E ngā iwi o te motu kia ora huihui tātou katoa.

Let me begin by paying tribute to those who have brought us to this point.

They worked hard for many years often with little progress and often without encouragement.

Every group represented here today will have members who worked hard to achieve justice.

It is important to acknowledge their effort and contribution because we are the ones who have benefited from that hard work.

Completing the historical settlements process is a high priority for me, and it is a high priority for this government.

One of my predecessors, the Rt. Hon Jim Bolger, signed the first large settlement on behalf of the Crown. He and his Government believed the political risk of establishing the historical settlement process was worth taking.

It is our ambition to complete the job that they began.

Breaches of the Treaty by actions of the Crown have caused great harm to Maori. It is time those breaches were dealt with and the wounds they have caused were healed.

Both Maori and the Crown benefit from settlements. Maori gain a settlement package that provides redress for those breaches.  While the Crown, in negotiating that settlement and providing redress, has its honour restored.  And all New Zealanders benefit from the resulting improvement in the Crown-Maori relationship.

In short, settlements address our past and they invest in our shared future.

I am impatient to see all Maori standing strong, economically independent and fulfilling their true potential.  I see the completion of historical Treaty Settlements as an essential part of achieving that.  Because only when the wrongs of the past have been addressed, will we all truly move our sights to the promise of the future. 

The National-led Government has a goal of 2014 as the date for the completion of just and durable settlements of historical Treaty claims.

By 2014 our target is for Deeds of Settlements to have been completed with all outstanding groups.

We believe all New Zealanders stand to gain from a faster completion of the historical settlements process. 

It will build better relationships between Maori and the Crown.

It will benefit the cultural, social and economic development of Maori groups and the wider communities in which they live. 

It will allow all New Zealanders to cast our eyes to the next ridgeline we must climb, and the brighter future that lies beyond. 

The question today is how will we achieve that goal?

Let me start by acknowledging that there are many aspects of the settlement process that are already working well.  We don’t want to interfere with those aspects, and we’re not interested in a fundamental policy re-think.  

The previous Government learned that lesson in 2000 when settlement progress stalled for most of that year while settlement policy was reviewed.

Even so, there are certainly areas where experience suggests we can do much better.  And I’m confident that with good will on both sides we can make these improvements to the settlement process while continuing to move ahead.   

We believe, for example, that we can increase settlement momentum by being more flexible about the way Maori and the Crown work together in the settlement process.  We want to move forward together with Maori in this process.

We would also like to encourage more Maori engagement in designing a settlement and determining how it will be achieved.

The Crown is ready to take a more collaborative and open approach to settlements to ensure this can happen. 

A settlement is not simply an agreement between two bureaucracies; it is a political compact between Maori and the Crown.  It is about creating a new and better relationship. Political leaders on both sides must engage and take risks if mutual goals are to be agreed and achieved.

The Government knows how important these relationships are.  That’s why we are lifting the level of political engagement with the settlement process.

It is why I am here today and my colleague the Deputy Prime Minister and Minister of Finance is also attending.  We are here because getting this right is a priority for us.  

Together with the Minister for Treaty Negotiations and the Minister of Maori Affairs we form a tight and powerful team dedicated to the task of completing the settlement process. We will also work together on Maori issues across the public sector generally.

Our increased political engagement is also reflected in the re-establishment of a Cabinet Committee devoted to the settlement process.

We are considering the placement of the Office of Treaty Settlements to ensure it has the leverage necessary to continue to lead the settlement process within the public sector.

We have also instructed Government agencies with roles in the settlements process to give those settlements a high priority. We see them as core business for those agencies, not optional add-ons.

Where necessary, we will also provide more resources for the settlement process to reflect the high priority we place on settlements and to allow public sector processes and performance to reflect that priority.  

Taken together we believe these ideas for improvement will considerably increase the momentum of the settlement process. 

I am grateful too that we come to this process in partnership with the Maori Party.  Ours is a mana-enhancing relationship and the ideas I have just discussed reflect many of the ideas and views held by the Maori Party.  These include the emphasis on greater speed, the importance of high level political engagement and the use of external facilitators.

After our meeting today I may be asked why we are making settlements a high priority at a time of economic stress.

The answer is a simple one.

We think settlements are good for Maori and good for New Zealand.

We are here today to seek your help in bringing more urgency to the completion of this process and to the opening of a conversation on how the settlement process can evolve to meet our common goals. 

I am confident that together we can bring the benefits of settlements to Maori and to the wider New Zealand community much faster than has been the case in the past. 

There is hard work ahead of us, but with the determination and commitment shown by so many so far, I am confident we will be able to stride side-by-side on our journey towards 2014.   

I will now ask my colleagues, the Deputy Prime Minister and Minister of Finance, the Minister for Treaty Negotiations and the Minister of Maori Affairs to speak.

Tēnā koutou katoa.

Thank you for inviting me to speak to you this evening.

I’d like to acknowledge Simon Power, your President Les Howard and the Board of Grey Power, and the many delegates who have travelled here from around the country.

It’s great to be at your AGM again.

There have been a few changes since I spoke to you in Christchurch last year.

Last November, the National Party won a popular mandate to lead a new Government, and we put that Government together swiftly with the help of our support parties – Act, United Future, and the Maori Party.

Since then, we have been working hard to deliver on the promises we laid out in the election campaign and to address the issues that matter to New Zealanders.

We have completed all the actions we promised to deliver in our first 100 days in office – on the economy, law and order, education, health and electoral reform.

And we are continuing to put in place our Jobs and Growth Plan to protect New Zealanders from the sharpest edges of the global recession and to prepare for future growth.

I will speak in more detail about our progress in government shortly, but before I do that, I’d like to thank you for the good work you do as a voice for the over-50s.

Grey Power has a long history of standing up for the interests of older New Zealanders and I appreciate the good relationship you have with the National Party and with our Ministers, and particularly with our Minister for Senior Citizens John Carter. The Government and Grey Power may not always agree, but we will always listen to your concerns.

Because it is important that we acknowledge – as a nation and a government – the huge contribution that older New Zealanders make to our families, our communities, and our country.

And it is just as important that we ensure older New Zealanders are treated with the respect and the dignity that they deserve.

