Vice-Chancellor Professor Stuart McCutcheon.

Secretary-General Tuiloma Neroni Slade.

Ladies and gentlemen.

Distinguished guests.

Kia ora and Pacific greetings to you all.

It’s a great pleasure to be here today to deliver this address in the 40th anniversary year of the Pacific Islands Forum.

New Zealand is committed to strengthening and deepening relations with our closest neighbours in the Pacific.

This Government has made good progress on Pacific relations in the past few years since we came into office.

We promised to increase the tempo and level of discussions with our neighbours in the Pacific, and we have delivered on that promise.

We have had a particular focus on increasing consultation and engagement with the Pacific Islands Forum countries.

That’s why, in my first year as Prime Minister, I made it a priority to lead an official delegation to the Pacific Islands. It was a valuable chance to reinforce our close links with our Pacific neighbours, and show our commitment to the whole region.

Foreign Affairs Minister Murray McCully is also very focused on engaging with the Pacific. He has been on 23 trips to the Pacific in the past few years, visiting 12 countries.

New Zealand is proud to be a nation in the Pacific, and we look forward to stronger ties with our closest neighbours in the years ahead.

Hosting this year’s Pacific Islands Forum is another way for us to reinforce our commitment.

The Forum has a long and successful history.

Forty years ago, the leaders of seven South Pacific countries came together in Wellington.

No one knew quite what to expect, because it was the first time our region had brought together so many leaders for a more or less open-ended discussion.

But the first South Pacific Forum was a success.

The seven leaders talked about many issues affecting our region – ranging from nuclear testing to trade, from shipping to education.

The Forum’s communiqué noted the meeting had achieved helpful and practical exchanges of information.

The main point was, probably, a sentence towards the end that read:

“Quite apart from being of immediate value to individual participants, the talks significantly advanced the spirit of regional cooperation and mutual confidence.”

I imagine this sense of common purpose left the leaders with a feeling they’d been part of something worthwhile.

This same sense of common purpose brought them back together twice the following year, in Canberra and Suva.

And, after that, regional leaders’ meetings were a regular part of the calendar.

Over time, the South Pacific Forum evolved and changed.

Its work programme, administered by the Secretariat in Suva, became more complex and wide-ranging.

It expanded to include more countries and peoples, which led to the Forum gaining a new name – the Pacific Islands Forum – in 2000.

Today, the Pacific Islands Forum is a core institution of our region.

It is the main means by which our leaders and governments work through regional problems, issues and opportunities.

It is a key vehicle for advancing regional cooperation in politics and economics.

And it helps us represent the concerns of our region to the wider world.

In this respect, the Forum’s 14 dialogue partners, who meet leaders immediately after each Forum summit, provide an essential link to major economies and to wider political, trade and aid processes.

For example, this year’s dialogue will address the important issue of donor coordination, which is part of the Cairns Compact.

It’s about strengthening Pacific countries’ leadership of their own development agenda.

But it’s also about making sure dialogue members coordinate support for Pacific countries, to get better results where it’s needed most.

Given the central role the Pacific Islands Forum plays in the lives of 16 countries, New Zealand is honoured to be hosting the 42nd leaders’ meeting in the Forum’s 40th anniversary year.

It is a great pleasure to host this gathering against the backdrop of one of the biggest events ever to come to this part of the world: the Rugby World Cup.

About 85,000 people from throughout the world are coming here to watch the rugby and be part of the REAL New Zealand Festival.

We want them to take home not only memories of some great rugby games, but also a sense that they have been to the Pacific.

Given that Auckland is the world’s largest Polynesian city, I’m confident that any visitor who spends time here will have no doubt they are in the Pacific.

We will also be reinforcing the concept of “Pacific-ness” through a three-day Pacific Islands Showcase at the Cloud exhibition space on Auckland’s waterfront.

This showcase will present not only the cultures of the Pacific, but also the considerable trading and investment opportunities these countries offer.

Because this is the Forum’s 40th anniversary, and because of the attention that will come upon the meeting through the World Cup, we wanted to make sure we had a theme that would do credit to the occasion.

That’s why the theme we are proposing is: “converting potential into prosperity”.

We know the Forum has had some impressive successes in past years.

Let me give you a couple of examples.

First, the Regional Assistance Mission to the Solomon Islands, known as RAMSI.

For eight years now, RAMSI has provided a security guarantee that has allowed the Solomon Islands Government to rebuild its country, following the tensions of the late ‘90s and early 2000s.

Civilian members of the mission are helping to rebuild the institutions of government in the Solomon Islands, from finance and taxation through to the courts.

RAMSI has included participants from every Forum member country, and this is something of which the Forum can be proud.

It is clear from those who have served in the Solomon Islands that the pan-Pacific flavour of the mission has been vital to its success.

Second, the Forum successfully coordinated Pacific Regional Assistance to Nauru. This helped Nauru recover from its debt crisis between 2004 and 2009.

Leaders have agreed on a framework for joint responses to regional crises such as those in Nauru and the Solomons.

In the process, leaders also set down their joint expectations of standards of governance and adherence to democratic principles.

The Forum has also worked hard to overcome transport difficulties in the Pacific. For example, the Pacific Forum Line has helped to build trade bridges between isolated island countries.

It’s important that we acknowledge these and other successes of the Pacific Islands Forum.

But it is also important to focus on the future.

The Forum has played a major role in developing a sense of Pacific regionalism.

The challenge now is to build on that idea of common purpose – the idea that brought Pacific leaders together back in 1971 – and harness it to build a brighter future for this whole region.

Hence our proposed theme: “converting potential into prosperity”.

By potential, I mean the ability to build on the region’s many resources and assets.

Too often the potential of the Pacific is overlooked in the rush to identify problems. We need to focus a little more on what our part of the world has, rather than on what it does not.

Our region is home to major sources of clean energy, such as sun and wind.
Energy will be a key feature of this Forum, and I hope to see concrete steps taken by the region and its donor partners to realise potential in renewable energy. It’s a way of both transforming economies and addressing climate change.

Our region also has mineral and oil wealth, as Papua New Guinea, the Solomon Islands and other countries can attest.

The Pacific Ocean holds a vast stock of fish and other marine resources, which most of the Island economies have access to.

Some Pacific nations have the ability to grow fruit, vegetable and oil crops that are sought after throughout the world.

The two largest economies, Australia and New Zealand, have large primary industries that can offer seasonal employment to people from the smaller island countries.

In an increasingly crowded and built-upon world, the Pacific has a natural environment that is second to none.

And, above all, our region is home to the Pacific people, who, along with their rich and diverse cultures, are full of potential.

Fulfilling this long list of potential presents some major challenges.

There are great difficulties in using the physical resources of the Pacific in ways that ensure sustainability, protect the land and the sea, and return revenues to local people.

Climate change is a major threat to many Pacific island countries, particularly those made up of low-lying atolls.

Those seeking to develop export industries must overcome the tyranny of distance, lack of access to capital, and quarantine restrictions in other countries.

Tourism development is thwarted by lack of international and local transport, and by lack of investment in local infrastructure.

Human potential is challenged by poverty, by lack of educational and employment opportunities, by poor access to energy and telecommunications, and by food security issues.

The need to confront these sorts of issues has been acknowledged by Pacific leaders.

In 2004, they commissioned a group of eminent Pacific people to talk to the governments and citizens of Forum countries.

The Eminent Persons’ Group asked people about their hopes and dreams for their nations and the wider Pacific – and about the difficulties that stood in their way.

The outcome was a document called “Voices of the Region”.

In 2005 the recommendations of that paper were accepted by Forum leaders as “The Pacific Plan”.

The Plan has four key pillars: economic growth, sustainable development, good governance and security.

The four pillars are interrelated and form the basis for a successful Pacific region.

The Plan acknowledges the need to pursue progress under these pillars regionally as well as nationally, for the simple reason that the problems being tackled and the solutions proposed cross national boundaries.

