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Budget 2016 is a forward-looking Budget that invests in a growing economy

(All figures for four years to 2019/2020 unless otherwise stated)

Budget 2016 invests in a growing economy with significant new funding for innovation, infrastructure, the health sector and the most vulnerable New Zealanders while still managing the finances tightly and repaying debt, Finance Minister Bill English says.

“We have solid economic growth and the Government’s books are in good shape – giving us options we didn’t have eight years ago. This Budget makes positive long-term choices that will strengthen our economy and our communities,” Mr English says.

Budget 2016 will see record investment in health and education and more support for businesses to create jobs on the back of a growing economy, Prime Minister John Key says.

“Our eighth Budget shows rising surpluses and falling debt, with the economy forecast to grow at 2.8 per cent over the next five years on average through to 2020.

“This means more jobs and higher incomes and more capacity for the Government to support New Zealanders through better public services and a more confident and prosperous country.

An additional $9.6 million over four years will provide for more Māori and Pasifika Trades Training (MPTT) as demand for the programme continues to grow, Tertiary Education, Skills and Employment Minister Steven Joyce and Maori Development Minister Te Ururoa Flavell say.

“This funding will provide places for 2,500 young Māori and Pasifika learners in MPTT programmes this year, and 3,400 next year, up from just 1,200 in 2014,” Mr Joyce says. 

Budget 2016 will provide $14.4 million over four years for more apprenticeship training, Tertiary Education, Skills and Employment Minister Steven Joyce announced today.

“A strengthening labour market, a rebuilt industry training system and improvements in school achievement are resulting in greater demand for apprenticeships, as young people rightly see them as a great way to get into, and stay in, a rewarding career,” Mr Joyce says.

Budget 2016 contains new funding to help pacific youth find work or take up suitable training programmes, Pacific People’s Minister Peseta Sam Lotu-Iiga says.

$4.6 million is being allocated over four years to the Pacific Employment Support Services (PESS) to help young pacific people in Auckland find work.

“The programme identifies young people who need help. Staff place them in training programmes, then in to work or further qualification-based training,” Mr Lotu-Iiga says.

Budget 2016 will invest $46 million of operating funding over four years to better support victims and prevent sexual violence, Justice Minister Amy Adams and Social Development Minister Anne Tolley say.

The $46 million in total funding, of which $6.4 million is reprioritised funding, will be used to design and implement new sexual violence services and maintain existing services.

The Government will increase funding for health research by $97 million over the next four years, Science and Innovation Minister Steven Joyce and Health Minister Jonathan Coleman announced today.

“The annual amount available for health research through the Health Research Council (HRC) will increase by 56 per cent over four years - from $77 million in 2015/16 to $120 million in 2019/20,” Mr Joyce says.

Science and Innovation Minister Steven Joyce today announced $15 million of additional funding over four years for two schemes that speed up the commercialisation of new clever technologies developed by scientists and entrepreneurs around New Zealand.

“Encouraging the development of new export-oriented high-tech businesses is a key part of the innovation stream of the Government’s Business Growth Agenda,” Mr Joyce says.

Budget 2016 will provide $25 million in additional funding over the next four years to ensure the New Zealand Cycle Trail, Nga Haerenga continues to offer a world-class visitor experience, Prime Minister and Tourism Minister John Key announced today.

The investment is part of a $45 million tourism package in Budget 2016 to further support tourism’s contribution to economic and job growth in regions across New Zealand.

An extra $20 million will be invested over four years to maintain momentum in high performance sport and boost Drug Free Sport NZ, Sport and Recreation Minister Jonathan Coleman says.

“We have a world class high performance sport system, and Rio 2016 is shaping up to be our most successful Olympic Games,” Dr Coleman says.

“A $16 million investment in Budget 2016 over four years will enable High Performance Sport NZ to leverage all the work and preparation for Rio as we look ahead to the next Olympics in Tokyo in 2020.

The Government will invest an additional $20 million over four years to further support tourism across New Zealand, Prime Minister and Tourism Minister John Key announced today.

“This funding builds on the wide range of Government support already in place to assist the sector to provide high-quality experiences that attract high-value visitors all year round,” Mr Key says.