With this in mind, I was pleased to read a few weeks ago about an OECD study into income distribution and poverty in the developed world. It found that only 2 per cent of older people in New Zealand were living below the poverty line, and that this was the best equal result among the 30 countries in the OECD.

This is not to say that we are perfect. I know that many older New Zealanders are struggling to cope with rising living costs and find it very hard to make ends meet.

But it is a sign of how well we respect and treat our older people.

And it’s a sign of how important New Zealand Superannuation is for maintaining and supporting the incomes of our over-65s.

NZ Superannuation

NZ Super is particularly important right now.

The credit crisis and the global downturn is having a big impact on older people, many of whom live on fixed incomes.

The collapse in a number of finance companies has meant that many New Zealanders have lost savings.

And the dramatic fall in interest rates – which is good news for families with a mortgage – is bad news for those who rely on the income generated by their savings.

These factors reinforce just how important universal government-funded superannuation is.

I am aware that the OECD has recently suggested that the Government should look at raising the eligibility age for superannuation. I have a response to that suggestion – we will not be doing that.

The National-led Government is absolutely committed to maintaining current eligibility rules and NZ Super payments at a minimum of 66% of the average after-tax wage, rather than letting it drop back to 65%, as would otherwise have happened. As I said many times during the election campaign, I put my name behind that assurance.

In addition to this, the tax cuts on 1 April increased the after-tax average wage and this will raise superannuation payments in future years.

Tackling the Recession

New Zealand, along with the rest of the world, is facing a global recession on a scale we haven't seen for more than a generation. This is having some very serious implications.

Export volumes have fallen. Unemployment is rising. Many businesses are struggling. Families are finding it harder to make ends meet.

At the same time, Government revenues are going down and spending on unemployment benefits is going up. The Government is in deficit and Crown debt is rising.

There is, as you know, no magic lever we can pull to suddenly turn things around. But we are working hard to protect New Zealanders from the sharpest edges of this recession and to prepare for future growth.

We are doing this in four ways.

Firstly, we are providing a large fiscal stimulus to the economy by maintaining spending in areas such as health and education, and fast-tracking infrastructure investment. On top of this, we have delivered on our election promise to reduce personal taxes on 1 April.

The tax cuts will provide a billion-dollar boost to households. They are part of National’s plans for rewarding effort and providing better incentives for New Zealanders to get ahead.

Secondly, we are supporting New Zealanders on low incomes by maintaining the entitlements they receive.

As well as continuing NZ Super payments at a minimum of 66% of the net average wage, we are maintaining funding for the SuperGold Card.

We are also maintaining Working For Families payments, student allowances, and benefits. And we are adjusting these over time so that they keep pace with inflation.

On 1 April we also lifted the minimum wage to help the most vulnerable workers tackle rising living costs.

Thirdly, we are getting better value out of government spending. We are continuing our line-by-line review of expenditure, reducing bureaucracy, eliminating low-value government programmes, and moving resources to the frontline.

We want New Zealanders to get better public services across the board, from the standard of education your grandchildren get at school, through to the standard of care you get in our hospitals – and I’ll talk a bit more about that shortly.

Finally, we are continuing to put in place our Jobs and Growth plan. This is a ‘rolling maul’ of initiatives aimed at retaining and growing jobs and preparing the economy for future growth.

This includes the retail and wholesale deposit guarantee schemes introduced at the end of last year. The government now guarantees deposits in New Zealand banks, and many building societies, credit unions, and finance companies.

We have introduced temporary additional support through our ReStart Package for those worst hit by redundancy. ReStart is already helping around 1400 families.

We have launched our Small Business Relief Package which makes it simpler and less expensive for small businesses to manage cash flows and pay taxes.

We are fast-tracking $500 million of infrastructure investment in school improvements, state housing upgrades, and roading projects. We are also investing $1 billion extra in the state highway network over the next three years.

We are reducing red tape to remove the barriers that stand in the way of improving our infrastructure and encouraging investment in new industries and jobs. We have started streamlining and simplifying the Resource Management Act, and we will also reform the Building Act.

We are developing the best ideas from the Prime Minister’s Job Summit. These include the “nine-day working fortnight”, increasing education options for young people, and the national cycleway.

The Job Support Scheme is already helping workers keep their jobs at Fisher & Paykel, and Summit Wool Spinners in Oamaru. Around 60 other businesses are considering joining the scheme.

Finally, our first Budget will set out a credible medium-term plan for economic recovery and getting the Government’s finances in order.

Together, these initiatives are designed to help boost jobs and get our economy growing again.

Because, despite the gloom, we need to realise that we are in a better position than many other countries.

Our banking system is in better shape than most. Our interest rates have fallen a long way, and quickly. And we have some natural advantages that I believe will see us come through this recession a lot quicker and better than other countries.

We produce a lot of food, and we do that extremely well. Visitors want to come here, see our unique landscape, and share our cultural experiences. 

And we have people who are extremely creative and clever at doing amazing things with some pretty scarce resources.

Yes, we are in for a rough patch. 

But I’m confident we can come through this recession more strongly than most countries, and that these tough times can be a springboard for better times ahead.

In the meantime, we will continue to address the issues that matter to New Zealanders.

Electricity Prices

Rising power bills are a major concern for people on fixed incomes. Many older people tell me that they go to bed earlier in winter to keep their power bills down.

Just as there is no magic lever we can pull to turn our economy around, there is no magic switch we can throw to suddenly turn on cheaper power. But there are a number of steps we are taking which are designed to constrain the growth in power bills.

We have started reforming the Resource Management Act. This will reduce the costs, uncertainties, and delays associated with new projects, and make it easier and cheaper to build new power stations.

We have started streamlining investment in Transpower’s transmission network, so that upgrades in the National grid can happen more quickly and efficiently. By improving the grid, electricity from different power plants will be able to move around the country more easily.

We have announced a wide-ranging Ministerial Review into the electricity market. This will look at the performance of the market, electricity regulation, and governance issues. It may be that the review throws up some sensible short-term improvements that can be made fairly quickly. If this is the case, we will act on these immediately.

And before Easter, we announced plans to work with the Green Party to fund a home insulation, clean heating, and energy efficiency programme which will start no later than 1 July. We will have more to say about this soon.

In the short term, these four steps won’t have a big effect on power bills. But over the longer term, I expect that they will help constrain electricity prices and that we will see fewer stories about electricity retailers putting up power prices ahead of inflation.

