Budget Debate
That was a Budget for benefits, not for jobs. The Budget is the time of year when hard-working New Zealanders look to the Government for hope and for a plan. They want some peace of mind that their tax dollars are being wisely spent, that the Government is investing on their behalf in the things that will create opportunity, that will generate growth, that will help them provide for their own families. Perhaps this year more than any they are looking for signs of hope on the horizon. Theyâre looking for some sign the Government has a plan for growth.
Instead, today what we saw is a Budget thatâs light on hope and utterly lacking in ambitionâthatâs setting New Zealand up to fail. Our debt as a country is set to climb to $184 billionâmore than $100,000 for every household. New Zealanders want to know what theyâre getting for that debt. They understand that borrowing only makes sense if itâs invested well. The fact that our economy has held up better than feared gave the Government some options. They could have left our children with a smaller bill. They could have made it easier to hire or do business. They could have provided tax relief to hard-working families. They could have incentivised firms to invest in new technology and upgrade to more productive equipment. Instead, today all we heard of was 19th century technology and no plans for building technology for the future. They could have invested in infrastructure that would actually get the economy moving. Instead thereâs Meccano lessons now going to be held in Dunedin to put together presumably Chinese-made products. That seems to be the answer.
But this Government doesnât really care, actually, about our children, do they, or grandchildren? Because what theyâre doing is theyâre actually investing and hoping for the number of people who are going to become dependent on the State. Thatâs what this is all about. Iâll agree with the finance Minister that New Zealanders made huge sacrifices last year. Thousands lost their jobs and entire sectors of the economy were decimated, and theyâre the ones looking for a reason to stay in New Zealand. But Iâm sorry that under this Government and this Budget, New Zealand is going to lose more nurses, more teachers, and more engineers, and theyâll lose them to Australia, because theyâll be looking for a better life.
Weâve now seen four Budgets from Grant Robertson and zero evidenceâit doesnât matter what he promises; he will not deliver. The finance Minister knows it. He said right now, surrounded by Cabinet Ministers heâs openly admitted heâs got no faith in, thatâs why heâs had to put himself in charge of an implementation unit. When we were in Government that was called Cabinet, and the person in charge was the Prime Minister. But not under this Government.
Thereâs a lot of talk on that side of the House, but thereâs no action. Thereâs a lot of announcements. But letâs have a look at those results, because unless someone really does have a better idea for New Zealandâand we doâweâre going to just keep waving our kids and grandkids off to Australia, and weâll Zoom them, because, actually, we just donât have that much confidence in vaccinations ever being put in place in this country.
Letâs have a look at these results of the announcements. In 2017, Labour announced a $5.5 billion family welfare package. They were going to take 100,000 children out of poverty. Thatâs what they said. Letâs have a look at the Budget. I heard Grant Robertson talking about all these kids being lifted out of poverty. Page 31 of the Budget documents, in the child poverty report, acknowledged that economic conditions have gotten worseâand listen to thisââparticularly inflation, rent, and unemploymentâ. So the figures he was talking about today forgot the rent. Well, I suppose itâs probably easy for him, isnât it? Then they said that they would have $400 million for fees-free. Well, how long did that last? Itâs now abandoned.
They announced in Budget 2018, $300 million for 1,800 new police. Then what they did is they shut the training college at the police college to stop the police reaching their target. They also said there was $2 billion for KiwiBuild. Well, I donât want to gloat, but I think we all know what happened there. Three billion dollars for the Provincial Growth Fundâtheyâve got a lot of debt, but not much else.
Actually, in 2019, the Budget had $1.9 billion for mental health, and I actually thought, yeah, that was good. But, actually, two years later and a lot of these projects havenât yet received a dollar. So, no, that was a shame.
In 2020 the Budget was full of announcements. We hadâthis is one of my personal favouritesâ$1.2 billion for Jobs for Nature. So far, thatâs cost taxpayers $830 for every hour of work it generatedâfor every hour. Not a dayâfor every hour. Thatâs better than the best Queenâs Counsel ever gets in the Supreme Court. Five billion dollars they announced for so-called shovel-ready projects, and a year later more than a hundred of them havenât even got shovels, let alone the ground to stick them in. Then we had $6.8 billion for 36 New Zealand Upgrade transport projects. Well, just ask Chris Bishop on that one. Twenty-one of those 36 havenât started.
So Iâve just outlined $26 billion worth of Labour spending announcementsâ$26 billion of failuresâand still they keep announcing. Itâs really easy making announcements and getting other people to pay for your public holidays, but how about some of those big campaign promises in 2017? Child povertyâwell, we know thatâs got worse. Thatâs why theyâre doing this Budget today. Homelessnessâworse. Mental healthâworse. Climate changeâworse. Housingâworse. Every single one of those promisesâworse today.
Have a look at their four yearsâastonishing. There are 1,500 more children in poverty since Labour took overâthatâs why theyâre having to pay more in benefits. The Prime Minister said the end of homelessness. Remember her lecturing Bill English about it? âOh, Bill, thatâs just a failure of leadership,â she said. Guess what: 17,000 more on the State house waiting list under her Government; four thousand children growing up in motelsâthatâs a million dollars a day. The motel generationâa shocking indictment on a Government that just loves photo ops and announcements.
This Prime Minister said that climate change was her David Lange momentânuclear-free moment. Well, whatâs happened? Emissions have gone up. [Interruption] Oh, David Bennett, youâre wrong! Theyâve gone up. Somethingâs happened. They said theyâd improve the mental health system, and even the Mental Health Foundation said itâs got worse. Their answer to the Mental Health Foundation is to call the chief executive a liarâyeah.
They said theyâd build 100,000 KiwiBuild homes. I know you want an update: 871 so far, four years in. They said house prices would stabilise; theyâre up $300,000. They said that rent would be stabilised; thatâs up a record $100 a week extra, on everything else. Then just last year Grant Robertson promised no new taxes, no taxes on housing, no changes to the brightline test. He even laughed at the suggestion from that pesky media person who asked the impertinent question. Well, no oneâs laughing now, are they? Tenants have got more rent increases and fewer houses to rent because of his changes, and all because heâs desperate to look like heâs doing something.
The Prime Ministerâs first announcement as Labour leader was to build light rail in Auckland by 2021. Oh, whatâs this year? Itâs 2021. They have delivered Aucklanders the fuel tax to pay for it, but whereâs the train? Whereâs the light rail?
Andrew Littleâand this is actually quite sadâpromised the Pike River families heâd retrieve their loved ones. That was a particularly cynical promise, because he must have known, on all the evidence, that there was no way, and yet he made that anywayâ$50 million and four years. That was really cruel.
Weâve been promised multiple times by this Government and that Prime Minister that border workers are being tested, only to find out they werenât. Chris Hipkins promised weâd be at the front of the queue for the vaccines. Weâre second to last in the OECD. Weâve got 3 percent of our population vaccinated under this Government. The only Minister, thoughâand be fair, there is one Minister who has kept his promise. I know you want to know.
đŹ Hon Member: Yeah, who?
đŹ Hon JUDITH COLLINS: Kelvin Davis. I have been quite mean to Kelvin Davis over the years, but, actually, kinder than he deserved. He has promised to reduce the prison population, and thatâs very good. Isnât it nice? And he has. Heâs dropped the prison population by around 20 percent. But did he achieve this by improving outcomes for young people? Is crime down 20 percent? No. But he did let a whole chunk of criminals out early, and thatâs how he did it. He freed up the bunks. Thatâs one way to keep a promise. And, unsurprisingly, serious assaults have doubled and gang memberships are at a record high. Very soon we are going to have patched gang members outnumber sworn police officers. That is actually a shockingâshockingâindictment of that Government.