Looking back, we need to be honest about what we have achieved under the Plan, and aspire to do more.

Regional problems need regional solutions  the combined effort of countries working together for their individual and joint benefit.

For example, the Pacific Ocean is the last great tuna fishery on the planet. Working together, we need to ensure it does not suffer the fate of others around the world.

We have seen some promising steps. Tuna fisheries in the region are now being better protected and managed through the collaborative work of the Forum Fisheries Agency, the Secretariat of the Pacific Community and the Parties to the Nauru Agreement.

This work has contributed to the Pacific region’s share of the global tuna catch increasing 50 per cent in the past five years.

However, some of the region’s poorest countries have the largest Exclusive Economic Zones, and still do not see the returns they should from this resource.

Pacific-wide approaches are also being developed on the vital issues of climate change and food security.

A regional acknowledgement of the threat presented by climate change, and the commitment of Pacific countries to combating it, is enshrined in the Forum’s 2008 Niue Declaration.

The many regional organisations that exist throughout the Pacific – organisations with responsibility for sectors such as fishing, tourism and the environment – are being reformed and restructured so they can do their jobs more effectively.

Negotiations are continuing steadily towards a PACER Plus trade and economic agreement between Pacific island countries, Australia and New Zealand.

The Pacific Plan provides the architecture under which these initiatives advance.

It isn’t prescriptive. The Plan acknowledges that the regional and global environment is not static. It accepts that some aspects of regional coordination and integration will advance quickly, some more slowly.

The important thing is to keep chipping away under the four pillars, keeping sight of the overall objective of a peaceful, prosperous and secure Pacific.

Let me now bring this big regional picture back to this year’s Forum in Auckland.

Our theme, “converting potential into prosperity” is directly linked to the first two pillars of the Pacific Plan: economic growth and sustainable development.

We see these two pillars pretty much sitting together. Sustainable economic development is, in our view, the key to the future of the Pacific.

It’s about finding ways to carefully use the resources and assets of the Pacific so that they benefit the people of the countries that hold them, now and in the future.

It’s about investing in people so they can maximise their potential.

It’s about creating educational and employment opportunities that will ensure young people can have rewarding lives in their own countries, rather than having to seek opportunities overseas.

Sustainable economic development will help provide the resources Pacific island governments need to fund the health, education, law enforcement and other services their people need.

It will also reduce the aid dependency of many Pacific island countries and build their long-term resilience.

At this year’s Forum meeting, we, as hosts, will be working hard to advance some practical initiatives that will stimulate the sort of development I am talking about.

We want to provide a platform for the region to present itself to the world as a place where opportunities exist.

When I talk about opportunities, I am referring to investment and development opportunities.

We hope to focus in particular on six core sectors where we think early gains can and should be made: energy, fisheries, tourism, education, agriculture and infrastructure.

Of course I can’t predict at this stage where our discussions next month might take us.

However, I can say that there are several areas where New Zealand would like to see rapid progress, and we hope to be able to announce some initiatives at the Forum.

But building sustainable economic development is not a task for governments alone.

It needs the input of the wider community, not least the entrepreneurs and traders, large and small, who ultimately drive economic enterprise.

That’s why we will host a series of events alongside the political meetings. These will help build understanding of the opportunities that exist in the Pacific.

The centrepiece will be the Pacific showcase I mentioned earlier.

The Cloud exhibition space on the Auckland waterfront will be well-placed to draw in overseas visitors, Forum guests and New Zealanders, as they walk around the central city.

The showcase will have a colourful cultural component featuring audio-visual displays and performing groups from several Pacific Island countries.

It will also present an opportunity to conduct business.

The showcase will include a one-day investment summit with thematic discussions covering tourism, agri-business, infrastructure, natural resources, energy and entrepreneurship.

Investment experts and business people from around the Pacific will be there, sharing ideas and telling investors what they have to offer.

The showcase will also present opportunities for Pacific countries to promote their tourism industries and their exports.

We hope the showcase will introduce a new dimension to the work of the Pacific Islands Forum.

We are also aiming to build on the idea of a private sector dialogue, which came about at last year’s Forum.
It will be a practical acknowledgement of our firm belief that regionalism is not just the preserve of governments.

And our belief that all development depends on engaging those with the energy and skill to capitalise on opportunities and generate ideas.

Ladies and gentlemen.

The Pacific Islands Forum is an enduring institution that has surpassed the expectations of those seven leaders who gathered in Wellington in 1971.

New Zealand, along with the other Forum members, has a clear sense that we are a Pacific nation. We know that our future is inextricably linked to that of the Pacific islands region.

We have maintained a strong commitment to the Forum for the past four decades, and I believe the upcoming leaders’ gathering will demonstrate very clearly that this commitment will continue.

We will do our best to make this 40th anniversary Pacific Islands Forum a fitting tribute to the work that has gone before. But more importantly, we will be looking ahead.

We hope that leaders and others who attend the Forum, the showcase, or any of the Forum events, leave with one very clear impression:

That together, the people of the Pacific islands region have the imagination, and above all the will, to turn the potential of this fortunate region into prosperity.

Thank you.

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Thank you for that introduction, Myron. And thank you to the US Chamber of Commerce for continuing to support the US/New Zealand relationship.

It's great to be back in the United States. I arrived in Washington DC only last night, but on my way over, I spent a couple of days in California.

I met representatives of the film industry in Los Angeles, and visited some IT companies – including Facebook and Google – in San Francisco.

It was a good chance to touch base with corporate America, and be reminded that, while the US and New Zealand economies have many differences, we also have a lot in common.

At the most basic level, we share a commitment to the democratic, capitalist system.

Our governments are freely elected. Our economies encourage enterprise, hard work, and innovation. We trust people to get on with their lives and make the best choices for themselves. We also both understand the importance of world-class education.

For these reasons, our countries are amongst the most sought after places to live, raise families, and do business.

Christchurch

But, as good as our lifestyles are, the last year has reminded us of the high costs of natural disasters.

In New Zealand, we’re still dealing with the effects of the Canterbury earthquakes, the most devastating of which struck in February.

I know many of you here today – including Myron and his senior advisor, Catherine Mellor – were in Christchurch at the time for the US/New Zealand Partnership Forum.

The February earthquake devastated Christchurch, and our whole nation. 181 people lost their lives. Many homes, businesses, schools, roads, and basic utilities have been destroyed or severely damaged.

To put the sheer size of these events into perspective, my Treasury Department has estimated the combined cost of the first two Canterbury earthquakes at about $15 to $20 billion.

For New Zealand, with a population comparable to Louisiana’s, that is an enormous impact.

Hurricane Katrina is estimated to have cost about 1% of US GDP. By contrast, the Canterbury quakes are estimated to have cost 8% of our GDP.

My Government’s commitment to rebuilding Canterbury remains firm. In this year’s Budget, we put aside $5.5 billion to do just that.

And, in our time of great need, people from all over New Zealand and the world have stood alongside us. They’ve dug deep and shown extraordinary generosity.

It is humbling to know our friends in the US are among those so willing to help in times of tragedy.

President Obama called soon after the earthquake, and assured me he would extend any assistance we required.

As a result, your Government deployed a 74 person Urban Search and Rescue Team from LA County, and gifted sophisticated detection and rescue equipment to our fire service.

We also received tremendous support from US businesses and individuals. In fact, the US is the largest external donor to the Government’s Christchurch Earthquake Appeal.

The US has contributed about 10% of the NZ$90 million raised to date for the Appeal.

The money will be spent on worthy projects in Canterbury. It’ll help rebuild sports fields, community halls, galleries, swimming pools, and libraries – rather than core infrastructure, which central and local government will fund.

On behalf of the people of New Zealand, I want to thank you for all the US has done to support the rescue, recovery and rebuilding efforts in Canterbury.

The US/NZ defence and security relationship

This kind of support reflects the strength of the relationship between our two countries, which is based on deep historical ties.

