Smith Stuart; Rurawhe AdrianSTUART SMITH (National—Kaikōura): Thank you Mr Speaker. It's a pleasure to follow the list member from the Far North. She mentioned work and retaining staff—that was the translation so I assume that's what she exactly said—and that was the focus of the Budget and that it's a rebuilding Budget. I want to focus on that because they are very noble things that we should be doing we do need to retain staff—actually it's far cheaper to retain staff than to get new staff up and running when businesses return to what will be the new normal. It won't be what it was before; I think we all accept that.This virus has certainly had an impact but it is the lockdown that all of the economic damage has been done by. It's absolutely the lockdown not COVID-19. I think that's fair enough we had to do something and that's why it's so important that decisions are made quickly to move from one level to another when it is appropriate and that everybody has a clear sight on what the criteria is. Businesses need certainty they need certainty so that they can retain those staff—they need confidence. It's not a matter of just getting up in the morning and saying I'm going to retain those staff"; there is a cost. Even though there is the wage subsidy—which is great that's fantastic. It was used during the Christchurch and Kaikōura earthquakes to great effect and it was instrumental in many businesses surviving. However as I go around my electorate and around the country talking to different businesses it is clear that as this first wage subsidy ends and we move on to the more than 50 percent drop in revenue for the second stage a number of businesses aren't going to qualify for that. Their revenue will not reach that low point but their fixed costs will still be eating into their profitability to the extent where they will let staff go even though they could get money for those staff because the cost of retaining them simply doesn't justify holding on to them. These are really tough decisions for these businesses. They have a huge interest in their staff; they know that they don't have a business without good staff.I remember on 18 March in this House speaking to the Hon Phil Twyford about Sounds Air. Sounds Air had approached me and they were about to talk to the Minister and I gave him a heads-up that they were wanting to talk to him. He to his credit rang them that night on 18 March. Sounds Air are not unique other little airlines are in the same position in that Air New Zealand was getting a $900 million loan from the Government these businesses were sitting out there unable to carry full loads on their aircraft. No passengers as we went into level 1 they weren't allowed to fly. So that meant those businesses their fixed costs having those aircraft that they own sitting on the ground—yes the wage subsidy is a great help but those fixed costs keep eating into their balance sheet. They're a significant issue.So nearly 11 weeks later what's happened? Well they haven't got any money yet. The Minister assured them on 18 March and paraphrasing him he said something like "We won't let you guys down. We know how valuable these small airlines are for the recovery when we come out of lockdown." Well they're coming out of lockdown now and I'm pleased to say they're flying and I've been on a number of flights at least eight times since the lockdown ended. It's great it's fantastic they're out and flying. But on their Cessna aircraft they can carry 12 passengers; under the current rules they can only actually carry seven. I don't know the load factors on those aircraft but I suspect that if the seventh passenger doesn't turn up that's the profit. So these costs continue to go and build up for these airlines.The point I'm making here is that under this Budget the Government has allocated a significant amount of money for business recovery. That's great it's fantastic. But it's all very well to make a speech and make an announcement and allocate the money; it's another thing to deliver it. The point is actually in the case of Sounds Air they're yet to deliver. And I know in a number of other businesses—I spoke to another significant freight operator who told me they were down 50 percent and they applied for money and support similarly to Sounds Air although they're not an airline and initially officials said to them "Well just put your price up. Your freight volumes are down by 50 percent but the solution is to put your price up." If only it were that simple.The Government Ministers have to get their heads around business. I know they don't have a business background but there are plenty of people around that they could talk to. You've got to understand how this works; otherwise all of this money is going to be wasted—if it's delivered and given what they've done to date it won't be I don't believe.I was speaking to some Recognised Seasonal Employer scheme workers in Central Otago the other day and they were talking about retaining staff. Their visa conditions require them to work with their employer in Central Otago. They were supposed to go home in the winter. Unfortunately they're from Vanuatu and the borders are closed and they can't go home. There is work for them and that's in Marlborough. We can't get them up there because Immigration New Zealand (INZ) haven't processed their visas. It's been three weeks now; they haven't processed their visas. These people under the rules have to be paid for 30 hours a week. They're eating into work that New Zealanders would do later in the year because INZ have not processed their visas. Very simple: process their visas they get to carry on working until such time as they can go home they want to they need the money—they've had a cyclone they need the money back home to help rebuild. Certainly the vineyard owners in Marlborough where they would go to prune grapes need the labour. If the border opens up there'll be people that will come in from over there. This is about recovering our economy and this is slowing it down. It's all about managing it. You've got to manage the recovery you don't just announce money. You've got to get out and manage it—and that's not happening.The Green member talked about wilding pines and pest control and I welcome that. In Marlborough and certainly in South Marlborough we have a significant issue with wilding pines. We have a problem with wilding pines because the old Forest Service and the catchment board in their wisdom tipped pine seeds out of an aircraft to try and stop erosion at one time and of course lo and behold we've got a wilding pine problem—a significant one. It's great to get people up there to work and control those pines; however there are significant challenges with that. We're talking working in an environment up to 500 metres and above sea level. It's significantly cold even in the summer at night-time up there and it's hard work. I don't know if you've ever seen wilding pine control but it involves drilling holes into a pine tree and putting some chemical in there that kills the trees. Hard work and some people will actually thrive on it. It's a wonderful job if you're keen and fit but I suspect that a large number of the people that are unemployed will not be suited to that work. But we do need to get that job done and the pest control is also a significant issue. I would implore the Minister to use contractors. Use contractors; don't use the Department of Conservation. I know how that would work: they'd start work at 10 they'd finish at 2 and they'd be driving back to town every day. We need to get the job done and we need to get it done quickly.We heard today in the House we're talking about economic development getting things done. Well we have visas for Avatar staff and America's Cup staff can't get their visas. Now the Minister doesn't seem to know what's going on. One Minister says one thing and the Minister for Economic Development says another. Neither of them has told the applicants what they should be doing. I know this because I've spoken to them and I think that's an appalling waste of energy. These America's Cup teams are going to spend tens of millions of dollars each for a 10-month programme. The value to New Zealand is significant. And yet they are not helping. Just get on and do your job. It's not just about making announcements and putting a big number out there and millions of dollars—or billions of dollars in the case of the Budget—it's about delivering. I have no confidence that they actually have the ability to do that. We need them to do it. Our economy deserves it. Our people deserve it. Our businesses deserve it. But these people I fear don't have the capability to deliver. It is with that that I put my severe reservations on this Budget. Thank you.ASSISTANT SPEAKER (Adrian Rurawhe): I understand this is a split call. I call Paul Eagle—five minutes."