Budget 2006

No Minister No Portfolio

Budget 2006 is my seventh as Minister of Finance.

It continues the progress the government has made in the previous six budgets in transforming the New Zealand economy and improving the living standards of families young and old. New Zealanders are wealthier, healthier, better educated and better protected in the workplace and on the street. 

Budget 2006 delivers on our promises to the electorate and maintains a responsible approach to fiscal management.

Michael Cullen

Minister of Finance

Budget Speech and Media Statements

The Budget Speech

18 May 2006: Speech: Finance

Transforming New Zealand

18 May 2006: Media Statement: Prime Minister

Budget 2006 is based on the Labour-led government’s clear vision to transform New Zealand and reinforces the government’s work of the past six and a half years

Prime Minister's Budget speech

18 May 2006: Speech: Prime Minister

Delivering on commitments, investing for the future

18 May 2006: Media Statement: Finance

Budget 2006 underlines the Labour-led government's wise economic management, which provides the flexibility to continue to make important social and infrastructural investments to improve the quality of life of all New Zealanders


Economic Transformation

The Labour-led government has led New Zealand through six years of strong economic growth, which has been well ahead of the OECD average. New Zealanders are now wealthier, healthier, better educated, safer in the workplace and on the street, and better connected to the global economy.


Major boost for land transport funding

18 May 2006: Media Statement: Transport

The government's land transport spending is increasing to $13.4 billion over the next five years to guarantee and accelerate New Zealand's largest ever road building programme. Budget 2006 allocates an extra $1.3 billion to guarantee the state highway programme and to speed up work on major projects to ease traffic congestion in Auckland, Wellington, and Christchurch

Tertiary sector vital for economic transformation

18 May 2006: Media Statement: Tertiary Education

Budget 2006 reinforces the Labour-led government's commitment to revitalise tertiary education and training to ensure we have quality institutions producing skilled graduates needed for a modern economy. In the next financial year the tertiary sector will absorb $2.9 billion of operational expenditure.

Training for industry to boost skills development

18 May 2006: Media Statement: Tertiary Education

Budget 2006 invests an extra $58 million to ensure New Zealand produces more workers with the skills needed to raise productivity and transform the economy

Improving skills of the workforce

18 May 2006: Media Statement: Tertiary Education

Budget 2006 provides $33.5 million over the next four years towards improving the literacy, numeracy and language skills of the workforce. Some 330,000 New Zealanders have very low literacy and numeracy skills and Maori and Pacifika people are over-represented in this group.

Further financial help for students

18 May 2006: Media Statement: Tertiary Education

More than 10,000 students will receive extra financial help as a result of Budget 2006 as the Labour-led government continues its drive to make tertiary education more affordable for more New Zealanders. Students will benefit from an extra $31.1 million over the next four years in new funding that will increase the number eligible for student allowances and available bonded merit scholarships

Supporting firms to break into offshore markets

18 May 2006: Media Statement: Economic Development

New Zealand firms trying to crack key markets overseas will get an extra helping hand from Budget 2006 with a $64.2 million increase in market development assistance

Venture capital for young high growth firms

18 May 2006: Media Statement: Economic Development

Budget 2006 delivers a $60 million boost to the government's Venture Investment Fund providing further help for young New Zealand firms with high growth potential.

Driving innovation through science

18 May 2006: Media Statement: Research, Science and Technology

Driving innovation in the New Zealand economy is the focus of a $100 million increase in research and science funding over the next four years

Funding to boost promotion of New Zealand

18 May 2006: Media Statement: Tourism

Budget 2006 provides an extra $63.7 million over the next four years to enable Tourism New Zealand to undertake more promotion of the New Zealand experience to potential visitors overseas.

Protecting consumers and investors

18 May 2006: Media Statement: Commerce

Budget 2006 boosts the funding for court cases so the Commerce Commission and the Securities Commission can better protect consumers and investors. The Commerce Commission Litigation Fund increases by $7.8 million over the next two years lifting the available funds for cases if required to $10.8 million.

Securing our energy future

18 May 2006: Media Statement: Science, Research and Technology; Energy

Budget 2006 significantly increases funding to help secure New Zealand's future energy needs. Additional funding has been allocated for energy research and a programme aimed at encouraging exploration by oil companies,

Protecting workers from hazardous substances

18 May 2006: Media Statement: Labour

Budget 2006 continues the Labour-led government's commitment to making workplaces safer by funding programmes to manage hazardous substances. The funding of $6.6 million over the next three years means hazardous substances will continue to be safely managed in workplaces and expertise will be retained within local government and the community


Families, Young and Old

It is vital that all families, young and old, enjoy more opportunity and security and share in the progress New Zealand is making. Budget 2006 confirms that the Labour-led government has the policies to achieve these goals. Over the next four years the government will spend an additional $5.8 billion of operating expenditure and an additional $460 million in capital expenditure under the Families theme.


