Anderton's speech to the House on Budget Day
am very proud of this Budget and I look forward to this side of the House delivering many more
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As Leader of the Progressive Party and coalition partner in this government, I want to say to the House that I am very proud of this Budget. I congratulate Michael Cullen on it and I look forward to this side of the House delivering many more.
I am proud of this Budget because it turns its back on the selfishness and 'government for privilege' that is the Opposition's only reason for being.
I am proud of it because it is a Budget for all New Zealand. I am proud because this Budget completes the decisive turn away from the disastrous policies of the eighties and nineties to which the National Party Opposition would drag us back.
I am proud of this Budget because Kiwisaver will make a dramatic difference to the wealth of individual New Zealand households.
I am proud of it because the business tax changes it introduces are the most sweeping in twenty years and the most comprehensive measure to lift innovation and productivity since I have been in this House.
I am proud of it because the Budget invests heavily in our present and future needs, without worsening the stressed parts of our economy. I am proud of this Budget because it invests in infrastructure and builds the capacity a modern economy needs. I am proud of it because it makes a deep investment in tertiary education and an investment in the skills we need to command higher incomes in a global economy.
I am proud of the initiatives this Budget is taking in my portfolio areas, in the primary sectors that form the backbone of our economy, and those protecting the vulnerable - our young people, from suicide and drug abuse.
I am proud of the Budget because it invests in better social services, in stronger health care and education.
I am proud of this Budget mostly because this is a Budget that is carefully shaped to fix New Zealand's problems:
Increasing our savings in a way that will last generations
Lifting our innovation, productivity and exports
Investing in the infrastructure we need.
Every serious problem this Budget fixes is a problem the Opposition would ignore.
We could have chosen a Budget that scratched the short-term itches; the ad hoc and ultimately damaging approach to which the National Party is still addicted.
We could have gone back to the past - to the destructive slash and burn of the eighties and nineties, as National still wants to do.
But this Budget is much better than that. This Budget will make a difference to generations of New Zealanders.
Kiwisaver is an historic scheme. It's expansion is one of the most important social programmes ever introduced in New Zealand. Kiwisaver is a very, very strong incentive to New Zealanders to save.
It is a very strong incentive to keep our talented New Zealanders here to build our future.
The challenge for the Opposition is to say how they would create savings anywhere near as comprehensive. They couldn't and wouldn't - because they don't see the need to save.
We need to save more because not enough New Zealand households have enough saved to live in retirement the way they do in their working life. What does the Opposition propose to do about that? Nothing. It proposes to ignore our poor household savings rate, because it stands only for people who already have ample savings and it doesn't care about the average New Zealand family.
We need to save more because we have a problem with interest rates and our high exchange rate. I am happy New Zealanders feel their household wealth rising, and we are enjoying the use of better cars and high quality TVs. But the inflationary pressure is burning our exporters. The interest rates are holding back our businesses. We need to move the pressure from household spending to saving.
Ever since the eighties the current account was forecast to be repaired by exporting more. All that pain we went through in the eighties and nineties - and the end result is that exporting's share of GDP is more or less the same. But the current account deficit is worse than it ever was! We do need to lift our exports; but we are not going to reduce our current account deficit until we save more.
And this Budget will make a difference to our exporters.
It invests $80 million in export market development assistance.
It cuts the company tax rate. I called for the business tax rate to be cut three years ago. In the meantime this government has addressed the highest priority tax challenges - we made sure low and middle income families got the extra cash in their hand they desperately needed, and now we need to invest in the growth of our businesses.
One reason the cut will make a difference is that there is a substantial differential between the top personal and the top corporate rate. That encourages businesses to leave more capital in their business to grow it, instead of taking the capital out as dividends.
And everyone who is arguing now for the top personal tax rate to be cut as well is actually arguing for less capital in our businesses. How will that help to grow New Zealand's economy?
So the question for the Opposition is - what is the most important challenge for New Zealand:
,li>Cutting taxes, which would only be for those on the top income tax bracket; or saving more?
Blowing the current account, increasing interest rates and bashing exporters with a still higher exchange rate, as National wants to do? Or saving more and investing in our future?
This Labour-Progressive Government is today making a further $3.4 billion investment in innovation. It gives our businesses the tools they need to compete effectively, and to make sure New Zealand becomes a much more attractive place to invest in new enterprises for the benefit of New Zealanders.
It gives our infrastructure a shot in the arm. There has never been a time in the last hundred years when we have invested as much in new roads and new rail, and now we are deepening further the pool of investment.
Budget initiatives in my primary sector portfolios support the strongly pro-business approach of this budget. We are investing in our most important industries to future-proof them from the challenges they face. Whether they be challenges in distant markets or problems down on the farm.
In November we will be holding a summit for all of the primary industries in New Zealand, which will identify emerging threats and opportunities and help keep the backbone of our economy strong.
This budget increases research and development in the primary sector. It increases capability at the border to keep out organisms that can harm our biologically-based economy.
It funds initiatives to protect rural communities from adverse weather events and erosion. This budget improves the environmental performance of the primary sector, while helping exporters to get the premiums they deserve for sustainable production.
Madame Speaker, this is a landmark budget. Saving and investing will build on our progress over the last seven years. It will continue to transform New Zealand into a more dynamic and innovative economy.
Budget 2007 provides solutions to meet challenges we face today and tomorrow and its social investment will allow New Zealand families to enjoy a better quality of life.
It strengthens our place in the world. It strengthens our economy. It strengthens security for New Zealand.