Your Secretary of State, Hillary Clinton, has described our relationship as the best it's been in 25 years, and we are working to further strengthen ties.

Next year marks the 70th anniversary of the arrival of the United States Marines in New Zealand during the Pacific War. The support of the US at that time is remembered by all New Zealanders.

We have fought alongside the US in many conflicts since. The events of September 11 – and other events of international terrorism – have shocked and saddened New Zealanders. And, unfortunately, New Zealanders are among the victims of such events.

We took the view that Al Qaida’s violence on 9/11 was an affront to us all, and should be resisted. Afghanistan was an obvious haven for Al Qaida, and by December 2001 – just three months after 9/11 – our Special Forces were deployed to Afghanistan, and they serve there still. They have received a Presidential citation for their achievements.

In August 2003, New Zealand was also the first non-NATO country to deploy troops to a Provincial Reconstruction Team in Afghanistan – a commitment we've maintained ever since.

Our countries also cooperate in a number of areas beyond defence and security, which I'll turn to later.

The New Zealand economy

But first, I want to update you on New Zealand’s economic outlook.

It’s been a challenging few years. The impact of the Canterbury earthquakes comes on top of our recovery from the global economic and financial crisis.

Despite this, I’m pleased to report our economy has grown in seven out of the past eight quarters, including by 0.8 per cent in the March quarter.

That sends a strong signal that our recovery is picking up.

The Canterbury rebuild, along with near record commodity export prices, interest rates at 40-year lows, improving business and household confidence, lower household debt, and the upcoming Rugby World Cup, give us confidence in the outlook for our economy.

We expect it to be back onto a solid growth track by the end of this year, and to return to a fiscal surplus by 2014/15.

The Government's growth agenda

New Zealand needs a more competitive economy to grow. That’s why my Government is building a more outward-looking economy, based on exports and savings.

We’ve already made good progress. We are building a competitive tax system, improving infrastructure, getting better results from education, boosting trade, cutting red tape, and building a more productive public sector.

For those of you looking for a great place to do business in the Asia Pacific, I’m proud to say the World Bank has again ranked us third out of 183 countries in its 'Ease of doing business' study, just behind Singapore and Hong Kong.

This is a good outcome, but I know we can do more to improve our productivity and competitiveness.

Science and innovation

One area we are particularly focused on is science and innovation. Boosting innovation will play a crucial role in our plan for economic growth.

Any of you who have sampled our wine, seafood, meat or dairy products will know that these sectors are world class, and continue to build their reputation in the international market.
New Zealand's ground-breaking technology and innovative energies are very much on public display.

An example is technologies and innovations developed and employed in Peter Jackson's Lord of the Rings trilogy, and more recently The Hobbit.

As many of you know, New Zealand is very much regarded as Middle Earth, as a result of these films.

But what might be less well known is that some of James Cameron's ground-breaking Avatar movie was also done in New Zealand, including special effects.

All of this shows that New Zealanders are among the top innovators in the world.

Cooperating with countries such as the US is important as we look to maximise our opportunities.

Earlier this week I met with Warner Bros and New Line executives in Los Angeles to further explore those opportunities.

The US is already our biggest partner in science and innovation.

The global challenges we face, such as food security, energy security and climate change, provide new opportunities for our scientists, innovators and entrepreneurs to work together.

The Global Research Alliance on Agricultural Greenhouse Gases is a great example of the benefits of collaboration.

The Alliance aims to increase cooperation and investment in research activities to find ways to grow more food, with fewer emissions.

This was a New Zealand idea, but translating it into a group of 31 countries from across five continents has relied on US resources and leadership.

Another example of scientific cooperation comes from our partnership in Antarctica, where we work together to better understand a number of scientific issues. This partnership is over 50 years old, but still very active.

Trade

Trade will also make a significant contribution to my Government’s plan for economic growth.

Our trading links have played an important role in helping our economy out of recession.

And, we know that to increase our exports, we need to be more integrated with, and connected to, the global economy. That’s why we are focused on breaking down barriers to trade.

Our cooperation with the US on this is important. New Zealand has long been supportive of the multilateral trading system. Our current Ambassador to the US, Mike Moore, is tirelessly committed to this.
We’ve worked closely with the US to advance the work of the WTO, and, most recently, the Doha Round.

New Zealand has always wanted a Round that makes a real difference for the global economy. Unfortunately we’re simply not there yet, but we’ll continue to do everything we can, working with our friends, including the US, to see how we can move forward.
APEC

We're delighted the US is hosting APEC this year. It was President Clinton who lifted APEC to the high level summit it is today, by inviting his counterparts to meet with him at Blake Island in 1993.

With President Obama in the White House and the US again hosting a Leaders Meeting in the Pacific, 2011 represents another opportunity for the US to take APEC to a new level.

TPP

From our perspective, the Trans Pacific Partnership will have a significant impact on the way business is done in our region.

New Zealand was delighted that President Obama confirmed US participation in TPP.

TPP represents something genuinely new and important. It will establish a framework that will work for countries as diverse as Viet Nam, New Zealand and the US.

New Zealand wants a high-quality agreement. It needs to be flexible and future proofed. And it needs to address the trade and economic issues of the 21st century.

With the immediate prospects for the Doha Round looking poor, we see more value in a TPP that aims to modernise trade rules, across a wide agenda, in a region that has become the engine of global economic and trade growth.

Other big players in the region are taking notice. TPP helped prompt Japan’s reformist statements on trade – the most progressive in a generation. We know others in the region are paying close attention too.

Ultimately, I believe TPP has the potential to become the basis of an integrated regional trading bloc linking Asia, Australasia and the Americas.

It has the potential to be a pathway to the free trade area of the Asia-Pacific region. And, this year, it has the potential to help complete a circle of US leadership in APEC: From Blake Island, to Honolulu.

Sustaining momentum will be critical. New Zealand exporters, like our US counterparts, are keen for TPP to deliver commercially meaningful outcomes, as quickly as possible.

For New Zealand’s part, we will be working hard to ensure we have the broad outlines of a high-quality agreement in place by the APEC Economic Leaders Meeting in November.

Working together to meet global demand

TPP is exciting for both of our countries. It's an opportunity to expand our cooperation on trade and help our exporters succeed.

As fertile as New Zealand is, we simply cannot meet the huge growth in demand for protein, which is projected to come from Asia, in particular, over the next 10 to 20 years.

Those of us with the capacity to produce surplus food need to focus on working together to open markets in Asia.

We can then get on and compete, and in some areas collaborate, to ensure that we can meet the demands of Asia's growing middle class.

And if we can do this, I believe we'll continue to see our economies deliver the new, high paying jobs that we need as we face the demands of the 21st century.

Conclusion

I’d like to finish today with some reflections on the US economy.

The health of the US economy is not only vital for the American people, but also for the rest of the world.

As you may know, I spent much of my career working for US financial institutions.

Throughout that time, and in the years since, I’ve been continually impressed by the US economy.

I’ve been impressed by its ability to rebound, its ability to innovate, its ability to improve productivity, and its ability to create new wealth.

These are the characteristics that will get the US through what by any definition has been challenging times in the past few years.

Like all countries, the US faces both opportunities and challenges.

In my time as Prime Minister of New Zealand, I’ve witnessed incredible growth coming from the Asia-Pacific region, particularly China.

This has important implications for the economies of the US, New Zealand, and the whole region.

We live in a time where China has an increasing presence, and we have to make the most of the enormous trading opportunities it poses.

New Zealand signed a Free Trade Agreement with China in 2008.

This was China’s first FTA with a developed nation, and it has seen a huge increase in trade between our two countries.

In fact, China has now become our second largest trading partner, recently eclipsing the US.

This boost in trade helped us mitigate some of the impact of the global recession, and China’s growing middle-class will continue to provide great opportunities for our exporters.

We are also looking to India. Two weeks ago I visited India, and being on the ground made me confident that we’re making good progress towards signing a Free Trade Agreement early next year.