Health

Health is another area where we are determined to make big improvements.

As you know, in recent years our public health system has been struggling.

We have a chronic shortage of nurses and doctors. We have long waiting lists for elective surgery and appointments with a specialist. We have 21 District Health Boards running deficits that total around $160 million. Too much money is being tied up in bureaucracy and red tape, and not enough is getting through to frontline care for patients.

National has a plan to tackle these problems and provide better, sooner, more convenient care for those who need it. This plan has four major goals.

Firstly, we will give doctors and nurses more say over how healthcare is provided, by establishing clinical leadership and clinical networks across the system. Around the world, clinical leadership is recognised as a big driver of better healthcare.

Secondly, we need to save the public health system from its slide into financial crisis, and restore it to financial health.

Thirdly we will shift from the current centrally-driven health system which is hugely bureaucratic, towards a more sector-driven health system.

And fourthly, we will reduce waiting times for elective surgery such as hip replacements. The number of elective surgeries that are performed needs to more than keep pace with population growth and our aging population.

We have already taken some important steps.

We have announced the first of several elective surgery supercentres to reduce hospital waiting lists, and we will train the extra doctors and nurses to staff them.

We are funding a 24-hour Plunket-line service and a full 12-month course of Herceptin for Her-2 positive breast cancer sufferers.

And we have launched a “voluntary bonding scheme” that offers student loan write-offs to graduate doctors, nurses, and midwives who agree to work in hard-to staff communities or specialties.

You can expect to see lots more progress in coming months towards lifting the quality and performance of our health system and the frontline care that patients receive.

Law and Order

The front line of law and order is another area in desperate need of support, and we have taken some big steps since coming into office.

I would like to acknowledge the great work that Simon Power has been doing as Minister of Justice to deliver on our election promises and confront violent crime.

In our first one hundred days we passed new laws that make it harder for the wrong people to get bail, and provide tougher sentences for crimes against children.

We also introduced several new bills that we are driving through Parliament.

These pieces of legislation clamp down on gangs by doubling penalties for participation in a criminal gang, and make it easier for police to intercept gang communications.

They allow police to issue on-the-spot protection orders for suspected victims of domestic violence.

They put victims at the centre of the justice system by requiring offenders to pay into a Victim Compensation Fund.

They enable police to collect DNA from people they arrest and ‘intend to charge', and to match their DNA against samples from unsolved crimes.

And they would remove the right for the worst repeat violent offenders and the worst murderers to get parole.

We have started training new police officers to boost the number of frontline police by 600 before the end of 2011. This includes 300 new police officers for South Auckland.

We have also introduced legislation that targets youth offenders.

This gives the Youth Court the power to issue a new range of compulsory orders including parenting lessons, mentoring programmes, and drug and alcohol rehabilitation.

It extends the jurisdiction of the Youth Court to include 12-and 13 year-olds accused of serious offences. And it creates tougher, more effective sentences, including a military-style activity camp programme that targets the most serious young offenders. 

This programme will consist of up to three months residential training, using army-type facilities or training methods. It will provide clear boundaries, and reinforcement of self-discipline, personal responsibility, and community values. And it will include up to nine months of intensive support and mentoring to meet each young offender's individual needs.

But we also know that we can’t just tackle violent crime with a prison van at the bottom of the cliff.

That’s why last month Simon hosted a Ministerial Meeting on the Drivers of Crime attended by 100 experts from around the country. I expect this will, over time, lead to a number of initiatives that result in less crime, safer communities, and fewer victims.

Conclusion

Whether it is tackling violent crime, improving our health system, confronting rising electricity prices, or responding to the recession, the new Government is doing what we were voted in to do – take action on the issues that matter to New Zealanders.

We are delivering on the promises we made in the election campaign.

We are maintaining the entitlements that people receive – including NZ Super.

And we are protecting New Zealanders from the sharpest edges of the recession and preparing for future growth.

Before I go tonight, there is one last thing I want to say about the National-led Government and our relationship with you.

It’s the same thing I have been saying to audiences around the country. The government does not have the answer to every problem. There is only so much we can do. The challenges we face in this recession and in every policy area are challenges that we can only solve by working together with all New Zealanders.

I started this speech by acknowledging the huge contribution that older people make to their families, our communities, and our country.

And I want to end by pointing out that in these challenging times, your experience, your insights, and your wisdom are more valuable than ever.

Thank you very much.

Speech at Peking University

President Zhou, distinguished guests, ladies and gentlemen.

Thank you for the opportunity to speak to you today at Peking University. 

I am delighted to be addressing a group of young people who represent the great achievements of today’s China, and who will play an important role in shaping the China of tomorrow.

Like young people all over the world, you represent the expectations and hopes for our shared future. It is your efforts and your talents that will allow the next generation to live better lives than the generation before. 

Today I wish to share with you New Zealand’s aspirations for that future and the importance I believe our relationship with China will play in it. 

I want to acknowledge the increasingly important role China is playing on the world stage and I want to point to the contribution I believe China, and Asia more generally, could make to the global economic recovery.    

Most importantly, I want to mark and celebrate the growing relationship between our two countries and the significant opportunities this presents for Chinese and New Zealand citizens alike.

It is appropriate that I am giving this address at a university that has long connected our two countries. 

For many years New Zealanders have come here to study Chinese language.  They have developed friendships with fellow students like you, immersed themselves in your culture and have developed a real affection for your country. 

Many have returned to lecture here, and others have gone on to teach Chinese to New Zealanders back home.   

There are several stories about New Zealanders on your campus but one in particular stands out to me. 

It is the story of the friendship formed between China’s former Foreign Minister and Vice Premier Huang Hua and a New Zealander by the name of James Bertram.

James Bertram came to study here in the 1930s, at what was then Yanjing University, and which was later merged into Peking University.

While he was here he formed a friendship with Huang Hua.

This friendship must have left a good impression.

Because 40 years later, it was Huang Hua, acting as China’s ambassador to the United Nations, who went on to sign the Joint Communiqué on establishment of diplomatic relations between China and New Zealand.

Our growing relationship

That was 1972.

The changes in the world since then have been remarkable. 

China in particular has undergone an economic and social transformation unparalleled in world history. The process of economic reform and “opening up”, set in motion by Deng Xiaoping, has delivered benefits to hundreds of millions of people.

