Mitchell Mark: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeMitchell Mark: Questions for Oral Answer — Questions to Ministers[Sitting date: 29 May 2014. Volume:699;Page:18472. Text is incorporated into the Bound Volume.]1.MARK MITCHELL (National—Rodney) to theMinister of Finance: What measures did Budget 2014 include to support children and families as part of the Government’s wider programme to build a more productive and competitive economy?Hon STEVEN JOYCE (Associate Minister of Finance): on behalf of theMinister of Finance: The Budget did this in a number of ways. This included a $500 million package over 4 years supporting children and families which was at the heart of the Budget. There are five parts: $172 million to boost paid parental leave $42 million to increase the parental tax credit from $150 a week to $220 a week $90 million to provide free GP visits and free prescriptions for children under 13 an extra $156 million to help early childhood education centres to remain accessible and affordable and $33 million to help vulnerable children. This comprehensive package is better targeted better balanced and fairer than other proposals I have seen for roughly the same cost including the proposal to extend paid parental leave to 26 weeks. That is because only 40 percent of new parents qualify for paid parental leave.Mark Mitchell: In what other ways are Budget 2014 and the Government’s wider economic programme helping New Zealand children and families?Hon STEVEN JOYCE: The Budget and the Government’s programme help children and families by ensuring the economy continues to grow and support higher incomes and more jobs. And we are making considerable progress. New Zealand’s economy grew by 3.1 percent last year the fifth highest in the OECD and Budget forecasts show growth of between 2 percent and 4 percent over each of the next 4 years with growth peaking at 4 percent in the year to March next year. This economy is supporting more jobs with 84000 more jobs created in the last year and is also supporting higher incomes. Cost of living increases are low. Inflation was just 1.5 percent in the year to March—well below the average weekly wage increase of 3.2 percent. These things are all helping New Zealand families.Mark Mitchell: How are New Zealand households and businesses benefiting from the more competitive economy and better management of Government agencies?Hon STEVEN JOYCE: Here is just one example: the consistently strong performance of the Accident Compensation Corporation has allowed ACC levies forhouseholds and businesses to fall by close to $1 billion since 2011-12. Budget 2014 indicates ACC is on track to further reduce levies by around $480 million in 2015-16 subject to public consultation. Depending on the outcome of that consultation the average levy for a private motor vehicle could fall by around $130 a year. Coming after across-the-board income tax cuts in Budget 2010 two-thirds of which went to the bottom two tax brackets lower ACC levies are putting extra money in the pockets of hard-working Kiwis.Mark Mitchell: What reports has he received in reaction to Budget 2014 particularly from commentators commending the Government for clearly setting out the next steps of its successful economic programme?Hon STEVEN JOYCE: I have received many reports from a wide range of commentators who are positive about the Budget. They include Business New Zealand which said: “Business wants an environment where government”—Grant Robertson: Well there is a huge shock!Hon STEVEN JOYCE: —do not worry there is more to come—“spending is both restrained and appropriately targeted … This Budget helps towards delivering those outcomes.” Science New Zealand said the Budget “strengthens areas critical to a productive competitive economy. It builds on New Zealand’s advantages of our people our environment and our knowledge.” Forest and Bird welcomed the $25 million commitment over 4 years to combat the spread of kauri dieback disease. From an unexpected source I received this comment: “Yes I quite like that policy.” That was one Mr D Cunliffe supporting the free general practitioners visits and prescriptions for under-13s.Hon David Parker: Given that scenario two in the Budget based on net migration of 40000 people this year which we are already on track for predicts higher inflation higher interest rates higher house prices more household debt and lower savings does he believe that is a better outcome for New Zealand children and families?Hon STEVEN JOYCE: Fortunately in terms of the matters that the member raises New Zealand families have at least some memory. They remember much higher inflation rates much higher interest rates all as recently as 2008. But the other interesting thing about that migration statistic is that the number of people coming into the country has hardly changed but the number of people fleeing to Australia has dropped away to nothing under this Government. Actually people are staying in places like Palmerston North like Hawke’s Bay like Invercargill when under the previous Government’s economic policies they were all racing off to Australia at a hundred miles an hour.Brendan Horan: Is it possible to bring the commencement date forward for free doctors visits for children under 13 rather than having parents wait a further 13 months?Hon STEVEN JOYCE: I appreciate the member’s question. Of course we always try to bring those things in as early as possible but the other side of the story is to ensure that New Zealand gets back into surplus. That keeps interest rates much lower than for example they were under the previous Government. That means understanding the link between expenditure and interest rates and that means that we have to be responsible so we will bring it in as early as we can.