New Zealand is determined to maximise the opportunities provided by the whole Asia-Pacific region, so that we can speed up economic growth.

The rapid emergence of this new middle class in China and India, and indeed all of the Asian region, is a unique opportunity for both New Zealand and the US.

It continues to present challenges and frustrations particularly when we reflect on the more restrictive and controlled exchange rate mechanism prevalent in Asia as opposed to the developed world.

Equally many of our companies have had to contend with a less predictable and transparent business environment.

But what is clear is despite all this the Asia-Pacific region will be where the growth action will dominate in the next decade or two, and for the US this has to present a very exciting prospect.

It is against this backdrop that TPP should be viewed. TPP is a gateway for increased US participation in Asia, and a stepping stone to wider and more far-reaching trade agreements in Asia.

Both the US and NZ are democratic, so inevitably there will be aspects of potential FTAs that are not met with universal agreement. But that cannot be a reason to not move forward. The TPP promises too much to miss on this great opportunity.

Thank you.

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It’s a great pleasure to be back again to open the Local Government New Zealand conference.

I’d like to acknowledge the hard work of your President, Lawrence Yule, and board members.

I’d also like to extend my personal thanks to Local Government Minister Rodney Hide.

Rodney has been an effective and focused Minister for the past two and a half years. He has been instrumental in the Auckland governance reforms and, as you know, he is a dedicated advocate for the local government sector.

Congratulations, Rodney, for the outstanding contribution you’ve made.

Today I want to focus on our efforts to rebuild Canterbury, and on some of the progress we’ve made in Auckland since the governance reforms.

But, first, I want to mention the Rugby World Cup.

I know that local authorities all over New Zealand are putting in a huge effort at the moment to make sure the World Cup is a great success.

With only a couple of months to go, preparations are on track and ticket sales have hit one million.

I’d like to say thanks for your hard work so far. Whether you’re adopting a team or setting up festival events, it’s great to see you getting behind this opportunity.

I’m looking forward to getting out and about during the World Cup and REAL New Zealand Festival, and seeing the best of what this country has to offer.

The World Cup is one of many opportunities that local authorities around the country need to make the most of.

Because the work you do is vital. It’s essential for the success of our communities, our economy and our country.

It’s your job to help build strong, vibrant communities that are attractive places for people to live, work and invest in.

It’s also your job to lead those communities through difficult times, and we have seen that in the past year.

Local government leadership and ratepayers alike expect central government to respond quickly and effectively in difficult times, and we do.

Since the last Local Government New Zealand conference, we have experienced the Pike River Mine disaster.

I’d like to take this opportunity to acknowledge Greymouth Mayor Tony Kokshoorn for his leadership in the aftermath of the disaster. Tony became the face of the West Coast community, and he continues to advocate for the people he represents.

Since the last conference, we have also experienced the devastating Canterbury earthquakes.

Earthquakes and aftershocks that have severely damaged land, buildings, homes and infrastructure.

Earthquakes that have resulted in loss of life and injury.

This is the largest natural disaster we have ever faced in New Zealand.

The Earthquake Commission has received nearly 370,000 claims for all the earthquakes since 4 September last year, and paid out more than $1 billion.

It’s one of the highest numbers of claims ever handled by a single insurer in the world.

The previous biggest event for the Earthquake Commission was the Gisborne earthquake in 2007, with 6224 claims.

I’d like to thank Christchurch Mayor Bob Parker, Waimakariri Mayor David Ayers, and Selwyn Mayor Kelvin Coe, for the excellent leadership they have shown in the most challenging circumstances.

Good local government leadership is crucial at times like this.

Immediately following the earthquakes, staff from affected councils rallied together.

They established emergency operations centres. They worked alongside volunteers and other agencies in welfare centres around Christchurch. They moved quickly to red-sticker buildings that were unsafe. They worked with urgency to clear roads, and reinstate electricity, water and sewage services. They supported the work of Civil Defence and other central government agencies.

It was also great to see the moral and practical support offered by the local government community up and down New Zealand. Councils from around New Zealand sent staff and resources to support the response.

I’d like to thank all those who have helped the people of Canterbury in their time of need, and all those who continue to help.

The Government’s commitment to rebuilding Canterbury stands firm. We provided $5.5 billion in Budget 2011 to do that over six years.

We have also set up CERA – the Canterbury Earthquake Recovery Authority – as a specialist agency to aid recovery and cut through red tape.

In addition, nearly a quarter of a billion dollars has been provided in business and employment support to help people through the immediate aftermath of the earthquakes.

We have also been working hard to give residents a clearer picture of what their future holds.

Recently Canterbury Earthquake Recovery Minister Gerry Brownlee and I announced that greater Christchurch land had been mapped into four zones – red, orange, green, and white.

We also presented options for property owners with insurance in the residential red zone.

We will continue to provide updates on the land as more information becomes available in coming weeks.

I know many local authorities have been concerned about the issue of insurance in light of the earthquakes.

I understand that most councils around the country have been able to get insurance, although you have had to pay much more to get the same coverage as before.

In regard to Christchurch and Waimakariri, we understand things have been more difficult – particularly with their cash flows as they deal with severely damaged infrastructure.

The Government will ensure early repayment of the costs these councils claim for damaged infrastructure.

If there is further damage to essential infrastructure, it will be repaired.

It is just a question of where the balance of costs will fall between ratepayers and taxpayers.

There is already provision for this kind of cost sharing in the Civil Defence and Emergency Management Act and the Government has been mindful of the Canterbury local authorities’ reduced ability to pay.

As we work to rebuild Canterbury, the Government will continue to work closely with local authorities.

We will stand together in the face of this disaster, because together we can achieve far better outcomes.

The ongoing partnership between central and local government is very important for the people of Christchurch.

In May we signed an interim alliance agreement for the rebuilding of Christchurch’s waste water, storm water, water supply systems and roads.

The alliance team includes CERA, the Christchurch City Council, the New Zealand Transport Agency, and contractors City Care, Downer Construction, Fletcher Construction, Fulton Hogan and MacDow New Zealand.

It’s great to see central and local government – and contractors – working together on such an important project.

The City Council is also leading the development of a recovery plan for the central business district. The Council has received more than 90,000 ideas, which are now being considered before public consultation in August.

I’m looking forward to continuing to work alongside local government for the benefit of the people of Canterbury.

Together we will rebuild the region.

Alongside the work we’re doing in Canterbury, there are many other areas in which local government and central government can achieve more by working together.

The combined central government and local government forums are good opportunities to discuss issues affecting communities large and small – and to talk about how we can speed up economic growth.

Local government already makes a valuable contribution to our economy.

You contribute four per cent to New Zealand’s GDP. You have infrastructural assets worth $89 billion. And you employ more than 22,800 people.

Our joint commitment to economic growth is crucial for New Zealand’s success.

Together, we are an enabling force for the private sector to generate jobs and economic growth.

New Zealand needs a more competitive economy to grow.

That’s why the National-led Government is working hard to build an outward-looking economy, based on savings and exports.

It’s important that local authorities understand our export and growth focus and align their own priorities accordingly.

The Government is building a competitive tax system, more infrastructure, better results from education, more trade, less red tape and a much more productive public sector.

That’s what this Government is focused on and we have made good progress.

We’ve cut red tape and regulation.

We’re improving vital infrastructure such as broadband, road and rail.

We’re building better public services in health, education, and law and order.

We’re building savings and investment, and getting the Government’s books back in order.

We are building the foundations for a stronger economy.

Local government also has an important role to play in creating the right conditions for businesses to succeed and help grow our economy.

The progress you’ve made in Auckland is a good example of this.

I’d like to congratulate Mayor Len Brown – and everyone at the Auckland Council – for your hard work since the new structure came into place.

The new structure provides the Council with a great opportunity to deliver better, more cost-effective local government to more than one million Aucklanders.

