Mark Ron: Debate on Budget Policy Statement 
Mark Ron: Debate on Budget Policy Statement 
[Volume:606;Page:3995] 
CLAYTON COSGROVE (Chairperson of the Finance and Expenditure Committee): 
 I move  
That the House take note of the Budget Policy Statement 2003 and the report on it of the Finance and Expenditure Committee 
. 
This is the first Budget Policy Statement of the new parliamentary term and it is the first I have engaged in as chairman of the committee. I start by thanking the committee for its work which was in large part constructive. I also thank Mr Gordon Copeland my able deputy chairman. 
The Budget Policy Statement confirms the Government’s careful and prudential fiscal management. The Budget Policy Statement again continues what this Government did in its last term—to lay the building blocks for strong and sustainable economic growth and for a cohesive society. This is part of the Government’s focus which centres on higher rates of sustainable economic growth. How will that be achieved? It will be achieved by doing something that the last National Government did not do. We will put money into and build a strong infrastructure. We will build and strengthen social capital. We will leverage off the talents of our population the skills of our talented people in this country and we will maintain and enhance the health welfare and well-being of our people through strong social services better education and stronger and better health-care. 
I have to say that the work has already begun. Indeed if members look at the Budget Policy Statement and the good news that is around none of them can deny that this Budget Policy Statement is anything but positive. We have 120000 new jobs in this economy the lowest unemployment for 20 years at 4.9 percent and economic growth of 3.9 percent. Those are some of the best growth figures in the OECD despite the international turmoil the international instability and the risks that we face. Economic growth is brought about by putting more people in jobs and by growing businesses and that is what this Government is about. 
That leads us to the positive Budget Policy Statement forecasts. I point members to this: the Budget Policy Statement forecasts higher than expected tax revenues leading to an increase in the operating balance excluding revaluations and accounting charges of on average $1 billion per year rising to 4 percent of gross domestic product (GDP) by 2006-07. We will use that tax revenue. We will redeploy that tax revenue in priority for the betterment of our people in this country—building infrastructure building better transport systems building better education and health services. We ought not to forget that for 9 years our infrastructure our social services our education health and welfare systems were eroded and underfunded and our people were degraded by the National Government when it was in office. 
If we look at other forecasts we see that gross sovereign-issued debt is forecast to fall below 25 percent of GDP by 2006 and net debt including the assets of the New Zealand Superannuation Fund is forecast to be 2.9 percent of GDP by 2007. Then we come to the forecast of a Budget surplus of $2.5 billion for the current year climbing to $3.8 billion by 2003-04. That is more good news—more jobs more growth better value for people a better economy a better society and a better environment. 
However there is pressure that comes with good news. Many commentators have identified that there is expenditure pressure. I am pleased to see and I know that many New Zealand people and commentators are pleased to see that the Minister of Finance has signalled that he does not want vast lurches in expenditure because we have international risks. We have risks that could slow down our tax take and we have risks that impact on economic growth. We will manage this economy in a prudential and sound way. We are tight fiscal managers. That is acknowledged by those polls that put us at near 50 percent and that lot over there nearly down the drain. 
I want to focus on the Budget Policy Statement and its priorities—a higher standard of living for our people through growth and innovation. We have put forward our growth and innovation framework in contrast to that party which put out a sort of election pamphlet that had no new vision that had nothing in it except the tired old policies for which it was rejected in two elections and for which it will be rejected again. 
What is our innovation framework? What are the key areas that we identified? It is the building block for economic growth. We want to continue to build an open and competitive microeconomic environment coupled with stability in terms of the macroeconomic environment. We want to improve skill levels. We want to enhance our innovation and our global connectivity. There are Budget priorities that are signalled in this Budget Policy Statement. We will improve New Zealand’s capacity to develop and retain skilled and talented New Zealanders and encourage those with entrepreneurship to come to this country. 
We are increasing investment in infrastructure. Take roading which is very interesting: the policy of the previous Government National—I am pleased to see that its policy has not changed—was designed to run down roading to the point where it could sell it. That is what National’s stated policy is. We have faced 9 years a decade of roading underfunding which people in my constituency in Waimakariri pay for. We pay $1 billion a year almost around this country in road congestion charges but that Government did nothing about it in 9 years. 
Ron Mark 
: It has been deferred for 2 years. 
CLAYTON COSGROVE 
: The “Little General”—I think he was called—from New Zealand First bleats; he was part of a Government that contributed to the lack of funding and to no rebuilding of infrastructure in terms of roading. It took me 3 years to get the roads in Belfast in order. That member when he was propping up a National Government did nothing about it. 
I want for a moment to compare our record with that of the previous Government. We proposed policy work in the health sector. Primary health-care policy is up moving being implemented. Why? Because it makes sense to keep people out of hospital. They do not need to go to hospital because they can get to their primary health provider and get fixed up and stitched up so they do not put pressure on the hospital. In education early childhood has been signalled as a priority and that is continued in this Budget Policy Statement as is strengthening the capacity of our teachers and our tertiary sector. [ 
Interruption 
] Well there is “Spongy”; all I will say to that member over there is that at least members in this House other than him are toilet trained. He ought to breathe for a minute and consider— 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: The member will desist from using—[ 
Interruption 
] The member will withdraw. 
CLAYTON COSGROVE 
: I withdraw Mr Assistant Speaker. I want to compare our record of stable prudent fiscal management with the record of that group over there. Dr Brash put out the financial blueprint of the National Party. On the one hand Dr Brash said that he wanted smaller Government smaller spending. On the same day we had Katherine Rich coming out and saying that we were not putting enough money at $10 million into the TVNZ charter. On the same day National called for spending in a whole series of areas. The fact is the only policies that the National Party hangs its hat on are the tired old ones for which it got rejected in the last election. National members want tax cuts. Who for? The rich. They want to abolish zoning. Did they not get rejected for that in the last election? Yes they did. [ 
Interruption 
] They do not like it when we rub salt into the wounds. They want to bring back bulk funding Did they not get rejected for that in the last election and the election before that? All they have done all they have learnt in the last 3½ years is to roll out tired rejected policies which are the reason that people put them on that side of the House. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Running commentaries are out of order—Speaker’s ruling 51/5. 
CLAYTON COSGROVE 
: I just want to turn for a minute to National’s semi - Opposition coalition partner the ACT party; Mr Hide likes it when I have a bit of a dig. I tell Mr Hide to clean up his own act in his own house. He and Donna Awatere Huata have become the Bonnie and Clyde of the New Zealand Parliament. That member has exhibited ill discipline throughout his parliamentary career and the recent example in the  
New Zealand 
Herald 
—we will not go into that though—is just another example of his form that the people will judge him on. Whether it is his visit to Fiji and his lack of will actually to stick up for and protect New Zealanders who were ripped off or whether it is his own physical indiscipline in places like Waiheke Island that member has form. The latest fiasco is on the front page of the  
Dominion Post 
 today. That party has form and that is being opened up. That is a good thing because the people of New Zealand can judge it. 
This is a sound document. I commend it to the House.