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Budget 2011 delivers $7.3 million of reprioritised funding over four years to drive more effective, more efficient services for sexual and reproductive health.   

“This will deliver improved sexual and reproductive health for New Zealanders,” says Associate Health Minister Tariana Turia.

The Department of Conservation will receive $1.5 million in Budget 2011 to help the Te Araroa Trust substantially complete the Te Araroa Trail Long Pathway from Cape Reinga to Bluff, Conservation Minister Kate Wilkinson says.

The funding has been reprioritised from Vote Tourism and will enable the Trust to substantially complete a number of  sections of the trail totaling 244km.

Community and Voluntary Sector Minister Tariana Turia today announced a new initiative to support community-led development.

The announcement was made on Radio Waatea this morning.

“Community-led development puts communities at the centre of funding decisions and it allows the Government opportunity to invest in communities in a holistic way, rather than merely funding individual organisations and projects. It empowers local communities to generate local solutions to local problems.

Social Development Minister Paula Bennett has announced $43.7 million for services for children in care as part of the Government’s focus on children.

“My heart sings when I think about the massive investment we are putting into some of our most vulnerable children,” says Ms Bennett.

“Our youth justice system and jails contain individuals who were abused and neglected as children, so putting resources into this vulnerable group is vital.”

Finance Minister Bill English leaves on 23 May for Singapore and Hong Kong, where he will speak to business, investment and political leaders about New Zealand’s progress in building faster growth and higher national savings.

“Budget 2011 sets out a faster path to healthy surplus in 2014/15 - a year sooner than expected last year, despite the large costs involved in our commitment to rebuild Christchurch,” Mr English says. “Given the significant challenges we have faced in the past three years, this achievement should not be under estimated.

Ladies and Gentlemen

I am very proud to be leading a Government that is doing the right thing by New Zealanders.

And I am proud to be leading a Government that has faced the challenges of the last few years and is putting New Zealand on a path to stronger and more sustainable growth.

Yesterday’s Budget was another firm step on that path.

The plan the Budget sets out is very clear.

First, it’s about getting the government’s finances in order.

The Government will invest an additional $30 million in Whanau Ora over the next four years, including $11.25 million in the coming year, Whanau Ora Minister Tariana Turia says.

The funding includes $25 million allocated in Budget 2011 and, subject to final Cabinet approval, another $5 million of reprioritised Māori Potential funding from within Vote Māori Affairs.

“The funding will maintain the momentum created by the Whanau Ora approach, with opportunities to extend coverage across the country,” Mrs Turia says.

Associate Health Minister Tariana Turia today announced a $12 million programme to reduce the rates of rheumatic fever in more vulnerable communities.

“This is an entirely preventable disease that can have serious consequences for children during childhood and throughout their lifetime. A simple sore throat can lead to permanent heart damage,” Mrs Turia says.

“The rates of rheumatic fever are now 14 times higher in New Zealand than in any other OECD country and we simply must do something about that.

Budget 2011 will ensure the Government maintains momentum with its Māori Affairs programmes, which are delivering encouraging results, Māori Affairs Minister Pita Sharples says.

“Within existing baselines, we have found $2 million to support Māori engagement with the constitutional review and $2 million to continue community-driven language revitalisation projects,” Dr Sharples says.

Budget 2011 will provide significant capital and operational funding to strengthen delivery of school and community-based Māori language initiatives, Associate Education Minister Pita Sharples says.

It will also help teachers to engage better with Māori students, improve literacy teaching, and support Kura Kaupapa Māori.

Budget 2011 provides new funding for Māori education:

New Budget funding of $27.6 million over the next two years for igovt services will help deliver better public services more efficiently.

“The igovt services provide an easy and secure way of accessing government services online and proving identity,” Internal Affairs Minister Nathan Guy says.

“Using one log-on means people no longer have to remember multiple details for different sites, and being able to verify identity online saves the hassle of having to show multiple forms of ID to agencies.

The $119.3 million allocated over four years in Budget 2010 to help Inland Revenue chase down tax evaders has already helped assess or bring in an additional $115.2 million of tax in the first nine months.