The size and scale of council business in Auckland is huge. In the first six months, its libraries issued over eight and a half million items. There were nearly one and a half million customer service calls, and nearly 55,000 building inspections.

In a period of enormous change, the council maintained all critical services to Auckland ratepayers and businesses.

From day one, the council was determined to show that it was going to make a positive difference to Auckland.

The new structure has been a success so far and that’s a credit to all those here today from the Auckland region.

The Super City has reduced bureaucracy.

Previously there were nine local transport entities, eight councils and five water and wastewater companies. Now there is just one of each.

And the new structure has kept rates down.

The modest 3.9 per cent rates increase is a good achievement in the first year of the new governance arrangements.

All the former councils in Auckland had foreshadowed rates rises above this figure – the highest being 11.9 per cent.

Mayor Len Brown set a target rate of a maximum of 4.9 per cent then directed council officers to see what further savings could be made.

The new structure has also enabled clear decision-making on important pieces of infrastructure.

Last month I announced negotiations with SkyCity to build a large international convention centre in Auckland.

This is a project that will boost tourism, create jobs and put New Zealand on the map as a business events destination.

I’d like to thank Len Brown for his support, which meant the important project could move forward quickly.

Under the previous structure with seven local councils and mayors, projects were harder to get off the ground.

Take the example of the Government’s proposal for a cruise ship terminal on Queen’s Wharf.

The cruise ship terminal did not progress because mayors from across the region were unable to reach consensus on the location.

The cruise terminal, like the convention centre, is an important project for Auckland – and for all of New Zealand.

I’m hopeful that we will reach consensus under the new structure.

This governance structure is unique among New Zealand’s local authorities.

I know that sharing ideas and experiences from the Auckland reforms will be invaluable for other regions.

In central government we are actively looking for better ways to provide public services. And, of course, local authorities are, too.

Between us, we hold responsibility for spending ratepayer and taxpayer money. We need to ensure that money is being spent wisely.

I anticipate there will be other regions that will, over time, come forward to make the kind of governance changes that we’ve seen in Auckland.

As always, the Government is keen to hear your ideas on how local authorities could operate more efficiently and effectively.

But we are very keen for any changes to be community-led, not central government-led.

We recognise that there can’t be a one-size-fits-all approach to local government. We believe in healthy local democracy because our communities are diverse and have different needs.

Local communities need to debate openly their own priorities and work out how much they want to tax themselves to achieve them. This process is at the core of local democracy.

The main thing for all of us is to focus on our local and national economies growing strongly, because that serves both taxpayers and ratepayers best.

Thank you.

Have a great conference.

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Mr Harry Jenkins, Speaker of the House of Representatives and Senator the Honourable John Hogg, President of the Senate.

The Honourable Julia Gillard, Prime Minister of Australia.

The Honourable Tony Abbott, Leader of the Opposition.

Honourable Members of the Australian Parliament.

Distinguished guests.

It is a great privilege to address you in this esteemed chamber.

I address you as Prime Minister of New Zealand, as a proud member of the trans-Tasman family, and as a former resident of this great country.

I bring with me the good wishes of 4.4 million Kiwis.

They value the deep bonds we share and they would want Australia to hear this message:

New Zealand is committed to your country above all others, and for all time.

In recent times you have shown New Zealand a degree of loyalty and support that only family can.

For that we are truly grateful.

When an explosion ripped through the Pike River Mine in November last year you sent your specialist experts, your machinery and your hope.

You did all you could to help us bring those 29 men home.

When they died you grieved with us, not only for the two Australians, but for all of them.

When the devastating Christchurch earthquake struck us in February,
you came to our aid immediately, unreservedly and with open hearts.

From the financial and practical support of the Federal and State Governments through to the donations of corporate Australia and the heroic acts of individual Australians:

Your deeds struck a deep chord with the people of Christchurch.

When 300 members of the Australian Police arrived at Christchurch airport they were met by a spontaneous standing ovation.

New Zealanders clapped for the Australian presence because it was such a moving and visual demonstration that we weren’t on our own.

You had our back.

Let me tell you, that sense of unity and support mattered more than you might imagine.

We felt also the incredible support of this Parliament, whose expressions of condolence and commitment meant so much.

The depth and breadth of Australia’s support for Christchurch will never be forgotten.

In a time of tragedy, your extraordinary assistance strengthened our resolve, and has aided Christchurch’s recovery immeasurably.

While the aftershocks in Christchurch have continued, our recovery is ongoing and assured.

Today on behalf of all Kiwis, I thank you.

Your acts were living testament to the perpetual Anzac spirit.

Members and Senators of this Parliament should know that New Zealand will never hesitate to reciprocate this support.

When we saw the devastation caused by the Victorian bush fires, when we saw the carnage wreaked by the Queensland floods and Cyclone Yasi, our people felt your grief as only family can.

We came to you then, and we will come to you whenever we may be needed again.

Mr Speaker, the relationship shared by our two nations is like no other.

The men and women in this chamber represent a country whose fortunes, values and people are deeply entwined with New Zealand’s.

We share with you not only a corner of the world, but a similar path in history.

It is a history not only of shared sporting passions and rivalries - though they mustn’t be overlooked.

But, more than that, it is a shared history of indigenous peoples, British colonisation, increasing independence and successive waves of immigration.

A history of flourishing democracy, of free markets and prosperous economies.

A history of innovation, enterprise and ambition.

Today our two countries walk a very similar path, in pursuit of shared aspirations:

We pursue increased security, prosperity and opportunity for our citizens.

We share a confidence about our place in the world and the stake our people should have in it.

There is also strength in our differences.

It is well understood that the Australian constitution graciously provides for New Zealand to join the Federation.

Suffice to say, that is an invitation for which an RSVP has never been sought nor offered.

It is a mark of our joint progress that we have found other, more effective, means of combining our strengths.

We both recognise the benefits to be gained from being two countries under two flags with our own approaches.

Beneath our distinct identities lie indelible common values.

An easy understanding that Jack is as good as his neighbour.

That democracy, freedom and the rule of law should be cherished and fostered.

That every citizen should have the opportunity to shape their own future.

These are values we are proud to voice on the world stage, consistently and without compromise.

These are values we have fought for together.

As joint forces in Gallipoli and as fellow soldiers in other theatres of war, from the First and Second World Wars through to Korea and Vietnam.

The experiences we shared in these battles shaped our national characters.

They joined us ever unto each other.

I had the privilege of visiting Gallipoli for the Anzac Day commemorations last year.

It was a hugely moving experience.

Gathered together were Australians and New Zealanders from all over the world.

They came together as proud brothers and sisters of the Anzac tradition.

It felt as natural for me to share in the memorial of Australians who gathered together at Lone Pine, as it did to gather with the New Zealanders at Chunuk Bair.

Together we paid our respects to all those who fought, fell injured and in so many cases died for us, so very far from home.

It is right that throughout the world, from London to Gallipoli, from Canberra to Christchurch, to our local RSAs and RSLs we continue to remember our Anzacs together.

It is right, too, that the brave men and women of our armed services continue to work together today.

The Anzac centenary in 2015 will be a deeply significant occasion for New Zealand and Australia.

We look forward to close co-operation in the lead-up to these commemorations.

Today, we face new challenges in peace making and peace keeping, new conflicts and a rapidly changing strategic environment with threats - from terrorism to people smuggling - that know no borders.

Amid this change the Australian-New Zealand alliance endures.

Mr Speaker, Members and Senators of this Parliament should know:

While our numbers and resources are smaller than yours, New Zealand’s commitment to our defence and security relationship with Australia is absolute.

We place priority on fulfilling our alliance obligations to you above all other defence priorities - save for defending ourselves.

We have no better friend and no closer ally than Australia.

Our two countries have distinct contributions to make in meeting the security challenges of our modern world.

Each of us will rightly seek to serve our distinct national interests and to maximise our distinct capabilities.

But we are stronger each for the other.

