2. SHANE JONES (Labour) Link to this
to the Minister of Finance
What reports has he received on the Crown’s financial position?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The current financial statements for the end of March show that the Government, including the New Zealand Superannuation Fund—probably for the first time in our history—is in a net positive financial asset position.
Hon Dr MICHAEL CULLEN Link to this
The main factors have been prudent operating and capital spending, strong economic growth, and, particularly over the last year, the returns earned by the Crown financial institutions, including the New Zealand Superannuation Fund. At 31 March its balance was $9.2 billion.
John KeyCan the Minister confirm that when his Government came into office expenses were approximately $40 billion a year, and that this year expenses for his Government will be approximately $64 billion a year; and rather than his being in some sort of self-congratulatory exercise of being a fiscal conservative, why does he not accept and understand that he has been the recipient of over $350 billion of tax revenue in the last 6 years, of which he has managed to waste a great amount?
Hon Dr MICHAEL CULLEN Link to this
The only expenditure I seriously regret is that on the National Party over the last 6½ years, from which there has not been a single return to the New Zealand taxpayer. In fact, expenditure and revenue—particularly expenditure—remain roughly constant as a proportion of GDP and have gone down slightly over the last few years. But, of course, every day of the week members opposite issue press statements calling for more spending in every area they are responsible for.
Gordon CopelandHow does the Minister justify continuing to allow personal tax rates to increase in real terms, whilst the Crown’s coffers overflow with previously undreamt of riches, and can hard-working Kiwis happily expect a well-deserved tax break in the Budget?
Hon Dr MICHAEL CULLEN Link to this
On the latter point, no. On the former point, those people who have been arguing that the Government will always run cash surpluses had better wait until Thursday afternoon next week. Starting at 2 p.m., the show is on here.
Jeanette Fitzsimons Link to this
Will the Minister take the opportunity represented by the 300 million - plus higher-than-expected operating surplus to invest in future-proofing the New Zealand economy against rising oil prices, climate change, and an ageing population by completing woefully lacking public transport systems in our cities, upgrading the rail system, and preventive health-care strategies?
Hon Dr MICHAEL CULLEN Link to this
The member will have to wait until Thursday afternoon next week to see what the Government’s plans are on those and, indeed, on any other areas.
Hon Dr MICHAEL CULLEN Link to this
It is not long to wait, even for the young and restless like Mr Key. It is only a matter of a week or so. [ Interruption] But I say further—when the young people opposite have decided to calm down just for a moment or two—that one cannot go around spending the increase in operating surplus that comes from the profits of investments in Crown financial institutions. Those are all in funds for dedicated purposes—all of which have liabilities that exceed their assets.
Hon Dr MICHAEL CULLEN Link to this
Yes, I have seen three. One report confirmed that a policy of $11 billion in tax cuts, funded by significant borrowing, is still being pursued. A second report said that that figure was quite wrong; and the third suggested that lasting tax cuts were not possible. The first was from John Key, the second from Gerry Brownlee, and the third from Don Brash.
Can the Minister confirm that the deep, dark secret of Budget 2005 was tax cuts, and they have never arrived, and that the deep, dark secret of Budget 2006 is local loop unbundling, and it has arrived before the Budget?
Hon Dr MICHAEL CULLEN Link to this
There are a number of local loops opposite that I would love to unbundle!