Ladies and Gentlemen, fellow National Party members,

I’m proud to be launching National’s campaign for the 2011 election.

It’s an election where the stakes for New Zealand are high.

And you are an important part of it.

All of us have a role to play in this election, whether it’s door knocking, putting up hoardings, posting flyers, driving people to the polls, or any of the hundreds of jobs that need to be done between now and November 26.

And we all have to be at the top of our game, because election campaigns are tough, and there is no room at all for complacency.

We need to be out there every day, selling our case.

For each of the next 27 days until the election, I will be out there talking about our plan for a brighter future and I want you to join me in doing that.

You can be assured that your MPs and candidates are working tirelessly to get our message across.

And what a great team we have.

Today I want to acknowledge their efforts and look forward to them joining me on the stage at the end of my speech.

In the end, this election is going to come down to two things.

First, it’s about who can provide strong, stable leadership in difficult and uncertain times.

The world remains a turbulent place.

The images we see on our televisions from Europe and the United States remind us that strong political leadership is absolutely vital.

National has shown over the last three years that we can deliver strong and stable government in what have been very difficult times.

We’ve shown that we can work constructively with a number of other parties in Parliament to get things done for the benefit of New Zealand.

And the alternative is too awful to think about – a directionless, Labour-led government without a real plan to deal with these critical times.

Instead, all they have is a formula for more borrowing, more spending, more tax, and some vague notion of paying it off in the never-never.  They would also impose big new costs on business.

That would be a recipe for disaster, just as New Zealand is starting to grow again and bedding in the economic recovery.

Which brings me to the second key factor in the election – who has the most credibility when it comes to the economy.

That’s vitally important because when we talk about the economy we really mean our economy.

We are all a part of it.

Our economy keeps firms in business, people in their jobs, and families in their homes; it pays for medicines and health care, educates our kids, and pays our Super when we’re older.

So whether a party has economic credibility or not has very real consequences for very real people.

National has a straightforward and comprehensive plan to build a more competitive, stronger economy.

We’re balancing the books sooner by getting back to surplus in three years.

That means less debt and lower interest rates for households and businesses.

We’re creating incentives for people to work hard, save and get ahead, through changes to tax and welfare.

And we’re building better roads, broadband and other infrastructure so New Zealand businesses can grow.

Through these actions, we’re creating a more competitive economy and backing Kiwis’ ability to get out there and take on the world.

That means a more export-focused economy with more jobs for our kids.

And it means we can have better frontline services in health and education, stay strong on crime, and get on with the job of rebuilding Christchurch.

That’s our plan, and what I can promise you this election is a continuation of that plan.

It’s working, despite the difficult circumstances we’ve all endured over the last few years, including a recession in 2008, the worst global financial crisis since the Great Depression, and the devastating series of earthquakes that hit Canterbury and destroyed whole parts of Christchurch.

182 people died in the earthquake on 22 February this year and our thoughts remain with the families and friends of all the victims.

I know it’s been a difficult time for New Zealanders over the last few years.

We’ve had more than our fair share of adversity, and we’ve all been tested during this time.

But difficult times are when sound, stable and responsible government matters more than ever.

Faced with challenges, the National-led Government set about dealing with them in a measured and balanced way.

We supported New Zealanders through the recession, while at the same time putting in place measures to halt the rapid growth in government debt.

We undertook the biggest overhaul of the tax system in 25 years.

We cut personal tax, company tax, and taxes on savings; increased taxes on consumption and property investment; and closed a lot of loopholes and opportunities for tax avoidance.

We tightened our belt, and reprioritised billions of dollars towards front-line services in areas like health and education.

We put aside money to fund the government’s share of Christchurch reconstruction.

And we took a number of steps to increase genuine national savings.

The results are already starting to show.

The economy has grown in eight of the nine quarters since our first Budget was delivered, despite the earthquakes and the lingering impact of the global recession.

Interest rates have fallen to 45 year lows.

Households this year will have a positive savings rate for the first time in nearly a decade.

Exporters have been getting very good prices for what they produce and our trade with Asia is booming.

The important thing is that ordinary New Zealanders have benefited from this recovery, even though it hasn’t always been easy.

43,000 jobs were created last year.

Wages in the pocket have been rising faster than prices.

And the Government has been able to deliver better public services, with a focus on results.

Hospitals are performing 27,000 more elective procedures each year, with more frontline doctors and nurses. Emergency dept and cancer waiting times are down. And we’re making visits to after-hours clinics free for children under six.

We’ve passed 18 new laws to clamp down on illegal behaviour. We’ve taken a much tougher line with boy racers, sentencing, parole and bail. We’ve clamped down on gangs and P, and we’ve given the Police more tools to do their job.

Crime is down in every region of the country.

We’ve invested heavily in infrastructure projects that will help deliver a brighter future, like new State highways, rolling out ultra-fast broadband, and upgrading the rail network.

National has delivered for New Zealanders in difficult times.

And what does the future hold?

You know what you’ll be getting under National because it’s largely set out in the Treasury’s independent pre-election analysis – the PREFU.

This shows the budget deficit reducing significantly over the next two years before we run a $1.5 billion surplus in 2014/15.

After that we will be paying off debt, while other countries continue to borrow.

The economy is expected to grow at an average of three per cent a year over the next four years, with 170,000 more jobs than at the time of the Budget.

Unemployment will fall steadily to below 5 per cent.

Wages will continue to rise.

Interest rates will remain low.

And the government will continue to invest in high-quality public services.

That’s pretty good, but I actually think we can do better than this.