Well, the Prime Minister promised she would lead a transformational Government, and then she changed it to a promise to be foundational. Now, how about âaspirationalâ? How about a bit of ambition for the country? But, despite all their press releases, we knowâand this is why theyâve had to put up benefitsâthat almost 200,000 New Zealanders are now on the dole. That is one in every nine New Zealanders are now on a benefit. In the last quarter, the last three months, New Zealand spent $33 million on emergency food grants, and last month, 360,000 New Zealanders relied on the accommodation supplement to afford a roof over their head. If anyoneâs looking for a lack of leadership from the Government, itâs on that. That means thereâs not enough places to rent.
Meanwhile, weâre borrowing millions of dollars a day just to deal with it. Grant Robertson said, âThatâs not a big problem. Interest rates are low. It doesnât really matter.â It doesnât really matter if heâs worrying about wasting $100 million, $200 million, a few more million here! But, actually, every time they do that, it means thereâs not enough money to buy the cancer drugs for Pharmac. So today they announced $200 million extra for Pharmac. Well, we announced $280 million at the election.
đŹ Hon Member: Way more.
đŹ Hon JUDITH COLLINS: We announced way more. Itâs also one less dollarâevery time he does that, thereâs less money to train new teachers and nurses. Thereâs less money for infrastructure, research and development, or tax relief to grow the economy and help our hard-working families who are paying for this. And, ultimately, it means Kiwis get to keep less of what they earn and the Government gets to keep more. Weâre spending $2.8 billion every single year on interest alone. Thatâs a heck of a lot of money. Thatâs a heck of a lot of training for nurses and doctors. Thatâs a heck of a lot of people, and thatâs what theyâre doing. Thatâs actually more than the entire cost of our early childhood education.
So todayâs Budgetâletâs have a look at it. They said itâs the âSecuring our Recovery Budgetâ. I actually thought it was more like a âCement New Zealandâs Stagnation Budgetâ. But itâs definitely a âBroken Compass Budgetâ, with nothing to take New Zealand forward. Itâs another Budget full of empty announcements; another Budget with zero plan for growth; another Budget that shows us Labourâs planning for failure. Last year, our economy shrunk by almost 3 percent, the largest fall in GDP ever recorded, and, somehow, this Government thinks thatâs a good thing.
So Grant Robertson thinks that COVIDâs given him the blank cheque. So this is what heâs been doing. All this money being spent on restructuring a health system in the middle of a pandemicâheâs planning to pile more costs on to businesses, to insert the Government into more markets, to help unions hold small businesses to account and to ransom them. Heâs the one whoâs actually wanting compulsory unionism, to weigh down our economy with regulation, to push rents higher, and to keep New Zealanders in povertyâto make it harder to buy a house, to make it harder to start a business, and to take more of what New Zealanders earn.
We think Grant Robertson would have presented a plan to unleash the economyâwell, we hoped, but he didnâtâto cut red tape and reduce the tax burden; to incentivise investment, innovation, and risk-taking; to attract foreign capital and fire up private sector job creation. And instead of bringing us any ideas to get the economy going again, what weâve got now is a total lack of ambition. These people canât even bring back the Recognised Seasonal Employer scheme. They canât even get apricots picked. They canât help the Pacific in the one way the Pacific wants it, which is, actually, money going into the Pacific earned by their own people, able to be spent by them. Instead, their answer is always more handoutsâmore money on Wellington bureaucrats.
The one thing Iâd say thatâs really gone up under this Government is the price of housing in Wellington. The reason why? Because thereâs 10,000 more bureaucrats. I heard one of their MinistersâI canât even bother to remember the nameâsay the other day that these are not bureaucrats; these are the people who secured our border. Oh, the jolly borderâs actually secured by the Pacific Ocean and the Tasman Sea, havenât they noticed? Itâs a border where people have to come in either on a ship or in an aeroplane. Itâs not like theyâre running across the border. Itâs not like we have to put up a big wall. They think they needed 10,000 more bureaucrats for that. What are they going to do? Stick them in the ocean? Stop the ships?
I mean, here, today, you donât need a big complex Resource Management Act (RMA) reform. They were going to sort it out; they were going to do this; they were going to do that. Oh no, they donât actually want to do that now, until 2024. And whatâs in 2023? Oh, that would be an election. They donât want to tell New Zealanders whatâs in that RMA reform, because we know what theyâre planning in that, and itâs is not about more development. Itâs is not about getting more people into work. Itâs not about growing our economy. Itâs not about bringing more money into the country so that we can have more nurses, better hospitals, and so that we can get cancer drugs for our people. It is actually about shutting down development, shutting down our economy, shutting down people from having aspiration.
National has an alternative vision for New Zealand. We believe in ambition and we believe in people being able to do what they can do for themselves. And weâll get results. We will move quickly to address the growing infrastructure deficit that Labourâs dithering has compounded. Weâll improve the key transport connections. Weâll all depend on getting around our cities. We wonât tell people how theyâre allowed to go to work. We wonât tell them that theyâre very naughty if they want to drive their own car. We wonât tell them that they have to wait for that light rail up Dominion Road that weâve been waiting for for four years and still hasnât occurred. We will, however, say to New Zealanders that we will back our New Zealanders, and we wonât say to our new migrant New Zealanders that we donât want them because theyâre not properly skilled. We will back our migrants and we will back our businesses.
When it comes to slashing red tape and backing Kiwis to take some risks and to innovate, we will welcome smart foreign investment and immigration so that our entrepreneurs have the capital and the talent they need to get things done. We know this: we back entrepreneurs well over ministries any day. Weâll invest heavily in science to give our farmers new tools to cut their emissions and meet their sustainability goals. We trust science. We trust technology. We trust our farmers. Weâll end the constant addition of new costs on businesses that drive up prices and lower productivity. Just think about whatâs happening with electricity prices at the moment. Weâll eliminate the wasteful spending, let Kiwis keep more of their money, get them to be able to invest.
One of the great areas for investment is technology. This has enormous potential for us. But weâve got a Government that wants to look backwards, wants to look at the way things were in either the 19th century or the 1970s. They donât want to look to innovation. They donât want to look to technology, apart from the fact, you understand, that they donât understand anything of it. Theyâre threatened by it. What they donât share is our vision for New Zealanders to have high-paid, highly skilled jobs that allow them to grow their own wealth and to keep more of it and to help their families.
Our emergency legislation on housing the Government has rejected. We said, âYou want to get some housing built? Do what we did after Christchurch. Emergency housing, emergency powers. Get the planning rules sorted. Get it now, get it sorted, get houses built.â
Then have a look at hardship and what there is there. Their policies, in Labour, are always about welfare first; work second. Actually, one of the cruel things in the Budget is theyâve taken away prisonersâ ability to get work after they leave prison. Thatâs the shame. Thatâs the thing. So National does not grow dependency. We grow the economy. We grow New Zealanders, and we are ambitious for a better country, unlike that lot.
