Delivering better public services within tight financial constraints
Mr Speaker,
Another of the Government's priorities is delivering better public services within tight financial constraints.
A better-performing public sector is central to the Government's plans over the next three years. The Government wants to see better results and improved services, as well as reduced costs and more efficiency.
To assist those changes, the State Sector Act, the Public Finance Act, and the Crown Entities Act will be amended, as recommended by the Better Public Services Advisory Group.
Earlier this year, the Prime Minister announced 10 challenging results for the public sector to achieve over the next three to five years.
We can help create better communities by achieving these results, which include: reducing long-term welfare dependency; supporting vulnerable children; boosting skills and employment; reducing crime; and improving interaction with government.
We've already announced one of the targets - 85 per cent of 18-year-olds having NCEA level 2 or equivalent in five years, up from 68 per cent currently.
Today we are announcing two more as part of Budget 2012.
The first is reducing prisoner reoffending by 25 per cent in five years. Reaching this target would mean 18,500 fewer victims of crime every year.
The second is increasing the rate of participation in early childhood education to 98 per cent, up from 94.7 per cent currently. This will ensure that as many children as possible have a strong platform for learning when they start school.
We are still finalising our other Better Public Services targets and they will be announced by 30 June.
Progress towards achieving the results will be reported publicly, so New Zealanders can judge for themselves how well we are doing.
As we've said, achieving these results will be demanding - in fact, for some of them, it will be quite difficult. We make no apology for that.
Mr Speaker,
Despite tight financial constraints, this Government has made investing in better frontline health services a priority over the past three Budgets. This continues in Budget 2012.
Over the next four years, the Government is committing almost $1.5 billion extra to Vote Health, partly funded by $129 million of savings identified in 2011/12. This will:
Deliver 4,000 more elective operations a year.
Provide better service for cardiac and cancer patients.
Provide $12 million to reduce rheumatic fever.
Invest $133 million in disability support services.
In addition, the Government will provide $60 million in capital for new buildings and hospitals.
As we've already announced, pharmaceutical co-payments will be increased from $3 to $5, up to a maximum of 20 prescription items per family per year, after which items are free.
Prescriptions for children under six will remain free.
This is a modest increase that allows us to spend more on frontline health services than we would otherwise have been able to.
As part of its wider health policy, the Government will also continue to increase tobacco excise by 10 per cent over and above inflation each year for the next four years.
The first increase will occur on 1 January 2013, followed by annual increases on 1 January in each of the following three years.
Previous increases in the excise have reduced tobacco consumption, as smokers have given up or cut back and fewer young people begin smoking.
I acknowledge the work and support of the Maori Party and its ministers, the Honourable Tariana Turia and the Honourable Pita Sharples, in this area.
