On Budget Day Finance Minister, Hon Bill English, went on-line for live Internet chat to answer questions on the Budget's conten

Bill Birch Finance

1999 Bill English {public msg}
hullo everyone - ready to answer the questions. I'm even doing my own typing so please forgive the odd problem

XTRAhost {public msg}
Welcome everybody to Budget 99 Chat on XTRA with The Hon. Bill English, Minister of Finance.

nickeroo {question presented}
do you feel that the concession to paid parental leave is enough? It doesn't appear to favour women with careers.

XTRAhost {public msg}
To put a question to the Minister please type your question, and it will be placed in the queue.

Bill English {public msg}
The tax credit is intended to avoid discriminating between "career women" and other women in working families. You are right, but that's what we want.

b0fh {question presented} Why did you remove stamp duty when you could have used that money to fund a financial literacy program in schools?

XTRAhost {public msg}
Budget Snippet 01: $2.2 billion surplus with sale of Contact Energy

Bill English {public msg}
Agriculrure isn't doing well and needs a boost. We have funded reading literacy in schools - can't do everything

Brainwashed {question presented}
How does the govt intend to finance Maori broadcasting now that broadcasting fee is being scrapped

Bill English {public msg}
We will continue the current funding of all NZ on Air activity out of general funds- its safe

DNT {question presented}
What has this budget to offer full time tertiary students, Bill?

XTRAhost {public msg}
Snippet 02: Public Broadcast Fee to be phased out over 12 months from July 1

Bill English {public msg}
The budget locks in low market interest rates and that will continue to bring student loan rates down - also a path to lower taxes so that you can afford to repay the loan when you have a job

Green_Gecko {question presented}
Why does the Govt. not pass on the research component of tertiary students' fees onton the taxpayer, given that University research is more a taxpayer good?

XTRAhost {public msg}
Snippet 03: 22.5 percent of GDP, down from 52 percent in 1991-92

XTRAhost {public msg} Budget Snippet 04: Parental tax credit up to $150 a week over eight weeks, up to $1200 in total, when a child is born

Bill English {public msg}
The taxpayer funds arounbd 70 percent of fees to recognise the benefits to the community of tertiary education and research

Scorpio_girl {question presented}
Why have you increased car registration? Isn't it high enough already?

Bill English {public msg} We want to bring in competition for accident insurance for motorists to get costs down in the long run - this prepares the way. Even with this increase the cost of running a car for the average family has dropped by $1000 in the last year

Janey99 {question presented}
So are no increases in personal tax rates planned? What about any decreases planned for the future?

Bill English {public msg}
Labour is proposing higher taxes- we aren't. We've been careful about not promising tax reductions we can't deliver. We want to make sure we can afford good social services, and tax reductions when we can afford them over the next 3 years

Kryptryx {question presented}
You are projecting an expense to GDP ration of 35 pct. How does this compare with our trading partners?

Bill English {public msg}
Our ratio is higher than a number of trading partners, including Australia and its a lot higher than the good old days when we were rich in the 50s and 60s. However we don't aim to get it down just for the sake of it.

Nemesis. {question presented}
Is it true that under six are going to lose free GP services?

Bill English {public msg}
Who said that? No - free under 6's stays, and nopw the same group qualify for free prescription glasses,. We can't teach them all to read if they can't see.

XTRAhost {public msg}
Hi .. in case you've just joined we have the the Minister of Finance, The Hon. Bill English, here to answer your questions about the 99 Budget ..

Green_Gecko {question presented}
If the Government was to sell its shares in TVNZ and other remaining SOEs, with the decreased burden on the taxpayer, and increased monies coming in thru a great tax take from TVNZ as a private enterprise, would it be possible to fund a tax cut?

Bill English {public msg}
We have used the proceeds of business sales to pay off debt. We use the interest we save to fund services or tax reductions, so business sales help.

devage {question presented}
How do you plan to eradicate the balance of payments deficit?

XTRAhost {public msg}
another budget snippet: Conveyance and lease duties abolished, death duties to be removed from statutes

Bill English {public msg}
The best things we can do is help turn around the poor performance of our biggest export industry - agriculutre. Right now we are planning that with the producer boards and industry leaders.

OwenHart {question presented}
How much will the average school receive from operations grant funding increases?