Over the last few weeks weâve heard that the Leader of the Opposition has this habit of calling almost every document she happens upon a secret agendaâfrom a commissioned piece of work to something she finds on a website, to possibly even her own caucus minutes. I thought Iâd get right in front of that claim for this Budget. Here is our agenda: good decent jobsâin fact, 221,000 people are projected to gain employment over the next four years. Unemployment is forecast to fall to 4.2 percent, lower than National ever got in the aftermath of the global financial crisis, when, apparently, they called our economy a rock star economy. Our agenda is an economy that is growing. Our strong recovery is expected to continue with annual average real GDP growth of 4.4 percent in 2023. That puts us back to pre-COVID levels, and, importantly, our agenda is to leave no one behind.
The changes we have made as a Government mean more than 100,000 families will be more than $175 per week better off, and child poverty will reduce. This is our agenda and I am proud of it. But the Leader of the Opposition in her rebuttal to the Budget shared what I can only describe as clearly a pre-scripted speech. Thatâs the most generous way that I can acknowledge that she clearly did not engage in the facts that were included in the Budget. The Leader of the Opposition talked about debt, and that completely ignores the fact that according to Treasuryâs projection, our debt levels are forecast to be lower than they had previously been described. That is because of the decisions and the investment that we made.
And as if to make the point, the Leader of the Opposition decided to draw comparisons with Australia. Well, letâs do that, shall we? On real GDP, Australiaâs four-year average is 2.9 percent; New Zealandâs is 3.5 percent. In terms of employment by 2024 not only are we currently lower, we are due to finish at 4.2 percent; theyâre at 4.5 percent. Our operating balance is healthier and our net debt is lowerâour net debt is lower.
I will tell members about my view on the idea of ambition and aspiration. Ours is not to be somebody else; ours is to carve our own path, and our own path has been successful. But I would also say it is time for us to look at debt in more than just fiscal terms. Decisions that we make, whether we choose to invest or whether we choose to cut, determine whether or not the next generation carries a social debt. Now, we saw the tendency of National Governments of old. The Budget in 1991 chose cuts. They chose user-pays and they left a burden of debt that generations have carried for decades. We are still paying for that decision.
From there I wouldâve shared more rebuttal on the Leader of the Oppositionâs speech, but once we got past roughly five minutes of describing the âCollins dictionaryâ definition of what a border is, I wasnât left with very much, because, ultimately, I didnât hear anything about how the Opposition would deal with those big challenges we have. What would they do about the housing crisis they left us? What would they do about child poverty? What would they do about climate change? They would do absolutely the same thing they did last time they were in office, which was nothingâabsolutely nothing.
On climate change, yes, they went overseas and they signed New Zealand up to international targets, as they well should, but they never had a plan on achieving them. And now when they stand up in this House, all they tell us is we need to trust everyone in order to achieve themâtrust every sector thatâs involvedâbut they have shown a complete lack of trust in one of the most important things, and that is science. The science tells us that we cannot wait. When it comes to this issue we cannot wait and just hope, and that is a good message not only on climate change but on Opposition politics, I would say.
Yesterday, I want back to the Budget speech that our Minister of Finance, Grant Robertson, gave in 2018. It was our first Budget at that time as a Government and our first Budget for Minister Robertson as the Minister of Finance, and the title of that Budget he gave was âFoundations for the Futureâ, and in it he said, âBudget 2018 lays the foundations for New Zealanders to have better lives in the decades to come. ⌠We want an economy, an environment and a society which are sustainable, productive and inclusive. ⌠This means caring for our environment as a core value, not as an after-thought. ⌠We have to work smarter, build our skills and resilience, explore new innovations and adapt to change. ⌠Our economy must be more inclusive, too. This means a society where everyone has an equal chance to fulfil their potential, to contribute, and to live meaningful, connected ⌠and fulfilling lives. ⌠we want New Zealand to be a place where everyone has a fair go,â
Mr Speaker, much has changed in the last four years since Grant Robertson gave that speechâyou have not! The Leader of the Opposition has a few times, and the world most certainly has, and yet for all of that, the driving force, the motivation, and the focus of our Minister of Finance has remained. I want to pay tribute to Grant Robertson. He has one of the hardest jobs in this placeâone ofâbut never have I questioned what motivates him, what brings him here every day. He is here for people. He is here because he believes that the economy is there to serve our people, and heâs here to make changes that will leave the next generation better off than the last. Thank you, Grant.
It was no accident that that Budget at that time was titled, âFoundations for the Future.â Our intent as a Government was to make sure that that Budget and every one thereafter built on the legacy of the last. We have never viewed Budgets in isolation, because we are not just here to govern. We are here to make progress. So in 2017 we began. We cancelled the tax cuts that the then National Government had planned. We created the most substantive redesign of support for low and middle income New Zealanders that this country has seen in decades. We introduced the now much-loved winter energy payment. We brought in the payment for children called Best Start. We increased the family tax credit, and, of course, we extended paid parental leave. It was a $5.5 billion package, and it represented change for New Zealand families, and it represented change for children in poverty. But when we introduced the child poverty legislation and we started working on our targets to halve child poverty over the next decade, it became clear to us that much more was required, and so we kept going.
In Budget 2019 we made what the Childrenâs Commissioner has called one of the most significant changes you can make for the long-term health and wellbeing of our children in poverty, and it was to index benefits to wages. Then COVID hit. Some Governments might have seen this as a cause for, as Iâve said, austerity or cuts, but we saw it as a time to invest in our people. We lifted main benefit rates by $25 a weekâthe first time weâve seen a general lift in benefit rates in decades. The last National Government, of course, targeted solely beneficiaries with children. We also made changes to the in-work tax credit in recognition that it would be likely that individuals may lose some of their working hours and we did not want them to lose that tax credit as well.
But as the reports that we released just in the last week have shown, our child poverty indicators show that there is still more work to do. In New Zealand we currently have nine measures of child poverty. They are a mixture of relative income measures that tell us how well our children and whÄnau are doing relative to others. They also include material deprivation measures. They tell us whether or not families have the basics that they need. In the last two years we have seen improvement across all nine of those measures. We have already exceeded our three-year target on one of our measures: 43,300 fewer children are in poverty since 2017-18, when we factor in their income after housing costs. But there is still much more to do.
More than 200,000 children live in poverty in New Zealand, and it isnât just a number. It means, for instance, that 20 percent of children are in households where food runs out sometimes or often. This rises to 30 percent when we look at MÄori children and a devastating 46 percent for Pasifika children. Now, some might ask the question, and I believe I heard the question being asked while finance Minister, Grant Robertson, was outlining our plans in this Budget: can we afford to take the next step in addressing child poverty in this country when we are in the middle of recovering from COVID-19? My answer is simple: we cannot afford not to.
So today we lift main benefit rates by between $32 and $55 per adult in line with the recommendations of the Welfare Expert Advisory Group. And due to the urgency, we are beginning the increase on 1 July and completing them in April 2022. This is a major next step in our measures to address child poverty and inequality in New Zealand, and the reason for all of this work over the last four years is still quite simple: we must address need in this country. This is about the basics: the ability of someone to put food on the table, their ability to pay their power bill, or, as the Minister of Finance said, the basic need of just placing shoes on the feet of our children. We are targeting what we need to do in New Zealand with these decisions. They are the most basic of needs and it is the right thing to do.