Today China continues to be one of the world’s fastest growing economies with growth that averaged 9.5% per annum between 1979 and 2005.

With this economic growth has come a huge expansion in China’s trading relationships, your engagement in international forums, and your person-to-person links with other countries.

New Zealand is one of many countries that has benefited from this “opening up”.  

We have welcomed Chinese tourists, students and workers. We have exchanged ideas and goods. And we have welcomed China’s growing involvement in the regional architecture of the Asia-Pacific region. 

This is all despite the fact that our two countries are in some ways very different, not least of all in size. New Zealand is home to only just over four million people. Our economy is tiny when compared to yours.

But this size disparity has been no barrier to the development of an effective and mutually beneficial relationship. 

New Zealand is proud to have joined China in celebrating ‘four firsts’.

We were the first developed country to agree to China becoming a member of the World Trade Organisation (WTO).

We were the first developed country to recognise that China had established a market economy system.

We were the first developed country to begin a negotiation towards a bilateral Free Trade Agreement (FTA) with you in November 2004.

And, around this time last year, we took huge pleasure in being the first OECD country to sign an FTA with you.

The New Zealand-China Free Trade Agreement

The signing of this agreement was a significant achievement for both our countries.

For China it set a blueprint for future FTAs you may sign with other larger economies. While from New Zealand’s point of view it was an opportunity to be the first FTA partner with a country that we believe will play a vital role in our future. 

We look to China as a driving force in Asia’s growth engine, and indeed the growth engine of the world.

The FTA we signed provides a framework for future growth by forging cooperation in goods, services and investment. 

It has got off to a good start. In the year since its signing, trade in both directions has grown, despite the state of the global economy. According to our statistics, two-way trade between China and New Zealand grew by 19% to over $9 billion New Zealand dollars in the year to February 2009.

The trade balance is still solidly in China’s favour, but that does not diminish the importance of the FTA to both our economies. 

China is now New Zealand’s third largest trading partner overall – our second biggest source of imports, and our fourth biggest export market.

We also enjoy one of the fastest growth rates in our exports to China of any economy in the world, with our exports growing 35% in the past year. 

These increasing levels of trade benefit New Zealanders and Chinese alike. 

New Zealand’s exports are helping to meet the growing needs of your fast-growing economy and your increasingly wealthy population. Kiwi businesses look to China as a new market in which they can sell quality food and beverages, including milk, fish and meat.

While large numbers of New Zealanders are keen consumers of the increasingly sophisticated manufactured goods that China produces, including electronics, machinery and clothing.

In addition to this trade in goods our two countries have strong education links.

Some 30,000 Chinese young people study in New Zealand at any one time, making China our biggest source of overseas students. All around our country you can find Chinese students living with Kiwi families. New Zealand students live with Chinese families here too.

Our universities are increasingly involved in strategic partnerships. The focus is on research, and the exchange of students and faculty.

It’s a mark of the importance of education that our FTA has provision for PhD scholarships for each country. If you want to study at PhD level many of you will find that you and your family will effectively be treated as New Zealanders when it comes to student fees, the right to work and family entitlements. 

Our tourism markets are also made for each other. 2009 marks the 10th anniversary of New Zealand being granted “Approved Destination Status” by China – the very first western country to gain this status.

The number of Chinese people visiting New Zealand has grown exponentially since that time, with growing numbers coming to enjoy our rugged scenery, ‘100% pure’ environment and adventure tourism.

While on the New Zealand side, many more Kiwis are travelling to China, visiting your world-renowned tourism sites, and learning about your culture and history.

I am delighted with this trend. As Chinese and Kiwis enjoy more of each other’s hospitality, the friendships between our nations will grow, and our trade, education, and business ties will become stronger.

Converting the Opportunity

Indeed, it is that desire to see those ties strengthening that has brought me to China. 

I am keen to see New Zealand make the most of the opportunities presented by China’s formidable economic growth.

That is why, as a newly-elected Prime Minister, I have chosen to visit China as a matter of priority.

I believe there is much more our two countries can achieve together for the benefit of both our peoples.

When we signed the FTA last year we opened an important door, and now our task is to boldly walk through it.

Walking through that door could deliver huge rewards.

As China becomes wealthier I believe your demand for high-quality food, like the meat and dairy products New Zealand is so good at producing, will continue to grow. 

Tourism and travel have great potential for growth, as does education and resources.

From New Zealand’s perspective, it’s not really a question of identifying the potential. The potential is huge. The question is how we best convert that potential into real economic growth opportunities for our country.

For a small open economy like ours, converting the potential that China presents could deliver a huge economic boost. 

My Government is keen to help this conversion take place and to help support business linkages between New Zealand and China.  

I have asked our government agencies to be focused on ways to help New Zealand companies make their mark in China.

As part of that commitment we are investing heavily in our trade presence in China, with Consulates-General in Shanghai and Guangzhou and a major new business centre in Shanghai. 

We are also planning to develop smaller business offices in cities that New Zealand businesses are typically less familiar with, including Shenzhen, Qingdao and others.

And we are committing heavily to the Shanghai Expo in 2010. The New Zealand pavilion will be the biggest New Zealand has ever built for an international Expo, befitting what will be the world’s largest Expo ever.  Our National Day at the Expo will be 9 July 2010 and I hope to lead a New Zealand business delegation to Shanghai for that purpose.

From what I have seen New Zealand businesses are becoming increasingly aware of what China has to offer. On this visit I am accompanied by representatives from several of our major exporters who wish to learn more about China, to strengthen relationships and to seek our future opportunities. 

Because, despite the best efforts of the Government, it is New Zealand businesses, and Chinese businesses, that will pave the way for increased trade between our countries. We look to them for the new ideas, the fresh approaches and a sense of the possible. 

So I am pleased to report that it is my sense that New Zealand businesses are optimistic about the future.  They share my vision for a step-up in the trading relationship between China and New Zealand.

They are keen not only to knock on that door, but to kick it wide open. 

I know that achieving this will not always be easy.

New Zealand businesses wishing to gain access to markets in China typically have to accustom themselves to a new and different environment. Not everything in China is the same as it is in New Zealand. There are language differences, cultural differences, legal and regulatory differences.

People-to-people relationships

So it is of huge benefit to New Zealand that we have extensive and long-standing people-to-people relationships with China.

