Cullen Michael: Supplementary Estimates — Imprest Supply Debate 
Cullen Michael: Supplementary Estimates — Imprest Supply Debate 
[Volume:632;Page:3690] 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I move  
That the Appropriation (2005/06 Supplementary Estimates) Bill and the Imprest Supply (First for 2006/07) Bill be now read a second time 
. These two bills give us a chance to dwell yet again upon the achievements of this Government and the obvious failings of the Opposition. Under this Government we have seen the most sustained period of economic growth for the last 30 years— 
Hon Member 
: You inherited that. 
Hon Dr MICHAEL CULLEN 
: No for the benefit of whichever Young Turk in the back bench opposite raised that one I can tell him that we inherited an economy that had obviously gone backwards in 1998-99—it was negative 1 percent in 1998-99. Under this Government we have seen one of the lowest unemployment rates in the Western World with 313000 more jobs and an unemployment benefit rate—the numbers on unemployment benefit—that is now the lowest for 20 years despite the fact that the workforce is much bigger than it was some 20 years ago. We have seen households with increased wealth averaging $125000 over the last 3 years. Our fiscal position is the envy of the world. We are in a net positive financial asset position for the first time in our history. Only seven countries in the world are in a net positive financial asset position. 
We are seeing some slow-down in that economy as a result of tightening monetary policy and slowing migration. But we still have a net inwards migration of 10000 people a year. We have a net inward migration of skills. We acquire more skills than we lose through outward migration and we still have positive growth—and that is recognised overseas. Standard and Poor’s in its commentary on the Budget says we had the right mix of budgetary principles. New Zealand is one of the best-placed nations in the world to deal with the rising costs of an ageing population. National wants to destroy that because it does not care about providing properly for the cost of an ageing population. The World Bank report of the ease of doing business states we are No. 1 in the world and we are above the OECD average on every sub-group within that World Bank report. We are No. 1 in the world in that respect. 
In this Budget we saw increased expenditure on economic transformation through for example interest-free student loans. It is not $1 billion a year as Opposition stooges try to claim; it is more like $250 million a year. There is a massive increase in land transport spending—most of which is to restore the roading programme some to build additional new roads and some to ensure we keep the public transport programme under way—which has seen a fivefold increase under this Government in spending on public transport and that will go up significantly in the next 2 or 3 years as we do the major work on upgrading the Auckland railway system. 
In terms of families we have seen the Working for Families package being extended out to $1.6 billion of targeted tax relief for New Zealand low to middle income families. We have seen extra money going into health and today the Minister of Health ensured that from 1 July the reduced costs of primary health care will roll out to the 45 to 64-year-old age group—which happens to cover most members of this House of course. We are seeing a new programme rolling out for improving the oral health of under-18-year-olds which is an area of significant difficulty within New Zealand and the rolling out of a new hearing screening programme which will cut off a problem that causes people many social problems in later life. 
Additional money—$128 million—is going to early childhood education. We will see the roll-out of 20 hours of free early childhood education during this term of Parliament and an additional 455 teachers over and above roll growth. Also we will see the beginning of the roll-out of 1000 additional front-line police and the necessary support staff and other equipment requirements. 
What have Opposition members got to say about all this? Don Brash of course predicted very confidently late last year that we would now be in a recession. Where has that recession gone? Where have the great economic expert’s predictions disappeared to? Nobody now believes that the quarterly figure due out on Friday will show negative growth unless of course there is a large upward revision to the last quarter of last year—and if that is true there cannot be a technical recession. Terms of trade are improving and exports are beginning to pick up even though we expect a very poor current account out-turn for the last year. If there is a poor current account out-turn if there are inflationary pressures and a tight labour market how can anyone possibly argue for massive loosening of fiscal policy? 
Chris Tremain 
: What level of growth do we need to get to the top half of the OECD? That’s what is important. 
Hon Dr MICHAEL CULLEN 
: The member for Napier should keep quiet because he got very rich under a Labour Government in the last 6 years riding the housing boom Labour created. He is a classic case of a person biting the hand that has fed him so well over the last few years. 
Why should we have any confidence in Dr Brash’s predictions? Only a couple of months ago Dr Brash found his way to the middle of the South Island to a place called Lake Tekapo—he was surprised to find it was there—and he stood there and said that we must have an urgent crash programme of energy savings or the power system would not last through the winter period. [ 
Interruption 
] That was a D-clamp coming undone there which is not the same thing as running out of energy. Members should know by now where their D-clamps go I would have thought by looking at them. But if Dr Brash were still standing where he stood a couple of months ago he would long since have been drowned. He would have become the first dry in the world to disappear in a welter of water and moisture. 
So National’s programme remains. It will try to bribe its way back into power paid for by the Exclusive Brethren—millions of dollars. As it comes out the amount of money that that group poured into the National Party keeps rising with every report we see. Don Brash—the former arch-dry the previous Governor of the Reserve Bank and the man who said not just that we cannot have our cake and eat it too but that we will be damn lucky to get even a crumb at any point in our life—says we can now do everything. 
We need just look at what National members have done over the last few weeks. On 19 June Tony Ryall said we should spend more money to train doctors. On 13 June Jacqui Dean was reported in the  
Southland Times 
 as saying that we just have to give the health boards more money so they can pay the doctors more. She said that if we gave them more money there would no need for any kind of strike. Of course Jacqui Dean is the economic wizard of the Opposition who famously during the election campaign said: “We won’t be borrowing because we’ll be getting the money from overseas.” That was her answer for fiscal policy. 
And so it goes on. Even Mr Key and Dr Brash are now arguing that they can fund tax cuts by borrowing from Belgian dentists and Japanese housewives. In an interview only a few days ago Mr Key said he would want debt to be $8 billion higher than under the Labour Government. That is not surprising because if one borrows and borrows and feeds that back into demand then interest rates will go up. Why should Mr Key worry about interest rates going up? It is because he has a mortgage only in order to qualify for a parliamentary accommodation allowance. Other people in the community have mortgages to buy a house. Mr Key has rearranged his $50 million to make sure he qualifies for a parliamentary accommodation allowance in the same way as he has rearranged his Sydney house so it does not show up on his parliamentary declaration in terms of his assets. 
John Key 
: I don’t own a house in Sydney. 
Hon Dr MICHAEL CULLEN 
: No he does not any longer. This is the man— 
John Key 
: I raise a point of order Madam Speaker. The Minister of Finance in his outlandish claims said that I own a house in Sydney. I do not and I never have. I ask him to withdraw and apologise. 
Hon Dr MICHAEL CULLEN 
: I withdraw and apologise. He certainly rearranged his $50 million to qualify for a Wellington accommodation allowance which is not even pocket money for that particular man. He was asked at a recent dinner what his first thought was in the morning. What do members think he said? Do members think he said it was New Zealand? Do members think he said it was the poor? Do members think he said it was teachers? No he said that his first thought in the morning was about what happened to his Merrill Lynch shares overnight. That was his answer at a dinner party to the question of what he thinks of first in the morning. The member is nodding; he accepts that. The first thought in the morning of a man who wants to be Minister of Finance of this country is about his own wealth. It is no wonder he opposes changes to the offshore investment regime. He would probably be one of the single biggest losers in the country.