THE TAURANGA CHAMBER OF COMMERCE

COMMERCIAL TRAVELLERS' CLUB, DURHAM STREET, TAURANGA

Check against delivery

President Graeme Beaver
Mayors Maureen Anderson and Noel Pope
Ladies and gentlemen

Some six hundred and sixty days out from the twenty-first century, I want to take time to share a vision.

It's of a New Zealand that is comfortable with proportional representation.

Of a country with an enlightened democracy.

Of a place where we work together to secure futures.

A country where citizens demand that their children are well educated by quality teachers, in well equipped classrooms.

Where their families can access the finest public health system; not necessarily the old hospital, but access to the best trained doctors and nurses with modern well equipped facilities.

It's of a fair society where those needing assistance receive it.

Where people are not penalised for being old or overlooked because they are small.

Where the same rules apply for big business and the corner dairy.

With a welfare system that really does provide appropriate assistance yet at the same time moves people off State dependency and into jobs.

And a tax system that does not reward those who can get away with thwarting the system whilst the system penalises the small business because it is easy to do so.

It's a vision of a dynamic, enterprising economy, where New Zealanders' skills at developing new ideas and new products continue to push us to the forefront of global enterprise, adding value to our exports, developing new products, finding new markets, and investing in new technology.

A country where we can all participate positively in our economy, and feel that we and our property are secure.

The New Zealand that most of us grew up in was a world leader in the standard of living, in justice and fairness, and in social enlightenment.

We clearly have the resources to do this again. What we need is the will.

This will be activated by seeing a shared future; by looking forward with hope and belief.

The New Zealander that we grew up with was phlegmatic, practical, caring, friendly, and above all optimistic.

It is that optimism that has been missing from our lives recently.

One of the blights on our society is our rate of youth suicides. You know, people don't kill themselves when they have hope.

My hope is that the leadership is there to unite us in our quest for a better future, that we will once again activate our optimism and goodwill, that we may see political parties working together for all of our benefits.

So this is our New Zealand. One land. One people. A rich cultural mix to be sure. Valuing our families. Acknowledging our place in a shrinking world but proud of our uniqueness.

As individuals we need to be responsible for our actions. As a nation we need to be responsible for our futures.

What does this mean for our policy mix?

It means maintaining our economic course.

It means a commitment to the well directed use of the $5 billion we have earmarked to provide a fairer balance between the economic and the social.

It means an adherence to our principles of accountability and equity.

That is why we have called for an inquiry into what went wrong with Mercury Energy.

That is why we will continue to question in court the findings of the Winebox inquiry.

We need to continue to be innovative and deliver the economic efficiencies New Zealand business and taxpayers need to grow.

As changing times produce new challenges so we must look for new solutions.

New Zealand needs ongoing reform.

Ongoing reform of our political system.

We were the only party to campaign for 80 Members of Parliament. While other parties campaigned for 120 Members to put people off MMP, we campaigned then, as now, for a smaller Parliament and for reduced Parliamentary spending.

We are putting our own house in order first.

That is why my party stopped plans to spend $196 million on a new executive wing in Wellington, and said no to another $42 million upgrading the Beehive.

We need to work for a restructuring of local government so that there are less of them and they are more responsive to the wishes of the people.

We acknowledge that our producer boards need to be reformed if they are to deliver in the twenty-first century.

It is very much a New Zealand First initiative to bring together the Employment Service, Income Support and the Community Employment Group to establish one-stop-shops for job seekers.

Involving as it does some 10% of the public service, you can well imagine that this is no easy task.

We are going to have a community wage aimed at encouraging people on the dole to improve work skills and retain motivation, self esteem, and a work ethic while they seek employment.

Associated programmes aimed at assisting people from dependence on the State to independence is our priority.

Here in Tauranga alone we will invest an additional $25 million this year alone, in building 31 new classrooms and covering operating costs.

That is an investment in our future.

The money is part of almost $3 billion that will be spent on schools New Zealand-wide.

Considerable progress is being made on the future of the airport which we will own, and one day, may support international jets from across the Tasman.

And just last month I accompanied Mayor Pope and other Tauranga business people to China to seek out and seize trade opportunities for the benefit of our community.

We support change, as long as it is sensible and promotes New Zealand's own interests.

For example, this city is being held back by roading policies that are controlled elsewhere.

Our link roads are congested, yet we do not have the funding to do something about it.

I will not support a policy initiative that results in our roads being controlled or owned by companies offshore, but I will support a scheme that puts more power back in the hands of local people.

If feasible, I would certainly support Tauranga becoming a pilot to test the value of such reform. We are already a pilot. That's how we got our bridge and Route P. If others don't want change, we here certainly do.

Let's momentarily go back 15 months to the formation of New Zealand's first government under MMP.

It was a time of high drama.

The reason?

The people of New Zealand had clearly demonstrated their concern at the imbalance between economic and social policy that had been the hallmark of successive governments.

As we made our decision, consider the alternatives. There was NOT going to be a National Government... NOR a Labour Government. The old two party system and its excesses had had its day.

The alternatives were various other coalitions... as unpalatable then as they are today.

Fifteen months on from that historical decision, and still two or three months out from our second budget, we had achieved a great deal. We have made a difference.

And we have travelled towards that vision.

In this changed political environment, the Coalition Government has

provided economic stability.
Provided economic growth.
Provided low inflation.
Provided continuing fiscal surpluses.
Provided for the repayment of debt.
And provided lower taxes.
The New Zealand dollar has depreciated over the past year, down 15 per cent against the US, 13 per cent against the Japanese Yen and 16 per cent against the Sterling. A smaller fall of around 4 per cent has been recorded against the Australian dollar.

The lower exchange rate is benefitting exporters.

The domestic economy is in good heart.

Latest figures show a $1.8 billion surplus on the Operating Balance for the 7 months to January. This is $600 million ahead of forecast.

Accordingly, the drop in net public debt was more than projected, falling to $24.3 billion.

The 1 July tax cuts will provide another boost to the domestic economy as will the likely AMP share float.

And here in Tauranga, as much as anywhere else in New Zealand, the surtax removed in 20 days time will leave millions in the pockets of older New Zealanders.

Long-term interest rates that are important for investment spending, have been broadly stable.

The Government is providing a sound economic base for business growth and for confronting our country's challenging social issues.

The Asian financial crisis has dealt us an external shock but with the economic fundamentals sound, we are in a better position to ride this out.

Running fiscal surpluses provides an important buffer against the unexpected, abroad or at home.

As well as providing economic stability, we have provided political stability. It is true that there is some disappointment in MMP. Give it time and give ourselves time before we stampede to judgement.

There are few who understand its potential and many who still want to play two-party politics.

You have a government that is working.

Most important of all we have taken the path of improvement and change in social conditions. Economic growth is not an end in itself. In providing a bigger cake we must ensure a fairer distribution of it.

While it is clear that the reformist revolutionaries of the past are redundant we cannot return to the bad old days of extremes, be they of the far Left or the far Right.

Our economy is growing, we are still expecting to record surpluses, inflation is still below 2% and our policy targets are on track.

This surely is the springboard for achieving our vision for the twenty-first century.

Remember the words of T E Lawrence: "Those who dream by night in the dusty recesses of their minds wake in the day to find all was vanity, but the dreamers of the day are dangerous men, for they may act their dreams with open eyes and make it possible."