“This is well ahead of the targets set,” Revenue Minister Peter Dunne says.

The extra funding has been used for Inland Revenue audits focused on seasonal workers, the hospitality industry and the property sector, with an additional $46.8 million of tax assessed between July 2010 and 31 March 2011.

Budget 2011 signals measures to ensure fairer treatment of employee benefits, new rules for mixed-use assets, and a new approach to livestock valuation elections for farmers, Revenue Minister Peter Dunne 

Employee definitions of income

Building on the Budget 2010 changes to improve the integrity of the tax system, two further aspects of the tax and social assistance treatment of non-cash benefits are to be examined for fairness.

The Government will change the thin capitalisation rules for foreign-owned banks, with the minimum prescribed percentage of equity for tax purposes increasing from 4 per cent to 6 per cent from 1 April 2012.

“The change is part of the Government’s continuing focus on ensuring that all taxpayers pay their fair share of tax,” Revenue Minister Peter Dunne says.

“The effect of these rules is to limit foreign-owned banks’ interest deductions against the New Zealand tax base.

Budget 2011 includes an extra $3.5 million in operational funding for SmartGate, Customs Minister Maurice Williamson says.

The Budget also provides $3.4 million in capital spending for 2011/12.

The system, which uses face recognition biometric technology from the information stored in a microchip inside ePassports, has recently just clocked its one millionth passenger.

“SmartGate is an unqualified success and the uptake at New Zealand airports has been well ahead of expectations,” Mr Williamson says.

Statistics New Zealand will receive $58 million in new operating funding over the next four years from Budget 2011 to ensure the ongoing supply of important economic and social data, Statistics Minister Maurice Williamson says.

The funding will go towards the programme ‘Statistics 2020: Achieving the Statistical System of the Future’, which aims to update the department’s IT systems.

Budget 2011 invests a significant amount of additional funding in education during constrained fiscal times, Education Minister Anne Tolley says.

“The Government has allocated an extra $1.3 billion in operating funding and $109 million in capital for education out to 2014/15, with student engagement and achievement our absolute priorities,” Mrs Tolley says.

Budget 2011 delivers significant investment to lift achievement in schools and keep students engaged to gain worthwhile qualifications, Education Minister Anne Tolley says.

“Budget 2011 invests an extra $1.3 billion in operating funding and $109 million in capital for education, of which $621.2 million is for schooling,” she says.

“This includes an increase in operational funding for schools of 2.92 per cent – that’s $118.1 million over four years, as we focus on giving every New Zealand student the chance to succeed.

The Government will invest an extra $550.3 million in early childhood education over the next four years, to allow as many families as possible to access quality services where they are needed the most, Education Minister Anne Tolley says.

Budget 2011 provides an 11.5 per cent increase in ECE spending from Budget 2010 - or an additional $147 million in 2011/12 - bringing the total annual investment to $1.4 billion. 

Budget 2011 is delivering an extra $2.2 billion to public health services over the next four years, including an additional $585 million in initiatives in 2011/12.

“Vote Health is the biggest recipient of Budget 2011,” Health Minister Tony Ryall says. “This demonstrates the Government's strong commitment to protecting and growing our public health services, despite the difficult economic times.

Budget 2011 is delivering a further $68 million over four years to increase funding for elective surgery. 

The extra money is in addition to funding provided to District Health Boards through population and price adjustments and will provide even more operations for New Zealanders who need them.

Budget 2011 is delivering the final part of the Government's election commitment to increase the pharmaceuticals budget by $180 million over three years, Health Minister Tony Ryall says.

This year's $20 million increase means that spending on medicines has increased over previous levels by $40 million in the 2009 Budget, $60 million in 2010, and $80 million in this Budget. The $20 million this year is included in the funding increase DHBs are receiving.

Budget 2011 delivers an extra $44 million over four years to look after people living with dementia. 

“This significant funding increase includes $40 million for residential dementia services. This is expected to lead to the provision of almost 200 extra dementia beds over the next two years,” Health Minister Tony Ryall says.

“Dementia is a severe and devastating disorder for both sufferers and their families – and with more of us living beyond 85 years, it is increasingly making itself felt in our communities.