Lotu-Iiga Peseta Sam: Questions for Oral Answer — Questions to Ministers 
Lotu-Iiga Peseta Sam: Questions for Oral Answer — Questions to Ministers 
[Volume:651;Page:709] 
2.  
PESETA SAM LOTU-IIGA (National—Maungakiekie) 
 to the  
Minister of Finance 
: Has the Minister seen any reports of Government spending commitments which have no funding set aside to pay for them? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Yes the Labour Government made a number of spending commitments for which no funding was set aside. For instance no funding was set aside for the $1 billion insulation fund agreed to with the Greens in the last few months of the last Government’s term and only a fraction of the $600 million promised in the Budget for the growth of the Ministry of Foreign Affairs was set aside—around $8 million of the $600 million. Some initiatives were creatively funded. The $40 million purchase of St James Station was funded by among other things cleaning out the Nature Heritage Fund for the next 4 years. 
Peseta Sam Lotu-Iiga 
: Is the Minister aware of any other Government spending commitments that have no funding set aside to pay for them? 
Hon BILL ENGLISH 
: Yes. In the 2008 Budget the previous Labour Government announced an economic transformation package which it claimed was worth $300 million over 3 years but only $93 million was set aside in the Budget for initiatives such as the CPI adjustment of funding for universities literacy and numeracy in the workplace—a $40 million initiative—and other initiatives designed to “help New Zealand firms compete globally”. Although the Government had not funded all of its 2008 Budget it nevertheless went on to promise larger extra expenditure such as the universal student allowance which it could not have funded if had won the election. 
Hon David Cunliffe 
: Can the Minister confirm that all of the spending promises National made were “fully costed and funded” and covered by the $1.75 billion spending allocation and that he has no intention of trying to go back on any of them? 
Hon BILL ENGLISH 
: Yes I can confirm that National will not be going back on any of those promises as we fully costed and funded them unlike the previous Labour Government which produced a Budget in 2008 and an election campaign full of commitments it could not have funded. 
Peseta Sam Lotu-Iiga 
: What decisions is the Minister likely to make on unfunded spending commitments? 
Hon BILL ENGLISH 
: Because we are a new Government with new priorities we will be committing a Budget allowance to the priorities of the incoming National Government with a mandate from New Zealand voters. We will drop commitments made by the previous Government for which no funding has been allocated. 
Hon David Cunliffe 
: Can the Minister provide details of what remains of the Government’s proposed stimulus package which was so much vaunted in those members’ election campaign and can he confirm that he is still committed to the $8.6 billion of infrastructure over 6 years announced by his leader on 31 October and to the $7 billion stimulus over 2 years that he foreshadowed in late November or does he now accept Treasury’s advice that no further fiscal stimulus is necessary; if so why? 
Hon BILL ENGLISH 
: The Labour Party should get its lines worked out. Its deputy leader was on the radio this morning saying there should be another stimulus package and now David Cunliffe is saying there should not be. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. The last time I looked the Minister of Finance had no responsibility for members of the Opposition. 
Mr SPEAKER 
: I would alert the honourable member to the fact that his own question was very marginal in terms of the Standing Orders in that the member cannot question the Government about statements or policies about something that the Minister is not directly responsible for as Minister in regard to a political party. The member cannot insist on an answer being absolutely within the Standing Orders when his own question was very marginal in respect of the Standing Orders. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. The statements I quoted by the leader John Key and by the Minister were made after the election while they held the positions they hold now. Therefore they are purported to be statements of Government policy with fiscal consequences for which the Minister of Finance is responsible. 
Mr SPEAKER 
: I will take the honourable member’s word for that.  
Hon BILL ENGLISH 
: I can confirm that the Budget Policy Statement will outline what amounts to what Treasury calculates as a $7 billion stimulus into the New Zealand economy which is made up of the 2008 Budget the 1 October tax cuts and the 1 April tax cuts that were legislated for last week. Treasury estimates that over the next 2 years that amounts to a $7 billion stimulus to the economy and that is one of the largest among developed countries—larger than Australia’s and comparable to the packages announced by the UK Government. 
Peseta Sam Lotu-Iiga 
: What is the impact of the shortfall in the Accident Compensation Corporation (ACC)? 
Hon BILL ENGLISH 
: Earners and businesses will hear about that impact when the Minister for ACC announces levy increases but the part of ACC that is funded by the Government has turned out to be $300 million short in the 2008-09 year and Cabinet has already had to make a decision to add $300 million to Government debt to ensure that ACC does not run out of money in March 2009 for the non-earners account from which beneficiaries superannuitants and others who do not earn money are dependent for their assistance for accidents. Over the next following 3 years the ACC shortfall will add $1.2 billion—unexpectedly—to Government debt.