Goodhew Jo: Budget Debate 
Goodhew Jo: Budget Debate 
[Volume:664;Page:11702] 
JO GOODHEW (National—Rangitata) 
: 
 What a challenge that member who spoke previously Jacinda Ardern laid down—that this is one of National’s last Budgets. Somehow judging by the response from the people of Rangitata I think not. In fact I have to say that the response I have had—and I am happy to detail it during the course of the next few minutes—has been quite overwhelmingly positive. It has not been “Hurrah!” sort of stuff nor would we want that when in fact we are just making our way out of a recession. Nevertheless there is a quiet confidence that this Government at least knows where it is going. 
How has the Budget gone down with the people of the Rangitata electorate? Well it is almost 4 weeks since the Budget now and I can say that the dust is settling. I say that because—let us face it—when New Zealanders are looking for inspiration that this is the place to stay and that they should not pack their bags put a container on the pavement and pack their belongings into it to take them overseas they do look to Budgets for that inspiration. This Budget was certainly about our seeing the way out of this particular mess which was largely left to us by the stewardship of the previous Government. Across New Zealand New Zealanders are enjoying the knowledge that this Government will take hard decisions and will deliver a brighter future for them and their families. 
In my electorate offices I have had phone calls and emails. They have been largely positive but I will not stand up here and say every single one of them was positive because that would simply not be true. One property owner raised a concern with me—one property owner. Then even he found that the matter was not as bad as perhaps the rumour mill had suggested to him. I have had one kindergarten teacher express concern to me. Then to counter that at a meeting I attended a man involved in governance of a kindy said that actually National had got the mix about right. After all he is in the position to have to determine how his early childhood education centre makes its way forward. 
I have held two post-Budget breakfasts within the electorate both in fairly small locations—not in Timaru or Ashburton which was basically because nobody asked for them there. But I went to Rakaia and I went to Methven and I invited people to join me for breakfast and talk about the Budget to hear more of the detail. It would be fair to say that at Budget time it is all about headlines; the detail comes later. For many New Zealanders that detail will arrive in a pay packet or they will talk to their accountant about just exactly how the Budget affects them. Of course they could go to the Budget calculator at www.taxguide.govt.nz. 
Speaking of accountancy firms I ask members what they are saying. One example is not from my own accountant but from an occasional newsletter as they call it  
Footprint 
 from Footes Ltd. chartered accountants in Timaru. This is their opening line: “Budget 2010 was about materially repositioning the tax system to achieve some basic economic goals and chart a new strategic direction for the economy.” They got it in one; those guys understand it. I have to say that some elements about Budget 2010 could in fact see the income of accountants fall because there will certainly be less structuring going on. 
Ashburton accountant Trevor Croy also applauded the Budget and stated in the  
Ashburton Guardian 
: “It was expected that the company tax rate would go down to align New Zealand with Australia but not so quickly. Australia has signalled it will move in the next 2 to 3 years but we’re down to 28c from April 1 next year.” It was clear that Mr Croy was pleased. He also stated: “With the top personal rate and trust rates now the same the Government has also removed the tax avoidance incentive through actions such as family trusts.” I could not have said it better myself. 
What are other people saying? This is a really good example from the  
High Country Herald 
 on 26 May. “One family who will be better off because of Budget 2010 will be the Dalloway family of Timaru.” There is a lovely smiley photo of Mrs Dalloway with her three children. Clive and Dawn Dalloway have five children in fact and Clive is the sole income earner with an annual salary of $37000 so that is not a lot of money. Because of Budget 2010 that family will be about $20 a week better off. Mrs Dalloway said in the  
High Country Herald 
: “The extra income is definitely helpful. It’s turned out more beneficial for us than I thought.” Perhaps Mrs Dalloway had heard some of the scaremongering and the headlines that the Opposition wished to portray. Mrs Dalloway continued: “I wasn’t expecting much change. Overall I was quite happy with the Budget. I think the Government has tried to take quite a fair approach across the board with people.” That is exactly the sort of approach that our Minister of Finance Bill English tried to take. 
So in my electorate people are not hung up comparing their reductions with the really high tax reductions that some people who earn millions of dollars will get because in my electorate there is still a perennial shortage of some skilled people including professionals like doctors and dentists. 
The people of my electorate understand that what keeps highly trained young people in New Zealand is not always about high pay; it might be about lower taxes and it might be about the mood of the nation. Actually it might be about feeling valued and feeling that they are the very people who should not be slammed and taxed until the cows come home. They are the people we want to stay here. 
What is the mood of this nation since the Hon Bill English read his Budget 2010 speech? The mood is lighter and the mood is positive because there is a recognition that this John Key - led Government has a plan that involves a brighter future for those who work desperately hard to get ahead. Unfortunately we are continuing to see from the Opposition parties an endless scramble to try to grab a headline that tells a story about cuts. So often those stories lack basic facts and accuracy. I am sure members will get my gist. 
I turn to some of the finer points of this particular Budget 2010. It provides for the biggest reform of the tax system in the last 25 years. It is about keeping skilled people in New Zealand and giving families like the Dalloways the opportunity to get ahead. A really exciting statistic that I am sure everyone has heard a few times but that I will say again is that 73.5 percent of Kiwis will pay no more than 17.5 percent in income tax. Why would people not say yes to some overtime that being the case? Why would they not accept a promotion? Of course they would. 
But there is more than just the tax changes in the Budget. There is $512 million going into health. Every time people hear about funding cuts they can think again. There is $5 million extra for the South Canterbury District Health Board and $50 million extra for the Canterbury District Health Board. This is what the chief executive of the South Canterbury District Health Board said: “The South Canterbury DHB is thankful for the increase in funding announced in the Budget. This money along with an estimated $1.4 million in efficiencies already planned for next year will ensure that we can continue to provide a high level of service to the community. Despite difficult times we are pleased that this funding has left us in a position of not needing to consider any reductions in health and disability services for financial reasons within South Canterbury over the coming year.” I wish I could read that statement out every time we hear the Hon Ruth Dyson parroting on about cuts that are not happening in South Canterbury. 
More money is going into education and more money will target getting more young people into early childhood education who are not currently attending. A flat-line of involvement in early childhood education is not OK. There are kids who arrive at primary school who have not been to early childhood education and that is not OK. That is the tough end of the bargain. That is not the easy stuff that the previous Labour Government knocked off. That is the tough end which with $91 million we will certainly be addressing. 
Lastly I will touch on the good news for our older citizens—that is superannuation. In fact superannuation will be fully and permanently compensated for the increase in GST from 1 October 2010 and our older New Zealanders are realising that now.