Woolerton R Doug: Debate on Budget Policy Statement 
Woolerton R Doug: Debate on Budget Policy Statement 
[Volume:637;Page:7759] 
R DOUG WOOLERTON (NZ First) 
: 
 In speaking to the Budget Policy Statement for 2007 I advise members that they should have listened to that speech made by Bill English. I invite members to get the transcript of that speech and come to me because I will interpret it for them. I will interpret that speech for the House and for anybody else listening now. 
At election time the National Party promised tax cuts for everybody—tax cuts that we in New Zealand First and the Labour Party said were unaffordable. Dr Cullen in particular said that time and time again. Bill English is a person who knows about these things and I will give him credit for that. He knows that what the National Party was promising at election time was unaffordable. That speech he just made is the first back-down from the tax cuts that National promised at the last election. They said that those tax cuts were affordable and Dr Cullen said they were not because the money was budgeted to be spent in the future. 
At the Budget Policy Statement meeting where Dr Cullen came before members of the Finance and Expenditure Committee Bill English was asking him in detail what that expenditure was about and trying to make out that it was expansionist. Dr Cullen said nothing at that Budget Policy Statement meeting that he had not said at election time. So Bill English knew what that was all about but he has spent the rest of the time climbing down from that position. 
I draw the public’s attention particularly to the little bit at the end of Bill English’s speech when he talked about the Government’s providing for issues—namely retirement—that will happen in 30 years. When Bill English talked about that my colleague Brian Donnelly said to me: “Doug that is where the National Party will get their tax cuts from.” National will go into the Cullen fund and get its tax cuts from money that has been put aside for our senior citizens. That is where the National members will get their tax cuts from in the future and I had just hoped that they would say so honestly openly and transparently. But they are not doing that which is why I am inviting people to come and see me and I will translate that speech for them. 
That speech was not only full of throwaway lines but also it was a very very deliberate and careful back-down from the tax cut promises of the election and it was an indication of where some tax cuts will come from in the future. The only way—and New Zealand First will say it now—to protect the Cullen fund bearing in mind what Bill English has just told us is to personalise those accounts as has been proposed by New Zealand First over many many years now. 
As far as New Zealand First’s view of the Budget Policy Statement goes we applaud it. We applaud sound financial management. We applaud pragmatic financial solutions. We applaud the slight incentivising of the tax system that Dr Cullen has alluded to in statements he made when he talked to the media in general even though that was not actually in this Budget Policy Statement. So we are in favour of pragmatic solutions and in favour of a fiscally prudent Government. 
I just have to go back to Bill English’s speech because its content sounded so outrageous to a professional politician like myself. He talked about my leader in his speech. That had nothing to do with the Budget Policy Statement but he talked about a statement my leader made. Mr English would like to construe that statement as a split in the Government between the Rt Hon Winston Peters and Helen Clark. 
Hon Clayton Cosgrove 
: Wishful thinking. 
R DOUG WOOLERTON 
: Of course it is wishful thinking; it is not going to happen. That statement was made about the Iraq situation and it should not have been a surprise to anybody familiar with that issue. New Zealand First supported the Labour Government in its stance on Iraq—and it still does to this day. 
On a personal basis the Rt Hon Winston Peters was asked what his views were and he gave them. There was no contradiction and no problem with the Government and he did not suggest that his views were Government policy—nothing of the sort. He is right of course. New Zealand First says that he is right and the Labour Government says that he is right. But the Opposition says that there are problems and the media say that there are problems and on and on they go. Because National is short of solutions it is looking for any issue whether or not it is true to put a stake between the Government and its support partners. I just wanted that to be put on the record. 
I wish to talk about a few things coming out of the Budget Policy Statement. It saddens me to say that we are still in a situation where we have imports exceeding exports and that the deficit is predicted to rise to something in the vicinity of $15 billion. I mention that in order to bring into the discussion Export Year 2007 which New Zealand First believes is critical. No figure better illustrates the fact that it is critical to have exports out of this country than our having a $15 billion deficit. 
It is all very well to talk about economic activity but at the same time we need to ensure that the books are balanced. [ 
Interruption 
] Dr Lockwood Smith as he interjects cannot have it both ways. He cannot talk about tax cuts and then talk about big-spending policies all of which were outlined at election time. I would like to see the National Party outline where it intends to get tax cuts from—and I would particularly like to see it do that in light of Bill English’s speech. I am led to suggest that National intends to take tax cuts out of the Cullen fund. We are not talking about big-spending issues; these issues were all outlined by both New Zealand First and indeed by the Labour Party at election time. 
I cannot as rural spokesperson for New Zealand First go past mentioning that the vice-president of Federated Farmers came along to speak to us when we were taking submissions on the Budget Policy Statement. He said that 2007 will be a difficult year for farmers. That is sad because by and large farmers are receiving very good receipts for their produce overseas. 
Dr the Hon Lockwood Smith 
: Tell that to sheep farmers. 
R DOUG WOOLERTON 
: Yes Dr Smith is right—mainly it is dairy farmers. But I would remind Dr Smith that that is 20 percent of our exports right there in one company alone. So it is not an insignificant amount. 
But 2007 will be a difficult year for farmers. One thing is the dollar and the other thing which will not be mentioned by Federated Farmers or other farming institutions is the high price of land. Most farmers in this country have gone forth and multiplied their acreages and they have done that at a high cost to themselves. A high cost of land means high servicing costs and that means less profit. So nobody knows how to deal with that problem but I just say to the Government that we need to help our farmers in every way we can because that is where the bulk of our exports will come from. 
To sum up I have quite obviously placed a big emphasis on savings. I have pleaded and I still plead with the Government to lock up the Cullen fund in individualised accounts because today we heard the first indication that that fund will be raided by some future Government if National gets to the Treasury benches.