Dear John,
It's been a busy couple of weeks as the Coalition Government's first Budget approaches on Thursday May 30. As Associate Minister of Finance and Minister for Infrastructure, I've helped Nicola Willis pull this important document together. She actually gave her major pre-Budget speech in Silverstream, hosted by the Hutt Valley Chamber of Commerce - but sadly I couldn't be there as I was at the other end of the country (Queenstown) giving a speech about infrastructure! We will have to sort out our diaries better next year.
Nicola chose the Hutt deliberately - it's the first time in 14 years that a Minister of Finance has given the pre-Budget speech outside Wellington. She is determined to do things differently and the Budget reflects that. It's a break from the past because New Zealand needs it.
The reality is that we live in difficult times. New Zealand’s economy is in a tricky spot: inflation is too high and has been for almost three years, interest rates have soared and are biting homeowners and businesses alike, unemployment has risen and growth has stalled in four of the past five quarters. We inherited a structural deficit in the government accounts fueled by an 80% increase in government spending in 6 years, increasing debt, and poorer outcomes in health, education and law and order.
As Nicola says, the Government will not over-react to worsening forecasts. Instead, our task is to get on with making the economic changes New Zealand needs and that we were elected to deliver.
- Cost of living relief
- Fairer tax
- Better value from public spending
- Balanced books for lower debt
- A stronger more productive economy
You'll see all of that reflected in the Budget in a couple of weeks.
Wellington Housing: The big job for me over the past couple of weeks, apart from the Budget, was to make a decision on the Wellington District Plan. It's a complicated story but basically the Wellington City Council rejected 20 recommendations from the Independent Hearings Panel that held hearings on their draft District Plan. When that happens the law provides that I have to decide between the Council and the Hearings Panel (that's the short story!) Contrary to you might have read, this is fundamentally a quasi-judicial process and so I had to clearly follow the law. In 9 of the cases I agreed with the Council recommendations, which has had the effect of "upzoning" (allowing for more housing) in lots of the city. The Council also asked me to "de-list" the Gordon Wilson Flats (and nine other buildings). I wasn't able to do this as basically I had to have expert evidence from the Council and they didn't supply it to me. It's a frustrating situation all round and I've commissioned some advice on how we sort out the heritage situation. I think most people agree that cities shouldn't be museums and we need progress. There has to be a better way. Watch this space.
On the District Plan, some people were happy, some weren't. A difficult situation and I tried to discharge my legal duty carefully. That's politics, I guess!
Infrastructure: As I said above, while Nicola was giving her big speech, I was in Queenstown talking infrastructure. This is a major focus of the government and you'll see that in the coming months. We've already announced our new Roads of National Significance (including Petone to Grenada, the Cross Valley Link and Mt Vic) and soon Simeon Brown will finalise the government's Transport Policy Statement. This week he announced new "Roads of Regional Significance" around the country, which includes Melling! And we are making progress on the new one-stop-shop fast track consenting law. Frankly, some of the criticism of this is utterly misplaced and ridiculous. We have an infrastructure deficit, a housing crisis, and ambitious goals around renewable energy. Our current planning system simply won't help us solve these; in fact it basically makes it impossible. We're cutting through the red tape.
Around the Hutt: I've been out and about in the Hutt this week, visiting EasyBuild, Youth Inspire, a private training academy, hosting a "Catch up with Chris" session at the Riverbank Markets, and catching up with constituents. Thank you to everyone who has said hello.
Have a great weekend. I'm in Palmy for the Lower North Island National Party conference, but I'll be dashing back on Saturday night to see the Phoenix. Maybe see you there!
EAs always, if I can lend a hand with anything, please contact my office.
Chris
P.S I have my pink shirt on as today marks the global antibullying initiative 'Pink Shirt Day'. A very worthy initiative.
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