Budget Speech

Introduction

Today is not an ordinary budget day. It marks a major change in direction to a higher quality future for New Zealand.

It is a turning point for all people who have waited, over the past decade, for a fairer society - for a society which values its elderly and its young, which values those who can work, and those who can't, which values those who are healthy, and those who aren't.

But even more, today is a first new step for all who have waited for a Government which values life in general - our animals and plants: including those we eat, our oceans, including its lifeforms which have no use as food, our native forests ... and indeed all ecosystems, which are found here, and nowhere else.

In fact none, of course, are really "ours". We don't own Nature, but are part of it. We must give, as we have done to a small extent today, as well as take. I am proud to support a Government which puts more value, not only conservation value, but also indigenous cultural and spiritual value, on the Earth, on Papa-tua-nuku.

The Greens welcomed the landmark Biodiversity Strategy earlier this year, but pointed out that the proof of the pudding would be in the funding. Last week we welcomed a new budget allocation which is well structured to match the capacity of the Conservation Department to make best use of it. It starts low, although a $17m increase in year one is still substantial, builds up slowly, and won't reach the necessary levels for several years. But we're on the way.

The Greens will be watching future budgets carefully to ensure that the promised increases materialise, and watching the department to ensure that those increases allow it to do its job well.

Marine

The funding for the development of an Oceans Policy is the realisation of calls for such an initiative by the environmental movement, the Green Party and Parliamentary Commissioner for the Environment. We look forward to a process which gives recognition to the sea around us as an integral part of our climate and our economy, and an ecosystem to be managed and protected, not some sort of limitless cash machine.

These initiatives, excellent as they are, still treat "environment" and "conservation" as separate issues from the economy and society and capable of being resolved on their own. The great need now is to integrate them into the economic and social structures of the economy, recognising that all economic development is built on the use of nature and that human beings are also part of nature. Otherwise we will continue to repeat the true story of two teams of government forestry workers, one planting kauri trees on one side of the hill, the other clearing old kauri forest to make way for pines on the other side. We can only achieve that by changing the way we measure economic success. The Greens have some small but pivotal measures to announce in a few minutes which will take us towards this goal.

Defence

On defence spending we are disappointed at the size of the the defence vote at $1,635 million for the year. We understand that in its defence statements since the election the government will be giving low priority to new investment in air and naval combat forces. However, we note that the estimates still devote $234 million annually to air combat forces and $438 million to naval combat forces. We would suggest that this is a huge amount of money, which is not being used productively, and would, for example, pay for the Green package 44 times over.

Rapid moves to selling off the Skyhawk planes, which have not proven to be of use to us, would produce a big budget saving. We of course, welcome the defence expenditure spent on maintaining a good peacekeeping capability, and in fisheries monitoring and relief work.

Climate change

We need to acknowledge that the main danger to New Zealand and to our low-lying Pacific Island neighbours is not invading armies. The risks posed by climate change for example are enormous; they are as dramatic as a meteorite impact on earth but far less sudden. Latest scientific evidence establishes beyond all reasonable doubt that our climate is changing. Extreme weather events are increasing. Ice masses around the world are melting faster - our own glaciers are part of this global warning system. Climate change is as insidious and as deadly as cancer; the difference is that we have made an early diagnosis but are dithering about whether to treat it.

I want to congratulate this Government on finally taking the problem seriously. Ratifying the Kyoto protocol is an important step in the international arena. What is urgently needed is domestic action. This budget contains a modest increase in expenditure on climate change policy. It also contains increased funding for public transport - an essential step in reducing car dependence and hence CO2 emissions. I have been instrumental in obtaining extra funding for EECA to ensure that improved energy efficiency can genuinely play its part in reducing CO2 emissions and improving the wellbeing of New Zealanders. I will talk about this in more detail later. Much more is needed.

