McClay Todd: State-Owned Enterprises Amendment Bill Public Finance (Mixed Ownership Model) Amendment Bill — Third Readings 
Text is incorporated into the Bound Volume 
McClay Todd: State-Owned Enterprises Amendment Bill Public Finance (Mixed Ownership Model) Amendment Bill — Third Readings 
[Sitting date: 26 June 2012. Volume:681;Page:3290. Text is incorporated into the Bound Volume.] 
TODD McCLAY (National—Rotorua) 
: 
 It gives me pleasure to rise to speak in this debate. The last speech from the Leader of the Opposition reminded me of a speech I heard on 25 November last year. It was a Friday in Rotorua and the sun was shining. At a dam not so far away in the Taupo electorate the then leader of the Labour Party Phil Goff was standing with three or four of his supporters and I heard a similar speech on the news that night. It was all about what was wrong with New Zealanders how the Government was not listening to them and what a great error they would make the next day if they voted for John Key and his Government. 
I say to the current leader of the Labour Party: the solution is simple and it is within his grasp. It is possible for him and his colleagues during this debate to stand up and say to New Zealanders: “We will buy these assets back.” Stand up and say to New Zealanders: “We believe this is so wrong that today we make a commitment to buy those assets back.” Can I say that at least one party in this House has stood up and laid its cards on the table in this respect and told New Zealanders what it will do. I look forward to hearing that from the other speakers in the debate. Stand up and say to New Zealanders: “This piece of legislation is so wrong that today the Labour Party makes a commitment to buy it back.” And you know what? I do not think we are going to hear that at all. 
In January of last year 2011 Prime Minister John Key stood up and said to New Zealanders that there was a plan to sell parts of assets that were currently owned by the Government. He told New Zealanders about the mixed-ownership model. In January of last year that was—19 months ago. Then all parties in this House campaigned on this issue and 10 months later there was an election where New Zealanders knew if they re-elected this Government what would happen. They certainly knew from the Opposition what its position was on this issue. On that day on 26 November 1 million New Zealanders voted for a National Government—the largest vote that any party has had under MMP. Significantly fewer voted for the Labour Party. In fact I did a quick bit of research. It was one of the lowest votes that Labour has ever had under MMP. [ 
Interruption 
] In fact my colleague tells me that it was the lowest vote. So on the one hand we have a party that campaigned on an issue that was announced 11 months earlier and we got the largest vote possible. We had another party that had a one-issue campaign—a one-issue campaign; it is the only thing we can remember them talking about—and it got the lowest vote possible under that scenario. 
Today this debate is about three things and three things only. It is about controlling debt and not borrowing more money it is about strengthening capital markets and it is about funding for new high-priority infrastructure programmes. That is all that this is about. We will hear lots of things from the Opposition but that is all it is about. Do you know the difference between what is proposed today is simple. Over 11 months last year this was campaigned on. Our Prime Minister John Key fronted up to New Zealanders and said that we will not do what other parties did previously and that we will retain 51 percent control for the Government on behalf of New Zealanders. He said that 49 percent would be offered up for sale to New Zealanders for KiwiSaver for the Superannuation Fund and to iwi and there will be a 10 percent maximum put on that so that no party other than the Government can own too much of these companies. 
It is estimated that $5 billion to $7 billion will be raised to invest in important projects in New Zealand. It is not to go and borrow more money; it is to invest in important projects for New Zealand for New Zealanders to benefit from. You will hear in the debate from the Opposition that this is not a problem that it is not about debt and that this is all about other things. Well our debt in New Zealand is forecast to peak at 30 percent of GDP about $72 billion and we are forecast to get back to surplus in a couple of years’ time. 
When we came into Government 4 years ago we inherited an atrocious amount of debt where it was forecast to spiral out of control. I am very proud as part of this Government that we have been able to turn that round in a small period of time. New Zealand will have one of the lowest levels of debt of any developed country in the world because of sound financial management and because of important sound financial decisions. When it comes to assets we have heard previously in the House that currently the Crown on behalf of New Zealand owns about $245 billion of assets. We have a very strong plan to grow that over the next 4 years to $267 billion. This is not actually about just what we own because our commitment on this side of the House to assets is clear. 