There are huge opportunities out there for New Zealand.

We are a food-producing country in a world that is demanding more food.

Our trade is increasingly shifting towards Asia – the most vibrant economic region in the world.

A growing middle class in China, India and across the continent is tuning in to the goods and services New Zealand can supply.

I’m unashamedly positive for New Zealand. I think we’ve got a great future ahead of us.

But we need to get out and seize that future – it won’t come delivered on a plate.

No-one owes New Zealand a living – we have to earn it.

That’s why it’s so important to create a more competitive economy.

An economy where businesses have the confidence to invest, expand, and take on new staff.

And an economy where we sell more of what the world wants to buy.

However, the world comes with challenges too.

The global environment is full of uncertainties and the Treasury has highlighted the European debt crisis as a major risk to the world economy.

That makes it even more important to have a strong, stable government at the helm.

So that is what National has to offer this election:

• strong, stable government, with a great team of Ministers and MPs
• sound, proven economic management that builds off our progress over the last three years
• and a positive vision for New Zealand , where the dividends of growth are seen in jobs, wages and better public services.

The alternative is Labour.

Where do I start?

Labour is a party without a plan.

Instead, they have a collection of election gimmicks and slogans, like GST off bananas, all of which would come with a hefty price tag.

Together these would create a $16 billion hole in the government’s accounts over the next 4 years alone – and far more over the longer term – which would have to be funded through borrowing.

Labour knows that.

So they have suddenly decided that every New Zealander can work another two years longer, to pay for some of their spending spree.

Even then, their numbers are a long way from adding up, because their retirement changes don’t start having a significant effect for at least 15 years.

Where does that leave us?

Labour would simply borrow more, spend more, tax more, and impose more costs on every business in the country.

And now they now want to push back everyone’s well-earned retirement.

Why would you vote for that?

Why would you vote for a party that thinks the answer to a global debt crisis is more debt?

It just doesn’t make sense.

But it’s certainly true to form.

When Labour was last in government they increased their spending by 50 per cent in only five years.

In Opposition, they have opposed every piece of spending restraint we’ve introduced.

Yes, every one.

And now their election promises consist of – you guessed it – more spending.

And when it comes to loading costs onto business, they are in a league of their own.

A big increase in the minimum wage, a compulsory KiwiSaver policy that hugely ramps up costs to employers, a new capital gains tax on all businesses, a more expensive ETS, an irrigation tax on farmers, more transport taxes, and a1970s industrial relations policy – all of these would add up to big cost increases for the 500,000 businesses in New Zealand.

That’s seven big, extra costs on business.

Businesses, both big and small, have only a few ways to meet these sorts of costs – reduce wages, cut jobs, increase prices or simply shut up shop altogether.

This is not the future I want for my kids – and I know you don’t want it either.

Let’s face it – Labour just does not understand how businesses work.

I know, and you know, that the only way people get jobs, and wage rises, is when someone is prepared to put money and time into their business, seek out new opportunities and grow.

Through the promises it’s made, Labour is telling those people not to bother.

Well I am far more optimistic than Mr Goff.

I back New Zealanders to get ahead.

But we have to give them the right environment to operate in, and a platform from which they can compete with the best in the world.

That only happens when we think carefully about things like taxes, and about regulations, and about the overall flexibility of the economy.

And it only happens when we keep debt low, invest in modern infrastructure and encourage savings.

That last point is what I want to talk more about this afternoon – keeping debt low, investing in modern infrastructure, and encouraging savings.

Because that’s precisely what our extension of the mixed-ownership model is all about.

As I go around New Zealand and talk to people, I find they increasingly understand what we’re planning to do with the mixed-ownership model.

They understand that we already have a living, breathing example of mixed ownership in Air New Zealand, which has been operating under this model for almost a decade.

They understand that the government will retain a majority stake in Meridian, Mighty River, Genesis and Solid Energy, so we’ll never lose control.

They know these companies provide an opportunity for New Zealand savers who are looking for somewhere to put their savings, and not in housing or finance companies.

And they understand that by extending the mixed-ownership model to these companies, the Government will free up $5 to $7 billion for reinvesting in new and valuable assets, without having to borrow.

Today I am announcing how this reinvestment will happen.

If re-elected, National will put the proceeds of mixed ownership – which, as I said, will be between $5 and $7 billion – into a new Fund, called the Future Investment Fund.

The Future Investment Fund will be used to buy new assets on behalf of New Zealanders, and to upgrade and modernise our existing assets.

The new projects I am talking about here are things like major hospital redevelopments, new schools, and transport projects.

They will result in assets that are long-lived, are here in New Zealand, and are owned by the Crown on behalf of all taxpayers.

We will set a high bar for projects to be funded out of the Future Investment Fund and the case for these projects will have to stack up.

They will have to deliver substantial social or economic dividends for New Zealanders.

Decisions on spending from the Fund will be made on a case-by-case basis, by ministers, as part of the normal Budget process.

We intend the Fund to run for at least five Budgets, but this of course depends on how much the mixed ownership model raises. The higher the proceeds, the more new investment we can pay for without having to borrow.

We will be very transparent about the proceeds that go into the Future Investment Fund and very transparent about what assets are being paid for out of the Fund.

In this way, the public can be assured that the proceeds of mixed ownership are not being lost.

Far from it – the money we raise from mixed ownership will be used, in its entirety, to pay for valuable new assets that will benefit New Zealanders for many years to come.

And because we will have the money already there in a Fund, we don’t need to go out and borrow that money from overseas lenders, increase our debt, and pay higher interest payments offshore.