We expect a carbon tax to be part of the Government's promised tax review. And we will be working to ensure that Government takes the simple early steps to tackle our greenhouse emissions. We must end the pointless cycle of road building and traffic growth - we can start with educating people about the effects of using a car. We must ensure we reduce our fossil fuel use in electricity generation - we can start by ensuring that any lifting of the cap on generation by lines companies only applies to renewables. We must ensure that we use low-carbon low impact fuels when we travel - we can start by ensuring we do not lose our alternatives fuels infrastructure just as new sources of supply are found. I am disappointed that there is still no government action to preserve what remains of the CNG infrastructure in this country.

Social Policy and Poverty Reduction

In regard to social services, the Green Party congratulates the government on the outline of its programme to close the gaps. But this is only the first step and we will watch with interest to be sure that this will eventuate into better outcomes for Maori and Pacific Peoples.

I must also congratulate the Government on its increase in mental health funding. For too long we have seen those with mental illnesses and their families at the end of the queue when it comes to service from our health system. But we are concerned that the health service has not been able to spend the resources already allocated in this area. The Government must monitor and oversee this area very closely.

We are also pleased with the increase in education, particularly at the early childhood and school sectors. The Green Party has been calling for our schools to provide more drug education programmes and I am pleased that the Government is providing almost $1 million to schools to assist them in this.

But there are some disappointments. Firstly, the Government has not heard the cries of the students for financial assistance during the year and most importantly access to the emergency unemployment benefit over the summer holidays.

The Green Party is disappointed that this budget has not addressed in a more direct way the concerns of beneficiaries. We urge the government to review the benefit system alongside the tax system. The Green Party has a commitment to improving our tax and benefit system to bring it into the 21st century with ecological tax reform coupled with income tax cuts at the bottom of the scale.

This review is also a logical place to consider extensions of tax cuts at the bottom of the scale such as guaranteed minimum incomes and universal basic incomes. Income inequality and the reduction of poverty will not be addressed unless we think outside the square.

Income related rentals will assist some of our families on the lowest incomes, but we are also concerned about those who cannot access state houses and are caught in vicious cycle of private rent increases as mortgage interest rates rise. We note with concern that the minister has forecast a rise in CPI to 2.6% next year and a 1.5% increase in the 90 day bank bill rate.

Public transport

I have already spoken of the need to reduce car dependence and would like to convey the Green Party's congratulations to Mark Gosche whose quick work has seen valuable changes to the funding system for public transport. The $46 million cap on public transport funding has gone and the new system will provide much better incentives and opportunities for regional councils to provide the services most needed. If Auckland in particular is to emerge as a genuine World City it needs a balanced transport system that doesn't condemn its citizens to spending their mornings in traffic jams.

Balance of Payments

New Zealand governments appear to have learned about sustainability in the financial sense. This budget continues that trend in key indicators such as net debt. At a macroeconomic level we are delighted to see a return to active Government investment. We commend the commitments to investment in the creative sectors: arts and science, and in the long neglected public goods such as health and public transport.

We also commend the Government's commitment to helping create meaningful work. Unemployment remains stubbornly high at over 5% throughout the forecast period. The Greens are committed to a zero-waste society and as our economic manifesto says "zero waste begins with people". The challenge for the Government is to ensure that community economic development funding, community banking in whatever form it takes, and Industry New Zealand all dovetail to provide both genuine community partnerships and meaningful ecologically sustainable work.

The glaring omission at the macroeconomic core of this budget is any meaningful action on the balance of payments. Today's balance of payments deficit is nearly 5% worse than the Budget forecasts. We are consuming rather than saving, with the result that our land, natural resources and businesses are being sold offshore to pay for our habit.

Our survival depends not on selling more of our country to multinational companies but on a serious commitment to local economic development to ensure local communities become more self-sustaining. The global and indeed national transport of goods depends on cheap fossil fuels. These fuels are burnt in ships, cars and trucks. The results are destroying our climate, polluting our air and water and threatening our health. Increased local self-reliance not only contributes to strong communities, it is fundamental to tackling global climate change, by reducing wastage of fuel resources on transport.