And I strongly commend it to this House.
---------------------------------
As Leader of the Progressive Party and coalition partner in this government, I want to say to the House that I am very proud of this Budget. I congratulate Michael Cullen on it and I look forward to this side of the House delivering many more.
I am proud of this Budget because it turns its back on the selfishness and 'government for privilege' that is the Opposition's only reason for being.
I am proud of it because it is a Budget for all New Zealand. I am proud because this Budget completes the decisive turn away from the disastrous policies of the eighties and nineties to which the National Party Opposition would drag us back.
I am proud of this Budget because Kiwisaver will make a dramatic difference to the wealth of individual New Zealand households.
I am proud of it because the business tax changes it introduces are the most sweeping in twenty years and the most comprehensive measure to lift innovation and productivity since I have been in this House.
I am proud of it because the Budget invests heavily in our present and future needs, without worsening the stressed parts of our economy. I am proud of this Budget because it invests in infrastructure and builds the capacity a modern economy needs. I am proud of it because it makes a deep investment in tertiary education and an investment in the skills we need to command higher incomes in a global economy.
I am proud of the initiatives this Budget is taking in my portfolio areas, in the primary sectors that form the backbone of our economy, and those protecting the vulnerable - our young people, from suicide and drug abuse.
I am proud of the Budget because it invests in better social services, in stronger health care and education.
I am proud of this Budget mostly because this is a Budget that is carefully shaped to fix New Zealand's problems:
Increasing our savings in a way that will last generations
Lifting our innovation, productivity and exports
Investing in the infrastructure we need.
Every serious problem this Budget fixes is a problem the Opposition would ignore.
We could have chosen a Budget that scratched the short-term itches; the ad hoc and ultimately damaging approach to which the National Party is still addicted.
We could have gone back to the past - to the destructive slash and burn of the eighties and nineties, as National still wants to do.
But this Budget is much better than that. This Budget will make a difference to generations of New Zealanders.
Kiwisaver is an historic scheme. It's expansion is one of the most important social programmes ever introduced in New Zealand. Kiwisaver is a very, very strong incentive to New Zealanders to save.
It is a very strong incentive to keep our talented New Zealanders here to build our future.
The challenge for the Opposition is to say how they would create savings anywhere near as comprehensive. They couldn't and wouldn't - because they don't see the need to save.
We need to save more because not enough New Zealand households have enough saved to live in retirement the way they do in their working life. What does the Opposition propose to do about that? Nothing. It proposes to ignore our poor household savings rate, because it stands only for people who already have ample savings and it doesn't care about the average New Zealand family.
We need to save more because we have a problem with interest rates and our high exchange rate. I am happy New Zealanders feel their household wealth rising, and we are enjoying the use of better cars and high quality TVs. But the inflationary pressure is burning our exporters. The interest rates are holding back our businesses. We need to move the pressure from household spending to saving.
Ever since the eighties the current account was forecast to be repaired by exporting more. All that pain we went through in the eighties and nineties - and the end result is that exporting's share of GDP is more or less the same. But the current account deficit is worse than it ever was! We do need to lift our exports; but we are not going to reduce our current account deficit until we save more.
And this Budget will make a difference to our exporters.
It invests $80 million in export market development assistance.
It cuts the company tax rate. I called for the business tax rate to be cut three years ago. In the meantime this government has addressed the highest priority tax challenges - we made sure low and middle income families got the extra cash in their hand they desperately needed, and now we need to invest in the growth of our businesses.
One reason the cut will make a difference is that there is a substantial differential between the top personal and the top corporate rate. That encourages businesses to leave more capital in their business to grow it, instead of taking the capital out as dividends.
And everyone who is arguing now for the top personal tax rate to be cut as well is actually arguing for less capital in our businesses. How will that help to grow New Zealand's economy?
So the question for the Opposition is - what is the most important challenge for New Zealand:
,li>Cutting taxes, which would only be for those on the top income tax bracket; or saving more?
Blowing the current account, increasing interest rates and bashing exporters with a still higher exchange rate, as National wants to do? Or saving more and investing in our future?
This Labour-Progressive Government is today making a further $3.4 billion investment in innovation. It gives our businesses the tools they need to compete effectively, and to make sure New Zealand becomes a much more attractive place to invest in new enterprises for the benefit of New Zealanders.
It gives our infrastructure a shot in the arm. There has never been a time in the last hundred years when we have invested as much in new roads and new rail, and now we are deepening further the pool of investment.
Budget initiatives in my primary sector portfolios support the strongly pro-business approach of this budget. We are investing in our most important industries to future-proof them from the challenges they face. Whether they be challenges in distant markets or problems down on the farm.
In November we will be holding a summit for all of the primary industries in New Zealand, which will identify emerging threats and opportunities and help keep the backbone of our economy strong.
This budget increases research and development in the primary sector. It increases capability at the border to keep out organisms that can harm our biologically-based economy.
It funds initiatives to protect rural communities from adverse weather events and erosion. This budget improves the environmental performance of the primary sector, while helping exporters to get the premiums they deserve for sustainable production.
Madame Speaker, this is a landmark budget. Saving and investing will build on our progress over the last seven years. It will continue to transform New Zealand into a more dynamic and innovative economy.
Budget 2007 provides solutions to meet challenges we face today and tomorrow and its social investment will allow New Zealand families to enjoy a better quality of life.
It strengthens our place in the world. It strengthens our economy. It strengthens security for New Zealand.
And I strongly commend it to this House.