This is also a bit of double duty, because we do it at a time when we need to maintain extra stimulus in the economy. We know that lifting the incomes of those who have the least discretionary income means weâll see that effect on the economy. It will go to food, it will go to services, it will go towards the things our children need to thrive, and that will happen across the country, including in our local economies.
But there will be some who question whether the substantial changes we make today have gone too far, and I note from some of the interjections across the other side of the House that they are amongst those who would ask that question. To them I would answer with numbers: $315. With the changes we have announced today, that is still how much a job seeker will receive as their main benefit per week from April next year. No one can argue that we lack incentives to work in this country. We have those incentives. What we have been lacking is dignity, and that is what we are working to bring back today.
I would use another number, to the Opposition, and that is 30 years. Thatâs how long it has taken to get benefits back to the rates they were before the âmother of all Budgetsâ. Now, yes, we have made progress for families with children, but for those who are single or those who are couples with no dependants, it has taken us 30 long years. And I say to the Opposition: 20 percent. That is how much Treasury predicts that the number accessing a job seeker benefit and emergency benefits will fall over the forecast period. Finally, a last number: 33,000, the number of children that will be lifted out of poverty.
There are a number of other changes that we will make that will make a difference to children and families in this Budget. Of course, they include things like the training incentive allowance. It includes movement in childcare assistance to more low and middle income families and continuing investment in health and education. But we know job opportunities are critical too, and this is where once again our challenge becomes our opportunity.
We have a massive infrastructure deficit in this country. When we took office we saw it everywhere, be it public transport, classrooms, hospitals, or the lack of State housing. We continue to right that wrong today. Budget 2021 sees a 50 percent increase in the Governmentâs multi-year capital allowance to maintain momentum around job creation and to build critical infrastructure. If you want to see a graphic representation of what that means over the years, it looks a little like this [Holds up graph]âa significant increase in critical infrastructure, which is part of our recovery plan. It grows jobs, good jobs, up and down the country.
I do want to dwell on one particular infrastructure challenge we inherited, and it is housing. That is why we are pulling every lever that we have. We are building more public houses than any Government in decades. We are fully funding the 18,000 houses that we want to build, but also weâve already delivered more than 7,600 public housing places. We have more building consents issued than at any other time in our history. Weâve closed tax loopholes. Weâve banned foreign buyers. Weâve extended the brightline test. Weâve introduced progressive homeownership. Weâve expanded support for first-home buyers. And meanwhile, one third of the 100,000 New Zealanders who have taken up the offer of free trades training are in the construction sector. They will pick up tools and work on the pipeline of infrastructure that we have created as a Government.
Weâve also brought in the healthy homes standard, supported insulation and home repair schemes. Weâve got rid of letting fees and limited rent increases to once per year. This House is well familiar with the $3.8 billion Housing Acceleration Fund to build the infrastructure we need to support new developments. Today we are ensuring that $350 million goes to greater partnerships with iwi to build houses on whenua MÄori. And with MÄori homeownership rates at a devastating 30 percent, these are exactly the partnerships we need.
The third long-term challenge that I want to address today is the issue of climate change. Weâve already seen the investment and the announcements weâve made around decarbonisation of the public sector. Weâre also working with industry, particularly agriculture, with $37 million going into integrated farm planning systems, $24 million into greenhouse gas mitigation research, and you have already heard, of course, the Minister of Finance make that really important signal that we will be hypothecating emissions trading scheme revenue into climate mitigation in the future, not to mention the quadrupling, of course, of Minister James Shawâs established Green Investment Fund. That will continue to invest in green climate solutions.
The final and most present challenge, the issue of COVID-19. It has highlighted how critical it is that we have strong health services, but there is no question that people who work in health are exceptional, but they too know that our health system can and should be better. Our health system, for instance, is failing MÄori. In this Budget we start the largest health reforms we have seen in this country in decades as we establish Health New Zealand and the MÄori Health Authority. In total, a 45 percent increase in health funding when you compare this Budget to when we took office in 2017.
But the reason we can do all of this, the reason we are securing our recovery today, is because of the decisions we have made every day since 2018. It is because we have chosen to invest, to back our small businesses and our employers, to support vocational training and education, to invest in significant infrastructure. That is why we have unemployment rates that are half of what were estimated. Itâs why weâre doing so well compared to the rest of the world and Australia. And in response to COVID-19 we banded together. Now we ask that we continue to do that as a nation as we take our next challenges. I am proud of this Budget. It will leave a legacy for the next generation and start to do undo the harm of the last.
Whakarongo ki te tangi a te manu o te taiao, nÄna te tangi kia tuituia tÄtou ki te ao mÄrama. Tuia ki runga, tuia ki raro, tuia ki roto, tuia ki waho. Ka rongo te pĹ, ka rongo te ao. Tuia te whare e tĹŤ iho nei ki ngÄ muka here o te motu e!
TÄnÄ tÄtou e te Whare me ngÄ iho kĹrero o ngÄ tĹpito whenua o Aotearoa whÄnui. Tuia te muka here i huaina mai i te Tiriti o Waitangi, ko te muka o te pono e Ĺati ana e ngÄ mÄtua tĹŤpuna kia mahi tahi tÄtou i roto i te ngÄkau pono, te mahi ngÄtahi hei oranga mĹ te whenua me ngÄ tÄngata o te whenua i te Tiriti.
Me mihi ka tika ki a koutou ngÄ MinitÄ, ngÄ mema PÄremata. Äe, ko koe tÄrÄ, te MÄngai o te Whare. Ki a ia hoki te Minita o te PĹŤtea tae noa ki a ia e te hoa, te PirÄŤmia. TÄnÄ koutou, otirÄ, tÄnÄ tÄtou e te herenga Whare.
[I listen to the call of the bird of nature, the bird that binds us to our natural world. Bind us to our world above, our world below, our world within, our world outside. Let us feel the presence of those who have gone to the long night, let us feel the presence of those of the world of the living. Bind everyone of this country to this House!
Greetings to all in this House, the representatives of the many regions of New Zealand. Bind us to the Treaty of Waitangi, the truth that was honoured and pledged by our ancestors so that we could work together with integrity, so that we may work as one for the betterment of all of the people of this country under the Treaty.
It is only right that I acknowledge the Ministers and members of Parliament. Yes, that includes you, Mr Speaker. I would also like to acknowledge the Minister of Finance and my colleague, the Prime Minister. Greetings one and all in this House.]
When the Green Party and the Labour Party entered our cooperation agreement in November, we both knew we were building on the relationship we forged last term. It was important that the work we had started together continued together for our people and for our planet. We also promised to keep our independent voice for our longstanding kaupapa: our Green voice. And so, with our independent voice, I speak for the Green Party to say we will vote for this Budget. We donât have toâwe have that choiceâbut we will because right now there is too much at stake. Our communities and the natural world that sustain us need our Green voices in this House and in this Government so that we go further and faster.
This Budget takes important steps in the right direction. Raising core benefits will make a much-needed difference to the lives of the people in our communities who need it the most. People are struggling and they cannot wait. We welcome the Government taking urgent action to raise benefits in July and not waiting until next April. I want to mihi to all the people who have pushed for liveable incomes. Today, we can see that the Government is listening. And I want to acknowledge those who may say that what is in this Budget is not yet enough. The Welfare Expert Advisory Group gave the Government a plan last term, and today we see some of that plan being put into action. In households with children, this Budget goes beyond the benefit increases recommended by the advisory group, and we need to go further and faster for everyone. We also welcome the increases to student allowances and living costs. Twenty-five dollars a week can go a long way when youâre a student. We welcome the Governmentâs move to bring back the training incentive allowance, which is so important for supporting our rangatahi to access education and opportunities, which, of course, National cut.
