Gallagher Martin: Budget Debate 
Gallagher Martin: Budget Debate 
[Volume:626;Page:20845] 
MARTIN GALLAGHER (Labour—Hamilton West) 
: 
 That was a very disappointing speech from the previous speaker. I know from her oration skills in this House that she is capable of better than that. She needs to go back to some of her research people in the National Party research room. I would not rely on the research notes if I were her. I am sure she would have done much better if that speech had really come from her heart; in my view it lacked a degree of passion. 
I am very very proud to be part of this Government and I am certainly proud to rise and speak in support of this Budget. I want to make some observations. The Budget builds on the very strong fiscal position the Government has created. The cash surplus for the current year is forecast to be $2.4 billion. This reduces however to a cash surplus of $30 million for 2005-06 but changes to an average cash deficit for the following 3 years of about $1.9 billion per year. It is obvious if one looks that there are no magical rainbow sums in the kitty. 
In my view we are very lucky to have a very prudent and cautious Minister of Finance. Notwithstanding his prudence and caution there have been huge gains in this Budget for a number of sectors. For example this year’s Budget commits additional resources to heath which will total over $1.9 billion per year by 2008-09. A good part of this reflects—meeting in full—the costs of maintaining real population-adjusted spending for the health and disability sector. 
In terms of education it is really good to see that this Government is increasing its investment in early childhood education by $152 million over 4 years as it continues to deliver on its commitment to making early childhood education more affordable more accessible and of the best quality possible for all New Zealand families. Our commitment to more and better-paid teachers in our schools continues with a total investment of $1.43 billion since the 2004 Budget. 
One of the areas that I think we need to talk more about in this country is the whole issue of saving particularly for retirement. I believe that in time the KiwiSaver scheme announced in this Budget will be seen as being equally historic in a range of ways as the so-called Cullen fund. The new KiwiSaver scheme is intended to begin operation on 1 April 2007. It is designed to help New Zealanders save and build a stake in their country. It is designed obviously to be a personal supplement to the New Zealand Superannuation Fund. KiwiSaver will be linked to a new scheme to assist modest to middle income families with a deposit for their first home. I remember hearing people reflecting on the assistance they received in the 1950s and 1960s to make that magic and important start towards home ownership. Those people who are KiwiSavers for a minimum of 3 years will qualify for an additional subsidy of $1000 a year up to a maximum of 5 years at the time of the purchase of their first home. This is an excellent Budget. 
Let us talk about some more good news. There will be $173 million in funding over the next 3 to 4 years for police which means that we will be adding to the record number of police that this country now has. 
It is very interesting when we talk about defence. I reflect on a question that a member of Parliament—myself—asked Mr Burton today on defence in terms of the recent announcements. I am very pleased to see that extra money will go towards purchasing vital capital equipment for our defence budget over the next few years. It was really interesting that there were no supplementary questions from Opposition members around the total amount that this Government plans to spend on defence. There was one question from the Opposition member from Northland about Mr Burton’s history and his passion for world peace—I do not think that is a major crime; I think that shows great foresight in terms of what we all want to achieve—and also a much more creditable question from a New Zealand First member about the whole issue of pay and conditions for defence staff. But no question was related to the total defence budget and defence package. Quite clearly as the Minister indicated Opposition parties are now rewriting their defence policies on the back of a postage stamp because the wind has absolutely been taken out of their sails bearing in mind their scandalous record of defence expenditure during the 1990s. 
I also take the opportunity to highlight how well the Waikato has been doing under this Government. Of course there has been more good news for the Waikato in terms of the Budget particularly in terms of the roll-out of the Working for Families package. I mention two projects that would clearly be targeted should there be a Brash-led Government. One is the Waikato technology park which my colleague Dianne Yates played a leading role in promoting. Considerable central government money and input in partnership with local government and industry was provided for that particular project which would be knocked on the head if the Opposition were in charge. More recently the Prime Minister and Jim Anderton came for the roll-out of the aviation park which has an aircraft manufacturing component a flying school that has come out from the UK and a whole range of airport and aviation-related industries. Again that has recently received assistance from New Zealand Trade and Enterprise grants. 
If we look at the Opposition promises of tax cuts—from the National Party in this case—we see that they will clearly have very very little impact when they actually roll out to average working families. What National members are not telling us is that they will be paying considerable attention to the Working for Families package. Obviously they are not telling us the whole story. How on earth they can balance a series of tax cuts with the spending plans and promises they have made is extremely interesting. 
We on this side of the House wait with considerable interest and focus to see the so-called alternative Budget that National members are to put up. They said there would be tax cuts by Christmas. Then of course it dawned on them that that could have a significant impact on mortgage rates etc. and now it is tax cuts by Christmas—but maybe not or probably not. Who knows when and in what quantity the tax cuts will be. Yes there will be certainly be tax cuts for some of their more wealthy friends but there will absolutely not be significant tax cuts for working people in this country. That is not “maybe not”; it is “absolutely not”. 
I believe this has been a very responsible and positive Budget. 
Ron Mark 
: A Scrooge Budget! 
MARTIN GALLAGHER 
: A Scrooge Budget—no. A responsible Budget—yes. It is a responsible Budget which will not squander and mortgage our children’s future. It will not go back to the Muldoon era when it was spend borrow and hope. 
We will not be part of a grubby grotty election bidding auction because we care too much about this country. Dr Cullen is to be commended for introducing a very fiscally responsible and excellent Budget.