XTRAhost {public msg}
and another snippet: Vehicle Testing New Zealand and the Meterological Service to be offered for sale ....

Bill English {public msg}
Schools will get 1.6 percent $10million plus extra IT funding $25m spread over about 3000 schools - do the maths!

kindee {question presented}
What has been provided in the budget for early childhood education?

XTRAhost {public msg}
More -- this time from the education front: $25 million funding pool to encourage schools to invest in infotech and connect to the Net ..

XTRAhost {public msg}
More -- on employment: At least 100,000 new jobs created over the next three years...

Bill English {public msg}
There are now about 1800 more ECE centres than in 1990 and we fund ECE according to demand - more kids, more money. We expect to spen another $22million next year, on top of $295 million now

Eustacia {question presented}
Why havent you brought in a universal student allowance?

XTRAhost {public msg}
Another snippet: An extra $8.2 million over three years for Maori land and business development, subsidised Maori industry-based training programme.

Bill English {public msg} Because like most of our other income support, its income tested - the oppostion have let the student down = promised this for ages and now they've backed out

Scorpio_girl {question presented}
How do you intend to make the 100,000 new jobs over the next 3 years that your proposing? Is this possible?

XTRAhost {public msg}
More from the Budget: Youth Prisons: $17.7 million over three years to develop special youth prison facilities...

Bill English {public msg}
Yes it is possible. Every wekk since 1991 NZ has created 600 new jobs on average. We predict 3 percent growth for three years and that should create jobs about the same rate.

scarlett {question presented}
how are you going to encourage people to go and get work?the minimum wage is a joke isnt it dosent cover cost of going to work

XTRAhost {public msg}
R&D Snippet: An extra $28.1 million for science and technology in the next three years...

XTRAhost {public msg}
More expensive motoring: Motor vehicle registration fee increase of $47.50 per year from July 1...

Bill English {public msg}
We are moving to customised support for all people on benefits who can reasonably be expected to be looking for work. Lower tqxes for working people will help too.

devage {question presented}
Why was money taken away from mental health last year when we have the second highest male youth sucicide rate in the western world?

Bill English {public msg} Monsy was not taken form mental health last year. Infact mental health spending has about doubled in the last 4 years. If money was the answer to youth suicide, we'd all be very grateful.

Scorpio_girl {question presented}
What provisions have been made for healthcare in this year's budget?

XTRAhost {public msg}
More education funding: 200 new primary classrooms and 80 new secondary classrooms in the coming year. Five new secondary schools to open by 2004-2005 ..

XTRAhost {public msg}
Increased health funding: An extra $2.8 million for children with mental health problems...

Bill English {public msg}
There's a big capital budget for new and done up hospitals. $25mill for 9000 more operations, general increase of around $250million for all services on top of the $577 mill increase the year before - health isn;t being cut!

DeanB {question presented}
The Budget talks about more funding for hospitals. Is funding in this Budget for a new hospital in Wellington definite?

Bill English {public msg}
Yes, funding will be available when the decisions are made. Wellington Hospital is a disgrace.

scarlett {question presented}
wouldnt it be better to spend money on prevention of youth crime than more prisons

XTRAhost {public msg}
Further health funding: An extra $75 million over three years for mental health and an extra $25 million in -2000 for elective surgery.

Bill English {public msg}
Yes, but we have to do both. The youth prisons are intended to get young people out of adult prisons where they learn how to be worse, or in some cases kill themselves. Our prevention progs are also being expanded especially for Maori youth.

Brainwashed {question presented}
isn't more money for youth prisons equivalent to an ambulance at the bottom of the cliff?

Bill English {public msg}
Yes it is, but there are people at the bottom of the cliff and we can;t drive past.

Brainwashed {question presented}
How has the cost of running a family car dropped $1000 in the past year?

Bill English {public msg}
Look at the latest AA magazine - sets out all the detail. Its a mixture of lower petrol prices, lower purchase costs of up to $5000

J.R.D {question presented}
Why are Vehicle Testing New Zealand and Meterological Service to be offered for sale?

Bill English {public msg}
Because we don't need to own them and they will do better with more entrepreneurial owners. Why do we want to own a chain of garages? Both are competing against good hard working NZ small businesses with an unfair advantage.