It will take time to turn around from decades of Governments treating houses as commodities instead of seeing a home as a human right, but we will do that. Our rivers will take time to heal from decades of dirty dairying, but that process has begun. Our climate is on the edge, and here in the Green Party we are doing everything we can to pull it back from the edge. We will not sit by. We will always push for more. I am talking about economic transformation. We are still living within a world view where too many people say we need a balanced Budget. But how do we balance sick kids or kids walking to school in the rain with no jacket? What is the balance for the last remaining 63 MÄui dolphins? How do we balance an existential threat like climate change? The economy is a way we choose to organise who gets what. Our response to COVID-19 showed us what we can achieve to keep people safe when we make bold choices. When we support each other, we can achieve great things.
The choice the Government has made today, to lift the incomes of the people who need it the most, is a choice we welcome and have long fought for. It will make an important difference for food on the table and for heating through the winter. Raising incomes for those who need it the most benefits us all. It makes our communities fairer and happier, and it improves peopleâs quality of life. I continually hear that one of the most important things we can do to increase community and whÄnau safety and wellbeing is make sure people have enough money. Raising incomes is good for peopleâs mental health. It means not having to make the choice between food and power. It means having a bit left over to save or to celebrate birthdays. Raising incomes is the kind of fiscal stimulus the Greens have been calling for since the pandemic struck. And it helps our local businesses because people spend their incomes locally.
This Budget includes $132 million going into initiatives to help communities lead whÄnau-centred holistic services focused on preventing family violence and sexual violence from happening in the first place, and also helping those using violence to stop. I believe that itâs Governmentâs role to enable our communities to not just meet the need of the problems we face as whÄnau and as a country but to strengthen our resilience, protective skills, and knowledge, to have enduring solutions for generations to come. We do this by supporting community-led whÄnau-centred programmes and services to provide sustained and holistic support, built around families and whÄnau. We are extending early support to help people stop using violence. We will ensure that MÄori leadership, Te Ao MÄori thinking, and the inclusive Te Tiriti framework are at the heart of our approach, to the benefit of everyone. We will support iwi and community leadership to design their own responses to family violence and sexual violence. We will ensure that families and whÄnau get the help they need, when they need it, how they need it, from people they know and trust. I acknowledge the work of Jan Logie who began this kaupapa.
Our Government has declared a climate change emergency and todayâs Budget takes us a step closer towards confronting that emergency at the scale it needs. The Greensâ longstanding policy is that the revenue from polluting companies should be used to fund a just transition to a low emissions economy. The Minister of Finance has said he plans to ring-fence and recycle the revenue from the emissions trading scheme so it can fund urgent action on climate change. That is hundreds of millions of dollars every year for climate action, guaranteed until we hit net zero emissions: billions over time. That truly is a response that can meet the scale of the challenge.
Also in this Budget, we have $300 million for the Green Investment Fund: more clean energy to replace fossil fuels; $1.3 billion for rail; more good green jobs. We have over $50 million to roll out the Clean Car Standard and $302 million for new incentives for electric carsâwork that the Hon Julie Anne Genter began last term.
We have done more to fight the climate crisis in the last 3½ years than the combined efforts of Governments over the last 3½ decades. Is it enough? No. There will always be more to do, which is why, when we get the Climate Change Commissionâs final advice at the end of this month, we will immediately start putting the detail into an emissions reduction plan for every sector of our economy. There is a huge effort right across the Government to rise to the challenge of climate change, and I would like to quote the Minister for Climate Change: âEvery Minister is a climate change Minister now.ââthe Minister of Agriculture, the Minister of Energy and Resources, the Minister of Transport, the Minister for Economic and Regional Development, the housing Ministers, the Minister of Finance, and more. That is the zero carbon Act working, which the whole of Parliament passed unanimously.
We know what needs to happen to confront the climate crisis. The science tells us what we need to do. Our Pasifika relations tell us as they stand on the beach, watching the waves lap higher and higher. Tens of thousands of rangatahi and tamariki have marched in the streets to tell us. Next yearâs Budget must have a lot more funding for climate action, and Iâm not just saying that on behalf of the Green Party; I am saying that on behalf of PapatĹŤÄnuku and on behalf of the people who will walk in our footsteps long after we are gone.
Finally, in this Budget, we have action to protect our taonga kauri trees from kauri dieback. When I go homeâto my real home in HokiangaâI am reminded of the magnificence of our kauri and Iâm reminded of the urgency of taking action to save them. The funding in this Budget to protect our kauri will help stop the spread of kauri dieback while work continues to find a cure.
Year after year, you will find the Green Party saying that warm, dry homes are the foundation of a decent life that everyone has a right to. We can talk about cost-benefit ratios, we can say itâs 1:4âor 1:6 if there are tamariki or kaumÄtua in the homeâbut, actually, this is one of those things where economics are instinctive. Anyone who has ever gone home to a cold, damp home knows it is bad, and anyone who has gone home to a warm, dry home knows it is good. Weâve worked with Labour Governments and we have worked with National Governments, and today there are more than 400,000 homes that are warmer and drier than they used to be.
Many years ago when the Green Party convinced the Government to start supporting people to insulate their homes, our co-leader Jeanette Fitzsimons said, âI donât believe any Government is going to cancel this programme because I think it is going to be a very big success.â Jeanette was right, although National did start letting the funding run out last time they were in powerâbut then we changed the Government, and here we are. Today, there is $120 million in this Budget for Warmer Kiwi Homesâthatâs going to fundamentally improve the lives of more than 47,000 householdsâan additional $30 million for the Healthy Homes Initiatives run by DHBs, and more homes overall. This Government is building more State homes than any Government has done since I was a child.
Last year, the Green Party campaigned on letting KÄinga Ora borrow more so it could build more homes for our people, and this Budget does that, relaxing the borrowing limit by $2 billion, and $380 million to support by MÄori, for MÄori housing, plus $350 million for the infrastructure to support those homes. We know what each one of those homes means to the whÄnau who live there.
We have $3 million in this Budget for the Election Access Fund. This will increase access to democracy for people with disabilities. It came from a Green Party memberâs bill drafted by Mojo Mathers and passed by ChlĂśe Swarbrick.
The $1.1 billion Jobs for Nature package the Greens won in last yearâs Budget is still rolling out, and it is continuing to fund vital, essential projects throughout the motu. We won significant increases to the conservation budget last term, and they are continuing to have a positive effect on this Budget today. We have a biodiversity crisis in Aotearoa, so nature still needs our help. Later this year, we will have the first national policy statement on indigenous biodiversity, in time for next yearâs Budget, to properly address the biodiversity crisis in Aotearoa.
The Green Party will vote for this Budget because it does do a lot to make life better for the people in our communities who need it the most. It takes important steps to embrace clean energy and clean transport and confront the climate crisis. It puts hundreds of millions of dollars into the prevention of family violence and sexual violence. This Budget begins to deliver on many of the shared commitments in our cooperation agreement with Labour. Today, the Government is taking steps in the right direction for Aotearoa. They are steps that are big enough for the Green Party to choose to walk alongside, because we get further and we get there faster when we walk together. Kia ora tÄtou katoa.
