Dean Jacqui: Debate on Budget Policy StatementText is incorporated into the Bound VolumeDean Jacqui: Debate on Budget Policy Statement[Sitting date: 09 March 2016. Volume:711;Page:9529. Text is incorporated into the Bound Volume.]JACQUI DEAN (National—Waitaki): It is a little dispiriting listening to Labour members’ contribution after contribution because they clearly have not learnt the lessons of the previous Labour Government. The big elephant in the room which Labour never ever refers to is the entrenched level of Government spending that was on an upward track which was going to for ever—for ever—saddle New Zealanders with unproductive debt. They never want to talk about that but that was the prime legacy Labour left New Zealand when it went out of Government. Through all those 9 years of good economic times what did Labour do? It entrenched Government spending. What did Bill English do when he took the Treasury benches? What did this National Government do? It determined to turn that round.I am so pleased to be speaking in this Budget Policy Statement debate because the fiscal projections show that this National Government has tackled that issue over successful Budgets and once again promises to do that in Budget 2016. I just want to go briefly through the Government’s fiscal strategy. What New Zealanders have appreciated about this National Government is that it has had a constant message to New Zealanders and that is about managing the economy. We have turned round that entrenched Government expenditure that Labour so lavishly—tax and spend; that is Labour. Labour has not learnt the message. It has taken us 7 years to achieve a surplus but we have done it. It is so dispiriting to hear Labour members. They just do not understand economics and they keep peddling the same story—more subsidies for students as if that is going to fix the economy. They are simplistic and their arguments certainly do not stack up.I want for a moment to go through the fiscal priorities: No. 1 is maintaining an operating surplus “over the forecast period” which is the period under question “so that cash surpluses are generated and net government debt begins to reduce in dollar terms”—tackling Government debt. No. 2 is “reducing net government debt to around 20 per cent of GDP in 2020 and in the medium term reducing net debt to within a range of 0 per cent to 20 per cent of GDP”—reducing net Government debt. No. 3 is “implementing a new funding policy for the Accident Compensation Corporation” and that follows previous levy reductions. New Zealanders have benefited from significant and substantial ACC levy reductions. I know that in my part of New Zealand people certainly appreciate that. No. 4 is “if economic and fiscal conditions allow beginning to reduce income taxes from Budget 2017” and that is income tax reductions for all New Zealanders. No. 5 is “using any further fiscal headroom—including from positive revenue surprises—to reduce net debt faster.”So that is the constant message the constant economic direction that this Government has shown. Our priorities for this Budget are the same as they have been the whole time we have been in Government except maybe for the last one. “Responsibly managing the Government’s finances”—we have done that. Bill English has returned a Government surplus. “Building a more productive and competitive economy”—it will give me great pleasure in a minute or two to talk about my part of New Zealand and how the economy is doing in regional New Zealand in the South Island. No. 3 “delivering better public services within tight financial constraints”—that is something Labour simply does not understand. To Labour all you need to do to fix something is throw more money at it. That is a recipe for economic disaster and the last Labour Government certainly showed us that. “Rebuilding Christchurch”—it is so easy to forget Christchurch. I believe Labour has forgotten Christchurch. I believe Labour has forgotten the extraordinary economic impact that the Christchurch earthquakes have had not just on the country’s economy but also on individuals. It is so heartening to see our own members of Parliament supporting Christchurch people through the last 3 terrible years that they have experienced with the rebuild. It is so good to see—it is so good to see—that this Government still has as a major priority the rebuild of Christchurch.Have we heard that from Labour today? Have we ever heard that from the Greens? No this House has not heard that as a priority because those parties have simply forgotten Christchurch. It is so important to New Zealanders it is so important to people in my constituency that we do not talk ourselves down and what do we hear from the other side of the House? A constant talking-down of New Zealand. I do not believe that that does New Zealanders or our economy or the way we are viewed in the world—we are a trading nation—any good. I do not believe that that benefits us at all. Luckily this Government understands well and truly its place in the world and we will be unrelentingly positive. We will be unrelentingly optimistic for the future of the New Zealand economy and for the future of New Zealanders. That is why we are focused on issues that matter to New Zealanders.This Government continues to keep a tight rein on spending. It is so important that we deliver those Better Public Services health education welfare and law and order of course and we are continuing to build businesses through the Business Growth Agenda. New Zealand is experiencing growth: 2.3 percent economic growth in 2015 and growth is expected to average more than 3 percent over 2016 and 2017. These are not rates of growth that are experienced by other countries that we trade with and we should celebrate that rate of growth and support the strategies that support that growth.The previous speaker for Labour decried the fact in his view that there was little investment in the regions so I am just going to take a moment with the indulgence of the Chair to talk about my region the beautiful electorate of Waitaki. Dairying is a very important activity in the Waitaki electorate. We are very fortunate that our farmers in Waitaki particularly those who are involved in dairy are resilient. Many of them have been through the fluctuations of commodity prices in the past. They understand farming through commodity price changes and they are prepared for the lean years that are ahead much assisted I have to say by the introduction in South Canterbury North Otago and Central Otago of irrigation. Whereas before drought years—and we have had many and they have been severe—have had a bad economic impact on those areas of Waitaki the direct investment by this Government in something as simple as irrigation has had a profound effect on our local economy. Wine exports are now worth $1.5 billion and that is up by 14 percent in the last year. A portion of that can be attributed to Central Otago wine growers which is an industry that again is contributing to our GDP. Tourism is a huge growth area in Waitaki. Growth is 10 percent year on year on year.Investment in our regional economies is very strong under this Government. We have Primary Growth Partnerships—there are a number of initiatives in our region. Free-trade agreements—of course cherries through the Korea free-trade agreement. The Trans-Pacific Partnership—dairy will benefit beef will benefit sheep meat will benefit wine will benefit. It is hugely exciting to those people in South Canterbury North Otago and Central Otago. There is the regional investment attraction programme; there is more science and technology investment; there are regional growth studies—that is going to point the way to future investment in our regions. We have ultra-fast and rural broadband. We are so connected—we are one of the most connected regions in New Zealand. There is potential in our regions that is being realised by this Government. This is a good Budget in the making and I am very pleased to have made a contribution to this debate.