Today I am also announcing the first project to come out of the Future Investment Fund.

The first priority for the Fund is education.

We are putting aside $1 billion of the Fund, over the next five years, to modernise and transform New Zealand schools.

That’s because the environment in which teachers teach, and kids learn, is hugely important.

But kids across New Zealand go to schools that are as different as chalk and cheese.

Some kids go to very modern, new schools.

I’ve been lucky enough to visit some of these schools, like Albany Junior and Senior High Schools in my own electorate.

These schools don’t look anything like the ones most of us went to.

A time-traveller from the 1960s wouldn’t even recognise them as schools.

For a start, they are not made up of rectangular, one-teacher, single-class classrooms, with 25 desks all in lines and a blackboard – or whiteboard – at the front.

They are built in a very modern way, to support modern teaching methods and modern technology.

Typically, they are built around what are called ‘flexible teaching spaces’.

These are open plan areas with breakout rooms coming off them. The whole area can easily be reconfigured and used in a variety of ways.

This sort of space gives teachers the flexibility to teach small groups of students, or larger groups sharing resources with multiple teachers.

And they are designed to enable teachers and students to make far better use of technology than is possible anywhere else.

Other kids go to more traditional schools that nevertheless have built new teaching areas.

But most kids go to schools that were built during the post-war baby boom, or even before that. In fact 60 per cent of New Zealand schools are over 50 years old.

They weren’t designed for new technology, quite obviously, and they weren’t designed to support modern teaching methods.

What is more, quite a number of school buildings are either earthquake risks or are leaky.

The point here is that kids will struggle to learn in a poor environment.

So our goal is to ensure that as much as possible, all schools, whatever their age, can provide the same learning opportunities as new schools.

That will be a long-term project, stretching out 10 years and beyond.

And it will require a considerable investment.

As things stand now, the existing money for school building projects will be needed simply to maintain the existing school network and to help address health and safety issues like earthquake proofing and leaky buildings.

And to do anything more would require borrowing.

So we are going to take $1 billion from the Future Investment Fund and put it towards accelerating our “21st Century Schools” building programme.

This programme will cover the next five years and involves:

• building new, modern schools
• rejuvenating existing schools on the same site
• building new, modern teaching areas in existing schools
• and wiring up many more schools with fibre, to take advantage of ultra-fast broadband.

All these new schools and all these new teaching areas will be built as modern learning environments and incorporate flexible teaching spaces.

They will all be set up to accommodate the latest technology.

And because we’ll be relieving a lot of pressure from the rest of the school building budget, there will be more resources available for smaller rebuilding and redesign projects, which again will involve modern designs and modern technology.

So the $1 billion we are contributing from the Fund is a very big investment in schools and therefore in the future of our kids.

It will allow us to increase the total amount spent on school building projects each year by more than 50 per cent.

That level of investment would not be possible without the mixed ownership model.

Our 21st Century school building programme is also bolstered by the Government’s major investment in ultra-fast broadband.

All schools will be connected to ultra-fast broadband over the next five years.

At the same time, we’re wiring up the inside of schools with fibre so they can connect with the new broadband network.

And the next step is to develop a dedicated on-line network for all New Zealand schools.

I’m pleased to announce that the Government has agreed to fund the development of this network. It will be called the Network for Learning and it will go live in 2013.

Schools will be able to access this network once they are wired up for ultra-fast broadband.

Our Network for Learning will enable schools to access learning resources on line, connect with other schools across the country and around the world, and allow teaching to be delivered at a distance, for example to students in rural schools.

It will ensure that teaching and learning in New Zealand reflects modern educational methods and makes the most of new technology.

With over 2,500 schools and more than 800,000 users, it will be the biggest network of its kind in the country.

Taken together, our 21st Century building programme, ultra-fast broadband, and the new Network for Learning, will give our kids learning opportunities that are second to none in the world.

Ladies and Gentlemen, fellow National Party members:

Make no mistake – New Zealanders have a very clear choice this election.

They can choose to go forward with a strong, stable National-led government and build on the last three years.

A National government that stands for a prosperous, safe and ambitious New Zealand, where all Kiwis have the opportunities to get ahead under their own steam, no matter where they are born or what their parents do.

Or they can stop, and then head backwards, with a negative Labour Party that wants to borrow more, spend more, tax more, put more costs on business, and push back everyone’s well-earned retirement.

Personally, I think New Zealanders are aspirational for their future.

That’s why I’m asking them to give their party vote to National on November 26.

Let’s get out there and win that election.

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A big focus of our first term in Government has been crime.

We’ve passed 18 new laws to help make families safer in their homes and communities.

We’re clamping down on gangs and P, investing in new programmes to turn young offenders away from crime, and we’ve introduced tougher sentences for the worst repeat violent offenders.

Already, we’re starting to see the results: in the last year, crime was down in all regions – and overall by 7%.
Earlier today Minister of Justice Simon Power announced the next step in the Government’s Law and Order agenda: major changes to the bail laws. These changes came about following the review of Bail laws we promised in 2008.

New Zealanders must feel safe in their homes. While we recognise that people charged with a crime are innocent until proven guilty, that right must be balanced against the principle of public safety.

The National-led Government’s changes will help to keep our communities safe. As a result of our review of bail laws, National will introduce a range of changes including the following:

• Firstly, we’ll target those defendants with the highest risk of offending on bail, by reversing the burden of proof in bail decisions for those charged with serious class A drug offences, such as manufacturing or dealing P. Over a third of these defendants offend while on bail.