A health budget for all New Zealand families

18 May 2006: Media Statement: Health

This year's $750 million of additional health funding represents a major investment in New Zealand families, providing for a $3 billion increase to the health budget over four years and funds major new investments in the aged-care sector and historic initiatives in child health and obesity prevention.

A healthier future for young New Zealanders

18 May 2006: Media Statement: Health

Improving the health of young New Zealanders is the aim of a four-year $80.4 million child health package in Budget 2006. The package includes a strengthened child and adolescent oral health service, an expansion of Well Child checks and the creation of a universal newborn hearing screening programme.

Caring for older New Zealanders

18 May 2006: Media Statement: Health

Budget 2006 delivers $126 million over the next four years towards improving home-based support services and age-related residential care for older New Zealanders. This comprises $58 million for home-based support services and $68 million for age-related residential care.

$76 million campaign to fight the obesity epidemic

18 May 2006: Media Statement: Health

New Zealand will undertake the largest campaign to fight obesity in our country's history as the result of a $76.1 million four-year investment through Budget 2006

Strengthening New Zealand schools

18 May 2006: Media Statement: Education

The Labour-led government will boost teacher numbers and put more resources into schools, with an investment of $361 million over the next four years, plus $20 million in the current financial year

Quality and access in early childhood education

18 May 2006: Media Statement: Education

Putting quality early childhood education within the reach of all New Zealand families is the focus of a $162 million investment over four years

Transforming the learning environment

18 May 2006: Media Statement: Education

Schools will be able to use the latest technology to transform the learning experience for students as a result of Budget 2006 delivering $33 million over four years. The package includes capital funding of $9 million over the next two years.

Safer families and communities a top priority

18 May 2006: Media Statement: Joint Social Development; Child, Youth and Family; Justice; Education; Police

The Labour-led government wants all New Zealanders to grow up in safe and secure families and communities. That is why Budget 2006 commits an extra $68.8 million over the next four years to programmes to help reduce violence.

More than 2000 homes added over three years

18 May 2006: Media Statement: Housing

More than 2000 houses will be added to the state housing network over the next three years as part of Budget 2006

ACC funding to improve treatment outcomes

18 May 2006: Media Statement: ACC

Budget 2006 increases ACC funding for a range of rehabilitation and treatment providers to help improve the well being of those in need in the community. Home-based rehabilitation funding will increase by $5.5 million and ACC contributions towards specified treatment providers will increase by $12.9 million, both over the next four years.


National Identity

A unique national identity is emerging. It is one which all New Zealanders can take pride in. We are creative, competitive, and willing to stand up for what we believe in. We have a "New Zealand way" of doing things. It is about who we are, what we do, where we live, and how we are seen by the world. The Labour-led government is working hard to develop this.


Support for arts and culture to increase

18 May 2006: Media Statement: Arts, Culture, and Heritage

Creative New Zealand’s core funding has been increased by $10 million over the next four years. Budget 2006 increases Creative New Zealand's baseline funding by $2.5 million per annum over the next four years and ensures the level of support which has been possible because of one off funding last year, can be maintained over the next four years. This increases the organisation's annual direct government funding to $15.5 million, up from just $2.4 million in 2000.

Enhancing New Zealand broadcasting

18 May 2006: Media Statement: Broadcasting

The Labour-led government continues its strong investment in public broadcasting with funding of $24.9 million over the next four years, Broadcasting Minister Steve Maharey said today. The funding will go towards the production of high quality local television through NZ On Air, as well as measures to strengthen the Pacific elements of New Zealand's broadcasting sector.

Meeting defence needs at home and abroad

18 May 2006: Media Statement: Defence

Budget 2006 highlights the government's commitment to ensuring New Zealand meets its defence and security needs at home and abroad. The Defence Force will receive an extra $72.8 million in 2006/07 in the second instalment to meet the objectives outlined in the ten-year, $4.6 billion Defence Sustainability Initiative, Defence Minister Phil Goff said

Budget Boost for Foreign Affairs, Development Assistance

18 May 2006: Media Statement: Foreign Affairs

Budget 2006 backs the government’s commitment to strengthening New Zealand's international engagement, and tackling security and development challenges, particularly in the Pacific. Official Development Assistance will increase by $84 million to $1.4 billion over the next four years

More money for safer borders

18 May 2006: Media Statement: Immigration

Budget 2006 provides additional funding to better protect New Zealand's borders and improve immigration outcomes. The budget allocates an extra $16 million over four years to border security measures. Immigration plays a vital role in driving economic transformation but it is equally important that we only let in people that are best for New Zealand and that our borders are protected

Funding boost for sport and recreation

18 May 2006: Media Statement: Sport and Recreation

Government funding for sport and recreation is set to increase from $50.8 million in 2005/06 to almost $58 million in 2006/07, Minister for Sport and Recreation Trevor Mallard announced today. The package, largely announced in previous budgets, boosts funding for elite athletes, regional sports development and active living programmes

$311 million to be spent on conservation

18 May 2006: Media Statement: Conservation

The Labour-led government is spending $311 million on conservation in 2006/07. Conserving our natural heritage and access to it is a priority for the Labour-led government. Conservation is all about the preservation and restoration of the life and landscapes that make New Zealand what it is.

