KEY ACHIEVEMENTS OF THE LABOUR -PROGRESSIVE COALITION GOVERNMENT

INTRODUCTION PAGE 1

JOBS & ECONOMY PAGE 2

HEALTH PAGE 10

EDUCATION PAGE 14

LAW AND ORDER PAGE 18

SOCIAL DEVELOPMENT PAGE 21

CONSERVATION & ENVIRONMENT PAGE 24

ARTS, CULTURE, & HERITAGE PAGE 28

MAORI DEVELOPMENT PAGE 30

SUMMARY PAGE 34

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The Labour – Progressive Coalitiongovernment was elected in July 2002 witha mandate to continue to work inpartnerships with all sectors to rebuildour nation and to become a countryknown for our innovation, our skills, andour lifestyle. We are promoting a tolerant,inclusive New Zealand which providessecurity and opportunity for all of ourcitizens.

We are very positive about the prospectsfor New Zealand. The economy’sperformance has been strong, even in achallenging international environment.Unemployment reached a 15 year low lastDecember and more New Zealanders arein work or training than ever before.

The strong economic performance hashad a very positive effect on thegovernment’s fiscal position and thegovernment maintains a strong fiscalpolicy. Our aim is to build and maintainsolid levels of sustainable economicgrowth, fund good public services – healthand education in particular - and oureconomic infrastructure. Spending whichgrows unsustainably inevitably ends in theheartache of structural deficits and/orcutbacks. That is a feature of New Zealand’s modern history whichshould not be repeated.

Growth through innovation is the focus ofthe economic policy framework. Manyinitiatives have been taken in line with theframework to strengthen the economy’scapacity to grow, and we have continuedto build on them in the past year.

Last year the government set theobjective of returning, over time, New Zealand’s per capita income to thetop half of OECD rankings. There is nomagic wand to be waved to achieve that,but there are many steps which thegovernment, economic stakeholders, andthe broader community can take to makeit possible.

The path the government has chosen seesus implementing smart active policies toencourage and facilitate growth anddevelopment, and forming partnershipsacross the economy and society to make ithappen.

What makes all the effort worthwhile forour families and communities is to see asocial dividend flow from New Zealand’ssuccess, especially in health andeducation, and in ensuring the safety andprotection of all New Zealanders.

This report sets out some of the keyachievements of our government fromJuly 2002 through to July 2003. The report

also acknowledges the building blocks putin place during our first term which havemade this further progress possible.

It builds on the reports previouslyproduced, and like those, does not covereverything which has been achieved.Much more has been done and there isstill more to do if we are to achieve thevision of a more prosperous and decentNew Zealand.

Helen ClarkLeader of the Labour PartyPrime Minister

Jim AndertonLeader of the Progressive PartyMinister for Economic Development andIndustry and Regional Development

INTRODUCTION

WE ARE PROMOTING A TOLERANT, INCLUSIVE NEW ZEALAND WHICH PROVIDES SECURITY AND

OPPORTUNITY FOR ALL OF OUR CITIZENS.

INDUSTRY AND REGIONALDEVELOPMENTWe’re streamlining our services to helpboost regional and export trade. Trade NZ,which provided export developmentservices and Industry NZ, which providedbusiness services, have combined to formNew Zealand Trade and Enterprise,providing a one-stop shop to facilitateimproved client services.

Encouraging growth in the regions is acornerstone of government’s economicpolicy. Our Regional PartnershipsProgramme is an example of how we’reworking to help business outside the cities.The Waikato Innovation Park, a high tech,interactive industrial park in Hamilton, wasthe first of these regional projects to getfunding under the new programme. It ispredicted to provide up to 2500 jobs andincrease growth in the Waikato region.

Funding has been approved for all 26regions and involves 57 local authorities.Five regions have had Major RegionalInitiatives funding of up to $2 millioneach so far.