Reversing the burden of proof means that it is up to the defendant to demonstrate that they do not present a risk to the public, rather than leaving it to the police to prove that they do.

• Secondly, we’ll introduce a reverse burden of proof in bail decisions for defendants charged with murder, to reflect the seriousness of the charge
• We’ll expand the list of violent and sexual offences that result in a defendant being subject to a reverse burden of proof if they have a prior history of such offending.
• Defendants aged 17-19 who have previously served a prison sentence will be subject to the standard (adult) tests for bail, rather than the strong presumption in favour of bail that currently applies
• We’ll enable the Court to detain defendants under 17 years of age who significantly or repetitively breach bail conditions
• Under National, it will be clear in legislation that bail will not be granted in return for information.
• We’ll increase the penalty for failure to answer Police bail to up to three months imprisonment, from the current fine of up to $1,000.
• And there will be a reduction in the number of situations where a defendant is “bailable as of right”.
• And finally, we’ll put the electronic monitored bail regime into legislation to ensure that it is administered consistently.

The National Government’s focus is once again on the safety of New Zealand’s communities, as it has been throughout our first term in Government.

More details

Bail laws to be strengthened to protect public safety

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Pacific Islands Forum Opening Ceremony

Leaders of the Pacific Islands Forum.

Forum Secretary-General Tuiloma Neroni Slade.

Secretary-General of the United Nations Ban Ki-moon.

Secretary-General of the Commonwealth Kamalesh Sharma.

Secretary-General of the ACP Group of States Dr Mohamed Ibn Chambas.

His Worship the Mayor of Auckland Len Brown.

Diplomatic representatives.

Distinguished guests.

Welcome to New Zealand and the great city of Auckland for the 42nd Pacific Islands Forum Leaders’ Meeting.

It is an honour to speak to you as incoming chair.

I would like to acknowledge the efforts of the Vanuatu Government in advancing the Forum’s work programme over the past year.

I would also like to acknowledge Secretary-General of the United Nations, Ban Ki-moon, who is attending the Pacific Islands Forum for the first time.

We are delighted to have you here.

New Zealand is privileged to be hosting the Forum again this year.

We are committed to strengthening relations with our closest neighbours in the Pacific, and we see the Pacific Islands Forum as one of the best ways to do that.

We are particularly pleased to be hosting this Forum against the backdrop of the biggest event we’ve ever hosted: the Rugby World Cup 2011.

About 95,000 people from throughout the world are coming here during the Rugby World Cup, which kicks off in two days’ time.

We’ve worked hard to make the Rugby World Cup a Pacific event, because we know it’s our big chance to showcase this region to the world.

We want our visitors to enjoy some great rugby games and experience the Kiwi culture.

But we also want them to leave New Zealand with a sense that they’ve been to the Pacific.

And we want them come back again to see more of what this beautiful region has to offer.

I’m looking forward to watching the opening game – the All Blacks versus Tonga – with many of you on Friday evening.

But we’re not just here to talk about rugby, of course.

This year marks the 40th anniversary of the Pacific Islands Forum.

The Forum has a long and successful history.

Seven South Pacific leaders held their first meeting in Wellington in 1971.

The Forum has evolved and changed quite a bit since then.

This year we’ve got 14 member countries represented here.

We’re also including elements not thought of in 1971, such as the Post-Forum Dialogue, which is a vital link to partners outside the region, and the Private Sector Dialogue.

The Forum has come a long way in 40 years.

Today it is a core institution of our region.

It’s a way in which we harness development in the Pacific, advance regional cooperation in politics and economics, and represent our concerns to the rest of the world.

All of us here think of ourselves as Pacific countries and as members of the Pacific family.

As with all families, the ties that bind us are very strong.

And, as with all families, we have our disagreements.

But it is true today, as it was 40 years ago, that the things we have in common are much stronger than those that separate us.

As hosts of this year’s Forum, New Zealand has worked hard to deliver a unique programme.

We’ve introduced new events such as the Pacific Showcase and the Oceans of Opportunity Investment Summit, which give Pacific people more opportunities to take part.

Our theme is Converting Potential into Prosperity.

That means focusing on our opportunities, coming up with practical ideas, and taking action.

This week will be about bringing together government leaders, businesspeople, and other stakeholders, and finding ways to work together to promote sustainable economic development.

This is a central theme of the Pacific Plan, which leaders endorsed in 2005.

It is also, I believe, the key to unlocking the unrealised potential of the Pacific.

There are some sectors in which we can make progress relatively quickly.

That includes tourism, energy, fisheries and education.

And this week we will focus on these four areas.

First, tourism.

Tourism is a growth industry globally.

It’s also an area in which we have a strong competitive advantage, with our cultural diversity, friendly people and natural beauty.

Second, fisheries.

The Pacific has the world’s last great tuna resource, so there is huge potential to increase earnings in this area.

At the same time, we need to make sure we develop the industry in a sustainable manner and avoid over-fishing.

Third, energy.

The region depends on importing fossil fuels for its energy needs.

Yet it has great potential in renewable energy and there is room to improve our energy efficiency.

Fourth, education.

It’s vital that we have a skilled workforce to help us grow our economies.

We need to work harder to get kids into school in the Pacific region, and teach them the skills they need to succeed and contribute to the economy.

We also need to help adults learn new skills.

New Zealand, and we hope other donors, will be announcing initiatives in all of these areas as the week progresses.

Our programmes will not just involve the government, but also businesses and other stakeholders, including the public.

All Pacific people have a stake in the future prosperity of this region.

That’s why events running alongside this Forum pull together different parts of Pacific society.

