Collins Judith: Budget Debate 
Collins Judith: Budget Debate 
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Hon JUDITH COLLINS (Minister of Police) 
: 
 I must say it is a pleasure to stand and speak in support of this Budget because as Budgets go this has been quite extraordinary. We have had the most difficult of economic times which we inherited when we came into Government. Having listened to some of the Opposition members tonight it has been marvellous to think that they live in a world where there was no economic recession. They think we should have the coffers full of money just flowing in and everything would be fine. But actually most of the world is still going through some very difficult financial times—frankly much worse than what we are going through. 
We have been very fortunate in many ways but we have not been fortunate in having to deal with some real tragedies. We have had the Pike River tragedy and we have had earthquakes particularly the earthquake this year in Christchurch which killed 182 people. It cost this country billions and billions of dollars and cost this Government billions and billions of dollars. The fact is that we cannot afford to leave the people of Christchurch to fend for themselves. We cannot do that. As a responsible Government we cannot let our second-largest city—20 percent of our economy—just wither and die. It behoves all of us New Zealanders to support Christchurch during this time. 
This Budget has actually achieved something else quite miraculous: it has helped achieve the lowest interest rates that we have seen in New Zealand since 1964—1964. That is the year I started school. 
Michael Woodhouse 
: 20 years ago? 
Hon JUDITH COLLINS 
: Yes a mere few years ago; Mr Woodhouse is quite right. Who would have thought that in this time we would be having that? We have heard a lot about inflation. I heard an Opposition member tonight talk about inflation being at 4.5 percent. She clearly did not know that when Labour left office the inflation rate was 5.1 percent. The 4.5 percent figure actually includes the increase in GST which is a one-off situation. For most families who own their own homes or young couples who have bought their own home and have a $200000 mortgage—which is completely an average-sized mortgage; in fact it is a quite modest mortgage for many families particularly those in the Auckland region—this lowest interest rate since 1964 means $200 a week extra in their pockets that they do not have to pay in interest to a bank. That is what it means. That is real money in someone’s pocket. 
We have also seen average after-tax wages increase 7.1 percent in the last year. That is significantly more in real terms than the inflation rate. So most people are better off despite the very tough economic times. We have already heard that something over two-thirds of New Zealanders are paying a top tax rate of 17.5 percent. That means that most people in New Zealand are now keeping a far greater chunk of the money they earn in income. This Budget has been able to achieve increases in education funding health funding and justice sector funding. It has helped to not only look after the people of the Canterbury region but also look at increasing those spends. In my own sector the justice sector I am absolutely thrilled that we have been able to secure an increase in the budget of the Serious Fraud Office because it is still dealing with the aftermath of the finance industry’s meltdown one could say and issues regarding fraud. 
When I listen to some of the talk tonight about asset sales and mixed-ownership models in relation to some of the State-owned enterprises I do not hear from the Opposition the fact that this will mean that many New Zealand mums and dads will be able to purchase shares in good New Zealand - owned companies that they can have reliance on and faith in. They will no longer have to put their money into finance companies that go bust because they are lending on schemes. That is what we are seeing. We are seeing New Zealanders able to invest in their own country and KiwiSaver able to invest in its own country. It is able to invest here and help New Zealanders get jobs and keep jobs. 
I also noticed the other day that—oh gosh—unemployment has come down again. Did I hear anything from the Opposition about that? No—not a dicky-bird. There was not a word of congratulations to my colleague the Hon Paula Bennett—not a word. There was not a word of congratulations to the employers of New Zealand who have given more people a chance—not a word of that. There was not a word of acknowledgment to people who are actually getting out and doing their very best. There was not a word of acknowledgment to my colleague the Hon Kate Wilkinson that the 90-day bill has actually helped get a lot of people into jobs. There was not a word of acknowledgment—not a word at all. I heard instead that we should raise the minimum wage which would actually lose about 6000 people their jobs. But never mind; those members do not care about that do they? 
We have also seen a reduction in Government borrowing. I think it is important that we explain again for the Opposition why this is so important and how the interest rates have been kept the lowest since 1964. Just in case anyone forgot that is the year I started school. By the way I had only a playcentre education before that I have to say with a doting mother and father who read to me but somehow I managed. 
Michael Woodhouse 
: Slipped through the net. 
Hon JUDITH COLLINS 
: Yes three degrees later I still seem to somehow get through. I do not know how that happened! Frankly because this Government is cutting debt and because the ratings agencies can see that we are being extremely responsible—that our plan is actually a plan that works not a plan that just makes plans and does nothing else—they have faith in New Zealand. This is an outstanding result for a Budget that has been able to deliver for so many families. Yes we know that it is tough in the Public Service at the moment but it has been tough for years in the private sector. It has been tough for years under higher interest rates and it has been tough for years with red tape. This Government has set about redressing some of that imbalance. 
We have also seen more money for health. We have more money for health at a time when so many other comparable countries have to cut their health budgets cut their justice budgets and cut their education budgets. Yet this Government has been able to actually produce more money for health. Even better than that—and I think the Ministry of Health and its Minister should get some credit for this—we have been able to get better outcomes for Kiwis. What is the longest time anyone has to wait for cancer treatment now? A month. Under Labour people were waiting 9 months and going off to Australia for it. We had to look to Australia for our health system. Now it is happening here instead. It is an outstanding result around more nurses and more doctors. 
In police—I cannot help but talk about this just a wee bit; I am so proud of them—we will have 600 extra front-line staff by the end of this year. That is an outstanding result. Crime dropped by 6.7 percent per capita across the country. In some parts of New Zealand such as the Waitemata area there was a 12 percent reduction in crime. In the Counties-Manukau area there was a 9 percent reduction in crime. In the Auckland area there was a 10 percent reduction in crime. 
We are seeing some staggering results where the Public Service is really showing what it can do. Unlike the Labour Party I have faith that the Public Service can do even better. I have faith that members of the Public Service understand that these are tough times and everybody has to pull together and look at how we can do better as a country. We are just a little country but we can be very proud of this very good Budget.