In particular, New Zealand appreciates Australia’s enormous contribution to creating stability in Afghanistan and your hard-fought achievements in Uruzgan province.

New Zealand, too, is committed to stabilising Afghanistan, through the contribution of our Special Air Services in Kabul and our Provincial Reconstruction Team, which will work through to 2014 to provide an effective transition in Bamyan.

Nine of our soldiers have also served with yours in Uruzgan.

I wish to acknowledge today the 27 Australian soldiers who have lost their lives in Afghanistan.

New Zealand joins with you to honour them, as we honour our own two soldiers who have died there.

As we honour all of our servicemen and women who make the ultimate sacrifice for our countries.

Mr Speaker, our two countries have a particular responsibility to work together to ensure the stability of our immediate region.

New Zealand values Australia’s deep engagement in the Pacific, and the co-operation we have with you.

We see that with our joint police and defence operations on the ground in Timor Leste and the Solomon Islands.

In future, our combined Ready Response Force will see our servicemen and women being jointly deployed, whether it be for disaster relief, humanitarian assistance or other challenges that may emerge in the Pacific region.

We are also making great strides in harmonising our aid and development efforts.

New Zealand has, in recent times, sought to elevate our role in the Pacific.

It is right that we do so.

Almost one in 10 New Zealanders come from a Pasifika background and our complex web of family connections uniquely positions us as a regional facilitator.

In September this year New Zealand will host the Pacific Islands Forum.

We look forward to the presence of your Prime Minister at this event.

Mr Speaker, New Zealand and Australia’s military, diplomatic and political ties are deep and strong.

New Zealand values the formal and informal political structures that underpin this.

From the personal contact I share with your Prime Minister, to the regular contacts between our Ministers and Members of Parliament through to important annual events like the Australia/New Zealand Leadership Forum.

These contacts have enriched our relationship, and have endured no matter the political stripes on either side of the Tasman.

But ultimately the story of New Zealand and Australia is not one that has been written by politicians calling shots from on high.

Instead, our deeds have reflected the ever-closer ties between the voters that elect us.

Our nations each have a vested interest in the other’s success.

That vested interest is the people we share.

New Zealanders and Australians conduct their family and business affairs with very little regard for the sea that divides us.

Trans-Tasman families abound.

More than 560,000 Kiwis call Australia home.

Many thousands of Australians live in New Zealand.

Millions fly back and forth across the Tasman each year.

Large numbers of us have worked, studied or holidayed in the other’s country.

My own experience bears testament to that.

In 2001 after a period of time living in London and Singapore, I came to work and live in Sydney, with my wife Bronagh and our two children.

We remember our time and the friends we made in Sydney fondly and have returned not only on official engagements but also for family holidays.

My story is not unlike that of hundreds of thousands of Aussies who’ve lived in New Zealand and hundreds of thousands of Kiwis who’ve lived in Australia.

We are enriched by the valuable contribution our people make to each other’s societies and economies.

It is only right that politicians on both sides of the Tasman have sought to reflect that reality as we’ve developed our trading, economic and legal frameworks.

In 2013, we will look back on 30 years since the birth of Closer Economic Relations (CER) between Australia and New Zealand.

As we approach that milestone, it’s appropriate that we reflect on where we’ve been and where we might go next.

Much has been achieved.

CER represents a global gold standard in trade agreements.

Australia and New Zealand boast free trade in goods and nearly all services and, thanks to recent progress, investment is now part of CER.

We have mutual recognition arrangements for goods and occupations.

And we continue to pursue a Single Economic Market agenda to harmonise our business laws.

Despite the challenges of integration, and, it must be said, despite New Zealand’s initial anxiety, CER has served both our countries very well.

It has benefited our economies, our businesses and the families and communities we serve.

Australia is New Zealand’s largest export market.

More than half of foreign direct investment in New Zealand, at around $50 billion, comes from Australia.

Last year, total Australia exports to New Zealand were a little over $8 billion Australian dollars – not far behind the $9 billion you exported to the United States.

Interestingly, more Australian businesses export to New Zealand than to any other country.

Your small and medium enterprises, your innovative companies, your value-added producers, often cut their teeth in exporting first to New Zealand before expanding to larger markets.

The same applies for New Zealanders exporting to Australia.

Our businesses also work together to pool resources, share ideas, seek expertise, and expand offshore.

These facts underscore what we already know.

New Zealand’s economic fortunes matter to Australia, and vice-versa.

We share in each other’s economic success, and will continue to do so.

Mr Speaker, as political leaders we have a responsibility to keep up the momentum that has made CER such a success.

Our history has proven that open trade and economic integration can be forces for growth and prosperity.

The question now is, can we take our relationship to the next level?

We have more to gain from closer integration with each other.

Prime Minister Gillard and I are both personally committed to progressing the Single Economic Market agenda.

New Zealand appreciates the focus Australian Ministers have brought to the detail of these issues.

My view is that, increasingly, we can also play our integration out on a bigger scale.

Because as important as it is to both our economies, the thriving bilateral business relationship is not an end in itself.

We are both operating in the global economy.

From the outset our economic integration process has been designed to help us compete more effectively in the international marketplace.

Australia has long recognised the economic potential of our region, as demonstrated by your foresight in laying the foundations for APEC.

It is now the region to which all the world’s eyes are turning.

The extraordinary economic growth of Asia will compel the next steps in the relationship between Australia and New Zealand

I believe our trans-Tasman partnership can set the standard for an ever-more closely integrated regional economic community.

CER has already provided a launching pad for regional integration.

We saw that with the 2009 signing of the ASEAN Australia and New Zealand Free Trade Agreement.

That was a ground-breaking and ambitious regional trade agreement that opened up significant opportunities for our economies.

It was the first agreement which Australia and New Zealand negotiated jointly.

It will certainly not be the last.

We must now raise our sights to the Trans Pacific Partnership (TPP).

Together, we can drive to make this trade agreement as high-quality and comprehensive as possible.

Australia and New Zealand know well the mechanics of how effective trading relationships are forged.

As negotiating partners, we strengthen each other’s case and set a high standard.

Together we can ensure that the TPP is the basis of a powerful integrated regional trading bloc linking Asia, Australasia and the Americas.

The obvious next step is a deal extending across the full APEC membership.

As we join forces at the trade negotiating table, so too can we join forces to leverage these trade agreements for maximum benefit.

Together we can work to penetrate untapped parts of the Asian market, introduce new industries to those markets and help our exporters scale-up their operations.

New Zealand is interested in how our joint objectives with Australia in these areas can find practical expression in future.

Progress in meeting these goals will bring success for each of our economies.

More jobs for our people, better incomes, a more diverse and secure base for ongoing growth.

Mr Speaker, as we take on the world, Australia and New Zealand must work to identify other areas where the sum of our distinct expertise and resources is greater than the parts.

Our science and innovation partnership is one such area.

Our joint work to host the Square Kilometre Array radio telescope is a great first step.

Ultimately we should aim to showcase Australasia as an agile, nimble and creative hub of science and innovation.

Climate change is another global challenge our two countries are facing.

It is, of course, up to each country to adopt its own policies to address this challenge.

After all, we each have different emission profiles and different economies.

In New Zealand, climate change policy has been the subject of vigorous debate and, at times, political division.

So I come to this Parliament with at least a little understanding of the debate in your country.

While our domestic policies are matters for each country’s Government and Parliament to debate, we can, and should, work together on the international aspects of climate change.

We can work together on research and innovation to reduce emissions.

In fact, we already are, with New Zealand contributing to the Australian-led Global Carbon Capture and Storage Institute and with Australia contributing to the New Zealand-led Global Research Alliance on Agricultural Greenhouse Gases.

We can also share our growing knowledge about what works and what doesn’t as we seek to reduce emissions across our economies.

I am pleased that Prime Minister Gillard and I have today agreed to further the work of our senior officials as they join up our respective efforts to combat climate change.