Government has also developed aBusiness Incubator support programme tohelp emerging businesses off the ground.First launched through Industry NZ, thereare now 15 operational and threeemerging incubators. Last year, the 103companies within incubators which hadIndustry NZ support, more than doubledtheir annual average turnover to $237,000.These companies have also more thandoubled their staff numbers, on average,and raised $10 million in debt or equity.

The New Zealand screen productionindustry, and the economy, will benefitfrom the production expenditure grants forbig budget film and television weannounced in July this year. The grants arepart of our strategy to develop ourburgeoning screen industry. The 12.5 percent production expenditure grant foreligible films will encourage moreproduction companies to film in New Zealand, creating jobs, building skills,and increasing the size of our local screenproduction industry. The exposure of NewZealand scenery will also help augmentBrand New Zealand in the internationalcommunity.

SMART STARTS FOR BUSINESS INCUBATORSTwo business incubators in Aucklandare showing how innovation createsnew jobs.

Westsmart Business Incubator is proudof the range of programmes it is providingfor its multi-cultural community. ManagerMandy Richards says when they set uplast November, they took a holisticapproach, looking at the demographicsof the Waitakere community and thepotential growth areas.

“We already support 12 newbusinesses with another 8 comingthrough our pre-incubatorprogramme. We support newgraduates into business and helpother, more established localbusinesses to grow.

“We’re doing this by offering two‘streams’- a general business streamthat helps locals now, and a technologystream with two components, creativeindustries and eco technology, becausethey are particularly relevant to West Auckland.”

Mandy Richards says they’ve createda fun and funky atmosphere wherepeople enjoy being with others whoare doing the same thing and who canprovide business opportunities foreach other.

Industry NZ, the Waitakere CityCouncil, and local partners such as

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Achievements This Term

FINANCEOur focus is on lifting economicperformance while managing thecountry’s finances responsibly.Economic growth is forecast to remainabove the OECD average this year.Gross debt, as a proportion of GDP, isthe lowest since 1971 - when Treasurybegan collecting the data. Debt isprojected to drop to 23 per cent of GDPby 2006-07. The strong economy hasallowed us to make the full contributionto the New Zealand SuperannuationFund this year, contributing $1.9 billion.

We have adjusted the Policy TargetsAgreement between the governmentand the Reserve Bank Governor. Thenew PTA is a major step forward inmaintaining low inflation and allowingfor a more flexible monetary policy.

REVENUEThe Income Tax Act is being rewritten inplain English to be more clear andconsistent.

The first series of tax simplificationrecommendations from the ‘More TimeFor Business’ document are now lawwith the enactment of the Taxation(Relief, Refunds and MiscellaneousProvisions) Act. The legislation helpspeople who get into tax debt, introducesfairer instalment arrangements, andgives Inland Revenue greater flexibilityin dealing with tax debt.

We are listening to business. A raft ofchanges to help ease compliance costsfor small to medium-sized businessowners is being introduced. The IRD’snew e-enablement strategy puts intopractice the views of a Ministerial Panelon Business Compliance Costs and hasidentified electronic technology as away of reducing business compliancecosts.

This year’s budget allocated anadditional $1.84 million in new fundingto the Small and Medium Enterprise(SME) sector this year and $960,000 ayear in subsequent years for a numberof initiatives. These include an SMEsummit to be held in February 2004,and the establishment of a SmallBusiness Advisory Group comprising sixto eight members drawn from the SME sector.

JOBSWe’re getting people into long-termjobs. Since 1999 over 130,000 morepeople are in paid employment. Ourfocus is on building skills and talent.Our Modern Apprenticeshipsprogramme, which had just over 5,100young people signed as apprentices inMarch this year, is an example. Thisscheme is delivering an effectiveservice and funding this year will pushthe number of young people signed to7,500 by June 2006.

We’re helping job seekers, businesses,and educators get relevant up-to-dateinformation about the labour market. InBudget 2003, $5.7 million was set asideto improve employment information.Money will go to informationprogrammes such as the onlineservices, WorkSite(www.worksite.co.nz) and KiwiCareers(www.kiwicareers.govt.nz).