Many of you will have seen the Pacific Showcase that’s being held in this great Cloud venue.

The Showcase highlights the tourism and export potential of the region, against a backdrop of vibrant Pacific music and dance.

Yesterday we held our Investment Summit, which gave nearly 200 businesspeople and trade experts from throughout the Pacific the opportunity to share ideas and explore investment opportunities.

As shown by these events, New Zealand believes that we need to work together to convert potential to prosperity.

Working together is more important than ever in the current economic climate.

To overcome the challenges ahead and to make the most of our opportunities, we need to come up with new ideas and new ways of doing things.

We need to listen to new voices and explore new partnerships.

As leaders, we must be creative, innovative, and open to new ways of approaching old problems.

Most of all, we need to work together with our Pacific family.

History shows that we are stronger together.

So, in this spirit, I look forward to our discussions this week.

Once again, welcome to New Zealand.

We are delighted to have you here.

Thank you for the opportunity to host the Forum Leaders’ Meeting in this 40th anniversary year.

New Zealand takes this honour seriously, and in the year ahead we’ll be working hard to help make our home – the Pacific region – an even better place to live, work, and raise a family.

Thank you very much.

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Ladies and gentlemen, thank you for inviting me to speak at your conference.

I am delighted to be here today with members of United Future New Zealand.

I want to acknowledge my hard-working and effective ministerial colleague – and Leader of United Future – the Honourable Peter Dunne.

Peter, it’s great to be working alongside you.

Over the past three years, I have been privileged to lead this stable, National-led Government, with three strong support partners: ACT, the Maori Party, and, of course, United Future.

National forged an agreement with these parties because we knew we could achieve more for this country by working together than by standing alone. And I’m pleased to say that our approach has been a success.

I spoke at the ACT Party conference in 2009. I’ve visited marae and spoken to members of the Maori Party. And here I am this year at the United Future conference.

It’s great to have this opportunity to acknowledge the contribution United Future has made to our Government.

I strongly value the good working relationship between our two parties.

Of course, we don’t agree on everything. After all, we are different political parties. We have different ideas, different policies, and different processes.

But that’s a perfectly healthy part of a democracy. And it’s a necessary part of the MMP electoral system under which we operate.

The important thing is that, together, we are providing a strong, stable, results-focused government for the benefit of all New Zealanders.

Because that is crucial for the future of this country.

New Zealanders need a forward-looking government that tackles challenges and maximises opportunities.

And that is what they have found in this National-led Government, with the support of United Future.

Working alongside United Future, and our other support partners, we are making great progress for the people we serve.

As we’ve seen in the past couple of weeks, financial markets around the world continue to be volatile and uncertain.

Some of the world’s biggest economies have been struggling with high debt and low growth.

It’s still unclear how the European debt situation and the downgrade of the United States will ultimately play out.

The good news is that here in New Zealand, despite this international volatility, things are looking up.

Actually, we’re very well-placed compared to most other developed economies.

Employment is rising. Wages are growing. Households and businesses have been saving more and paying off debt.

And, despite the earthquakes, the economy is growing more strongly than anyone had predicted.

In the first quarter of this year, the New Zealand economy grew 0.8 per cent while the Australian economy shrank 0.2 per cent.

The Government has a very strong Budget plan.

In only three years we will be one of the first developed countries back in surplus.

After that, we will be repaying debt while other countries keep borrowing.

Government debt will peak at less than 30 per cent of GDP, thanks to the measures we have taken over three successive Budgets.

In comparison, the average government debt of developed countries will soon approach 80 per cent of GDP.

New Zealand has a chance to stand out from the crowd of debt-laden countries, but only if we stick to our plan.

And our economic policies are making the country more competitive, so we can make the most of opportunities coming our way.

Interest rates in New Zealand are low. Commodity prices are strong. Trade with Asia is booming.

With sound economic management, we are in a good position to grow solidly over the next three years, create more jobs, and increase wages.

I believe that New Zealand is on the right path, but we must stay on track.

In these times of global uncertainty, New Zealand needs a strong and stable government.

It’s critical for the future of this country that we stay on this path, and make the most of the opportunities that are now emerging.

New Zealanders need a government that maximises our opportunities, makes responsible decisions, and builds a brighter future for this country.

That is what New Zealanders have found in this National-led Government, with the support of United Future under our Confidence and Supply Agreement.

This National-led Government is building the brighter future that New Zealanders deserve.

That is what we are here to do, and, together with our support partners, that is what we are doing.

I’d like to take this opportunity today to touch on some of Peter Dunne’s specific contributions. There are, of course, many and I won’t list them all today.

I believe that you, the United Future members, are well served by Peter in Parliament.

Peter has done as excellent job as Revenue Minister and Associate Health Minister. He has also made good gains in his capacity as Leader of the United Future Party.

Last year the Government undertook the largest reforms to the tax system in 25 years.

Peter, as Revenue Minister, advocated strongly for making the tax system fairer and encouraging investment into more productive parts of our economy.

Changes included across-the-board reductions in personal income tax, cutting the company tax rate, and a number of property and other tax changes.

Peter is also the man who got Kronic off our streets and away from our kids.

He has stopped the synthetic cannabis industry in its tracks.

Under Peter’s lead as Associate Minister of Health, the Government changed the Misuse of Drugs Amendment Bill, to ban unregulated psychoactive substances such as Kronic.

It’s unacceptable to the Government that a product that causes potentially lethal risks was available freely to our young people.

Thank you, Peter, for taking action on Kronic and making this happen.