The Green Package

The Green Party said clearly in the last election that we would support a Labour Alliance government. When we were elected we pledged confidence and supply. That means that contrary to some rumours picked up by the media there was never any question of us not supporting this budget, or of issuing ultimatums or threats.

However, we did approach the Prime Minister in March to ask how we might be involved in adding some value to the government's budget on behalf of the 106,000 Green voters who, under MMP, are looking for some recognition of their priorities.

This led to a set of Green Party initiatives being offered for discussion and I want to acknowledge the co-operation we have had from Dr Cullen who was faced with a totally new situation in NZ politics. Understandably the coalition partners wanted to sort out their agreements first and inevitably that left them trying to accommodate us at quite a late stage.

Today's announcement is that the Government has allocated $15 million of the Contingency Fund for Green initiatives. We trimmed our list back to meet that. Each of our proposals has now been agreed with the relevant minister. It does not come from their baselines but is additional funding. I guess that technically makes the Green Party a Contingent Liability! However, we like to think that a number of these initiatives will substantially reduce the risk of future liability for NZ.

I also want to acknowledge the co-operation of the various ministers who have helped us refine our proposals and who have agreed, subject to final sign off from cabinet, to implement these initiatives through their departmental processes.

Fifteen million is not a huge amount of money - but I like to think of it as seed money. Money we've put into these projects will bloom and bear fruit - some immediately, some one, two or even ten years down the track. The initiatives are as diverse as the seven Green MPs in Parliament, but they have a common Green goal for our future - living healthily in a healthy world.

Energy Efficiency and Conservation

Already hundreds of low-income households in the Coromandel, Wellington and Opotiki know personally of the Energy Saver Grants from the Energy Efficiency and Conservation Authority, which have paid for their homes to be upgraded with insulation, water heater wraps, draught stopping, efficient lights. Children especially suffer less from illnesses like asthma and flu once their homes are dry and warm. And energy wastage (as well as energy bills) can be dramatically reduced.

Funding for EECA was repeatedly cut by the National government and they planned further cuts for this year, including axing the Energy Saver Fund. The Government's planned funding could not have kept the grants going and also expanded EECA's work as required in the new legislation passed last month. With the help of the extra $3 million in the Green Package they can now do both.

Changing the way we measure success

When Rod and I launched our economic vision Thinking Beyond Tomorrow last year we began by saying we need to measure success differentlty. Today we take the first steps towards that goal. Our package contains two key initiatives that will be administered through the Ministry for the Environment.

The first is a programme to work in partnership with business and community groups to develop environmental and social auditing for these organisations. Last year, an article in the Chartered Accountants Journal described New Zealand as taking "small steps backwards" in environmental reporting. Our initiative will lay the groundwork for a comprehensive approach to reporting a "triple bottom line" and thereby encourage more sustainable activity throughout the economy.

Our second initiative sets us on a path to provide a better measure of success as a nation.Gross Domestic Product is the sum of economic activity. It tells us nothing about whether that activity adds to the wellbeing of the community. Many studies have shown that GDP growth is a lousy way to assess development. Ministry for the Environment and Department of Statistics staff will this year look at alternative ways of measuring success as a nation, both through expanded national accounts and through alternatives to GDP.

These initiatives are small in monetary terms but they are big ideas. Changing the way we look at ourselves is the first step to real growth as a nation.

Nicotine replacement therapy

The biggest contribution, however, from the Green Package goes on one of the biggest concerns we have about the health of New Zealanders. And that is smoking. Smokers, especially low-income smokers, have been hit hard in the pocket by the latest hike in tobacco tax. Higher prices provide an incentive to quit, but nicotine is an extremely addictive drug and the habit is very hard to kick without help.