JOBS AND ECONOMY

NEW ZEALAND IS MOVING IN THE RIGHT ECONOMIC DIRECTION. THEECONOMY IS STRONGER AND MORE BALANCED THAN IN ANY TIME IN THELAST 30 YEARS, AND IN 2002 UNEMPLOYMENT REACHED A 15-YEAR LOW ANDWE POSTED THE FASTEST GROWTH RATE IN THE OECD AT 4.4 PER CENT.

Finance Minister, Michael Cullen delivers Budget 2003.

Economic Development Minister, Jim Anderton atBest Bars in Manukau. We’re working with localbusinesses to make sure the economy grows andcan compete internationally.

Maori Affairs Minister, Parekura Horomia duringa worksite visit to Zespri in the Bay of Plenty.

ENCOURAGING GROWTH IN THE REGIONS IS ACORNERSTONE OF GOVERNMENT’S ECONOMIC

POLICY. OUR REGIONAL PARTNERSHIPSPROGRAMME IS AN EXAMPLE OF HOW WE’RE

WORKING TO HELP BUSINESS OUTSIDE THE CITIES.

Minister for Industry and Regional Development,Jim Anderton with Gisborne Mayor, Meng Foonat the Port of Gisborne.

lawyers and accountants have allprovided mentoring and support whichmeans that some of these newbusinesses are already expanding andtaking on new staff.

At AUT Technology Park in Penrose, new businesses are buckingconventional ways of working and goingdirectly into export mode.

Support from Trade NZ (now NZ Tradeand Enterprise) has meant these startup technology businesses are linkingin to potential export markets inSingapore.

“Their support has been great andhelped new ventures with everythingfrom how to make presentations, tocultural advice, and links to networksin Singapore,” said AUT TechnologyPark CEO, Jonathan Kirkpatrick.

“The IT market is global. Newbusinesses couldn’t afford to workslowly up through the traditional routefrom a local market, to national, andinternational markets later.”Projects at this incubator includedeveloping software platforms andturning university research projectsinto commercial products.

Incubators, supported by the formerIndustry NZ, typically provideworkspace, support services, andintensive mentoring forentrepreneurs and new businesses atthe start-up and early stages ofdevelopment.

TERTIARY INDUSTRYPARTNERSHIPSGovernment, tertiary providers andindustry are working together inTauranga to create a skilled workforcethat meets local needs.

"Our region has lots of potential forgrowth. We look to see where thetraining needs might be in the localeconomy, not just in horticulture andfarming, but also in the rapidly

developing marine industry forexample," said Bay of Plenty PolytechnicChief Executive, Dr Alan Hampton.

The former Industry NZ, now NZ Tradeand Enterprise, provided over $115,000funding so the Bay of Plenty Polytechniccould develop programmes with theRoad Transport industry to address theskills shortage threatening the sector.It provided another $115,000 to helpestablish a new Applied ScienceResearch Centre to develop aquacultureand fisheries amongst other areas, andpreserve the marine environment.

Because of major skills shortages in thehorticulture industry, the BOPPolytechnic worked with local packhouses and cool stores on a cadetprogramme to staircase qualificationsand career opportunities.

Better links with the programmes in thenine local secondary schools, to easethe transition between school andtertiary study will help students gainmore qualifications. The BOP

Polytechnic will also be able to maintainits impressive growth which has seenthe number of Equivalent Full TimeStudents double in five years.

Other programmes developed with localindustry over the last couple of yearsinclude boat-building, graphic design,and dairy training.

"We're not being complacent," said AlanHampton. "We're constantly improvingthe relevancy of our programmes tomake sure we are meeting the needs ofour industries."