Peter is also the man behind the Government’s payroll giving scheme, which gives ordinary Kiwi workers a chance to support charities.

This scheme has been hugely successfully so far. More than 1000 employers have signed up – including large companies such as Telecom.

About $3 million has been donated to registered Kiwi charities in just over 18 months since the inception of the scheme.

Peter is also the Minister who I have trusted to take the vexed and complex issue of creating a fairer child support system – an issue that has for many years been in the “too hard” basket.

Under our Confidence and Supply Agreement with United Future, the Government also created the Game Animal Council this year.

It is a new independent statutory hunting body, which will improve the management of game animals in New Zealand. It’ll preserve access to, and enjoyment of, the great outdoor for New Zealanders.

Ladies and gentlemen, as you know, Peter and United Future have made a valuable contribution to the National-led Government.

I know that your contribution won’t stop here.

On Friday next week, we will enter the regulated period for campaign expenditure. It’ll be exactly three months before New Zealanders go to the polls.

So it is timely for me to briefly touch on the Ohariu electorate, in which Peter Dunne has again been selected as United Future’s candidate.

Can I first acknowledge my colleague Katrina Shanks who makes a tremendous contribution to the National caucus, and as a list MP in this electorate.

In the upcoming election, it is, of course, up to the voters of Ohariu to make their own decisions about what they do with their electorate vote.

What I can say today is that National will be running a strong party vote campaign in this electorate.

In Ohariu, and throughout New Zealand, we will be emphasising that the National Party needs strong support if it is to form another National-led Government.

If the people of New Zealand want another National-led Government, then our message to them is simple: give National your party vote.

The election on November the 26th is critical for the future of this country.

The National-led Government has made excellent progress for New Zealand.

We have put New Zealand on the right path. And we are full of enthusiasm for the work ahead.

But we are not taking anything for granted. The election will be a contest of ideas. Like United Future, the National Party will be campaigning hard.

We will be working hard for every vote. We will be getting out and about around the country to talk about our plan. And we will be continuing our hard work to build a brighter future for New Zealand.

None of us can predict what the result on November the 26th will be. But, if National is fortunate enough to be re-elected, I know we will want to continue to work with like-minded political parties. And that includes the people I stand here in front of today – the people of United Future New Zealand.

Ladies and gentlemen, as I said at the outset of this speech, we know that we can achieve more for this country by working together.

We will continue to disagree from time to time. We will continue to have different approaches to many issues. We will continue to compromise at times in order to work together.

But the important thing is that, together with our support partners, this National-led Government is making a real difference to New Zealand’s prosperity.

I know you’ll agree that there is so much more we can do in the years ahead.

Thank you.

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Ladies and Gentlemen, fellow National Party members, it’s fantastic to be here.

I am proud to be the leader of our great Party – the National Party.

And I am proud to be leading a Government that is building a brighter future for all New Zealanders.

I want to thank you all for being here today and for the work you do for the Party.

You are the heart of this Party and you make National strong.

This year we celebrate the National Party’s 75th birthday.

We remain as true to the values of National as the Party’s founders did back in 1936.

We stand for a safe, prosperous and successful New Zealand, where all Kiwis have the opportunity to get ahead and to realise their goals.

We believe in personal responsibility, individual freedom and choice.

And we believe in encouraging potential and rewarding achievement.

Ladies and Gentlemen, our Party is in great shape to fight this year’s election.

I want to thank our President, Peter Goodfellow.

With Peter at the helm, the National Party has solid local foundations and a head office that is geared up and ready to campaign.

I want to thank our Regional Chairs, our Deputy Chairs, Board Members, Electorate Chairs, volunteers and members.

You are all crucial to the fortunes of this Party.

I want to pay special thanks to the man who has delivered three excellent Budgets in the toughest of circumstances – my Deputy, Bill English.

I want to thank my talented team of Ministers, who are working hard to secure a brighter future for New Zealand.

I want to thank all our Members of Parliament who do such a great job representing Kiwis from Northland to Invercargill, and from the East Coast of the North Island to the West Coast of the South Island.

We are a strong, stable Government and we have delivered on our promises.

We have turned around an economy that was deep in recession to one that is growing.

We have seen 43,000 new jobs created over the past year.

Three-quarters of income earners have a tax rate no higher than 17.5 per cent.

We are delivering over 20,000 more elective surgery operations a year.

We are putting 600 more Police on the front line.

We are making the biggest-ever investment in State Highways to get this country moving.

We are rolling out ultra-fast broadband for a modern economy that is connected to the world.

We have introduced National Standards in our schools to lift achievement and help those kids who are falling behind.

And we have supported New Zealanders through the difficult times this country has faced, from the global financial crisis to the Canterbury earthquakes.

Fellow National Party members, we have delivered for New Zealand and we will keep delivering.

When I stood before you at last year’s annual conference none of us could have imagined the disasters that were about to strike Canterbury.

Those images of destruction will stay with us forever.

I have visited my home city many times since the earthquakes.

I have seen a community that has been dealt the harshest of blows, but one that has pulled together and shown great heart and resilience.

I know it is still tough and I know people are working hard to rebuild their lives.

It will be a long journey. But as I have said repeatedly to Cantabrians, it is a journey that we are determined to walk with you.

I’d like to give special thanks here to our Minister Responsible for Canterbury Earthquake Recovery, Gerry Brownlee.

The people of the West Coast, too, have been struck by tragedy over the past year.

We continue to mourn the 29 men who lost their lives in the Pike River mine.

And we continue to support the Royal Commission now underway to find answers for their families and for the whole country.