Thank you, Mr Speaker. Each year, people try to name the Budget. I suspect that this one will be named in hindsight, several years hence, as the âla-la Budgetâ. The âla-la Budgetâ because the Government was in la-la land unaware of the circumstances surrounding it when it brought this Budget down. This Government has benefited from a tail wind like no other. We have, at this time, record low interest rates, an official cash rate of 0.25 percent. We have terms of trade, export prices, a milk price, as high as theyâll ever be. And yet, we are taking on Government debt at a rate of $100 billion, to the point where New Zealandâs average household will have $95,000 in Government debt to their name. That is the background. And all of those things that the Government has taken for granted are things that sooner or later will reverse. Nobody believes weâll have an official cash rate of 0.25 percent, cheap Government borrowing funded by the Reserve Bankâs money printing programme, or mortgage rates at 2 percent, for ever. The cost of borrowing will increase, and the debt that this Government has taken on will seem very expensive when people look back at this Budget. Nobody believes terms of trade can stay high forever. They always go up and go down, and that boost will be gone.
But thereâs another boost this Governmentâs had that they have taken the credit for and banked but they havenât properly allowed for when theyâve assessed the situation around them, and that is COVID-19. So far, New Zealand has had the most extraordinary natural advantages when it comes to fighting a pandemic. We are isolated, we are young, weâre spread out, weâre First World, and we have a population that is so civilised that if the Prime Minister asks nicely, theyâll actually stay home for seven weeks. No other country went into a pandemic with that sort of advantage. I actually asked the Minister for COVID-19 Response if he could name one, and he couldnât. But unfortunately for this country and this Government and this Budget, those natural advantages will erode as COVID-19 changes.
Four mega-trends underlie COVID at this point: new vaccines that are going to change the amount of risk people are prepared to take around the world, variants of the virus that may turn out to be vaccine-busters, then thereâs new technologies for testing and tracing that make it easier for countries to open up, and finally, fatigue with COVID-19 measures. Public balance sheets, including ours, are fatigued. People, in general, just donât feel like going home for five weeks and that learning about sourdough would be quite as appealing this time, let alone the fact that their private balance sheets are also stressed from last time. Terms of trade, interest rates, the COVID responseâall of it is going to get harder, and this Government will have used a golden opportunity to rebuild a New Zealand we could all be proud of. But instead, weâll have the same old policies, throwing more money at the problems we had, and the only change isâthe problems are still thereâthe next generation gets a lot more debt with higher interest rates. That is why this Budget should be described as the âla-la Budgetâ, and the Governmentâs made no acknowledgment of that.
Theyâve actually tried to claim the credit, saying that somehow itâs all them. Well, actually, even the forecasts that the Treasury have given them are absolutely heroic. You open up the Treasury documents at 2 oâclock today when theyâre released to the world. You know, theyâre saying that weâre going to have 4.4 percent economic growth and 4.4 percent unemployment in 2023. Really? When we consider what the Government is doing to people who are actually trying to grow businesses, provide for their customers, make a return on their capital, employ peopleâfair pay agreements, restrictions on oil and gas exploration, restrictions on mining, restrictions on farming, new public holidays, extra sick leave, a minimum wage thatâs increasing at about 6 percent a year faster than any firmâs productivity. And this Government thinks that somehow the economy is going to be growing at 4.4 percent in a couple of yearsâ time? I donât think so. Even the forecasts that the Government has are direâ$95,000 of debt for every household. But once you consider the direction of travel and the restrictions this Government is placing on people doing business and creating wealth, those assumptionsâsuch as the economy growing at 4.4 percent and unemployment also being 4.4 percent in a couple of yearsâ timeâare absolutely heroic. The reality is going to be much, much worse.
So what should the Government have done? Well, Iâll give you a couple of examples of what it shouldnât have done. Iâm always astonished to hear when Marama Davidson is allowed by her party to give a speech, and part of me wishes that theyâd do it more often. She actually saidâI couldnât believe my ears. Marama Davidson said that the problem is too many people are saying Budgets should be balanced. I mean, what is the acceptable level of people wanting a balanced Budget in Marama Davidsonâs world? You have to ask yourself. She seems to believe that somehow the Government can just continue to print money, endlessly hand-over-fist borrow. This is a party thatâs supposed to care about kids. Borrowing money like that is a form of fiscal child abuse, because itâs the next generation that are going to pay for it.
Then I heard Grant Robertson get up. This is the guyâand weâll come to this later. This is the guy whose example of economic development is to have a Government-sponsored train factory in Dunedin. I mean, whatâs the theme song for this Budget? Something from the 1970s, is it going to be Led ZeppelinâMr Speaker, you might know, did they do Dazed and Confused? He said they did. That should be the theme song for this Governmentâs Budget, because they want to take us back to the 1970s. Their idea of economic growth is a train factory sponsored by the Government and Dunedin. Even in Pyongyang, they are not taking on policies like that.
Then Grant Robertson came along and he said, âWeâre raising Budgets because itâs the right thing to do. Itâs morally the right thing to do. Weâre going to reverse what Ruth Richardsonâs Budget did in 1991.â And I thought, âI wonder if Grant Robertson has ever met Helen Clark.â, because I seem to rememberâI was a bit younger, I was at school at the time, but Iâm pretty sure she was the Prime Minister for nine years with the same level of benefits. Then the National Government a few years agoâI was a bit older by now, Iâd graduated to Parliament at this pointâraised benefits from Helen Clarkâs levels. And Grant Robertson comes along and says heâs doing it because itâs the right thing to do. Iâm pretty sure he was advising Helen Clark. Clearly, she didnât listen to him, and I wish these Treasury officials wouldnât either. Then Grant Robertson said heâs got to reverse what happened in 1991. Does he know any history? The reason there were Budget cuts in 1991 is because the country was broke, and thatâs where this Budget is taking us back to.
The Treasury forecasts, the optimistic forecasts, say that spending on jobseeker support and emergency benefits is going to go up from $1.8 billion a year pre-COVID to $3.8 billion every year post-COVID. Letâs just think about that for a moment. This is when we have heroic assumptions that unemployment is going to be less than 5 percent or thereabouts every year. Weâre going to be spending $3.8 billion on jobseeker support and emergency benefits each and every year. Now, is it really believable that youâre not going to have a few more work-shy people, where $55 in a remote part of New Zealand is actually a lot of money, and itâs going to be harder for employers to get people to come to work and use their skills. Thatâs how we got into trouble under Holyoake, and Kirk, and Muldoon. Thatâs the unsustainable model that necessitated the 1991 Budget, and this Government, myopically, is taking us back to it, because they donât know their own history, they donât remember Helen Clarkâs Government, they donât remember what she knew. We now have a much more radical Government than we had under Helen Clark.
But letâs talk a little bit about what we could have doneâactually, letâs talk about a few more things we shouldnât have done. I think thereâs one part of this Budget that is an absolute disgrace, and that is the $200 million for Pharmacâfor two reasons. Number one, I suspect, when people drill down into the detail, theyâre going to find a lot of it is repurposed money, because Pharmac doesnât have a budget; the DHBs decide what they will put into Pharmac. And, actually, I suspect the amount of money that Pharmac has in the pharmaceutical budget wonât increase by that much. But even if the Government is correct, why on earth would we put $200 million in a Budget for Pharmac? The right thing to do, the mature thing to do, that a Government that truly cared about those people suffering and in need of pharmaceuticals would have done, is they would have actually put funding in the Pharmac review.
