Eric Roy

Happy New Year everyone.  I hope everyone had a good Christmas and New Year celebration.

It is a busy time, with everyone travelling to family events and holiday spots, so the record low holiday toll is a credit to both drivers and the New Zealand Police.

Six deaths is still six too many, but it is a major improvement on previous years.  The hard work and enforcement presence of the police is getting through, and drivers are taking on board all the road safety messages.

Another bit of good news was that 2,000 people obviously decided the New Year was a good time to give up smoking and have signed up with Quitline.  Last year, 63,000 quit attempts were made by New Zealanders through Quitline services – nearly 19,000 more than in 2008.

A New Year is always a good time for a fresh start.

2012 has been an extremely busy year.   In 2011 National was elected with a clear plan to take New Zealand forward, and we are delivering on that promise.

We’ve set a target to get the Government’s books back to surplus in 2014/15 and start paying off debt. Despite difficult conditions, and an uncertain world economy, we’re putting the right conditions in place to give businesses confidence to invest, expand, and create jobs. Our economy grew 2.6% over the year to June – the fastest since 2007. There are 65,000 more people working than three years ago. After-tax wages are up 20% since 2008.

We’re delivering better public services. Each year, our hospitals are doing a further 7000 elective surgeries. Our streets and communities are safer, with the lowest crime rate in 30 years.
Have a very merry Christmas and a safe and happy New Year.

Southland has always been rightly proud of its economic reputation.  We produce around 10 per cent of the country’s exports with less than three per cent of the population.  That is just great when the market is strong, but when we are in a position like the current world recession we get our share of the reduced demand and prices.  The current woes of the meat industry with the reported multi-million dollar losses and the well publicised parlous state of the smelter are examples of our exposure in global markets.

It is interesting many of those who demand some Governmental response are also beating a door to Government about no mining or drilling in the South or in any way developing our vast resources in the South.  Many also turn a blind eye to our labour shortage in Southland.  Each year we have to bring in over 1,500 migrant workers, many from the Philippines, to fill the shortage in the dairy industry.

NZ has learned to our cost that Governments trying to pick winners and tip the advantage in their direction, either through subsidy or preferential treatment is folly.  Not only does it distort the market, it raises the ire of the WTO and then there is the matter of paying for it.

But Government does have a role and essentially this National Government is acknowledged has having a very good plan,

We have worked hard to get the cost of business down.  Reforms to the RMA give a better resolution without compromising outcomes to the environment.

We have grandfathered GHG emissions for major industries – Tiwai is a major beneficiary.

Labour laws have assisted business – such as the 90 day trial – and we are investing heavily in infrastructure.  The fibre optic cable roll out is a good example.

With the Hon Tim Groser as Minister of Trade we have worked effectively to give NZ better access to markets.  We now have more Free Trade Agreements in place than any other country in the World.

We are investing in research with NZ companies. Primary Growth Partnerships are now in place worth over $700 million.

We have just seen an annual increase in household wages and salaries of 2.3% – nearly half the cumulative total of the last five years.  Governments set the right conditions, but it is up to all of us to work hard to maximize them.

The Government has decided that from 1 January 2013 New Zealand will be aligning its climate change efforts with developed and developing countries which collectively are responsible for 85% of global emissions. This includes the United States, Japan, China, India, Canada, Brazil, Russia and many others.

NZ stands 100% behind its existing Kyoto Protocol Commitment.  We are on track to achieving our target – indeed we are forecasting a projected surplus of 23.1 million tonnes. We will remain full members of the Kyoto Protocol. There is no question of withdrawing. The issue was always different: where would we take our next commitment – under the Kyoto Protocol or under the Convention with the large majority of economies? We have decided that it is New Zealand’s best interests to do the latter.

Our commitment to addressing climate change remains strong.

The Government has announced a number of measures to improve housing affordability in New Zealand.  We know our housing market is not as efficient as it could be – housing costs are too high, and there isn’t enough land available for residential purposes.  This all places pressure on social housing and the available rental market.

In Southland, affordability isn’t as much of a problem as elsewhere, but our Government is also working on resource management reform to reduce the costs, uncertainties, and delays which are frustrating the development of more residential areas.

We are speeding up the process for consents.  We will also consider a zoning presumption that all land is zoned for housing unless specifically excluded.  Over time, we are confident the housing market can include, rather than exclude, more Kiwis who aspire to home ownership.

A top former financial advisor to President Obama has praised the way the National Government is handling the global financial crisis.

Peter Orszag, Obama’s Director of the Office of Management and Budget until 2010, singled out New Zealand as the model for a balanced response to the international debt crisis.

He said combining long-term deficit reduction measures with additional support for the economy was vital, and identified New Zealand as the only country which has got the balance right.

National’s responsible management of the Government’s finances and our economy has enabled the Government to maintain debt at sustainable levels while taking the sharp edges off the recession.

The contrast with Labour’s promises to borrow, tax, and spend more, leaving future generations to repay a mountain of debt, could not be greater.