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GROWTH THROUGHINNOVATIONThe Growing an Innovative New ZealandFramework released in 2002 sets thedirection for sustainable growth. Itconfirms the government’s commitmentto a role in the economy that is strategic,proactive, and focused.

Government has targeted its innovationinitiatives initially in biotechnology,information communication technology(ICT), and the creative industries. Theseare areas which, if they attain theirgrowth potential, can have a significantinfluence on the broad scope of the New Zealand economy because theyaffect many other sectors.

To unlock the potential of these sectors,four industry taskforces wereestablished to report on what stepsindustry and government could take to

improve performance. TheBiotechnology, ICT, Design, and ScreenProductions taskforces have completedtheir work and released their reports,and the government is in the process ofresponding to the recommendationsmade.

TRADE Government is a strong advocate forexporters, rigorously pursuing marketaccess for New Zealand products andservices. • Three trade missions have been

undertaken this year: the SouthPacific; the Philippines, Laos,Cambodia, and Vietnam; and Hungary,Czech Republic, Poland, and Germany.

• $73 million over four years wascommitted in this year's budget tocementing trade performance. $14.2million over four years (and $3.2million a year after that) is included inthis to support World Trade

Organisation negotiations, and work onbilateral closer economicpartnerships, and trade agreements.

• In March 2003, Trade New Zealand(now part of New Zealand Trade andEnterprise) launchedMarketnewzealand.com, a new e-business facility. This online systemwill distribute to New Zealandexporters the thousands of enquiriesfrom overseas, as well as providingthem with market intelligence, news,and events.

• Scoping studies on possible CloserEconomic Partnerships with Mexicoand Thailand have also been initiated.

JOBS AND ECONOMYINCUBATORS TYPICALLY PROVIDE WORKSPACE, SUPPORT SERVICES, AND INTENSIVE

MENTORING FOR ENTREPRENEURS AND NEW BUSINESSES AT THE START-UP AND

EARLY STAGES OF DEVELOPMENT.

Finance Minister, Michael Cullen visits ScottTechnology to see the government’s Growth andInnovation Framework in action.

Trade Negotiations Minister, Jim Sutton withUnited States Ambassador Charles Swindells.

Agriculture Minister, Jim Sutton and fellowMinister, Damien O’Connor visiting a floodaffected farm in Gisborne.

GOVERNMENT IS A STRONG ADVOCATE FOR

EXPORTERS, RIGOROUSLY PURSUING

MARKET ACCESS FOR NEW ZEALAND

PRODUCTS AND SERVICES.

Associate Education Minister, Steve Maharey with Labour Minister, Margaret Wilson and BOPPolytechnic Chief Executive, Dr Alan Hampton.

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SKILLEDIMMIGRATION POLICY Recent changes to our skilledimmigration rules will make it easier forNew Zealand to attract and recruitskilled migrants. The new skilledimmigration policy turns New Zealandinto an active recruiter of migrants, ableto seek out those people with the joband social skills that will bring the mostopportunities to this country. By focusingon settlement objectives for skilledmigrants, as well as what this countryneeds, the Skilled Migrants Categorywill benefit migrants and New Zealand.

TRANSPORTWe're bringing much needed change toland transport and implementing the

goals of the New Zealand TransportStrategy. This document outlines ourvision of a transport system which willhelp growth and innovation into the 21stcentury. And we have far-reachinglegislation in the form of the LandTransport Management Bill to deal withfuture transport needs.

Historical problems with our landtransport infrastructure are beingaddressed. Government is tacklingthese problems holistically and with thelong view in mind. Transfund isallocating almost $1.2 billion to landtransport this year, that’s an 8 per centincrease. Never before has there beenmore money available for land transport.

Transit's State Highway plan (released inJune) will give more certainty to roadingprojects for the future.

Auckland's congestion problems are apriority and government has shifted

funding to the region, which has not hadits full share in the past.

We are also augmenting the role of railin future transport infrastructure. Thegovernment has negotiated a proposalto buy back and control the railwaytracks and encourage moreeffectiveness by the rail operator.