Fellow National Party members, it is just over 100 days until the General Election.

This election comes at a critical time for our country.

Around the world, financial markets continue to be volatile and uncertain.

Some of the world’s biggest economies are struggling with high debt and low growth.

It is unclear how the European debt situation and the downgrade of the United States will ultimately play out.

And over the past week we have seen just how volatile the world’s financial markets can be.

The good news is that here in New Zealand things are looking up.

Compared to most other developed economies, we are very well placed.

Employment is rising.

Wages are growing.

Households and businesses have been saving more and paying off debt.

And despite the earthquake, the economy is growing more strongly than anyone had predicted.

In the first quarter of this year the New Zealand economy grew 0.8 per cent while the Australian economy shrank 1.2 percent.

The Government has a very strong Budget plan.

In only three years we will be one of the first developed countries back in surplus.

After that, we will be repaying debt while other countries keep borrowing.

Government debt will peak at less than 30 per cent of GDP, thanks to the measures we have taken over three successive Budgets.

In comparison, the average government debt of developed countries will soon be approaching 80 per cent of GDP.

New Zealand has the chance to stand out from the crowd of debt-laden countries, but only if we stick to our plan.

And our economic policies are making the country more competitive, so we can make the most of the opportunities coming our way.

Interest rates in New Zealand are low, commodity prices are strong and our trade with Asia is booming.

With sound economic management, we are in a good position to grow solidly over the next three years, create more jobs and increase wages.

Fellow National Party members, New Zealand is on the right path.

We are building the brighter future that New Zealanders want and deserve.

But we must stay on track.

New Zealand simply cannot afford to do what our political opponents are advocating – borrow more at a time of global uncertainty, spend it on ineffective and wasteful policies, and hope that things will get better sometime way out in the future.

That is simply irresponsible.

Fellow National Party members, this election is critical for the future of our country.

New Zealanders have a clear choice on November 26.

They can go backwards – towards higher debt, wasteful spending and the politics of envy.

Or they can vote for our strong plan to move forward – to make the most of our emerging opportunities, protect our gains, lift the amount of money in Kiwis’ pockets, give kids a good education, boost frontline health services, stay tough on criminals and reduce long-term welfare dependency.

National Party members, I want to talk about this last point today – long-term welfare dependency.

I believe very strongly in the welfare state.

My mother was for a time on the Widows Benefit and we lived in a state house.

I will always be grateful for the opportunities that gave me, and I make sure this is reflected in the policies I sign off on as Prime Minister.

Paula Bennett, too, was helped by the welfare system when she was a young teen mother on the Domestic Purposes Benefit.

But as a country we need to have a hard look at where the welfare system has got to.

Currently, 328,000 people are receiving a benefit – more than 10 per cent of the entire working age population.

More than 170,000 of those have spent at least five out of the past 10 years on a benefit.

There are 222,000 children living in benefit-dependent homes.

The government spends $20 million a day on benefits and hardship assistance.

The fundamental question you have to ask yourself is, “Is this what the architects of the welfare state had in mind”?

I don’t think it is.

I’ve often said that you measure a society by how it looks after its most vulnerable.

But you also measure a society by how many vulnerable people it creates.

At the moment it is creating too many, so we are going to make changes.

The Welfare Working Group has made an extensive list of recommendations for reducing long-term benefit dependency.

The Government has been working through those recommendations and we will clearly set out our intentions for welfare reform before the election.

We will be making a series of policy announcements on the different aspects of the welfare system.

As we do so, officials will continue to work on the complex policy details that underpin them.

Today I want to make the first of these announcements.

It is focused fairly and squarely on the problem of young people who have recently left school but who are not in education, training or work.

These are kids who are already watching their lives slip away.

Over the past year, there were between 8,500 and 13,500 young people aged 16 or 17 who were not in education, training or work.

What we know is that when these young people turn 18, 90 per cent of them will go onto a fully-fledged adult benefit, unless we do something to intervene.

That’s why we are making this group the first priority – because 90 per cent of them are on a collision course with the benefit system.

Some are already there.

Around 1,600 of these young people are on a special 16- and 17-year-olds’ benefit, either because they are teen parents or because the relationship with their parents has seriously broken down.

These young people will almost certainly go onto an adult benefit at age 18.

Research tells us that young people who go onto an adult benefit that early will stay on it longer and the lifetime cost of that benefit receipt will be very high.

More importantly, there is the human cost of wasted potential and poor social outcomes.

It is therefore worth investing money up front, when these kids are young, to get them back on track.

That principle is at the heart of the Government’s approach to welfare reform.

National Party members, the way the government works with this group of vulnerable young New Zealanders is going to change.

Whatever their circumstances, these young people deserve the opportunity to have healthy, productive lives.

It’s what we would want for our own children.

But, because of their backgrounds, we cannot realistically expect these young people to do it alone.

They need guidance and support.

There are two major parts to the policy I am announcing today.

The first part applies to all disengaged 16- and 17-year olds, whether or not they are receiving a benefit.

We want to see these young people back in some form of education or training, so they are better placed to move into the workforce, not onto a benefit.

The Government already funds a number of organisations which advise young people on training options, as part of the Youth Transitions Service.

That has been a good start, but we are going to make significant changes.

The first change is to find out who all these young people are.

At the moment we simply don’t know, because we lose track of them when they leave school.

That has to change.

The Government is going to amend the Privacy Act and the Education Act to allow two things to happen:

schools will be required to tell us when 16- and 17-year-olds leave during the year

and information on these young people can be shared between the Ministries of Education and Social Development.