So what is going to happen to these funds? We are not going to go and borrow; I have said we are going to invest in important projects for New Zealanders. The Future Investment Fund will be established which is another thing that our Prime Minister told New Zealanders about before the last election. He came forward he made speeches he spoke on doorsteps he visited all parts of New Zealand and he talked about our plan. So $1 billion from this will go into modernising and transforming New Zealand schools and what a great thing that will be. As I visit schools around New Zealand boy do they need that support and one of the best things we can do is to support young New Zealanders by doing more for them in education. 
Already $88 million is set aside for further hospital redevelopment and I think we have only just started to hear the start of what the fund can be used for. For example $250 million will go into KiwiRail. Some would say “What a waste of money.” but actually the previous Government paid more to get it back than it was worth. There are some Australians who think that is a great idea but we have made a commitment to turn it round and make it work for New Zealanders because you cannot keep borrowing money to prop these things up. You cannot keep taking taxpayers’ money and putting it aside as the last Government did to prop things up. They have got to work well and this Government will invest further in that. 
There will be $400 million for irrigation. What is going to get parts of our economy our rural sector going than good solid positive irrigation that balances the environment with the needs of the farming community so that we can produce more and export more—not borrow more as the Opposition would have us do but actually to export more. And then there is money going into industrial research high tech and so on and so forth. Those are some of the things we have announced in the Budget some of the things that are still to come. 
But can I say to you very clearly: New Zealanders have had an opportunity to come to this House via the Finance and Expenditure Committee and talk about this issue. The committee has given them all of the time that we could. [ 
Interruption 
] 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Order! 
TODD McCLAY 
: I understand that members opposite do not want to make decisions; I accept that. I understand that members opposite at the last election said they were against this piece of legislation; I understand that. And I understand—[ 
Interruption 
] 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Order! What I want is what everyone wants in this world and that is order. 
TODD McCLAY 
: Thank you Mr Assistant Speaker. I will do my best to stay in order. I understand that members opposite do not want this legislation— 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. The member was able to speak. He was continuing. I want to question whether you should be protecting him given the fact that that member was the one who stopped New Zealanders speaking when they wanted to— 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Order! The member may well have a point but he also knows that that is a debating issue as well. 
TODD McCLAY 
: I can at least be grateful that Mr Mallard directs these attacks at me in the House not outside in the back. That has happened before. Can I say very clearly that members opposite do not like this; I understand that. They were making those speeches the whole of last year. 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. You just asked the House to come back to the debate. That chicken member who would not hear the debate in the committee has gone right away from it. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: The House is getting a little bit out of order and we are starting to slide down. I just ask members to reflect on this. This is a robust Parliament as it should be but we should also be mindful of the contribution of others. Courtesy is contagious. 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. Although I accept your ruling that courtesy indeed is contagious one other issue that draws the House into disorder is when people tell untruths and that becomes contagious. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Order! The member knows—he is a longstanding member. He is a longstanding member and he knows. The member will stand and withdraw. 
Hon Clayton Cosgrove 
: I withdraw. 
Michael Woodhouse 
: I raise a point of order Mr Speaker. The term “Tell the truth!” is a phrase that creates disorder. That was a ruling from Speaker Wilson in the last Parliament and it is in Speaker’s ruling 42/3. I would ask the member to withdraw. 
Hon Clayton Cosgrove 
: You will recall in the Parliament before last the obscenities including terms far more incendiary than that—including words like “corruption” and other things—that were hurled at members of Parliament by that side of the House. If we are going to rule out the phrase “Tell the truth!” then I suspect we will not have a debate at all in many cases in this Parliament. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Thank you. Can I just ask members to reflect on the debate as it stands and debate the issues. But I have looked at Speaker’s ruling 42/3 and it is indeed by Margaret Wilson. She said: “it is a phrase that creates disorder in this House so from now on it will be considered an unparliamentary term.” So I ask the member to withdraw. Withdraw. 
Hon Trevor Mallard 
: I withdraw. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Thank you. 
Hon Amy Adams 
: Oh—how gracious! 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Order! 
TODD McCLAY 
: Thank you Mr Assistant Speaker. The truth of the matter is that for 11 months of last year the Labour Party told New Zealanders not to vote for John Key and the National Government as they would sell assets. The truth of the matter is for 11 months of last year John Key told New Zealanders what he would do if we were re-elected to Government. He told New Zealanders about our plans. The truth of the matter is New Zealanders had an opportunity to vote. They did so. I commend this legislation to the House.