COMMERCEThe government intends to introducedecisions arising out of the InsolvencyLaw Review and legislation this year.And we introduced the second BusinessLaw Reform Bill in June.

Announcements on the third componentof the Security Law Reform programmewill be made soon.

The weather tightness issue highlightedserious shortcomings in the de-regulated environment that the buildingindustry has operated under for the pastdecade. Most of the over 300submissions government received wereconcerned with the need for competentand good quality tradespeople, supportfor building practitioner registration, andthe need for better, more accessibleinformation. These submissions supportthe government’s direction for reform.The intention of the legislative reformcan be encapsulated in the phrase“design and build right first time”.

We’re also addressing wide spreadpayment problems in the constructionindustry. The passing of the ConstructionContracts Act 2002 encourages regular

and timely payments, sets out defaultprovisions, and establishes a speedy,affordable, dispute resolution regime witheffective remedies for recoveringpayments.

This government has proved that it canact quickly and decisively whenfraudulent or reckless behaviour placescreditors at significant risk. The use ofthe Statutory Management regime hasput a stop to a controversial "buy-back"scheme, to give some protection tohomeowners who risked losing theirhomes because of the fraudulentactivities of the scheme.

CONSUMER AFFAIRSWe are introducing legislation to updateconsumer laws. Recently we passed theMotor Vehicles Sales Act, the Fair TradingAct Amendment Bill (No. 3), and theConsumer Protection (Definitions ofGoods and Services) Bill. The ConsumerCredit Bill is due to be reported back to

Parliament soon. These legislativechanges are part of our modernisationand simplification of outdated laws.

A consumer hotline has been establishedfor people concerned about buy-backschemes. In response, the governmentwill consider further amending consumerlegislation to ensure law covers suchschemes.

BUSINESS LAW REFORMFinancial sector reaction to the secondBusiness Law Reform Bill, introducedto Parliament in June, has already beenpositive. The Bill, which covers a widerange of areas including the SecuritiesAct, the Companies Act, and theFinancial Reporting Act, is designed tohelp small businesses, in particular.

"Anything that can modify business lawto remove uncertainty from it will makea material difference. Some of thesethings may appear to be minor costs,but removing uncertainty, duplication,and paperwork goes straight to the bottom line.

"Changes in this Bill are aimed atgiving small businesses the opportunityto raise capital. It very much fits in withwhat the government's been doing andwhat the stock exchange has beentrying to do."

Simon McArley, Convenor NZ LawSociety Commercial and Business LawCommittee and Partner at Kensington Swan .

SMALL BUSINESSOur government is continually expandingits policies to support small businessgrowth. Our aim is to enable smallbusinesses to concentrate on their coreareas.

We are establishing and funding a two-year pilot programme to provideinformation on employment relations, andoccupational health and safety to smalland medium-sized enterprises (SMEs).

We have recently released the progressreport on implementation ofrecommendations by the MinisterialPanel on Business Compliance Costs.More than 80 per cent of these proposalsare now implemented or underway. Thegovernment is confident these capture atleast 95 per cent of potential benefits ofcompliance cost reduction.

JOBS AND ECONOMY

Transport Minister, Paul Swain and AucklandIssues Minister, Judith Tizard turning the sodat the Spaghetti Junction project in Auckland.

Associate Minister of Energy, Harry Duynhoventaking part in the Energywise Rally, whichpromotes energy efficient motor vehicles and fuel.

Commerce Minister, Lianne Dalziel launching adiscussion document on regulation of thebuilding industry.

Small Business Minister, John Tamihere visitingMassey University’s Design School in Wellington.

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TRANSIT'S STATE HIGHWAY PLAN (RELEASED IN JUNE)

WILL GIVE MORE CERTAINTY TO ROADING PROJECTS FOR

THE FUTURE.