I think this gives our two countries a huge advantage when it comes to doing business with one another. 

These people-to-people relationships help us to break down our differences, to understand each other a little better, and to make faster progress towards our shared goals. 

They go back hundreds of years, beginning with the arrival of Chinese immigrants in the middle of the 19th century and travel by New Zealand missionaries and others to China to live and work.

Today one in every 25 New Zealanders is of Chinese ethnic origin. 

I am proud to have with me today one such New Zealander, our Minister for Ethnic Affairs, the Honourable Pansy Wong. She can trace her family roots back to Shanghai, but New Zealand is proud to claim her as our own.

Pansy is one of many high-profile New Zealanders of Chinese ethnic origin, who, along with thousands of others, help New Zealanders understand a little more about Chinese culture, history and business. 

In addition to these relationships, Chinese and New Zealand citizens get to know each other through many different interactions including student visits, our more than 30 sister-city relationships, and our shared business associations and cultural societies. 

I also sense that New Zealanders are becoming increasingly familiar with Chinese culture. The success of Chinese Lantern Festivals in New Zealand is one good example of this.

This means that while doing business in China may be a little unfamiliar at first; increasingly New Zealanders are able to tap into networks and relationships that make the going easier. The same applies to Chinese wishing to do business in New Zealand. There is nothing like a trusted friend to show the way. 

As we look to the future, I expect more opportunities for person-to-person engagement to emerge.

Indeed, to encourage greater people-to-people contact New Zealand introduced a new working holiday scheme last October. This provides young Chinese with a chance to work a little in New Zealand while holidaying and surveying our study options if they wish.

My hope is that the word will get around Peking University that this is a great way to check out New Zealand before finalising your postgraduate study options. 

Our roles in the Asia-Pacific Region

Our economic relationship is also underpinned by our involvement in a shared backyard - the Asia-Pacific Region.

New Zealand participates with China in the ASEAN regional forum, in APEC and in the recently founded East Asian Summit.

There is discussion, as always, on whether these current forms of regional architecture are best suited to meet our collective needs in the decades ahead.  

While it’s true the membership and indeed the regional architecture may over time change, New Zealand remains committed to the idea of regional co-operation and development.

We are supportive too of China’s own constructive role in the six party talks process for the Korean Peninsula – and hope this can be restored.

Looking to the future, I anticipate an increasing role for China in the South Pacific in keeping with its growing economic strengths and interests.

I know, for example, that the leaderships of many Pacific countries have welcomed China’s involvement and its willingness to provide generous development assistance.

Well-spent aid is always supported and there is certainly a need for it in parts of the Pacific. As a long established donor in the Pacific, and with close community and political links to many of the Pacific islands, New Zealand would welcome closer dialogue with China on development cooperation in the Pacific. 

The Global Economy

In describing my vision for the shared future of our two countries, I must acknowledge the impact of the global financial crisis that has shaken the world in recent months. 

We are all facing a very serious economic situation.

In New Zealand’s case, as in China’s, we are a trading economy that is highly connected to the rest of the world. 

Though New Zealand’s banking sector is relatively robust, and our government debt levels are relatively low, we are still feeling the negative effects of the global downturn. 

However New Zealand is determined to use this time to sharpen-up our economy so that when the world starts growing again we can be running in better shape than some of the other countries we compete with.

We have taken a number of steps towards this, including a programme of personal tax cuts, fast-tracked infrastructure spending, a small business support package and a programme of regulatory reform.

Despite these steps, we remain vulnerable to falling demand for our exports, and reduced credit flows.

So I have been encouraged by the contribution made by the G20, of which China played a major part, in devising a coherent response to the economic crisis. 

Domestic stimulus plans throughout the world, including the large package here in China, are having a positive effect and are beginning to rekindle demand throughout the world. 

I have also been encouraged by the seeming strength of the Asian banking system. The serious faults that have been exposed in large parts of the global banking system elsewhere have not led to similar collapses in this part of the world, perhaps as a result of measures following the Asia debt crisis in the late nineties.

Taken together, these factors give me confidence that the Asia-Pacific region will play a driving role in kick-starting the global economic engine in the months ahead. 

This is good news for New Zealand. 

As we look ahead however, the biggest risk to New Zealand is that this global economic crisis unleashes a new wave of protectionist measures.

I am firmly of the view that such a move to protectionism would be a retrograde step. 

It’s true that the scope of the current economic recession has been widened because of the inter-connectedness of global markets for goods, services and credit. But just as this inter-connectedness has had a downside, so does it have a significant upside. It means that when an economic upswing comes everyone will benefit. 

Raising protectionist barriers now will slow down economic recovery in the short-term. And, in the medium-term, it will reduce the world’s capacity for economic growth. That is a recipe for more hardship, not more prosperity. 

I have been very pleased to see China’s leadership on this issue. 

President Hu has made it clear that he supports free trade, that he wants to see a successful Doha round and that he doesn’t want to see a return to protectionism.

New Zealand and China certainly see eye-to-eye in this regard.

In particular I think that the China-New Zealand FTA is a good model for others in our region as it points the way to openness at a time when protectionist pressures are building. 

Even so, as the global economy recovers there will be some difficult economic challenges for the world in the years ahead.

Serious attention will have to be paid to the rebuilding of the international financial architecture. And in my view, any repairs will have to include bigger participation for the big Asian Economies, and China in particular, in that architecture. 

Protectionist pressures may continue to grow. And throughout the world, countries may re-examine their economic settings and policies.

In facing these challenges, New Zealand is determined that the gains of the past decades will not be lost. We wish to see a continuing focus on the prosperity that can be gained from international trade, from the connectedness of international financial systems, and from an increasingly shared global economic outlook.

We accept that improvements must be made, but we think they should be made in a way that while preventing future failures, also maximises the possible gains of our increasingly connected global economy.       

I believe China will have an important role to play in helping shape the response to these challenges over the next few years. And I am optimistic that our ties and shared interests are such that our two countries will continue to see eye-to-eye on many of the issues that arise.   

Conclusion

In conclusion let me restate that the relationship between New Zealand and China is in very good heart. I am delighted to be here for this visit, so that we can strengthen our relationship further. 

I have painted a picture of increased cooperation in many areas but it doesn’t mean we will always agree on everything. 

