Joyce StevenAPPROPRIATION (2017/18 ESTIMATES) BILLThird ReadingIMPREST SUPPLY DEBATEHon STEVEN JOYCE (Minister of Finance): I move That the Appropriation (2017/18 Estimates) Bill be now read a third time and the Imprest Supply (Second for 2017/18) Bill be now read a second time. This Government is very proud of the work that it has been able to do on Budget 2017 and Budget 2017 is one that continues to deliver for New Zealanders based on this Government's strong economic plan.The New Zealand economy grew 3 percent in the year to March making us one of the top-performing OECD countries. In fact last year we were the fifth - fastest-growing OECD economy. That is all good but the important thing is what it means for New Zealanders and the most important thing has been employment growth which is very very strong. In fact we have now seen more than 180000 new jobs created in the last 2 years under—[Interruption]—that is right; 180000 new jobs in the last 2 years—with another 215000 people to be in work by the middle of 2021. Unemployment has fallen to 4.8 percent. But more importantly the employment rate is growing and the employment rate is now 76.2 percent which is the second-highest rate in the whole of the developed world—the second-highest rate of employment in the whole of the developed world.What that means is that we are rapidly approaching full employment in this country which is interesting when we have the discussions around migration and we have those sorts of discussions because all of the companies that are continuing to grow around this country are looking for skilled workers. We can train some and we are. We have something like 43000 apprentices currently in the New Zealand economy including a record number in construction—11000 apprentices in construction currently. And we will and can bring some of the remaining 29000-odd 15- to 24-year-olds who are available for work into work through apprenticeships and some of the other programmes that we are doing like the Regional Growth Programme Project 1000 in Hawke's Bay and the Taitamariki 500 programme in Northland. These are intensive local programmes to bring people into work that arise out of this Budget.The other important thing is that inflation remains low so while the average wage is going up—it is now $59000 nearly over the $60000 mark—inflation is remaining low and the gains are going into people's wallets. In fact the OECD said recently that New Zealand has one of the strongest real income growths of any developed country including more than Australia and the US. [Interruption] Well I invite the members opposite who seem to disagree with this approach to go and talk to the independent referees the independent monitors like the OECD and like the IMF and like Moody's for example which declared last week that the Government of New Zealand—I quite like this headline—is Aaa stable.Brett Hudson: Aaa stable.Hon STEVEN JOYCE: Aaa stable: the Government of New Zealand which I have to say is quite a contrast to the Opposition which you could describe as many things but not as Aaa stable. That is certainly not what you could describe the Opposition as.But I want to talk about productivity for a minute—Grant Robertson: Yes do.Hon STEVEN JOYCE: —because I happened to be alongside Mr Robertson speaking about productivity last night in Christchurch. He gave me some figures that I thought were a bit weird. You have always got to watch it with the member Mr Robertson—The ASSISTANT SPEAKER (Hon Trevor Mallard): Order!Hon STEVEN JOYCE: —so I went away and had a look and actually helpfully for the member something for him to think about is that Treasury this month in its Monthly Economic Indicators which came out yesterday put out a special topic: Adjusting for level shifts in labour market data". It was pointing out that actually the headline productivity statistics are wrong because the household labour force survey was changed in June of last year. So when Mr Robertson pops up and starts talking about productivity shortly I would recommend that he adjust the productivity measures for the level shifts in the labour market data caused by the change last year otherwise he might find the public a bit cynical about his comments on productivity.The good news though is that the Government's stable reliable platform and the growth of the economy give us the opportunity through this Budget to invest heavily in the future of New Zealanders. We have done that in three main areas. Firstly is a big investment in infrastructure. That has been talked about a lot but over the next 4 years the Government will spend $32.5 billion on infrastructure in this country. You can see it all over this country; you just have to drive not too far north of here for example to see the highway being built at Transmission Gully or you can go up the Hutt Valley to see the wonderful new interchange there at Haywards. In Auckland you can travel the Waterview tunnel which the Labour Party seems to have forgotten exists—the Waterview tunnel between—Grant Robertson: We started it.Hon STEVEN JOYCE: No you did not start it actually. That is an interesting point about that; I am glad the member raises it. When I was transport Minister in 2009 they came and said the Government's plan—this is the Labour Government's plan—was to build a tunnel that was two lanes in each direction. That is what the Labour Government settled on. It was going to be longer than this tunnel and it was going to cost $2.3 billion. I said "That sounds a ridiculously large sum of money." and I sent them away with two targets. I said: "I want you to build it three lanes in each direction and I want you to build it for a billion dollars less than you're proposing." So they came back with a shorter tunnel. You see the previous Prime Minister did not want any part of it in her electorate above ground. She did not want that so we shortened it and we reduced the cost of that tunnel.Despite adding an extra lane in each direction $1.4 billion was the eventual cost of the tunnel. We did not get a billion dollars off; we got $900 million off we got an extra lane in each direction and Aucklanders are benefiting from that now. They are having the joy of driving between the city and the airport in 25 minutes. Eventually we will need the rapid transit option. Of course the rapid transit option as proposed at the moment is to take 43 minutes to the airport. Instead of 25 they are proposing that it will take 43 minutes. So I think we should send them back and say "Shorten that time up a little bit." and that will actually be useful.But there is $32.5 billion in infrastructure and also a very big investment in public services—a very big investment in public services. There is a very big investment in public services including the biggest investment in the health sector in 11 years—in 11 years. You have got things like the bowel screening you have got things like of course the care and support workers—you have got some very big investments in the health sector. You have got big investments in the education sector—all the roll growth being met and all the new schools of course coming in the infrastructure budget. We have said—in fact the leadership the Prime Minister said—that we are not going to muck around. We are going to meet the demand of a growing country and that is what we have in this Budget.Then of course there is the bit that the Opposition really does not like and that is the Family Incomes Package—the Family Incomes Package where 1.3 million New Zealand families from 1 April next year will receive income of an additional $26 a week. It is an additional $26 a week on average and some of them will get a lot more. Some of them in west Auckland and South Auckland will get well over $100 a week more because of the way the package works for them. The good news is that people on the median wage and on the average wage are not forgotten by this Government. Now the Opposition is proposing to pay people who earn the same amount of money as you or me a $3000 baby bonus. That is what it is proposing—a $3000 baby bonus for me which I have to say is unlikely at this point and for people who earn what I am earning. I actually think we are far better to change the tax thresholds and let people spend the money. In fact Mr Little actually used to support that and he may well again support that because he is now away from the leadership so he will be able to speak his mind a little bit more. Perhaps he does support threshold changes because Mr Robertson collared him and said he could not support threshold changes just after he had said that actually you do have to change the thresholds from time to time.So this Government is delivering for New Zealanders this Budget is delivering for New Zealanders and most of all we are delivering the political stability for New Zealanders that is allowing the economy to grow as against say the Opposition."