Investing in Maori Potential

18 May 2006: Media Statement: Maori Affairs

Budget 2006 introduces new steps that underline the government's innovative approach to improving the social and economic well being of Maori

Help to revitalise Pacific languages

18 May 2006: Media Statement: Pacific Island Affairs

The government will spend $600,000 over the next three years on a programme to revitalise the Cook Islands, Niue and Tokelau languages that are at risk of becoming extinct in New Zealand.


Pre-Budget statements and speeches by Michael Cullen

Pre-Budget Speech to Canterbury Manufacturers

Speech: 4 May 2006: Finance

Budget 2006 will offer more of the same fiscal prudence, steady economic management, and economic progress to strengthen communities, families and our sense of national identity

Net debt free status reflects wise fiscal management

Media Statement: 4 May 2006: Finance

The government has become a net saver

Pre-Budget Announcements

Funding Set Aside for Buy Kiwi-Made Programme

15 May 06: Media Statement: Economic Development, Buy Kiwi-Made

Funding of $11.5 million will be made available over the next three years to fund a Buy Kiwi-Made programme, Economic Development Minister Trevor Mallard and Government Spokesperson for Buy Kiwi-Made Sue Bradford announced today. The Buy Kiwi-Made programme was part of the post election cooperation agreement between the Government and the Green Party.

$16.4m more for council and community-based housing

16 May 2006: Media Statement: Housing

Housing Minister Chris Carter today announced a $16.4m increase in funding for new and renovated houses provided by local councils and community organisations.

Funding For 1250 New Police Will Reach $500 Million

16 May 2006: Media Statement: Police

The Government has committed a total of $164.3 million in operating costs and $52.3 million in capital costs over the next four years for the first tranche of the 1000 frontline sworn police and 250 non-sworn police promised under its confidence and supply agreement with New Zealand First. Of the new funding, $33.9 million is being funded from the National Land Transport Fund, and is specifically dedicated to road policing.

New funding to plan fisheries management

15 May 2006: Media Statement: Fisheries

Budget 2006 will improve management of New Zealand's fishing resources and protection of our marine environment

Budget funding to improve services for victims of crime

14 May 2006: Media Statement: Justice

$10.8m will help to ensure victims of crime have access to effective support services

Shake-up for Leaky Homes Service

12 May 2006: Media Statement: Building Issues

Building Issues Minister Clayton Cosgrove announces a major shake-up of the Weathertight Homes Resolution Service that will stop gaming of the system, hold building industry professionals to account and get leaky homes fixed faster.

$20.5 million for enhancing New Zealand's environment

11 May 2006: Media Statement: Environment; Research Science and Technology

Cleaning up contaminated sites and enhancing biodiversity and biosecurity are the focus of $20.5 million in Budget funding

NZ’s historic heritage protection gets a big boost

11 May 2006: Media Statement: Arts, Culture and Heritage

New Zealand’s ability to protect and preserve its heritage sites is to be strengthened significantly, with $12.8 million of new operating funding for Historic Places Trust over the next four years, with an extra $600,000 in this 05/06 financial year in supplementary funding.

Biosecurity funding boosted by $33.2 million

10 May 2006: Media Statement: Biosecurity

Budget 2006 significantly strengthens New Zealand's ability to safeguard its major export earners from pests and diseases, with an extra $20 million for major biosecurity response preparedness and $13.2m for pest management and invasive ant species surveillance, over the next four years.

More money for family violence prevention services

Media Statement: 10 May 2006: Child Youth and Family Services

A pre-Budget announcement from Child Youth and Family Services Minister Ruth Dyson.

National Library gets Budget go ahead to plan major expansion

Media Statement: 9 May 2006: National Library

The National Library will be funded to evaluate redevelopment options, says Judith Tizard

Boost for Treaty settlements

Media Statement: 7 May 2006: Treaty Negotiations:

The government's target for all historical Treaty claims to be lodged by 2008 and settled by 2020 will get help from new funding in Budget 2006

$9.5 million to improve behaviour in schools

Media Statement: 4 May 2006: Education

Schools will get more help in efforts to tackle disruptive behaviour, with new funding of $9.5 million over four years

Government moves fast to improve Broadband

Media Statement: 3 May 2006: Communications

New Zealanders can look forward to faster, better broadband Internet services thanks to the comprehensive telecommunications package -- a vital part of the Government's drive to transform the economy and push New Zealand's broadband performance into the top quarter of the OECD.

Farmers to get $2.2 million help to go organic

Media Statement: 27 April 2006: Agriculture

Converting to organic farming will now be easier thanks to funding for an organics advisory service

Campaign to end meningococcal epidemic extended

Media Statement: 10 April 2006: Health

The hugely successful Meningococcal B immunisation campaign will continue past 30 June as a result of $22 million in Budget 2006