Todd McClay: NZ on track for stronger economy

In Parliament on Thursday, Deputy Prime Minister Bill English delivered Kiwis a positive Budget despite tough economic conditions.

If New Zealand wants to earn its way in the world, create more jobs and opportunities then we need a stronger economy and Budget 2013 confirms we are on the right track. It sets out the next steps in our four priorities which are to responsibly manage the Government's books, build a more competitive and productive economy, deliver better public services and to rebuild Christchurch.

Budget 2013 provides more support for families, and forecasts strong economic growth, more jobs and rising wages. Importantly, it lays the path for a return to surplus in 2014/15 which is vital for our future. Over the next four years, we're investing $5.1 billion on new initiatives in areas such as science and innovation, health, education, welfare, and housing. And we're signalling ACC levy cuts for businesses and families.

There will be more help for vulnerable families, including $198 million to support beneficiaries to find work. We're helping at-risk children get an early education and funding to tackle rheumatic fever will be doubled; 46,000 more homes will be insulated for low-income families. The Budget also outlines reforms to tackle house prices. This includes new regulations for councils in areas where housing is least affordable.

Young people will see support increased with funding boosts across education, including tertiary, of $12.4 billion. An extra $215 million will be invested into schooling over four years, including $64 million for Positive Behaviour for Learning (PBL), $5.9 million for a new mentoring programme to help vulnerable young people achieve and $37.5 million for teaching quality initiatives.

Extra funding for the PBL programme is particularly positive. It is a wonderful initiative which has already proven successful in a handful of Rotorua schools including Kaitao Middle School, Rotorua Intermediate and Selwyn School. The programme was introduced in 2009 to improve behaviour in children and young people, to increase educational engagement and achievement, and decrease the long-term costs of difficult behaviour continuing into adulthood.

In health, the Budget is providing $1.6 billion over four years for new initiatives and to meet cost pressures. Despite tough economic times we are investing more in health than ever before. This includes about $352 million in new funding a year, taking total health spending to $14.7 billion next year, the most ever. While many developed countries around the world are freezing or even reducing health funding this Government is growing and protecting our public health services.

For businesses, the Budget will build on our Business Growth Agenda. It includes $100 million-a-year for an internationally focused growth and innovation package. This will boost investment in science, research and development, and tourism.

Investment in tourism is especially important to us here in Rotorua with our city fast becoming the tourism capital of New Zealand; $158 million will be invested in the sector over the next four years to accelerate the work already under way in attracting high-value tourists, and supporting and growing emerging and existing markets. It will also be utilised to encourage innovation, bring international events to New Zealand and simplify visa processes.

This will open up the way for smaller tourism businesses. Already Rotorua makes up a significant component of New Zealand's tourism sector and this additional tourism spending is likely to increase tourist numbers, which in turn means more local jobs.

Budget 2013 builds momentum towards a stronger, more stable, economy that can better weather global storms and deliver more opportunities, higher incomes, and more jobs. It continues our work to build a brighter future for Kiwi families.