True friendship occurs when you can speak your mind and walk away from it and still be friends. It is my hope that can be the case for us.

After all, there is much at stake.

In these challenging times, citizens throughout the world have become very aware of the unprecedented levels of interconnectedness in the global economy. Some see this interconnectedness as a weakness. I do not, and my sense is that China does not either.

Economic integration has brought huge benefits to the world, and in troubled times it can provide a way of working together to manage risks and maximise opportunities. 

I believe China and New Zealand must continue to do what we can to pursue the economic integration that has made such a difference to our people. 

It has been my pleasure to visit Peking University today.

I look forward to seeing growing links between Peking University and New Zealand universities, and the people of China and New Zealand.

Because, as the words of the Maori proverb say:

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. 

Thank you.

I move that this House expresses its congratulations to New Zealand’s former Prime Minister the Rt Hon Helen Clark on securing the very important role as head of the United Nations Development Programme. 

Today, at around 8.30 New Zealand time, the United Nations General Assembly voted to endorse her in this role, following the nomination of the UN Secretary General, Ban Ki-moon. 

The vote represents the end of a long and challenging process, as individuals from around the world have competed for this much sought after position. 

It is a great achievement for Helen Clark personally and it is one all New Zealanders can be proud of. 

Her new role holds the rank of Under-Secretary-General of the United Nations, and is the third highest-ranking position in the UN.

Helen Clark has reached these new heights after many years of service to New Zealanders, at home and on the world stage. 

She has been one of our country’s longest-serving Members of Parliament, a member of this House for 27 years, and one who has always worked hard on behalf of the New Zealanders she came to serve.

Her abilities, and the respect New Zealanders have for her, is reflected in the variety of senior roles she has exercised during that time, culminating in her service as New Zealand’s first elected female Prime Minister. 

She held that position for nine years, a duration that ranks her amongst New Zealand’s longest-serving Prime Ministers. 

Throughout that time, and indeed prior to her election to Parliament, Helen Clark has shown qualities that prepare her well for her new job. 

She has always shown a passionate interest in international affairs. 

She has dealt with complex domestic politics and gained the trust and respect of New Zealanders. 

And she has never been afraid to exercise her views on issues, even when these have placed her at odds with others. 

I am sure these qualities have prepared her well for what will be a complex and demanding role at the United Nations.

The scope of that job is difficult to overstate.

It will see Helen Clark running UN programmes in all developing countries with a Budget of around $5 billion US dollars.

She will be working to help establish democracies, reduce poverty, improve health care, help in crisis prevention and recovery and assist with environmental issues.

She will be working to get buy-in for her initiatives, and to ensure follow through on the ground. 

And she will do so in the context of what is a particularly challenging economic time for the world.

Many developed countries will be financially stretched in the coming years, and yet the needs of poorer developing countries will be no fewer. 

It will fall to Helen Clark in her new role to ensure the world’s wealthy nations, no matter the difficulty of the times, continue to provide support to those less fortunate.

In other words, the UNDP needs someone who can front for them, mobilise resources and give the organisation a human face.

In appointing Helen Clark they have endorsed someone they believe is capable of that task.

The challenges ahead of her are formidable, yet I am confident that she will rise to them.

On behalf of this House and all New Zealanders, I would like to offer Helen Clark our ongoing support in her new role. 

The New Zealand Government offered our full and formal endorsement to her bid, and we take great pleasure in her success. 

I would like to take this opportunity to thank the many people who have played a role in supporting Helen Clark’s campaign for this international position, particularly in our Ministry of Foreign Affairs and Trade.

In particular let me single out Rosemary Banks who, in her role as New Zealand’s permanent representative to the United Nations in New York, has worked hard for this outcome. 

I personally wrote and spoke to the UN Secretary General Ban Ki-moon to convey the Government’s support for Helen Clark’s bid. 

And as Prime Minister I spoke to many international leaders to encourage their support. 

I am pleased to report that that support came willingly from many corners.

Leaders of the Pacific Islands Forum gave their support as did the Australian and United Kingdom governments, as well as many other leaders.

But let me be plain, in the end their support did not come about because of the advocacy of the New Zealand Government. 

Ultimately the reason Helen Clark won leaders’ support for her bid, and indeed this role, was because of the personal abilities she brought to the table. 

Her success demonstrates the respect that so many in the international community have for her. 

This support has been underscored by the universal welcome that UN member countries have shown for her appointment.

Helen Clark should be very proud of her achievement, and New Zealanders should be proud of her too.

On a personal note let me say how pleased I am that Helen Clark will have this opportunity to further her achievements on the world stage.

We come from different sides of the political spectrum.

In the last election campaign, and in the years leading up to it, I competed vigorously against her for the right to govern this country. 

That is politics. 

We have brought different approaches, priorities and outlooks to the issues this country faces, and we have each voiced those views strongly.

That we have been able to do so is one of the great strengths of New Zealand society.

Although we have had our disagreements Helen I say this: 

Viewed from the world stage our differences are not great.

I am sure all New Zealanders, no matter their political beliefs, know that your achievement today warrants the putting aside of politics.

Over the past few days many have quipped that no matter how important he is, many New Zealanders do not know the name of the current UNDP administrator.

I am certain that by the end of Helen Clark’s term they will not only know who she is and what she does, but most importantly, they will also know what countries the UNDP is assisting and why.

I for one wish you the very best. 

We will work with you Helen as you take up this most demanding role.

We will proudly stand strong alongside you in your new endeavour. 

Your appointment today not only marks a proud day for you personally, but a proud day for all New Zealanders. 

Thank you for your welcome.

It’s a pleasure to speak to you this afternoon.

I’d like to acknowledge:

•       The Board of Philanthropy New Zealand.
•       John Todd (co-founder with the late Sir Roy McKenzie).
•       Robyn Scott (chief executive).
•       Kevin Prime (convener of the chairs of the Community Trusts).
•       Your many speakers and guests who have travelled from so far away.
•       Ladies and gentlemen.

Philanthropy New Zealand plays a really important role.  It brings together giving organisations from up and down the country, and connects them with each other, with the community and voluntary sector, with government, and with people and ideas overseas.

As a country, we do not acknowledge and celebrate philanthropy enough.  You do a crucial job, raising its profile, and improving its effectiveness.