Mr Speaker, New Zealand feels lucky to have Australia as our neighbour.

We enjoy our competitive rivalry but, when faced with challenge or opportunity, we could wish for no better partner.

You are a dynamic, democratic and multicultural society.

You are a vibrant, open and prosperous market economy.

You are a force for good in the Asia-Pacific region and an important global player.

These attributes bring strength to New Zealand as we seek to further our interests on the world stage.

New Zealand, too, brings increased strength to Australia economically and strategically.

When facing the world our two countries’ voices are closely aligned and all the more influential for it.

Australia and New Zealand have a proud and unbroken history of partnership.

We have stood shoulder to shoulder in the face of challenges on the battlefield, at the negotiating table, and amid the debris of natural disaster.

In all that we face, and in all that we gain, our two countries can never lose sight of each other.

The reason is simple, and it is summed up by a Maori proverb.

He aha te mea nui?

He tangata.
He tangata.
He tangata.

What is the most important thing?

It is people, it is people, it is people.

Mr Speaker, the people of Australia and New Zealand are forever joined.

The future holds much for our two great countries.

Increased prosperity, opportunity and security are ours to grasp.

In all that we strive for:

We are stronger together.

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Welcome to the 2011 National Party Northern Region Conference. 

I’d like to thank you for being here today.

You are loyal National Party members and you make this Party strong.

It is because of you that we are in government, building a brighter future for New Zealand.

Let me express my special thanks to our Party President, Peter Goodfellow.

Let me also thank your Regional Chair, Alan Towers. 

And I’m sure you will all join me in thanking the Ministers and Members of Parliament from the North. 

They are:

The Honourable Judith Collins, MP for Papakura.

The Honourable Murray McCully, MP for East Coast Bays.

The Honourable Tim Groser.

The Honourable Dr Wayne Mapp, our North Shore MP. I’ll be sorry to see Wayne go at the election, but we thank you for your contribution and wish you and your family well for the future. 

The Honourable Steven Joyce. Steven is also our Campaign Chair and he’s putting in huge hours to make sure we win on 26 November.

The Honourable Paula Bennett, MP for Waitakere.

The Honourable Phil Heatley, MP for Whangarei.

The Honourable Dr Jonathan Coleman, MP for Northcote. 

The Honourable Maurice Williamson, MP for Pakuranga.

The Honourable John Carter. John’s been a very effective MP for Northland for eight terms and I know he will be missed when he retires. As Minister of Civil Defence, he’s had the hugely important task of leading the Civil Defence response in Canterbury after the two devastating earthquakes. He’s done us proud.

Thank you also to Dr the Right Honourable Lockwood Smith, Speaker of the House and long-serving Rodney MP. Lockwood has announced that he will step down as Rodney MP at this election, but I am delighted that he will seek re-election on the National Party List. I’d like to take this opportunity to thank Lockwood for being an outstanding representative for the people of Rodney.

Thanks to our hardworking electorate representatives.

Dr Paul Hutchison in Hunua. 

Nikki Kaye in Auckland Central.

Peseta Sam Lotu-Iiga, the MP for Maungakiekie.

Allan Peachey in Tamaki.

Our newest MP, Jami-Lee Ross, in Botany.

And, of course, thanks to our Northern Region list MPs.

Kanwaljit Singh Bakshi.

Dr Jackie Blue.

Dr Cam Calder.

The Honourable Tau Henare.

And Melissa Lee.

You do a great job and the National Party is proud to have you representing us.

I’d also like to say a special thanks to your families and friends who make what we Parliamentarians do possible. 

In a moment I want to turn to the recent Budget.

But first, I want to outline National’s investment in the public assets needed to fuel New Zealand’s long-term economic growth.

Over the next four years we will undertake a $34 billion investment programme, to ensure New Zealanders have the roads, public transport networks, schools, hospitals, broadband and other infrastructure they need.

So the question is, given the state of the Government finances, how will we pay for these investments?

This Government doesn’t want to just keep building up debt.  So, like any household wanting to upgrade its assets by, for example, buying a new car, we have carefully considered what we might be able to sell in order to help pay for them.

That’s how we came up with the mixed-ownership model.  That policy will see us offering investors shares in five companies: Air New Zealand, Meridian, Mighty River Power, Genesis and Solid Energy.

By divesting a part of each of these companies, the government will raise between $5 and $7 billion to pay for new public assets like schools and hospitals. 

However, unlike the scaremongering you might have heard, we won’t be giving up New Zealand ownership of these companies.

In fact, we are so determined to retain New Zealand ownership of these companies that we have set a bottom line that in the course of bringing in new investors, the government must retain majority ownership.

That’s right, the government will keep at least 51 per cent of each of the companies I previously listed, meaning they will stay in Kiwi control.  We will continue to be the biggest shareholder in Air New Zealand, Meridian, Mighty River Power, Genesis and Solid Energy.  That means we will keep the power and control that comes with majority ownership, while freeing up billions of dollars for other assets. 

What’s more, we will be able to give everyday New Zealanders the opportunity to invest in these companies.

We know that many of you are keen to invest in this country.  You want a chance to invest in solid, productive assets that have the potential to pay good dividends into the future.

New Zealanders deserve an alternative investment option to the sort of failed finance companies that have led to so many to lose their savings. 

Whether it’s with your personal savings, or via the KiwiSaver fund you invest in, or even the New Zealand Super Fund, we think there’s huge potential for Kiwis to benefit from having a stake in one of these five companies.   

So our mixed-ownership model puts you at the front of the queue when it comes to buying shares.  That was a bottom line for us going into this and it remains a bottom line.

We are also determined to ensure that this mixed ownership model won’t disadvantage the New Zealanders who rely on the services these companies provide.

We’ve had a careful look at the laws and regulations governing these companies and we are satisfied they will protect you from, for example, unprecedented spikes in power prices.

Consumer New Zealand, the independent watchdog on these matters, agrees with us.  They say the mixed-ownership model won’t drive up power prices. 

That’s because the government will continue to influence power prices through the regulations we set. 

In fact, we think there is strong evidence that these companies will do an even better job for consumers under the mixed-ownership model.

My fellow delegates, the mixed-ownership model is a policy National will be proud to campaign on at this election.

I’m confident that New Zealanders will back this policy.

It’s a policy that puts billions of dollars more into our schools, hospitals and public infrastructure.

It’s a policy that guarantees government control over these five important companies.

It’s a policy that will boost the New Zealand stockmarket and give more Kiwi companies the opportunity to grow. 

It’s a policy that gives New Zealanders a fantastic opportunity to invest in this country’s future.

And it’s a policy that achieves all these things while ensuring our country doesn’t get even deeper into debt.

It’s a smart policy that will strengthen the New Zealand economy and you should be proud to support it. 

In the Budget, National set out the economic plan that we will take to the election – which, of course, includes the mixed-ownership model.

It’s a balanced, fair and affordable Budget. It is the next step in our plan to rebalance the economy towards savings, exports and productive investment, and away from debt, consumption and government spending.  

The Budget is one that I will be proud to campaign on, and that you can be proud to campaign on, too. 

Let me cover some of the highlights.

First, this Budget gets the government’s finances in order.

This Budget will see the government’s books get out of the red within three years, so that we can begin to pay down debt. 

It ensures debt will peak at less than 30 per cent of GDP, and in four years’ time will start to come down quickly. 

The National Party knows that New Zealand can’t afford to keep borrowing its way to the future. We don’t want this country to be built on one big Ponzi scheme. That’s Labour’s prescription; it’s not ours. 

I’m simply not prepared to leave our children and grandchildren with a ticking time-bomb of debt. So this Budget does the hard yards of getting our books in order.

Second, this Budget delivers 170,000 new jobs and rising wages, while keeping interest rates and tax rates low.

A family with a mortgage now pays a floating interest rate around five percentage points lower than they did in Labour’s last year in office.

For a family with a $200,000 mortgage, for example, that means $200 a week more in their pocket.