The Greens supported the cigarette tax rise only after the Government agreed to look at providing quit-support for low-income smokers. We have worked constructively with Health Minister Annette King to provide $4 million from the Green fund for nicotine replacement therapy for those on low incomes who want to quit - four weeks supply for the price of a packet of smokes.

Complementary Health Care

Also in conjunction with Annette King, the Greens have proposed $150,000 to go to setting up a committee to advise the minister on complementary healthcare. This is the first of a six step plan towards integrating alternative therapies like osteopathy and acupuncture into the health system. Complementary healthcare offers a holistic and preventative approach towards health. It will not replace Western medicine, but it can offer a lot in tandem with the existing crisis-focused high-tech healthcare system.

Snakes'n'snails

The health of our environment is as crucial to our well-being as our own health. Just as we have an immune system to keep nasty bugs out of our bodies, we have a quarantine system to keep invaders outside our borders. These potential invaders include insects, reptiles and suffocating weeds, any of which could upset the delicate balance of our island biodiversity and wreck our agriculture, forestry and fisheries.

The huge cost of biosecurity invasions has been recently brought home to all bee-keepers, including myself, with the varroa bee mite. Snakes, moths, mosquitos, weevils and weeds have all breached our borders in the past few years. The Green Party believe inspection urgently has to be beefed up. After consulting with Biosecurity Minister Marian Hobbs, we have negotiated nearly $3 million for increased inspection of containers.

Building Awareness

Another major iniative is in environmental awareness. Education programmes open people's eyes to the beauty and diversity of our natural environment, and the impact their way of life can have on it. I am delighted that Conservation Minister Sandra Lee has agreed that $2.5 million from our budget be put towards conservation awareness programmes with the Department of Conservation. We have also negotiated a grant package for community environmental centres, who often struggle financially to keep their doors open but who do great work in showing our children the value of our natural world.

The Minister of Education Trevor Mallard has recognised the need for environmental education, and picked up a Green Party budget bid for education in schools and teachers colleges in his Vote Education. An excellent Strategy and Guidelines exist now for environmental education but there is no teacher training and no co-ordination for schools, who often give it low priority and status. I'm pleased the minister has taken action in an area which has seen endless talk for many years.

Environmental legal aid

Environmental and community groups do an invaluable job in protecting our environment against inappropriate developments of all kinds. Often these battles end up as David and goliath struggles in court, with the small, unfunded environmental groups facing huge legal costs. For years people have talked of the need for environmental legal aid, and in fact it was always intended this should occur under the Resource Management Act.

We have agreed with Minister Marian Hobbs $1 million to develop criteria and begin a contestable fund to help even the battle-field, and ensure that the threat of expensive legal action does not win the battle automatically for those who can afford to pay.

Safe food

New Zealand has a unique natural advantage as a food-growing island nation to leap into a high value organic niche market, but we are letting this opportunity slip through our fingers. The country is investing large sums in genetically engineered crop and animal research, when no-one wants to buy genetically engineered food.

That's why we've negotiated with Agriculture Minister Jim Sutton to set up an officials-industry joint action group on organics with $35,000 from the Green budget package going towards the cost of including industry particpation.

Export markets, especially the EU, are demanding extraordinarily expensive audit trials for certified organic food which small growers supplying the domestic market cannot afford and do not need. To provide market opportunities for them and to give local consumers quality assurance, we have agreed with the minister that $300,000 will go to develop a domestic certification scheme.

Pesticide Reduction

A further iniative in the Green Package is $235,000 towards reducing pesticide use in this country. We use thousands of tonnes of pesticide each year, many toxic to people and animals. Developing a pesticide reduction strategy will be the first step to reigning in our extravagant use of pesticides, and protecting our clean, green image.

The Green Package, and indeed the Budget as a whole, is just a start. The real test of this Government will come after much more work and thought, in the 2001 Budget. We look forward, again, to being a part of that, not only adding our support, but also adding value.