And, while I’m talking about effectiveness, I’d like to acknowledge your outgoing Chair, Jennifer Gill.  For five years Jenny has been a huge asset for Philanthropy New Zealand, your members, and the communities they serve.  I’d like to thank Jenny for her contribution.

I’m pleased that the theme of your conference is passion, pragmatism, and possibilities.

It couldn’t be any more appropriate for a newly-elected Prime Minister – particularly the bit about pragmatism – in these demanding economic times.

Because when you look at it, the new Government and the philanthropy sector are facing some of the same challenges – shrinking income, increasing demand, and everyone hoping that we’ll save the world!

But before I look to the future, I’d like to take a quick look at where we are coming from.

First of all – and this does not get acknowledged nearly enough – New Zealanders are a very generous people.

One of the joys of being Prime Minister is that I visit communities in every corner of the country, and meet people in those communities who make a real difference.

Whether it’s donating their time, money, food or effort. Whether it’s coaching a sports team, or planting trees in a local reserve, organising a fundraiser, giving koha, or helping troubled teenagers read and write.  Or whether it’s digging deep to support a worthy cause when they don’t have much themselves.

Because we’re not the world’s wealthiest country.  Yet, as a percentage of our GDP, we give as much, or almost as much, as Canada, Australia, and the United Kingdom - countries much richer than ourselves.

And whenever there is a crisis, Kiwis are often the first to respond.  When I was in Sydney recently meeting Kevin Rudd, it was an honour to hand him a cheque for $2 million from the Red Cross for the Victorian bushfires, donated by thousands of Kiwis and businesses determined to make a difference.

Many New Zealanders answer that call to make a difference every day. And we are all the richer for it.  But there is much more we can do.

That’s why, two years ago, and just after I became Leader of the Oppostion, I gave a speech at Burnside in Christchurch.

I spoke about how I want to promote a culture of generosity and giving, and how the Government needs to get behind the community and voluntary groups that make a real difference in our communities.  I said I didn’t think “more government” is the solution to every problem.

A month later, I announced National's policy to abolish the cap on charitable donations, so individuals, and businesses, could give as much of their incomes as they liked to charity and still claim a rebate from IRD at the end of the year.

We also announced policies to extend the company deduction for charitable donations to a wider range of businesses, and improve the tax rules on reimbursements and honoraria.

I was delighted when the then Labour-led Government adopted almost all of these policies and included them in the 2007 and 2008 Budgets.  And I’d like to acknowledge the role that Peter Dunne played in pushing for these initiatives, and helping to make them happen.

National also announced further policies associated with the funding of community and voluntary groups.

Since then, we have had the election and formed a government, and we look forward to working with Tariana Turia, the Minister for the Community and Voluntary Sector, to progress these further.

In the meantime, much has changed. The world is now experiencing the worst economic downturn in more than a generation, and this is having profound effects on our own economy – from reduced growth and increased budget deficits, to falling business profits and rising unemployment.

There is, as you know, no magic lever the Government can pull to suddenly turn our economy around.  But there are a series of things we are doing, which, taken together, will make a difference.

We are reducing tax – starting on April 1, and boosting investment in our over-stretched infrastructure.  We are cutting red tape and reforming the Resource Management Act.  We are working to get more value out of government spending and better frontline services.  We are determined to improve literacy and numeracy skills in our schools.  And we are focusing on protecting and growing jobs – through things like our small business relief package and initiatives arising out of the Job Summit.

Because, despite the gloom, we need to realise that we are in a better position than many other countries.

Our banking system is in better shape than many other countries. Our interest rates have fallen a long way, and quickly.  And we have some natural advantages that I believe will see us come through this recession a lot quicker and better than other countries.

We produce a lot of food, and we do that extremely well.  Visitors want to come here, see our unique landscape, and share our cultural experiences.  And we have people who are extremely creative and clever at doing amazing things with some pretty scarce resources.

It is this last point – our creativity and our ingenuity– where I believe philanthropic organisations and our culture of generosity have a big role to play.

The global recession is impacting on philanthropy in New Zealand.  Some trusts and foundations face declining incomes and capital.  If your organisation is not already scaling back the grants you are making, you may be considering doing this in the future, or using your capital to maintain your grants programmes.

Many of our larger corporates are reducing donations and sponsorship.  At the same time, private giving from individuals is likely to be more fragile.

Meanwhile, families face job losses and financial uncertainty, and there will be more demand for the social and community services provided by the organisations you support.

So it’s no surprise that the community and voluntary sector, as well as philanthropic organisations, will look to the government to take up some of that strain.

But, just as there is no special lever we can pull to turn around our economy, there is no special button we can suddenly push to make up for the drop-off in philanthropic funding.

Because philanthropy is, by its nature, a non-government activity.

Its very strength is that it depends on individual people and individual businesses making choices, prioritising, and deciding where to put their own money.

Yes, the government provides a huge amount of funding to the voluntary and community sector – but we do this as a purchaser or funder of services, not as a giver of last resort.

Yes, there are ways that we can do this more effectively.

And yes, as the downturn bites, we are expecting to pay more in unemployment benefits, and we do expect demand for these services will grow, but the fiscal constraints we face mean there is not going to be a lot more money available.

Our challenge is the same one we face right across government. The age of expanding budgets is over. We need to do more with the resources we have.

Like you, we need to prioritise and we need to make choices. We need to tackle our problems with greater creativity and ingenuity.

The government is exploring several fairly low-cost ideas to encourage philanthropy.

We are working to introduce a voluntary payroll giving system that allows employees to donate to community and voluntary organisations through their employer’s payroll system.  This will allow employees to immediately receive the benefit of the tax rebate in their pay packet.

We are investigating gift aid – where, effectively, donors can gift the tax rebate on their donation to the organisation they have donated to.

And we are looking at gifts in kind – where people and organisations can donate goods and services, and receive a rebate on their donation.

We are also examining the refundability of imputation credits for the charitable sector.

These initiatives have some tricky issues to sort out – and I’d like to acknowledge the good work that the Government’s support partner United Future is doing in this area – but officials are working on these ideas, and we will be reporting on progress later in the year.

But is there more that we can do?  How can we promote a culture of generosity and giving when we are not being a lot more generous ourselves?

First of all, we will listen.  The new Government is open-minded.  We are not blinkered by ideology.  We will back the things that work.