OUR GOVERNMENT IS CONTINUALLY EXPANDING ITSPOLICIES TO SUPPORT SMALL BUSINESS GROWTH.

OUR AIM IS TO ENABLE SMALL BUSINESSES TO CONCENTRATE ON THEIR CORE AREAS.

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Changes to health and safety laws havebeen made. The new Health and Safetyin Employment Act brings betterprotection of workers and moreinvolvement for them in ensuring ahealthy, safe, working environment.

This June, New Zealand joined the 152other countries, including Australia andthe United Kingdom, who had alreadyratified the International LabourOrganisation’s Convention 98 on theRight to Organise and CollectiveBargaining.

New Zealand has been able to ratify thelong-standing convention because theEmployment Relations Act providesrights for employees to join unions andpromotes the negotiation of collectiveemployment agreements.

NEW PAID PARENTAL LEAVE SCHEME

The maximum paid parental leavepayment increased on 1 July by 3 percent from $325 per week to $334.75 perweek. Under the Parental Leave andEmployment Act introduced last year,the maximum rate is adjusted each yearto reflect the increase in average weeklyearnings, as determined by theQuarterly Employment Survey.

Achievements Last Term• Developed the Growth And Innovation

Framework to focus resources onthree integral areas of the economy;information and communicationtechnology, biotechnology, and thecreative industries. The objective wasto return, over time, New Zealand’sper capita income to the top half of the OECD.

• Established the New ZealandSuperannuation Fund to providecertainty and security for futuregenerations.

• Provided better protections for workersthrough increases in the minimumwage, the return of ACC workplacecover to state provision, and the passageof the Employment Relations Act.

• Boosted industry and regionaldevelopment through Industry NewZealand and the Regional PartnershipsProgramme.

• Record increases in public/privatepartnership research and development(R&D) funding. We also set up the New Zealand Venture Investment Fundof $100 million to address the gap inthe seed capital end of the venturecapital spectrum.

JOBS AND ECONOMY

Other on-going work in the SME area includes:• The development, by the Department of

Labour, of best practice employmentinformation directed at SMEs.

• The introduction of a training andaccreditation scheme for councillorsand commissioners involved inResource Management Act decision-making.

• The development of BizPortal(www.biz.org.nz) , a web-based one-stop-shop for business containing allrelevant government information andservices.

• Simplification of the tax process.Provisional tax can now be pooled andemployers can transfer the bulk of theirPAYE obligations. We have alsoremoved the need to value small

amounts of trading stock. Further taxsimplifications are planned.

• Supporting e-commerce by improvinghigh-speed internet access in ourregions.

• Hosting a small business summit nextFebruary to share initiatives andachievements.

We also released a major discussiondocument in July on further proposals tosupport small businesses.

TOURISMMore than 2 million people visit NewZealand each year. Tourism contributesapproximately one in ten jobs. It’sbecoming increasingly important tomanage the sustainability of the sectorwhile encouraging business development.We have, in consultation with the tourismindustry, developed the NZ TourismStrategy - a blueprint for the tourismindustry over the next several years. Wehave also launched Towards 2010 —Implementing the New Zealand TourismStrategy. This publication celebrates thesignificant progress tourism has made inthe last two years.

RESEARCH & DEVELOPMENTInnovation is critical to New Zealand’sgrowth. The 2003 Growth and Innovationpackage increases the value of publiclyfunded applied research, promotesgreater private sector investment inresearch and development, and buildscloser links between public sectorresearch institutions and industry. $140

million operating, plus $12 millioncapital, is committed to new investmentin Vote: Research, Science andTechnology over the next four years. For2003-04 new funding is $33.5 million, aboost of over 6 per cent. The increasebrings the total public investment inRS&T for 2003-04 to $557 million.

A new pre-seed Acceleration Fund willalso be established. The fund will have$19 million to invest over the next fouryears in partnership with the privatesector, in the early commercialdevelopment of promising discoveries inour research institutions.

