Thank you, Madam Speaker. Before I actually go into the Supplementary Estimates bill and imprest supply, I’d ask the House’s indulgence for a moment. I want to acknowledge the passing of a senior kaumātua and rangatira ko Ātiawa ki Whakarongotai Charitable Trust, Rakauoteora Te Maipi, or Koro Don, as we know him up on the Kāpiti Coast. Koro Don passed away this weekend, and he was a beloved kaumātua who led with wisdom, honour, and music. He served as the Kāpiti Coast District Council kaumātua for 25 years. He was deeply committed to our community. Our thoughts are with Pat, his wife; his wider whānau; and Ātiawa ki Whakarongotai. Moe mai rā, e te rangatira, haere atu rā ki te okiokinga mutunga kore. [Rest in peace, noble leader; go on to the eternal resting place.]
Thank you, Madam Speaker. I want to turn my attention now to both the Supplementary Estimates bill and the imprest supply bill, and, once again, we hear—from the Government side of the House and, in particular, from the Minister of Finance—a focus on the Opposition. We saw that again right throughout the lead-up to the Budget, we saw it on Budget day, we saw it after Budget day, and, again, all we’ve heard about is this side of the House in the debate on the Supplementary Estimates and the imprest supply bill.
It’s quite interesting because when you talk to New Zealanders on the ground, they say to themselves, “Well, I didn’t see anything for me and the cost of living in this Budget.”, and that’s why the Government spends all the time talking about this side of the House. We’ve seen both in question time and in the Minister of Finance’s speech just now—which I want to respond to—the talk about high inflation at the time when we were in Government.
As I asked the Minister the question during question time, we had high tradeable inflation during the period when we were in Government—particularly post-COVID—because there was a global pandemic and because there were supply chain issues. If you look at the data around tradeable versus non-tradeable inflation, you will see the major difference, and so it’s important to set that out today because what we know is that going forward, as a result of this Budget, this Budget and the Treasury documents talk a lot about the geopolitical uncertainty that’s happening in other jurisdictions. We’ve seen that, obviously, from what was debated in the House today with the ministerial statement from the Rt Hon Winston Peters, and New Zealand is not immune to those global shocks or impacts that happen overseas.
That’s exactly what happened during the COVID pandemic, and that’s exactly what’s happening now, which is why it’s even more important to think domestically about what we can do as a country to support each other during a cost of living crisis and during a time when there is super-high demand. In a number of our non-governmental organisations, there is huge demand for food banks, there is huge demand for mental health services, and there is huge demand for housing, and yet what we see through this imprest supply bill, which, effectively, gives temporary authority for what’s in the Budget—what we, again, go back to is that the Budget did not provide enough support for everyday New Zealanders.
The Minister of Finance talks a lot about this magical money tree—the magical money tree which, unfortunately, doesn’t have much for everyday Kiwis or everyday New Zealanders, but it has a lot of money for landlords, it has a lot of money for tobacco companies, and it has $200 million for the gas industry. Again, there is a magic money tree with big branches and big flowering blossoms for these different industries, but what do families get? What do families get?
Some families, if they’re entitled to Working for Families credits, get $7 a week, but to pay for that, they had to strip away Best Start from 61,000 families for the first year. That first year of having a newborn is one of the hardest periods, which is why, when we were in Government, that first year was not income-tested, because we knew how hard it was for families in that first year to, first of all, deal with a newborn and the huge life changes that that makes for your family. That’s why we never income-tested it in the first year, but in the second and third years, income testing and abatement thresholds were introduced. But we’re seeing with this Government and their Budget that 61,000 families will be $43 worse off per fortnight because of this Government’s choices, and it all comes down to choices.
We heard a lot of words from the Minister about choices and money trees, and, yet again, the magical money tree seems to happen for lots of big corporates, but not for the everyday Kiwi battler who is on the ground every day and who is trying to, basically, make ends meet because inflation is not coming down for food—it is still increasing. Again, what happens overseas does have an impact here, but, once again, all we hear from the Government is, basically, that it’s not OK when Labour is in Government, but it is OK when National is in Government.
I do want to look at the Supplementary Estimates. We received a briefing from Treasury as part of scrutiny week that went through the actual line-by-line changes in the Supplementary Estimates. Again, the magical money tree seems to give—let’s have a look—$7.25 million to deliver new ministerial suites in the executive wing, at level three. The magical money tree there has $7.25 million, and yet for food banks, those get only $15 million. So, basically, the magical money tree gifts $7 million to ministerial offices so that ministerial offices can be redone on level three, but food banks only get $15 million, and yet when you talk to food banks right across the country, they are saying that demand is super high—higher than it’s ever been. They are crying out for the Government to support them, but the Government is saying, “We’ll give you $15 million, and, by the way, the magical money tree blossoms for ministerial suites.”
The other interesting thing from the Supplementary Estimates is in Vote Social Development, in relation to emergency housing. The appropriation for emergency housing decreased by $225.79 million to $78.849 million for the 2024-25 year, and so when Treasury set out why that is, they said that there is a lower number of grants than previously forecast and it’s a lower average payment per grant than previously forecast—OK, that’s the magic money tree, which is in motion again. Again, the Government chose to tighten the criteria for emergency housing assistance—so much so that this Government saves money from it.
Yet again—I say it once again in this House—this seems to be a Government that knows the cost of everything but the value of nothing, because we have growing homelessness across all our major districts. Even in Rotorua, we saw media reports out from the Salvation Army of there being a number of homeless people, and the Salvation Army at the time were trying to manaaki them, but their hands were tied because they had no choice. So, again, we see that, basically, the appropriation for emergency housing assistance has been reduced, but we have growing homelessness.
The other interesting thing which we saw in the Supplementary Estimates was to do with the jobseeker support and emergency benefits. Well, that appropriation increased by $276.236 million, so it’s gone up to over $4,711.258 million. I know that those are all just numbers, but, ultimately, there’s a person behind that number, and the reason why it’s gone up by over $282 million is because, again, there is a higher number of people than previously forecast who are now on the jobseeker support and the emergency benefit.
Once again, these are people in our society who have no choice but to have to come to the Government to ask them for support, and it’s increased. They’ve had to increase that appropriation because this year, there are more people on the benefit than Treasury had forecasted last year, which is why I stand in support of what Ginny Andersen said during question time, which was that the forecast has increased by 13,000 people—that is 13,000 people. Again, members of the House on the Government benches say, “Oh, the magical money tree.” Well, the magical money tree is having to give more to those people who don’t have jobs, because this Government has tanked the economy.
Last year, there were two periods of recession. As much as that Government believes that it didn’t cause the recession, it was still growing in the early quarters of the financial year, and Treasury confirmed it. There was modest growth until the last two quarters of the financial year, and that was because that Government paused, reviewed, and cancelled huge infrastructure projects, which led to a loss of construction roles—which, again, Ginny Andersen talked about during question time; 15,000 construction sector roles—and then, what happens when you have less people spending money in the economy? All those little suppliers, all those retail shops, and all those restaurants don’t have people going there to enjoy part of what working does to help people live with dignity and to live with integrity.
This Government can crow as much as it wants, but the facts are in the numbers. This country is going backwards under that Government.