Right across government, we want to open doors to the non-government and private sector that have been closed for too long.  We want organisations in every sector to reach out and contribute.

Secondly, we will be honest.

We can admit that there are some things we cannot and should not be doing.  We can tell you that we do not have the capacity, or the expertise, to tackle every problem we face.

Finally, and perhaps most importantly, we will lead.

We can advocate for a culture of generosity.  We can ask people to think about those who are worse off than themselves.  And we can encourage them to give.

But we cannot do this alone. If we are to build a culture of generosity and giving in the country, the message can’t just come from the government.

It’s also got to come from those who are generous and give.  And when it comes to generosity and giving, you are the ones with the track record, the expertise, and the authority.

Together, there are many opportunities we can pursue.

Last week the New Zealand Herald reported that generosity is growing in the face of job losses.  Some churches and social agencies say that, while several trusts have been forced to cut their donations, individual giving is actually rising.

As times get tougher, people are open to the message that there are others who are worse off than they are.  And there is more that we, as leaders in government, and you, as leaders in the sector, can do to focus that message and inspire people to give.

Last year’s tax changes provide an excellent chance to do this.

We don’t yet know how much extra charitable giving will result from the changes, but we do know that, over time, this amount will grow.

Because I doubt that many New Zealanders outside this room know that they or their company can give any amount to charity up to their annual income and still claim a rebate or deduction from IRD.

According to a recent report by Neilson and Nick Jones, over 60% of the population aged over ten-years-old donated to a voluntary or community group in 2007.  Most of this was ad hoc giving to an appeal, without much thought going to the tax implications.

That is a huge pool of people who could be persuaded to donate more if they knew they could get a tax rebate.

Given the number of people involved, I think the government has a role in promoting those tax changes, and we are looking at ways to do that.

This year’s tax changes provide another opportunity to highlight philanthropy.

From 1 April, every working New Zealander will get more money in their pocket.

And while I am sure that many will use their tax cuts to pay their bills, pay down debt, or buy things they need, I am just as sure that there are many who are in a position to donate some of that extra income.

Tax cuts don’t come around often, and it seems to me that philanthropic organisations should be making the most of this opportunity.

Over the coming weeks, I’ll be reminding the people I talk to that if they can’t bring themselves to spend their tax cuts, there are many organisations who could benefit from their generosity. I challenge you to do the same.

Web-based technology presents another huge opportunity.

There are, by some estimates, close to 100,000 non-profit organisations in New Zealand.  That’s an almost baffling array of causes and organisations.

It makes sense to use the web to help people get better information about these causes and ways to support them, and it’s good to see the non-government sector leading the way.

From the establishment of the Funding Information Service by the Roy McKenzie Foundation in the early 1990s, through to the more recent development of specialist giving websites – such as givealittle and donatenz – it’s clear that the web can help connect donors and recipients in so many ways.

I am aware of other web-based initiatives underway to promote community and voluntary groups and make them more responsive to potential donors, and I hope we’ll see a lot of progress in that area.

But perhaps our biggest opportunity is to more actively celebrate giving and volunteering.

New Zealanders are – by and large – very modest and self-effacing about their generosity.

Our Maori and Pacific peoples see koha – gifts of money, time, food or effort – not as something that should be highlighted, but as a regular part of honouring their responsibilities.

So when we give money or time to help or support others, we don’t tend to sing it from the rooftops.

Perhaps that needs to change a little.  Perhaps we need to get more used to speaking about giving, and making it a part of our common conversation.

This would not only help to publicise the good causes in our communities.  It would emphasise just how widespread individual generosity is and how critical philanthropy is to the organisations that benefit. It would also inspire others to give.

But we also need to acknowledge that philanthropy isn’t just about money.  It is also about time.

Much of the time and effort you put into your work is unrewarded, as is the time and effort of over a million New Zealanders who volunteer their time every year.

In fact, to a voluntary or community organisation, the time that’s donated and the expertise that comes with that time, can be more valuable than a cheque.

And as companies cut back on donations in the downturn, we need to make sure they know that their time and expertise could be worth as much as their money and sponsorship.

A growing number of businesses are teaming up with voluntary organisations where they share particular expertise that can benefit them both.  Many others support paid leave for their staff, where employees spend a day on good works in the community.

And hundreds of professional firms – accountants, lawyers, and PR agencies – do thousands of hours of pro bono work for voluntary and community organisations.

Much of this goes unreported.  All of it is priceless to the organisations that benefit.

If we are to promote a culture of generosity and giving in New Zealand, we need to celebrate volunteering in all its forms, and make it something that people do out of habit.

That’s one of the reasons I want to raise the profile of the New Zealand honours system, and why we are reinstating titular honours.

Of course, volunteers don’t donate their time for recognition. They do it because they want to make a difference.

But recognising their service doesn’t just acknowledge them or the work they have done, it helps build a culture of service and volunteering throughout our communities.  It helps to inspire others to make their own contribution.

I’d like to finish by changing tack a little.

I know that not many people are looking to the United States for inspiration at the moment, but when I worked there, one of the things that I most admired about the country was its culture of giving.

Americans are a generous people.  They are proud of the contributions they make to others. By some estimates, they give twice as much of their incomes to charity than New Zealanders.

Partly this is because they are wealthier.  And partly it’s to do with their various policies. 

But mostly, it’s because they have had a culture of generosity and giving ingrained in them for generations.  Many see giving as a central part of what it means to be an American.

That’s the kind of attitude I want to foster here, to help those in need, to strengthen our communities, and to enrich the lives of all New Zealanders.

As we recover from the recession, and become a wealthier country, I think it is a goal we should all be aiming for.

New Zealand is a generous country.  We give a lot.  But there is always more we can do.  And there are always those who are worse off than ourselves.

There is a limit to what the government can do.  We will listen, we will be honest, and we will lead.  But the rest is up to you.

These tougher economic times, the tax changes, and the election of a new Government, provide an opportunity for philanthropic organisations, your creativity and ingenuity, and the communities you serve.

Let’s make the most of that opportunity.

Let’s work with each other and reach out to voluntary and community organisations, to business, and to all New Zealanders.

Let’s promote a culture of generosity and giving in this country, and celebrate those who donate their money, their time, and their lives to others.

Thank you, and all my very best wishes for the rest of your conference.