON (Minister of Finance): I move That the Appropriation (2022/23 Estimates) Bill be now read a third time and that the Imprest Supply (Second for 2022/23) Bill be now read a second time. This is the final act in what most people think of as the Budget debate but it has the initial bonus of also being the debate on the Imprest Supply (Second for 2022/23) Bill. I will address that matter first before moving on to the appropriations.The imprest supply bill provides interim parliamentary authority for expenditure decisions made or to be made by the Government through to the end of the financial year that are additional to the amounts in the 2022/23 Estimates. They are a normal part of the parliamentary Budget process. The second imprest bill provides for any operating or capital spending decisions including pre-commitments against future Budget allowances and expenditure occurred against the between-Budget contingency. It also covers fiscally neutral adjustments which increase one appropriation but decrease another confirmation of expense transfers increases in demand-driven appropriations and draw-downs of existing tagged contingency. Provision is also made for any risks that may materialise for example matters covered in the risks to fiscal forecast chapter of the Budget Economic and Fiscal Update. The amount requested in the Imprest Supply (Second for 2022/23) Bill is $28.5 billion. This is significantly lower than the $41 billion requested in last year's second imprest supply bill and the $56.5 billion requested in the 2021 second imprest bill. The difference is largely due to a reduction in the size of the Government's general contingency buffer to reflect the change in circumstances. As the Government's COVID-19 response evolves and we move from our elimination framework through to minimisation and protection it is prudent to reduce the size of this buffer. The reduction is also consistent with the closure of the COVID-19 Response and Recovery Fund. Although the amount sought in the bill signals a move closer to pre-COVID imprest levels members can rest assured the buffer is sufficient to cover unexpected spending which may occur in this financial year. All expenditure incurred under the interim authority of the second imprest bill will of course need to be appropriated by Parliament before the end of the financial year as is the case every year and that is done through the Appropriation (2022/23 Supplementary Estimates) Bill which will be introduced on Budget day 2023. Just before I move off the question of imprest supply it is important to note that historically the level of authority is rarely met in terms of what is actually expended. So for example in the 2021/22 year there was slightly more—$25 million in the operating expenses—but under capital there was only $2 billion as compared to nearly $13 billion that was authorised. Similarly for capital injections for the $2 billion there was only around $500 million. So it's an authority—it's not a direction—to spend and all spending that comes under the imprest authority ends up back with the House through the appropriation bills. It is with great pleasure that I stand to speak in what is effectively the final stage in this debate of the Budget. I stand proud of Budget 2022. It was a Budget that was put together during a very challenging time for the New Zealand economy. When we put this Budget together we were trying to balance three important things. The first of those was making sure that we began the journey to more of a stable fiscal position. As all Governments around the world have had to do through COVID we have had to borrow money to make sure that New Zealand got through. I stand proudly by the Government's record of getting alongside New Zealanders to make sure that they could get through COVID-19. Be that the more than $20 billion that we put in place to support people through the wage subsidy scheme or the resurgence support payments be that the more than $10 billion of additional health spending that we put in place to make sure that our health system could support New Zealanders to stay healthy. While others in this House change their position take on hindsight economics as their guiding light we stand proudly beside what we have done. It is worth noting again that Standard and Poor's when they reaffirmed New Zealand's local currency credit rating and our foreign currency rating they said this: New Zealand has weathered the pandemic better than most countries in terms of health fiscal and economic outcomes." That is down to the hard work of New Zealanders and the resilience of New Zealanders through a very difficult couple of years and we as a Government have stood alongside New Zealanders in doing that. In returning New Zealand to a more stable fiscal position this means making sure that our level of public debt stays low. On a comparable measure New Zealand's public debt remains under 20 percent of GDP. When we look—Hon David Bennett: What was it when you started?Hon GRANT ROBERTSON: —at where we were—Mr Bennett our level of debt is lower than what National left us. Is that right? Is that correct Mr Bennett? Have we got New Zealand's level of debt lower than what National left us? Because that is the truth. That level of debt when we compare it to those countries around the world like the UK like the US like Australia it means that we have a position to be able to deal with the challenges that the world will throw at us that is stronger and better than most other economies. We also in this Budget are able to see a forecast that sees us return to surplus in the 2024/25 fiscal year. That achievement will mean that we have got ourselves back into surplus five years after COVID. Not the six years that the previous Government took after the global financial crisis (GFC) when arguably the dip in the economy was not as large as what it was from the first hit of COVID and that comes from a careful and balanced approach to spending. Not the austerity cuts preferred by the National Party but continued sustained investment in health and in education while being careful with our spending and getting ourselves back into surplus as soon as we possibly can. So that was an important part of this Budget getting the balance of that right. Then alongside that was supporting New Zealanders with the immediate cost of living issues. That meant extending out the fuel excise duty cut that meant making sure that half-price public transport was put in place and then a cost of living payment targeted to the New Zealanders that once upon a time the National Party cared about those earning less than $70000 who didn't get the support from our 1 April package. That has made a big difference for those people. And on Budget night we were able to pass the legislation to begin to reform our supermarket sector so we genuinely will have competition and make sure that New Zealanders don't pay so much for their food. The third element was to continue the Government's programme to provide to New Zealanders the basis for a high-wage low-emission economy that provides security to New Zealanders in good times and bad. It means taking on some tough issues. It means making sure that the health system actually operates in the interests of all New Zealanders an issue kicked down the road by previous Governments. We weren't prepared to do that and we've invested significantly in the health sector. It means carrying on with our reforms of our planning system of three waters—the issues that the Opposition would prefer to ignore. They'd prefer to make sure they didn't address. But on this side of the House we have done that. We continue to invest in those businesses and get alongside those sectors where those high-wage jobs exist so there is further investment in skills and in training. I want to echo the words of the Minister of Education from earlier in question time today; I am immensely proud of the fact that apprenticeships are a priority under this Government. I remember after the GFC when the National Party didn't care about apprentices they didn't care that they were laid off. They were the first to go—Nicola Willis: Keep talking about the past. Hon GRANT ROBERTSON: —and the National Party did nothing. I'm talking about today Ms Willis. I'm talking about the fact that we've got 50000 people who've gone through the Apprenticeship Boost and 200000 people who have benefited from trade training opportunities provided by this Government. That is what this Budget has done. It is invested in the young people of New Zealand and it is invested in making sure that we address the long-term issues. One of the major one of those is around our infrastructure deficit and this Budget confirms $60 billion worth of spending over the next five years in our infrastructure. That party opposite did nothing to make sure that our infrastructure kept up to date. Our population grew wildly and the National Party did nothing. I am hugely optimistic about the New Zealand economy. It has been resilient through COVID and our prospects are strong. Our borders are back open tourists are returning international students are returning our exporters are continuing to earn good money internationally on our behalf. As a Government we will stick with New Zealanders. We're not the fair-weather friends the National Party are. We stick with them. We make sure we are there in tough times and we're there in good times to make sure that all New Zealanders benefit from a stronger economy. I am immensely proud of this Budget and of New Zealanders.DEPUTY SPEAKER: The question is that the motion be agreed to."