Rahui Katene Speech: Budget Policy Statement 2011
te-pati-maori
Thu Mar 10 2011 13:00:00 GMT+1300 (New Zealand Daylight Time)
Rahui Katene Speech: Budget Policy Statement 2011
Thursday, 10 March 2011, 8:56 am
Speech: The Maori Party
Budget Policy Statement 2011 - Halfyear economic and fiscal update 2010
Rahui Katene, MP for Te Tai Tonga; Finance Spokesperson
Wednesday 9 March 2011
When the Finance and Expenditure Committee met on 9 February this year the impact of the 2010 earthquake in Canterbury weighed heavily on all of our minds.
The discussion with the Minister of Finance included some of the immediate impacts of the quake:
Ø the need for support for small businesses;
Ø the inevitable increases in unemployment;
Ø the cost to the Crown of some $1.5 billion to cover the net costs of the Earthquake Commission;
Ø the consequences of $5 billion worth of damage and its associated reduction in economic activity.
Mr Speaker - as dire as these impacts are - nothing prepared us for the profound costs to the nation that would accrue from the events of 22 February.
And so I stand today - painfully aware that when the Committee had its second meeting on this report, my colleagues and I from Canterbury were immersed in the most catastrophic tragedy of our time.
A tragedy which will cost us dearly.
Best guess assumptions from Treasury indicate the total cost of both the Canterbury earthquakes will be $15 billion. There is no question that we have to factor in the combined effects of these natural disasters on to the Government's finances and the wider New Zealand economy for many years ahead.
The Government's balance sheet plays an important role in the economy, including the drive to maintain low overall costs of capital raising by improving New Zealand's credit rating and providing financial flexibility to support the economy in times of distress such as post-earthquake.
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What we all know and accept is that the Government will have to pay for the rebuilding of Christchurch by short-term loans; but also through giving priority to Otautahi over some over Government spending.
But there's some very interesting statements made in the 2010 Investment Statement which have particular bearing at this time.
Basically that Statement suggests the Government's balance sheet can be better managed.
It issues some direct challenges, to rebuild the Government's balance sheet as a 'buffer' against future adverse events.
It suggests we must systematically work to reduce the Government's risk by strengthening the economy; and calls for an approach to sharpen incentives on Government agencies to use existing money well.
I was heartened by the statement of the Minister of Finance this last weekend, in committing to an approach which he described as protecting the most vulnerable, adding, and I quote, "any spending changes we make will ensure that continues".
This is music to the ears of the Maori Party.
The Maori Party entered into a coalition arrangement with National, with the following commitment, and again I quote.
"The Maori Party seeks significant outcomes in whanau ora, through eliminating poverty, advocating for social justice and advancing Maori social, cultural, economic and community development in the best interests of the nation".
Those words are as vital now as they ever have been. The post-earthquake era has given me an insight into the communities we might describe as the 'most vulnerable' which I will never forget.
Over the last fortnight I have walked the streets of Wainoni, New Brighton, Aranui, Bexley. These were communities already vulnerable from low income, high unemployment, and a range of other social and health needs.
But it been devastating to see how unprepared so many of our people have been for an emergency of such proportion. Over the weekend, the Maori wardens reported to me that as they went door to door they came across a woman who was dehydrated and had not been visited once in nearly two weeks.
For people in the Eastern suburbs they have had the additional pressure of shops being closed; access routes blocked; lack of petrol; basic absence of sanitation and water facilities. Some people were getting food grants - but then denied petrol vouchers - and subsequently lacking the means to travel across town to get basic supplies for their families.
We really need to teach our people to look beyond today, and prepare for tomorrow. One of the key issues arising from this crisis has been the need for greater efforts to occur to ensure our families are self-determining; self-managing.
And this is where it comes back to the notion outlined in the Investment Statement of getting better value for money through the services provided by the State.
This is also where the Maori Party's leadership with Whanau Ora has been so critical.
The Maori Party believes that one of the most fundamental revolutions of our time, has been the mobilisation of whanau through investing in whanau to build their capability rather than resorting to dependence on service.
One of the greatest success stories of our term has been the roll out of some 25 provider collectives with 158 providers across ten regions - building whanau resilience and independence.
That is what I want our mokopuna to benefit from in our future - having whanau which are self-managing; who are living healthy lifestyles, and who are participating fully in society.
Anyone can rant and rave about what isn't done; but the greatest outcomes come from those who actually get up and do - and that is why we are so proud of the momentum achieved through Whanau Ora.
I have been so pleased to see Whanau Ora in action in Christchurch this last two weeks as Ngai Tahu, Maata Waka, Maori providers and government agencies work together to support those most vulnerable people in Otautahi.
But in having said that, I want to return to the Finance Minister's words about protecting the most vulnerable.
Earlier today, the Child Poverty Action Group issued a release, drawing attention to research from the University of Auckland demonstrating that many low-income families are unable to afford even a basic nutritious diet for their children.
The Group called on Government to help all families better afford nutritious food by extending the In-Work Tax credit to all low-income families.
It is a call which the Maori Party supports.
I have done all that I could to encourage the Government to consider the elimination of poverty as one goal that could be progressed through my Private Members Bill to address rising food prices by removing goods and services tax from healthy food as defined by the Ministry of Health.
But that is not all we are doing in our determination to make our nation great again - by investing in ourselves.
This is about investing in opportunity and in the optimism that all families need to experience; to be the best that they can be.
And so on other fronts, we have actively campaigned against the so-called loan sharks - to protect our most vulnerable from paying excessive interest rates.
My colleague, Te Ururoa Flavell, currently has a bill on the order paper focused on gambling harm reduction; the purpose being to provide local communities with more power to determine where pokie machines may be sited, and how the proceeds can be distributed.
We will continue to apply concentrated efforts to our campaign to lift the minimum wage to at least $15 an hour - in our absolute belief that raising low incomes will improve the country's economic performance while at the same time supporting families.
And we will, as always, maintain the vigilance that is needed for any MP worth their salt - to be in the House to monitor the policies that are debated, to place pressure when pressure is due, and above all, to come up with ideas worth investing in.
Protecting the most vulnerable - whether it be post-earthquake or low income families struggling to make do - must be the mantra that all of us apply to every issue debated in Parliament.
This is the time for collective responsibility - shouldering the responsibilities of working together, to absorb the worst effects of the recession over the past two years, and to rebuild and restore.
We must make the best of the lessons we have learned over this last difficult year, and commit to an approach which places priority on environmentally-friendly, sustainable development; on working together to create our communities; and on strengthening all of our families to build our future together.
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