That makes a huge difference to such a family, and it makes home ownership affordable for many more New Zealanders.

And, unlike Labour, this Government won’t be raising taxes and it won’t be imposing a new capital gains tax.

We are proud that as a result of our tax reforms last year, three-quarters of income earners now pay a top tax rate of 17.5 per cent or less.

That says to New Zealanders that if they want to get ahead, if they want to do better for themselves and their family, and if they work hard and save hard, then this Government will support them. 

Third, this Budget invests in public services and infrastructure for our future. 

It clearly demonstrates National’s priorities: $1.4 billion more for education, $1.7 billion more for health, and more money to improve law and order in our communities.

And unashamedly we’ve done some trimming. Less money for bureaucracy, less money for backroom administration, less money for Wellington waste.

It also continues our investment in the building blocks of future growth. 

This week we delivered on a major 2008 election promise and finalised contracts for ultra-fast broadband.

Ultra-fast broadband is the way of the future, and it is a crucial part of our economic growth plan.

Speeds of 100 megabits per second and higher will revolutionise the way many businesses operate.

The population of the Auckland Super City is estimated at nearly 1,462,000.

This includes more than 24,200 business premises, more than 400 schools, and more than 2500 medical premises.

By December 2015, all health premises and schools will be set up for ultra-fast broadband – and 90 per cent of businesses will be, too.

This comes on top of our ongoing investment in other growth arteries – such as our highways and public transport networks.

Major roading projects have progressed very well under National. Five out of the seven roads of National Significance are now under construction.

These roads are our most essential routes – including the Victoria Park Tunnel, the Western Ring Route, and the Waikato Expressway.

You would’ve seen the Waterview Tunnel – part of the Western Ring Route – got its resource consent a few days ago. This will provide a major new link to West Auckland, and to the city from the airport.

Fourth, it’s a Budget that ensures the Working for Families, KiwiSaver, and interest-free student loan schemes will continue to deliver for the thousands of people who rely on them.

We’ve listened to New Zealanders who say they want these schemes to last in good weather and bad and we’ve made the changes to ensure they can. 

Finally, this is a Budget that funds the Government’s share of rebuilding Christchurch.

It establishes a $5.5 billion Canterbury Earthquake Recovery Fund.

National Party members, this is a Budget to be proud of.

It builds on our Government’s record of responsible economic management and it makes me optimistic about the future of this country.

The National Party campaigned on being the best managers of the economy, and we are delivering.

We also campaigned on bringing much-needed improvements to this country’s education, health, and law and order systems.

We’re delivering there, as well. Today I want to take you through some of our achievements in these crucial areas. 

National campaigned on a plan to improve our education system and we have invested wisely to achieve that. 

We’re not prepared to stand by and accept the situation Labour tolerated, where as many as one in five young people left school without even the most basic qualification needed to get them into an apprenticeship.

We’ve implemented National Standards in reading, writing and maths in our primary and intermediate schools.

We’ve boosted trades and skills training in schools so that more young people get the hands-on learning opportunities they need.  We’ve boosted the numbers of places in the Youth Guarantee, and we’re opening eight Trades Academies this year.

We’re getting better value out of our tertiary education system, with record numbers of places being made available in our universities, creating a smart workforce for the future.

We’re providing good opportunities for young people who are struggling to find work, with hundreds of new places in the Limited Service Volunteers army-based training programmes, training subsidies for employers taking on youth in high-demand industries, and $5000 Job Ops subsidies available for employers willing to employ and train young people. 

And we’re ensuring that more of the children who are missing out on early childhood education, but who would have so much to gain from it, have the opportunity to access it.  We’ve put an additional $550 million into early childhood education in this Budget alone. 

We have also remained steadfast in our commitment to protect and grow the public health service.

We’ve simplified and streamlined the health bureaucracy, and refocused resources on the frontline.

There are 1000 more nurses and 500 more doctors working in our health service.

New Zealanders who have cancer wait no more than four weeks for treatment under a National Government.

This means that within four weeks of having a specialist assessment, cancer patients start the radiation therapy they need.

Under a Labour Government they needed a passport – they needed to go to Australia. 

We’ve set clear targets and driven performance so that 20,000 more people each year are now receiving the elective surgery they need – for things like hip replacements, cataracts and gall bladder removals.

We’ve ensured better access to medicines, with an extra 1.8 million prescriptions made available.

More children than ever before are being immunised, meaning we’re preventing illness and death for some of our most vulnerable New Zealanders.

We have a proven track-record of achieving better bang for your health dollars and we’ll be campaigning to continue this progress.  

National has also delivered on our promise to take action on violent crime. 

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

We’ve made sentences tougher and strengthened bail laws.  We’ve removed parole for the worst repeat violent offenders and worked with the Act Party to pass a Three Strikes law. 

We’ve boosted the number of Police and given them new tools to tackle crime.

We’ve launched a full-on assault on the vicious trade in P, with new anti-drug forces at the border, improved Police powers and intelligence to crackdown on the gangs that produce and distribute P, and we have created more addiction treatment for P users. 

We are seizing the assets of criminals under a tough new forfeiture law.

We’ve improved services for victims.

We’ve implemented our Fresh Start programme, which is taking young offenders off the street and putting them in a range of programmes designed to nip their offending in the bud. 

We are confident that the steps we have taken, together with our ongoing work to address the drivers of crime, will help New Zealanders feel safer in their communities.

Ladies and Gentlemen, this Government has delivered on our promises and we have done what we said we would do.

I am proud to say that we have achieved all this while taking people with us.

We have not left large groups of New Zealanders behind, or conducted a slash and burn exercise that could have alienated large sections of the community. 

Ours has been a moderate and inclusive approach, and that’s the approach we will continue into a second term of Government. 

And there’s still a lot more that we can do.  

This year’s election will be about which party has a realistic plan to achieve faster growth for New Zealanders – growth that will deliver the jobs, higher incomes, and better living standards New Zealanders aspire to and deserve.

National will be campaigning on the things that matter to all New Zealanders.

The economy.

Education.

Health.

And law and order.

The National Party, together with our confidence and supply partners, has provided stable, effective government for the past two-and-a-half years. 

We have made good progress towards the brighter future we promised New Zealanders and we are full of enthusiasm for the work ahead.

Our first term in Government has been undeniably challenging.

New Zealand has been tested by some huge events beyond our control.

The international financial crisis and a global economic recession. 

The impact of the retail deposit guarantee scheme, in particular from South Canterbury Finance. 

The Pike River mine tragedy.

Two devastating earthquakes.

These events have made life difficult for many Kiwis. 

Our hearts have gone out to the families who have lost loved ones, or who have had their livelihoods taken away and their daily lives turned upside down.   

New Zealanders have come together as a country to show support to those in hardship and I’ve been really impressed by the resiliency they have shown.

The Government has also risen to these challenges. 

We have done everything we can to stand by those affected and to provide them the leadership and support they need.   

We will continue to do so. 

We will go to the polls on November 26 promising a continuation of the positive, aspirational and inclusive approach that we’ve shown so far.

We will stick to the fair, responsible course that New Zealanders have come to expect from us.

We are optimistic about the future.

This country is set for great things.

The world is paying more for our exports than ever before. Our people are getting out of debt and investing productively. Our personal tax rates are the lowest they have been in decades. Our schools are more focused on lifting student achievement than ever before. Our hospitals are performing more operations and our law and order system is better across the board. 

On 26 November this year, voters will be presented with a clear choice.

By voting National, New Zealanders will be voting for forward-looking policies that will take us that next step towards a brighter future.

They will be voting for a team that has been tried and tested.

They will be voting for a team that can deliver on its promises. 

The National-led Government has a proven track record. 

With the help of you, the Party faithful, National will be able to continue its hard work to build the brighter future that New Zealanders aspire to and deserve.

Thank you for your hard work.

Now, let’s go out and win that election.

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