For the first time, we will be able to find out who all these disengaged 16- and 17-year-olds are; what circumstances they are in; what problems they have had at school; and what their risk of long-term welfare dependency is.

We are then going to fund community and other organisations to provide a transitions service, similar in some ways to the current service, but one which:

much more closely targets the young people most at risk of long-term welfare dependency

and has a greater range of tools available, such as being able to arrange access to social services like drug and alcohol or counselling services

and, most importantly, is focused on results.

For the first time, a considerable part of the government’s funding of transitions services will depend on something actually changing.

That could include goals like the young person successfully completing a training programme, or not being on a benefit at age 18.

Put simply, we are going to make it worth someone’s while to get these young people back on track.

At the same time, the government will provide a lot more training places.

Next year there will be 7,500 places available under the Government’s Youth Guarantee policy, which provides free study towards school-level qualifications in places like polytechnics and wananga.

And in two years’ time we will have built up the number of Trades Academies so that 4,500 places in free, work-focused trades and technology training are being offered.

So there will be plenty of options available.

In the end, of course, it will be up to the kids themselves.

But no-one will be able to claim that they weren’t offered every opportunity to get back on the rails.

So that is the first major part of our new approach.

The second part concerns those young people who are receiving benefits in their own right.

I need to make it clear that today’s announcements will not affect the Invalids Benefit, which can be received by people as young as 16.

But there will be changes for young people who receive other sorts of benefits.

At the moment these young people are largely left to their own devices.

But I believe this hands-off approach has failed this group of young people.

We can do a lot better.

So the policy on benefits for young people is going change.

These changes will apply to all young people who get the special 16- and 17-year-olds’ benefits, and also to 18-year-old teen parents.

This has three elements.

The first is that we are going to fund community and other organisations to provide comprehensive and concentrated support to these teen beneficiaries.

Think about who these young people are.

They are very vulnerable, many of whom have a child.

They typically come from disadvantaged backgrounds and many have complex and multiple problems.

While some of them have supportive parents or other good role models in their lives, many have grown up with little access to positive adult guidance.

They need a competent adult to walk alongside them, support them and help them access the educational and social services they require.

They need a competent adult to help them manage their money.

They need a competent adult to help them meet the obligations and responsibilities that come with receiving financial assistance from the State.

And they need a competent adult to help raise their aspirations above the here-and-now.

That is why we are going to fund these support providers to be the competent adults in these young people’s lives – to provide intensive case-management and mentoring support.

Second, we are not going to simply hand over benefit money every fortnight.

Instead, we will have a much more managed system of payments, with the young person’s support provider, or MSD in some cases, paying bills on their behalf and helping them manage within their budget.

While there is still a lot of detail for officials and ministers to work through, we envisage that:

some essential costs, like rent and power, will be paid directly on the young person’s behalf

money for basic living costs like food and groceries will be loaded onto a payment card that can only be used to buy certain types of goods and cannot be used to buy things like alcohol or cigarettes

and that a certain, limited amount will be available for the young person to spend at their own discretion.

The support provider for each young person will be very active in helping them budget and teaching them how to manage money.

Third, there is a deal involved here.

Young people who are receiving these payments will have clear obligations, for example; to attend budgeting or parenting programmes.

Most importantly, each of these young people will have to be in education, training or work-based learning.

That means everybody, including teen parents.

We have carefully considered the interests of the children here.

And we absolutely believe that a child’s interests are best served if their parent continues with her own education, and if the child is in good-quality childcare.

So we will be insisting that teen parents continue with education or training, and we will cover the costs of the childcare involved.

Some of that education will be in Teen Parent Units, and we envisage there will be more of these established.

But that is only one option among many.

Innovative programmes are already being developed in communities around New Zealand.

So there will be flexibility to respond to each teen parent’s individual circumstances, and that also includes the timing of when that education or training will commence.

For the most part, that will be up to support providers to determine.

However, we envisage that by the time their child is one year old, most teen parents will be in some form of education or training.

So the three parts of this new benefit policy – which will apply to all young people the government supports financially – are intensive support and mentoring; money management; and new obligations, including to continue with education or training.

If all this sounds a bit hands-on, I make no apologies.

These are kids as young as 16 we are talking about, many of whom have difficult backgrounds.

We simply cannot continue to give them money and trust they will do the right things with it.

That approach has not worked.

We owe it to those young people, and to the rest of New Zealand, to take a new approach and get better results.

Yes, this new approach will cost money up front.

We expect the costs to be in the order of $20 to $25 million a year at the outset.

These costs will be firmed up once more of the details of the package are worked through.

But if we can reduce the number of young people who go onto a benefit at age 18, we save the government future welfare, justice and health payments.

What is more, we improve the social and economic outcomes for those young people over the course of their lives.

National Party members, our new direction for welfare is just one part of this Government’s plan to build a brighter future for all New Zealanders.

On November 26, Kiwis will have the opportunity to choose the government they want to lead this country for the next three years.

They can choose a forward-looking National-led Government that is focused on its economic plan for the future, or a rag-tag Labour-led coalition that will take us back in time to the days of tax and spend, and borrow and hope.

New Zealand is on the right track.

It is critical for the future of this country that we stay on that track and make the most of the opportunities that are emerging.

In these times of global uncertainty, New Zealand needs a strong and stable government.

National has a tried and tested team.

We have a talented and energetic Cabinet and Caucus.

We have a strong Party built on solid and enduring values.

We are building a brighter future for all New Zealanders.

There are just over 100 days to go.

Let’s get out there every day, sell our case, and win that election.

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