OwenHart {question presented}
Why has every Reasearch, Science and Technology catergory apart from horticulture had it's funding increased?

Bill English {public msg}
I wasn't aware of that. We have funded a general increase of $28mill RST. There will certaibnly be some arguments about how it is allocated

M_Poulsen {question presented}
This budget shows good economic management. Is spends more on social services AND it cuts taxes. How confident are you of your projections and what risks to you see

XTRAhost {public msg} Budget 99 also sets aside more money for crime "hot-spot" teams, targeting burglary, car theft and violent offending, security officers in courts at

XTRAhost {public msg} risk of security breaches.

Bill English {public msg}
We are reasonably confident of the forecasts. Risks are mainly to do with further drought holding back export growth, and US or Asian economies not doing as well as we expect.

Beks {question presented}
What about the concern over rising electricity prices? There was no indication in the budget today about that?

Bill English {public msg}
We will be setting out our position on electricity prices next week.

OwenHart {question presented}
Is Helen Clark right that the teritary education sector hasn't seen enough attention in the budget?

XTRAhost {public msg}
Budget snippet: More money is provided to help "at-risk" children in schools, and for youth mental health ...

Bill English {public msg}
We have put more emphaisis on primary and secondary schools- every child needs a good start, or they don;t even get the choice of tertiary.

Lynniie {question presented}
Does the funding in IT for Schools include Funding for ongoing costs like system admins or technicians salary, upgrades and repairs?

Bill English {public msg}
A school will get the funding when it shows it has a technology plan. Its not just about hardware - its also about teacher skills and improved learning systems in the school - funding caould cover all of those

Lynniie {question presented}
What funding will there be to train the teachers how to use the internet?

Bill English {public msg} The technology funding can be used for that if its part of a plan for the school. Maybe we should pay smart 10 year olds to do it.

Scorpio_girl {question presented}
How are you proposing to help Maori landowners and will if disadvantage Pakeha?

Bill English {public msg}
Maori owners often have trouble secudring finance because they can have hundreds of people owning one block of land - we want to help, but it won;t not at the expense of other owners

motley {question presented}
How does the Government justify an increase in the vehicle registration fee. It seems to be taking away the money New Zealand would have been saving with the cut in the Broadcasting fee. A long overdue cut I might add

Bill English {public msg}
Answered this earlier. We want to make accident insurance for motorists competitive and this is the start. Motorists already face a long term liability of over $1billion for the costs of past accidents.

nickeroo {question presented}
On paid parental leave - aren't you discouraging so-called "career" women from having children though, by not providing any realistic incentive for them to return to the same employer?

Bill English {public msg}
We would argue its the employers job to encourage women to retuen to the same job - most employers have a long way to go. Our measure doesn't discrminiate between women who work and women who don't like paid parental leave does.

kindee {question presented}
Has the level of funding per child attending an early childhood centre increased?

XTRAhost {public msg} Debt to go down from 52 percent in 1991-92 to 22.5 percent of GDP ...

Bill English {public msg}
For some kids it will. There is a general increase of around $20 mill - can't give you the detail you need.

Psychol {question presented}
Does the Government accept that charging tertiary students interest on their existing Student Loan balances while studying unfairly disadvantages students who undertake postgraduate study. If so, why did the budget not address this?

XTRAhost {public msg}
ajor budget point: Parental tax credit up to $150 a week over eight weeks, up to $1200 in total, when a child is born...

Bill English {public msg}
No we didn't change it. Don't want to see students borrow interest free than put int in the bank to earn interest.

Tuatara {question presented}
How do the Treasury fiscal forecasts compare to the more pessimistic ones published by the Reserve Bank yesterday?

Bill English {public msg}
They are more optimistic because they are based on more recent information.

wondermum {question presented}
I am aware of "at risk" children that are not being seen by the appropriate agencies for months leaving problems to grow larger - will this "extra money" target these problems?

Bill English {public msg}
Yes - we are keen to get govt services for at risk kids better organised- very aware of the problems.

Bill English {public msg}
I now have to go back to the debating chamber. Thanks to Xtra for hosting this and for all the questions - like to do it again some time. Its a good social budget.

16:58:10 XTRAhost {public msg}
Thanks to The Hon. Bill English for making possible this historic chat session ...