Cullen Michael: General Debate 
Cullen Michael: General Debate 
[Volume:643;Page:12858] 
Hon Dr MICHAEL CULLEN (Deputy Prime Minister) 
: 
 Eight years ago New Zealand’s economy was faltering when this Labour Government took over. There was high unemployment high levels of child poverty low profits inadequate infrastructure and inadequate skills development to mention just a few. We have delivered on our promises to rebuild that economy. We have more than halved unemployment. We have created 360000 more jobs. More Kiwis are in work than ever before and a higher proportion of Kiwis are in work than ever before in our history. We have had the longest period of sustained economic growth in more than a generation. Profits are up and work stoppages are down. Over 100000 children have been lifted out of poverty. Regional economies that were in decline are now thriving. 
Along the way this Government has run a responsible fiscal policy. We have never taken our eye off the long term for the sake of the short term. We have built surpluses that are the envy of many other countries which has allowed us to increase the rate of superannuation and to invest heavily in the New Zealand Superannuation Fund. We have built surpluses that have allowed us to invest heavily in transportation infrastructure both roading and public transport. We have built surpluses that have allowed us to cut taxes on families cut taxes on savings and cut taxes on business. National has voted against every one of those tax cuts at every possible stage that they have been through this House. 
We have built surpluses big enough to enable us to deliver Working for Families which has lifted those 100000 children out of poverty. We have built surpluses big enough to build the KiwiSaver scheme. More than 250000 New Zealanders are now in KiwiSaver. I predict that over half a million people will be in the KiwiSaver scheme by the time we come to the 2008 election. 
What is it about all of that good news that the National Party does not understand? What is it about all of that good news that it wants to go back on and change if it ever gets the chance to be Government? In line with our previous approaches our next step will be to cut personal taxes. Why? It is because our strong economic record means that surpluses are strong enough to enable us to do that without risking our strong investments in families in services and in infrastructure which we have rebuilt over this last 8 years against the bitter opposition of the National Party Opposition. 
When we cut those taxes we will do so in a way that is consistent with our economic and social record. There will be four tests. We will not borrow to pay for them. Mr Key believes in borrowing more; he has said it time after time after time over the last few years. We will not cut services to pay for them. Mr English says retirement provision in New Zealand is too generous. We will not implement tax cuts in a way that will exacerbate inflationary pressure. Mr English once said we should not worry about that. He said that my job was to run the Budget that Dr Bollard’s job was to run monetary policy and deal with inflation and that it was not a matter for the Minister of Finance to be worried about at all. 
We will not design tax cuts in a way that leads to greater inequality. When we said that Mr Key and Mr English started foaming and wittering away because they could not explain which of those four tests they did not think was reasonable. Which was it? Remember Mr English on  
Morning Report 
 trying to explain what he actually meant by all his various contradictory statements in that particular regard? But the bit Mr Key and Mr English really hate in all of that is the bit that tax cuts should not lead to greater inequality. They believe deeply in greater inequality. They believe that greater inequality drives a stronger economy. Well it has not done so in the past it is not doing so in the present and it will not do so in the future. 
All New Zealanders deserve a dividend from the fact that we have governed this country so well and built up those strong surpluses not just those who wear the flash striped suits and the bright ties and who exist in the merchant banking communities and give all those speeches about the fact that they have to reward themselves otherwise known as hard-working New Zealanders—the people who try to make money out of nothing rather than making money out of the sweat of their brow and through their honest contribution to this country’s future. Well they are not the people who will get really big fat gains. If they are waiting for next year’s Budget they should not worry; they should turn off. It is ordinary Kiwis whom this Government is concerned about and it is ordinary Kiwis to whom we will deliver.