So hereâs the situation with pharmaceuticals. This Government wonât put funding in the Pharmac review. And what does that mean? It means that, when weâve got a kid with Crohnâs and colitis, the Government will fund them to have operation after operation, slowly removing their intestines, making them live the rest of the life with a colostomy bag, but they wonât consider whether it might have been better to fund Ustekinumab. Pharmac is not allowed to consider those sorts of opportunity costs under the current model, and theyâve kept Pharmac funding out of the Pharmac review, so that we can wait âa few more sleepsâ, as the finance Minister loves to gleefully say, before people find out if their medicines are funded in the political theatre of this Governmentâs Budget. That is an absolute disgrace.
Letâs say theyâre spending $200 million on pharmaceuticals, theyâre spending $486 million on restructuring the healthcare systemânothing thatâs going to affect the quality of care that patients getâon changing the plumbing and wiring of the healthcare funding. Now, in every other sane world, restructuring saves money. Only under this Government does a restructure cost half a billion dollars. Thatâs what weâre dealing with.
And itâs no better in education. We had a report two years ago from a guy called Bali Haque called Our Schooling Futures, and it said we are going to take the control away from parent-elected boards of trustees and put new entities called âhubsâ in charge of your childâs educationââParents, stay at the gate.â And people up and down this country came out and protested and were outraged. Gary Hawke, Emeritus Professor of Economics from Victoria, pointed out that they were awfully like education service centres that had existed before and failed in the early 1990s. I was astonished to read the Governmentâs proposal that they theyâre bringing back the hubs, and theyâre going to be called Education Service Agencies. What an extraordinary thing. This Government is so myopic itâs bringing back a failed policy of the 1990s and telling the parents of this country, âDonât bother getting elected to your board of trustees and take an interest in your kidsâ education. Stay at the gate.â
The biggest beneficiaries of this policy are going to be the private school operators of New Zealand, because those who have money will get out, and those that donât will be left with schools run by diktat by the neo Education Service Agencies that are a failed model from before. That is the standards that weâre faced withânothing about improving the quality of principals and teachers, and teaching, and ensuring that teachers are experts in their subject matter, passing real information on to the next generation of students so that they can succeed in the 21st century. No, this Government is focused, in health and education, on restructuring the bureaucracy.
Now, letâs talk a little bit about the trains. This is a 1970s union fantasy that menâand it will be men; I can guarantee itâwill be working away with hot steel and sledgehammers, banging together locomotives and wagons in a big warehouse in Dunedin. This is this Governmentâs idea of innovation! And it might be OK if people were actually going to use the trains, but has anyone heard of that initiative where thousands of people go up and down and commute between Hamilton and Auckland every year, every day? Actually, every year is about how often. Thousands of people a day are on the train between Hamilton and Auckland commuting to the future! Has anyone heard about those thousands of people? No, I havenât either. Even John Campbellâs not taking that train any more.
Here is what the Government could have done and should have done, because the ACT Party is not only leading the Opposition, we are leading the proposition. We are the party that has put forward an alternative budget, showing what a responsible Government could do to look into our future and confront our challenges, solving the problems that New Zealand faces. And, under this budget, people whose main way of getting money is a concept called working, unbeknownst to anybody on the Labour Governmentâ30 percent of Labour MPs used to be union organisers by the way. People whose main way of getting money is working, those people, workingâyes, Barbara Kuriger is making eyes at me; yes, Barbara, workingâget no relief. Under the ACT Partyâs alternative budget, middle New Zealand, those who are being squeezed with rising electricity prices, rising rents, rising food prices, the people who know when they see reports of no inflation that thatâs absolute BS, the people that need some relief, will get a 17.5 percent tax rate all the way up to $70,000. Weâre going to cut that middle income tax rate from 30 percent down to 17.5 percent. And for middle income families who work for a living, that means you get $1,200 to $2,100 a year more in your pocket through working. That is the ACT Party idea of an alternative budget.
But weâre also going to reduce wasteful expenditure, stop handing out money to groups of voters that the Government thought it could curry favour with, and actually do somethingâhereâs radicalâfor the next generation, the silent people, the ones that canât vote in this election or for this Budget, but the ones that are going to be lumbered with the debt as interest rates rise and borrowing $100 billion, retrospectively, didnât seem so smart. We can show how you balance the Budget by 2025, not never-never land or la-la land where this Government made its Budget.
Then there is a whole lot of initiatives to make it easier to do business. No fair-pay agreements. We allow oil and gas exploration. We allow mining. We allow people to develop their property. We fund infrastructure with comprehensive partnerships over 30 years between the central government and every city or region so that infrastructure actually gets built and people can afford a place of their own thatâs connected to opportunity, by which I mean jobs and education. Those are the initiatives that a responsible Government would take, and then weâd implement our COVID 2.0 plan so that we can intelligently get out of this mess. The ACT Party would follow Taiwan, establish a central epidemic command centre, augment our COVID response with actual technology so we can test and trace like the best, and safely reconnect with this increasingly complex COVID world in a way that is sustainable, not just locking up, locking down, and hoping.
That would be a budget for the battlers, a budget for those people who wake up, make the kidsâ lunches, go to work, pick them up from school, take them to practice, put them down to do their homework, and get up and do it again the next dayâthe people that pay the bills and actually make this country a great place to live. That is what this Budget is for, but sadly we do not have a Government at the moment that is this connected with reality. We have a Government dominated by former union organisers that is pursuing an agenda that is alien and unknown to the overwhelming majority of New Zealand. But unfortunately the tailwinds theyâve taken for granted are going to run out and eventually turn against them, and at that time, with rising interest rates and terms of trade not being as good as they have been, a whole lot of debt and no real preparation for COVID or raising productivity or skills or getting infrastructure and homes built, people will look back and ask âWhat was this Government up to?â Theyâll say, âThis Government was in la-la land. We wish weâd had ACT earlier.â Thank you, Mr Speaker.
TÄnÄ koe e te Pika, tÄnÄ tÄtou e te Whare, tÄnÄ koutou katoa e te iwi.
[Greetings, Mr Speaker, greetings to those in the House, greetings to one and all.]
I want to acknowledge the Government on the delivery of their Budget today. In particular, I acknowledge my whanaunga the MÄori Ministers, who have secured some important funding decisions for our people. There is a lot to like in this Budget, particularly in relation to targeting MÄori housing packages and the long overdue increase in baseline benefits. There are new initiatives that will make a real difference to the lives of tangata whenua. We give credit where credit is due.
Engariâbutâlet me contextualise for you what Budget day means to us. At the signing of Te Tiriti o Waitangi in 1840, my ancestors, and many others from around the motu, consented to KÄwanatanga and the establishment of this Parliament. But they also affirmed our existing rangatiratanga. As article 2 explicitly states, the Crown guaranteed to MÄori the undisturbed possessions over our land, our rivers, our seas, our forests, our traditions, and practicesâour people.
This covenant envisioned the relationship of equals, a partnership that would enrich Aotearoa. Rangatiratanga and KÄwanatanga must be working together based on a relationship of respect, partnership, and goodwill for the betterment of people, tangata whenua and tangata Tiriti. The only way this nation can work is where tangata whenua assert our right to tino rangatiratanga, our self-determination, our governance, and our self-sufficiency.
