Smith Nick: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeSmith Nick: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 21 May 2015. Volume:705;Page:3808. Text is incorporated into the Bound Volume.]Hon Dr NICK SMITH (Minister for the Environment):That speech from Damien O’Connor was another speech that shows just how financially illiterate people are on the Opposition benches. Here is their line: you borrow to save because the only way the Government in the next year would be able to provide the $1000 kick-start for KiwiSaver is to borrow the money. The members opposite have got this sort of smoke and mirrors approach that if the Government goes and borrows money to save somehow you are better off. That is a loopiness that reflects why they are on those benches and we are over here.The second point I wish to make is in respect of the issue of New Zealand’s net foreign investment position. I agree with Mr O’Connor that it is absolutely critical that we grow the net wealth of this country but I want to invite the member to have a look at the Budget tables. What they show is that over the course of the years that Mr Damien O’Connor was in Government New Zealand’s net investment position declined in every single year. In fact—Hon Damien O’Connor: How much did you borrow Nick?Hon Dr NICK SMITH: In fact Mr O’Connor look at the figures for 2008 in which New Zealand’s balance of payments was a record worst in 50 years of minus 9 percent. Look at what New Zealand’s net investment position was when you left the Treasury benches where we had reached the point of minus 100 percent of GDP a figure that has consistently improved and these Budget documents show that it is continuing to improve.Let us come to KiwiSaver. When I sat where Damien O’Connor sits on the Opposition benches the Government of the day said that it had a target that by 2015 there would be 700000 people in KiwiSaver—700000. Do you know how many people are in KiwiSaver now as a consequence of the changed savings culture? There are 2.4 million in KiwiSaver—2.4 million. So how can the members opposite bleat whinge and moan that we have not changed the savings culture of New Zealand when we now have 2.4 million people over three times as many—three times as many—as the architect of KiwiSaver promised us back in 2007 when the scheme was launched?But I want to talk about broader superannuation issues. I listened to the radio yesterday and heard the Leader of the Opposition say that it is now Labour Party policy to means test superannuation. I was saying to myself: “Well that sounds a little bit like policy on the hoof.” I could hear the jitters right through Labour’s ranks as it realised that its latest Leader of the Opposition had suffered a severe dose—Kris Faafoi: This Budget is policy on the hoof.Hon Dr NICK SMITH: I am sorry. Does that member support the means test for superannuation? Answer the question. Answer the question. Does the member support his leader’s statement yesterday that Labour wants to means test superannuation? You see what we know is going on is that Andrew Little has a secret plan for New Zealand and he will not come clean. We found out yesterday. We got a window into his ideas for New Zealand. He has got a sneaky plan to change New Zealand superannuation which I know in my electorate in Nelson will see support for Labour further plummeting from the lowest levels ever that it achieved in the 2014 election.You see the problem is that members opposite know how to moan. They are quite good at it. They know how to whinge. They know how to criticise. But they are absolutely blank when it comes to a positive plan to take this country forward. It is illustrated by what has happened with the bills flowing from this year’s Budget. You see they have criticised the support we are providing in our children in hardship package and then voted for the bill.But here is the contradiction. Members opposite cannot vote for a bill that provides for more support for New Zealand’s poorest families in one breath then in the next breath vote against the changes that will enable us to fund that and then in the third breath criticise us because the surplus is not big enough. Well I am sorry it is time for them to go back to primer 1 or year 1 maths. Your numbers have to add up. Budgets are about choices. We are making wise choices that enable us to support those families that are most in need while at the same time being fiscally responsible.My very last point is this. I have heard in this Budget debate the whingeing and moaning about the variation of the Government’s Budget figures that showed that over the last year rather than receiving a surplus of 0.4 percent of a billion dollars we have a deficit of 0.6 percent of a billion dollars—a variation of 1 percent. I would remind members opposite before they give one of those chest-pumping vein-breaking speeches about the evils of that of what happened in Labour’s last Budget. It promised a surplus of $1.3 billion. It actually delivered a deficit of over $3 billion and was out by over $5 billion. That is it was out by 8 percent in its numbers. Bill English was out by 1 percent.Members on this side know the definition of good fiscal management. We are the first OECD country to be back in the black. We have got increasing surpluses into future years—increasing surpluses into future years. That is a fiscal record to be proud of and if any member doubts it I just ask them to have a look across the Tasman where last week the Australian Government delivered a Budget with a $40 billion deficit—a $40 billion deficit—and deficits out into the next 3 years. That just illustrates how well we are doing.The final proof of the pudding is this. New Zealanders know we are doing well. That is why this month for the first time—Hon Damien O’Connor: No they don’t.Hon Dr NICK SMITH: No they do not? Well explain this. Why is it that for the first time in 20 years there are more New Zealanders choosing to come home than leaving? Are they wrong? They are absolutely right. They know that this is a country that is doing well a country that has a plan a country that has a Prime Minister and a Deputy Prime Minister who mean what they say and do what they say as illustrated in this Budget. I am proud to be part of it and part of this bill which is part of ensuring fiscal discipline and the right choices for our country.