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Progress in the Government’s programme while on track to surplus

Budget 2013 confirms New Zealand is on the right track, with forecasts of economic growth, more jobs, rising wages, and a return to surplus by 2014/15, Finance Minister Bill English says.

Budget 2013 builds on the momentum created by the previous four Budgets across the Government’s wide-ranging programme, Prime Minister John Key says.

“Every Budget since 2009 has been presented against the backdrop of extremely challenging economic conditions.

“In particular, the global financial crisis, the Christchurch earthquakes and ongoing uncertainty around the world have affected most New Zealand households and businesses.

Mr Speaker,

I move that the Appropriation (2013/14 Estimates) Bill be now read a second time.

It’s my privilege to deliver the National-led Government’s fifth Budget.

When I stood up to deliver the Government’s first Budget, in 2009, New Zealand faced challenges I think we’re only able to fully appreciate with the passing of time.

The world had entered the worst financial crisis since the Great Depression, from which it has yet to fully emerge.

Budget 2013 will provide $19 million in contingency funding to establish the first Partnership Schools/Kura Hourua with a focus on accountability and high educational outcomes for New Zealand children.

The initiative will see a small number of schools established, with greater freedom and flexibility to innovate and engage their students in return for stronger accountability for delivering educational results, Associate Education Minister John Banks says.

Budget 2013 will provide relief for six areas of ‘black hole’ business expenditure, bringing in tax deductibility on items where it previously has not applied, Revenue Minister Peter Dunne says.

“Some of it will be deductible immediately, and other items over time, but it all continues the Government’s focus on providing an environment that supports business,” Mr Dunne says.

A number of situations where black-hole expenditure may occur had been raised by businesses, and as a result, the six proposed changes are:

The Government will launch an update of its Budget app for smartphones and tablets on Thursday with interactive features that allow users to see how much tax they pay and how their tax dollars are spent, Finance Minister Bill English says.

“This is a refresh of the Budget app which was successfully launched last year and is part of the Government’s continuing focus on delivering innovative and better-value public services,” he says.

“The Budget can reach more people when it is digital and accessible.”

The Mangere Refugee Resettlement Centre in Auckland is to be rebuilt following a $5.5 million Government commitment of operating expenditure over the next four years towards the cost as part of Budget 2013.

Immigration Minister Michael Woodhouse says the Mangere centre has played a crucial role in helping refugees adapt to their new life in New Zealand, but many of the ageing buildings are beyond repair and need to be replaced.

Budget 2013 has provided more funding towards the highly successful Māori Affairs cadetship programme, which has supported more Māori into jobs and kept them there.

“We established this programme in 2009 to address Māori unemployment, and to provide Māori new to the workforce - or those with low qualifications - the opportunity to gain work experience and formal qualifications as a means of enhancing employment outcomes,” Māori Affairs Minister Pita Sharples says.

A major expansion of Māori and Pasifika Trades Training to 3,000 places as part of Budget 2013 was announced today by Tertiary Education, Skills and Employment Minister Steven Joyce, and Associate Minister for Tertiary Education, Skills and Employment Tariana Turia. 

There are currently 600 places spread across the existing He Toki ki te Rika and Pasifika Trades schemes, which were set up by the current Government in 2011.

E te iwi e tau mai nei ki Whitireia i tēnei ahiahi, tēnā rā koutou katoa. Talofa lava, Malo e lelei, Kia orana, Bula vinaka, Fakaalofa lahi atu, Namaste, Malo ni, Halo ola keta, Mauri, Fakatalofa atu.

Education Minister Hekia Parata has announced the Government is investing $80.5 million of operating funding over four years in Budget 2013 to help support parents and communities play their role in lifting the educational achievement of young people.

The Government has announced the Kāinga Whenua infrastructure grant aimed at helping Māori Land Trusts and other collectives to develop housing on ancestral Māori land.

“I am pleased to announce that $12 million over the next four years will be made available to Māori organisations to assist with the infrastructure work required for new greenfields development on their ancestral land,” Associate Housing Minister Tariana Turia says.