A new Aotearoa is on the rise. There is an unapologetic generation of tangata whenua who recognise that being forced to work within the system no longer suits our struggle for mana motuhake. That is what we must doâdismantle the system and create our own. Tangata whenua and tangata Tiriti living and working together in peace is the Aotearoa that Te Paati MÄori is fighting for.
Our people sent us here to be the unapologetic voice for our tino rangatiratanga as tangata whenua: to rebalance the scales of power in Aotearoa and realise the partnership that was envisaged by our ancestors, tangata whenua and tangata Tiriti in Te Tiriti o Waitangi. You might be wondering, Mr Speaker, what on earth Te Tiriti o Waitangi has to do with the Budget. I can certainly hear that from my colleagues either side of me, and they have no idea, so let me enlighten you.
The covenant that gave consent to all PÄkehÄ to live in Aotearoa is, and will always be, Te Tiriti o Waitangi. The realisation of our tangata whenua rights under the covenant will always be our benchmark. Te Tiriti o Waitangi demands that tangata whenua secure 50 percent of the resources and decision-making power. Equality demands that tangata whenua secure 16 percent of all the resources and decision-making power. Equity demands the tangata whenua secure 25 percent of the lionâs share. On every level, of those benchmark indicators, we fall short. One week of COVID subsidies to businesses added up to more than the total sum of Treaty settlements over 30 years. One year of corrections funding adds up to more than the total sum of Treaty settlements over 30 years. This is a disgrace.
I mentioned in my maiden speech about how we will no longer accept that the State continues to fund itself every year to steal more of our babies, to lock up more of our people, to keep our people sick, poor, and homeless. The point is that more money is not always the answer. Ultimately, we seek for our people to be at the decision-making table, with regard to where the resources are allocated, rather than being the recipient of. These are our rights under Te Tiriti o Waitangi.
Äperahama Taonui prophesised: âHe taniwha kei te hÄere mai. Ko Ĺna niho he hiriwÄ me te kĹura. Ko tĹna kai? He whenua. Kaua e mataku ki Ĺna niho hiriwÄ me te kĹura, engari kaua e tukua te hiriwÄ me te kĹura hei atuatanga mĹu.â
[âThere is a taniwha on its way, with teeth of silver and gold. What does it crave? It craves land. Do not fear the teeth of silver and gold, just do not allow it to become your God.â]
The key is not to allow ourselves to become intoxicated by the euphoria of the million-dollar signs, and look at the gains from a perspective of proportionality. Last year, Vote MÄori received 0.3 percent of the entire operating Budget. This Budget announcement sees an increase to 0.37 percent going to MÄoriâa whopping 0.07 percent increase. It appears as though this Government has an obsession with putting zeroes and a decimal point in front of what they give MÄori. Funding for MÄori programmes will not work if those programmes are not conceptualised, designed, managed, and governed by MÄori. Funding for MÄori programmes will not workâmÄ te MÄori ki te MÄori mĹ te MÄori e ai ki te MÄori; by MÄori to MÄori, for MÄori, according to MÄori is the only way. This is what we mean when we talk about mana motuhake. Let us not confuse the oranga of our people with money and dollar signs or silver and gold; mana motuhake means we make our decisions, and receive our resource equally, because that is our Treaty right.
The MÄori Health Authority is an important stepâa startâbut there is so much more to do. This Budget announced $240 million over four years, which also equates to 0.3 percent of the total health budget. There goes that 0.3 percent again. We have underfunded primary healthcare, underfunded dental care, ambulance services have had to beg for funding every year to stay operating, and the Government refuses to fund lifesaving cancer drugs that are funded in comparative countries. Far too many people simply canât afford to go to their GP, let alone the dentist.
Just last week, we had people suffering from a life-threatening cancer on the steps of Parliament in the pouring rain, calling for Pharmac funding to be doubled to fund medicines that could save and extend their lives. The announcement today didnât get anywhere near that. Recommendations to lower cancer screening ages for MÄori have fallen on deaf ears. We need to ensure we have a health system that actually works in keeping our people well and protecting our whakapapa as tangata whenua. I am also perplexed as to why WhÄnau Ora received no additional funding, given it has the Minister on record telling us that it had the highest-performing portfolio in Government.
The disparities and inequities in income for MÄori are disgraceful and are reaching new levels. PÄkehÄ have a net worth almost five times higher than MÄori, while non-MÄori have a 13 percent higher median age. What we are seeing is the result of decades of under-investment, deregulation, and the slashing of the social security system. We welcome the increase to baseline benefit levels and the reinstatement of the Training Incentive Allowance. These have been long fought for by the grassroots. Since 1986, the number of MÄori forced to rent has increased by 88.3 percentâ70 percent of MÄori cannot afford a home and are living in rentals. One third of MÄori live in houses considered damp and overcrowded. MÄori make up 50 percent of the waiting list for social housing.
Because I only get 10 minutes, I am going to go straight to the last page, the most important part of my speech. It is evident that we are already delivering real change, and that the MÄori across this House, each coming from their own position and using their own platformsâwe can succeed. Te Paati MÄori will continue to play a constructive role in both working alongside this Government and holding them to account. Sitting on the cross-benches, we will oppose when our peopleâs interests are at stake, and we will support when support is warranted.
Today, I call on the Government to continue adopting policies from our manifesto. In only six months, we have already seen so many Te Paati MÄori policies adopted: the purchase of IhumÄtao; the removal of barriers to establishing MÄori wards, with the procurement of 5 percent, which is still way off our 25 percent; the replacement of the Oranga Tamariki chief executive with a MÄori leader; investigations into our broken criminal justice system; the public holiday recognition for Matariki; te reo MÄori and MÄori history in schools; new investment in kĹhanga reo and WhÄnau Ora; ratings reform for whenua MÄori; and, of course, as already mentioned, the MÄori Health Authority and the MÄori housing package. This is what we have achieved in Opposition in six months, and I canât wait to see what we can achieve in the next Budget. NĹ reira e hika mÄ, tÄnÄ tÄtou.
[Finally, thank you one and all.]
Iâm going to call the Hon David Parker in a second, but I want to thank the member Rawiri Waititi for drawing my attention to the fact that he was reading his speech. I want to make it clear, going forwardânormally, thereâs some flexibility around the first day of a Budget debate vis-Ă -vis reading speeches, but going forward, the rules on reading speeches will be enforced, and Iâm pleased that we have the whips, at least, from the major partiesâand Iâm sure Ms Davidson will pass that on toâand, of course, the ACT Party.
đŹ Hon Member: Oh!
Well, I couldâthereâs some re-definition going on there, but anyway, the member will take it, all right? But I am going to enforce those rules going forward.
I move, That this debate be now adjourned.
Motion agreed to.
This debate is adjourned and set down for resumption next sitting day.
đŁď¸ Spoke in this debate (7)
- Dame Rt Hon Jacinda Ardern (New Zealand Labour Party â Member for Mount Albert)
- Hon Judith Collins (New Zealand National Party â Member for Papakura)
- Hon Marama Davidson (Green Party of Aotearoa / New Zealand â List Member)
- Sir Rt Hon Trevor Mallard (New Zealand Labour Party â List Member)
- Hon David Parker (New Zealand Labour Party â List Member)
- David Seymour (ACT New Zealand â Member for Epsom)
- Rawiri Waititi (MÄori Party â Member for Waiariki)