Anderton Jim: Debate on Budget Policy Statement 
Anderton Jim: Debate on Budget Policy Statement 
[Volume:623;Page:18886] 
Hon JIM ANDERTON (Minister for Economic Development) 
: 
 It is no wonder that Gerry Brownlee left before he had to listen to that speech. The country is in such a bad state that that socialist bastion the World Bank— 
Gerry Brownlee 
: I raise a point of order Mr Speaker. You know that it is not appropriate for the member to refer to the absence of other members particularly as he is a member who managed to have half a party leave on him before he managed to hold on to his ministerial warrant. 
Darren Hughes 
: What! 
Gerry Brownlee 
: I will explain. The Hon Jim Anderton a member who is one of the least successful members of Parliament ever and the man who lost an entire party was talking about someone being late to the Chamber— 
The ASSISTANT SPEAKER (Hon Clem Simich) 
: The member will please be seated. 
Hon JIM ANDERTON 
: It is no wonder that the people of New Zealand will never elect a party that has that man one step away—a corned beef sandwich away—from leadership. This country is in such good shape that the World Bank states that we are the best place in the world in which to do business. Also we have the lowest level of unemployment in the OECD. I would like to know when National in its 9 long years in Government could claim anything resembling that kind of success. The answer is that it could not. 
The fact is that this Government inherited a terrible economic and social legacy in 1999 from the National-led Government. But the good news in Michael Cullen’s Budget Policy Statement is that we are rapidly reversing the damage. The Opposition will be very lucky one day—many years from now no doubt—if it becomes the Government because it will inherit an astonishingly positive social and economic legacy from this Government unlike the legacy we inherited and had to overturn. 
It is a real privilege therefore to speak in support of the 2005 Budget Policy Statement. This is Michael Cullen’s sixth Budget Policy Statement and the great news about the financial position of the Government of New Zealand like the great news about the success of our economy is that it just keeps getting better each year under his stewardship. The Labour-Progressive coalition Government’s Budget Policy Statement of 2005 confirms the quality of this coalition Government’s management of the public’s finances and shows it to be among the most progressive in half a century of government in this country. The statement indicates that there is scope for additional investment in improving the quality of life for all New Zealanders. 
Rt Hon Winston Peters 
: Who wrote this? 
Hon JIM ANDERTON 
: I am quite proud to say that I wrote it. The statement indicates—[ 
Interruption 
] Well I recall times in this House when I watched some parties oversee the dislocation dysfunction and abandonment of a whole generation of New Zealanders. This Government is reversing that trend and upholding the well-being of so many New Zealanders now who under previous Governments including 9 years of National-led Governments had their quality of life simply destroyed. 
 The Budget Policy Statement indicates that we will be able to increase our already extensive infrastructure investment programme over the next few years as well as our achievements to date. It also foreshadows a reduction in the central government’s domestic borrowing programme for the current financial year and scope to partially pre-fund some of the Government’s previously forecast borrowing requirements over the following 2 years. If that does not indicate wise and sensible stewardship I do not know what does. Forecast accrual accounting surpluses are committed to known future capital investments and in investing in the New Zealand Superannuation Fund a policy that was put in place to protect the financial security of future superannuitants against the indignity of poverty in old age this Government is making careful plans for the future. Most of what I hear from National Party Opposition members are their plans either to cut essential service commitment and investment or to reduce taxes and they never say what on earth they will do about mobilising the economy in the direction we are heading at the present time. 
The economy is in such good shape that the downcast members of the ACT party some of whom are in the Chamber at the moment who have sat on the Opposition benches since the day they entered this Parliament—it is quite instructive really—will not be here any more after the next election. They will have succeeded in doing nothing in terms of Government in the whole time of their existence. Although they may be feeling downcast about that I can say that the provision the Government has made for superannuation will enable them to retire in some dignity that they may not otherwise have had. 
As I said the Labour-Progressive coalition Government inherited an incredibly negative and gloomy economic outlook. We inherited a legacy whereby the Government’s net debt was equal to 21 percent of GDP in 1999. This Budget Policy Statement shows that now in contrast we are on track to being in a position where the Government’s net financial asset position is positive not negative like it was in the 1990s. 
We also inherited a terrible social legacy from National. That is now being turned round and we can see that in so many areas of our social service investment. When National came into Government in 1990 nearly 150000 New Zealanders were unemployed. Despite promising to halve unemployment levels National managed to increase the level of unemployment. In fact by the time it was thrown out in 1999 the number of unemployed was 4.4 percent higher than when it came into Government. That meant that 155594 Kiwis were unemployed when this Government was elected. In just 5 years we have started a dramatic reversal in that trend and that damage. In the last 5 years the number of unemployed has dropped from 155594 to 83415. That is a drop of 46 percent in unemployment in 5 years. We have in fact achieved the promise that National failed to achieve in the 9 years that it led the Government in the 1990s. Of course that unemployment rate is too high but it happens to be the lowest rate in the entire OECD. With programmes to get every young person who leaves school into jobs training or workplace training we will have a future that is entirely positive in comparison with the one we inherited from National. 
Our regional economies have just recorded their 23rd consecutive quarter of annual economic growth—all 23 regions all at the same time all for 23 consecutive quarters. It is some kind of economic miracle. The regions are in such good heart that it is a pleasure rather than the kind of austere ordeal I imagine it once was for a politician to go to the regions of New Zealand and be warmly welcomed by local communities for the work being done from one region of the country to another. 
Crime statistics released recently show that the huge upward spiral in the 1990s has been turned round and crime rates are now falling. Social problems like alcohol and drug abuse are of course lagged indicators. In my considered view the country is now inheriting the legacy of the years of neglecting in the 1980s and 1990s to invest in the future of our country. We have now had to pick up the tab for that—that is true. I know as the Minister for Economic Development and the Minister for Industry and Regional Development as well from heading the Government’s drug and suicide programmes and so on that that legacy is pretty onerous and has a huge human cost. I can say in all honesty that I look forward—not that I will be here—to future Governments looking back and seeing that the inheritance they received from this period of Government was much much more positive than anything this Government inherited from the past. 
Those unemployment figures that have come down and the crime figures that have come down with them are no accident. They are in fact closely linked. Dr Michael Cullen was well regarded as an economic historian before he entered politics but one day the economic historians of the future will look back on his stewardship and say that this was a time when a very positive economic and social tradition was built up by this Labour-Progressive coalition Government. I think all parties in this House can celebrate the fact that the New Zealand economy is now on a path to positive development with a momentum it has not had for very many years. We should all be very pleased with that and I expect to hear many positive statements in support of it from Opposition members as they speak in this debate.