Good afternoon everyone. It’s a pleasure to be with you again.

Thank you to the Wellington Employers’ Chamber of Commerce for once again organising this pre-Budget lunch.

Budget 2016 will include a wide range of initiatives that build on the good progress we’ve made over the previous seven Budgets.

It will have a strong focus on investing in a growing economy – further advancing the work we’ve been doing to support a more productive and competitive economy through the Business Growth Agenda.

An extra 1250 students will benefit from extra teacher aides thanks to a $15.3 million Budget 2016 funding increase for in-class support, Education Minister Hekia Parata announced today.

“The operating funding increase, to be spread over four years, will ensure that students with a range of learning difficulties receive support tailored to their individual learning needs,” Ms Parata says.

The Māori Housing Network is to receive a $12.6 million boost over the next four years, helping more whānau to realise their housing aspirations, Maori Development Minister Te Ururoa Flavell says.

“Māori are over-represented in housing deprivation statistics and this increase in funding would allow the Network to help more whānau in need,” Mr Flavell says.

“The Māori Housing Network is about ensuring whānau have access to safe, secure and healthy homes which in turn improve their health and wellbeing.”

For the first time, the Government will pay for about 3000 emergency housing places across the country per year so people have access to a roof over their head when they need it most.

The Government will provide $41.1 million over the next four years in Budget 2016 for emergency housing and grants.

“Emergency housing provides an essential safety net for people in crisis, and is an opportunity to intervene and support families with complex needs,” Social Housing Minister Paula Bennett says.

The largest pest control operation in New Zealand’s history will be launched this winter in response to a pest plague which threatens vulnerable native wildlife, Conservation Minister Maggie Barry says.

Battle for our Birds 2016 will receive $20.7 million in new operating funding for 2015/16 from this month’s Budget, helping to fight back against an expected pest population boom caused by a heavy forest seeding, or mast.

On 26 May, Finance Minister Bill English delivered the National-led Government’s eighth Budget.

An investment of $22.2 million from Budget 2016 will enable a significant advancement in the country’s cyber security infrastructure, Communications Minister Amy Adams announced today.

The Government will invest $20 million of operating funding over the next four years on a new national Computer Emergency Response Team (CERT) to combat cyber-attacks and cybercrime, with an additional $2.2 million of capital for set up.

An extra $39 million will be invested in 2016/17 to enable Pharmac to provide more New Zealanders with access to new medicines, Health Minister Jonathan Coleman says.

“Pharmac’s model for increasing subsidised medicines and treatments for New Zealanders is world class,” Dr Coleman says.

“This funding boost in Budget 2016 – an extra $124 million over four years -will mean that Pharmac can further increase access to new medicines, benefiting more New Zealanders.

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017.   

“The name of the new organisation – Fire and Emergency New Zealand – reflects the wide range of services that our firefighters provide for their communities, including callouts to road accidents and natural disasters,” Mr Dunne said.

An SME-friendly tax package announced by the Prime Minister today will reduce compliance costs and make tax simpler for small businesses, Finance Minister Bill English and Revenue Minister Michael Woodhouse say.

“The package will make paying tax easier and more certain, reduce the burden of interest and penalties, and help small businesses tailor payments to their circumstances,” Mr English says.

“We want the tax system to fit in with how businesses operate, not the other way around.”

Key measures in the proposal are that:

It’s good to be back here for my annual pre-Budget speech and I want to thank Business New Zealand for hosting me once again.

This year’s Budget will be delivered against a backdrop of a growing economy, supported by strong levels of tourism and migration, a large pipeline of construction projects and low interest rates.

Notwithstanding challenges in the dairy industry, most New Zealand forecasters are predicting growth of around 3 per cent on average over the next few years.

That’s a good position for the country to be in.

Small Business Minister Craig Foss says changing the provisional tax system is yet another way the Government is helping small businesses grow and thrive.

“The tax system is a key issue for New Zealand’s small businesses — it’s consistently raised with me by business owners, local chambers and business associations up and down the country,” Mr Foss says.

“The changes announced today show the Government is focused on helping small businesses get ahead by saving them even more time and money.”