The Government has set aside $1.2 million in Budget 2013 for the development of Community Hubs and Marae CBD that will deliver social services to communities, Associate Social Development Minister Tariana Turia says.

“Marae are at the centre of much of our activity as Māori and have the capacity to support our cultural activities and ensure our tikanga is upheld.

The Government’s fight to reduce New Zealand’s high rate of rheumatic fever among children will receive an additional $21.3 million over four years in Budget 2013, Health Minister Tony Ryall and Associate Health Minister Tariana Turia announced today.

“The new money almost doubles the substantial $24 million investment we are already making to combat rheumatic fever, as negotiated in the Relationship Accord signed with the Māori Party,” Mrs Turia says.

The Government has today announced the final 10 selected National Science Challenges and a $73.5 million boost over four years to fund them, as part of Budget 2013.

“The National Science Challenges will tackle some of the biggest science-based issues and opportunities facing New Zealand,” Minister of Science and Innovation Steven Joyce says.

Aged care and dementia services will benefit from an extra $70 million over the next four years, Health Minister Tony Ryall and Associate Health Minister Jo Goodhew say.

“The Government continues to support older New Zealanders to be healthier and independent in their own homes or in aged care,” Mr Ryall says. “And we are putting extra money into funding better awareness, early detection and care of dementia.”

Budget 2013 is providing:

An additional $20 million over four years has been allocated to the Department of Conservation in Budget 2013 to provide for additional frontline roles and the upgrade of recreational facilities, Conservation Minister Nick Smith announced today.

“The four year funding package complements the Government’s recently announced tourism investment. It recognises that DOC is the Government’s primary agency responsible for providing infrastructure, visitor services and nature-based experiences that support the tourism industry,” Dr Smith says.

Youth Affairs Minister Nikki Kaye has announced a decision to continue $4.5 million of funding so 46 service providers can continue working with young New Zealanders.

“This funding is to support youth service providers to deliver services to improve the lives of young people,” Ms Kaye says.

“These services include entrepreneurial skills, mentoring, and supporting young people to achieve through leadership initiatives.

Prime Minister and Tourism Minister John Key today released details of Budget initiatives for tourism, including $34 million for business events and $20 million to attract very high-value visitors.

As part of a larger internationally-focused growth package, the Government is investing an additional $158 million in tourism through Budget 2013 to attract more visitors to New Zealand, particularly high-spending visitors.

Prime Minister and Tourism Minister John Key today released details of the $158 million of additional funding for tourism announced in a pre-Budget speech earlier this week.

As part of a larger internationally-focused growth package, the Government is investing significantly in tourism through Budget 2013.

This will include $28 million over four years to co-fund business innovation and growth initiatives in the sector.

“We want to support innovative ideas and projects that will create new opportunities and overcome barriers to growth in the tourism sector.

Prime Minister and Tourism Minister John Key today released details of Budget initiatives for tourism, including $44.5 million to attract visitors from emerging growth markets and $24.5 million to boost tourism from existing markets.

As part of a larger internationally-focused growth package, the Government is investing an additional $158 million in tourism through Budget 2013 to attract more visitors to New Zealand, particularly high-spending visitors.

Immigration Minister Michael Woodhouse has announced that Immigration New Zealand (INZ) is to receive $7 million over the next four years to help boost tourist numbers to New Zealand by improving visitor facilitation.

Mr Woodhouse says $5 million will be spent on ensuring that visa application information is available in languages other than English through the new Immigration Global Management System (IGMS), in order to support key foreign markets. In the first instance this capability will be built for the Chinese market.

Prime Minister and Tourism Minister John Key today told a business audience in Wellington that a key focus of the upcoming Budget would be a package of internationally focused growth initiatives.

“New Zealand’s prosperity is highly dependent on our ability to form and maintain strong links with countries around the world. Exports of goods and services, including tourism and international education are vitally important for our economy,” says Mr Key.