Hutchison Paul: Budget DebateText is incorporated into the Bound VolumeHutchison Paul: Budget Debate[Sitting date: 28 May 2013. Volume:690;Page:10445. Text is incorporated into the Bound Volume.]Dr PAUL HUTCHISON (National—Hunua): Thank you Mr Assistant Speaker for this opportunity to speak on Budget 2013—an excellent Budget. We have just heard Darien Fenton saying she was a little disappointed with it. Well we have growth at 3 percent unemployment at 6.2 percent and coming down inflation at 0.9 percent and balancing the books by 2014-15—this is the envy of the OECD. This was a fantastic Budget and it certainly shows what a lack of insight that member Darien Fenton has because this is a great achievement. It is a great achievement because of the extraordinary level of prudential financial management to get it through. It is a great achievement because of the history of the global financial crisis along with the other misfortunes New Zealand suffered: the earthquakes the droughts and the various other factors that have been of concern. And it is a great achievement given that under Labour’s spending trajectory nothing like this would have ever happened. If we look at Labour’s spending trajectory if we look at the absolute financial mismanagement through those 9 long years we see that net debt would have exceeded 60 percent of GDP by the early 2020s—60 percent of GDP by the early 2020s. But under the excellent management of National and the Minister of Finance Bill English we are going to have net debt peaking at 28.7 percent of GDP and by 2021 it will have fallen to 17.6 percent of GDP.It is absolutely frightening to contemplate what a Labour-Green coalition would do. I was reading theNational Business Review just the other day and it was commentingabout what that former Tasmanian Marxist Russel Norman would do. What would he do? He would print money. And what would be the result of that? Up would go interest rates up would go inflation and that would hurt every single small business across the face of New Zealand as well as every single individual. And who is donkey deep with Russel Norman? None other than the Labour Party—none other than the Labour Party.I want to talk on two important trends. These relate to health and to science and innovation research and development. Under National both are tracking absolutely in the right direction. Under Labour sadly both tracked in the wrong direction. Under Labour during those 9 long unfortunate years health spending rose 7.2 percent year after year after year: $6 billion in 2000 to $12 billion in 2008. But the problem was that productivity declined—productivity absolutely declined. This was absolutely simply unsustainable and the fact is that if we had gone on in that spending trajectory health as core Crown spending would have been 60 percent of core Crown spending. Even Ian Powell of the Association of Salaried Medical Specialists a well-known lefty made the point only the other day that Labour was absolutely hopeless operationally—absolutely hopeless. All one has to do is look at the latestNew Zealand Doctor magazine to see that. But it is important to realise that between 1950 and 2012 health spending has actually gone up 442 percent with the biggest incline between 2000 and 2008—absolutely the fact. Per capita GDP has gone up during that time by 142 percent—totally unsustainable under Labour. But under the excellent National Government since 2009 the rate of increase of health spending has lowered.But the big difference between National and Labour is that under National productivity has increased outcomes have increased and there has been spectacular success with the health targets—spectacular success. Let us have a look at immunisation. Under Labour in 2007 only 67 percent of 2-year-olds were immunised. That was Third World. Today it is 95 percent—95 percent of 2-year-olds are fully immunised. In 2007 under Labour the cancer waiting lists took months. People were going to Australia after waiting 2 or 3 months in New Zealand. Families were totally suffering. This was under Labour in 2007. Today 100 percent of people needing radiotherapy are treated within 4 weeks. That is best world practice. That is best world practice gold standard treatment. That is absolutely fantastic and of course elective surgery spending has increased by $35 million per year since 2008.But let us have a look at the achievements in science research and development which is obviously a very vital lever to economic growth. Under Labour both public and private investment in science research and development as a percentage of GDP remained static. Under National public investment in science research and development has increased 7 percent per year—7 percent per year—over the last 4 years. National has chosen to invest in a carefully designed grant system which has palpably increased private investment in research and development from a low under Labour of 0.35 percent of GDP up to about 0.6 percent already and heading towards an aspirational 1 percent. This compares with Labour which was hell-bent on putting in a tax credit of 300 million bucks a year which would be well known right throughout the world to be rorted. This clearly was totally the opposite direction.I do now want just for a moment to speak about the public health services which have received the largest increase of funding in the Budget. The National Government despite the global economic recession has focused on increased investment in health in education and in science research and development over the last 5 years. This is in sharp contrast to many European countries. But Budget 2013 is making available $1.6 billion more for health over the next 4 years $250 million for the district health boards year in year out over the next 4 years and new funding on average is $352 million per year.I just want to end by saying how pleased I am about the $4.3 million to improve care and men’s awareness of prostate cancer. The Health Committee carried out an inquiry into early detection and treatment of prostate cancer in 2011-12 and I want to specifically congratulate Professor Nacey and his colleagues who were in the Prostate Cancer Taskforce and who worked so well. For years nothing was done and there was huge confusion about this cancer which affects 3000 men per year in New Zealand but National has taken up the inquiry and has put it into action and we now have a quality improvement programme relating to the early detection and treatment of prostate cancer in New Zealand. This is a very positive thing. This is a very positive Budget.