LABOURIn March we again increased theminimum wage. The adult minimumwage increased from $8.00 per hour to$8.50 and applies to all workers aged 18years old and over. The youth minimumwage has gone up from $6.40 to $6.80.The minimum wage and youth wage haverisen four times in four years.

Associate Minister for Communications and IT,David Cunliffe being shown the newcomputerised operation at CambridgeClothing, which has sped up the productionprocess for its growing export markets.

Tourism Minister, Mark Burton holding a kiwi.

Prime Minister, Helen Clark officially openedthe new Glycosyn facility in Lower Hutt, withMinister of Research Science and Technology, Pete Hodgson.

Labour Minister, Margaret Wilson at the recent Biennial CTU Women’s Conference in Wellington.

IN MARCH WE INCREASED THE MINIMUM WAGE. THEADULT MINIMUM WAGE INCREASED FROM $8.00 PER

HOUR TO $8.50 AND APPLIES TO ALL WORKERSAGED 18 YEARS OLD AND OVER.MORE THAN 2 MILLION PEOPLE VISIT

NEW ZEALAND EACH YEAR. TOURISMCONTRIBUTES APPROXIMATELY ONE IN TEN JOBS.

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Our investment in health has increaseddramatically and now accounts for over20 per cent of government spending.

Achievements This Term PRIMARY HEALTH CAREWe are working hard to overcome the effectpoverty, poor housing, unemployment, andthe environment have on the health of NewZealanders. Our focus is on earlyintervention, and the implementation of ourPrimary Health Care Strategy, through theestablishment of Primary HealthOrganisations. PHOs deliver cheaper healthfacilities to communities and people withthe most health needs. We are investing$400 million over three years for primaryhealth care.

Budget 2003 has made it possible for allPHOs to charge low fees for patients under18 from October. From Octoberprescription fees will also be reduced to amaximum of $3 for children between theages of six and 17 enrolled in interimPHOs, and for patients of all ages enrolledin access PHOs. We expect to begin therollout of low cost health care for peopleaged over 65 in 2005/6. The Care Plusinitiative, which will cater for older peoplewith very poor health, as well as thoseunder 65 needing high levels of care, isbeing piloted this year. It is expected to berolled out from January 2004.

Since the scheme was established on July 1last year, 47 PHOs have been set up. Thegovernment hoped to have 300,000 peopleenrolled with PHOs within a year and we'vesignificantly surpassed that mark. Now morethan 1.7 million people are enrolled with PHOs.

Waiting times for elective surgery and firstassessments are steadily coming down, butthere's still more to do. We're making suretimes are consistent across New Zealandand that no one waits for more than sixmonths, either for their first assessment orfor surgery following assessment. Moreresources are going into potentiallylifesaving operations. 157,000 electiveoperations were performed in 2001-02,compared with 151,000 three years earlier.

MENTAL HEALTHWe’re:• Continuing to implement the Mental

Health Commission's Blueprint forMental Health through the investmentannounced in 2000 of $257 million overfour years.

• Ring fencing all mental health moneyand rebuilding the mental healthworkforce.

• Reviewing, for the first time, themental health of Asian people in New Zealand. Our review shows thatAsian people in need have difficultyaccessing mental health services.

MAORI HEALTH He Korowai Oranga, the Maori HealthStrategy shows our fundamentalcommitment to improving Maori health.Whakatataka, the Maori Health ActionPlan, describes what needs to be donein the next two to three years to hit thetargets He Korowai Oranga sets. To helpmeet these goals, we've developed apermanent annual Maori ProviderDevelopment Fund of $10 million toexpand services for Maori by Maori, withan appropriate workforce.

Almost $2 million has been injected intogeneral practice and the other primaryhealth care organisations that deliver

HEALTH

PREVENTION IS ALWAYS BETTER THAN CURE. THAT'S WHYTHIS GOVERNMENT'S HEALTH POLICY FOCUSES ON KEEPING PEOPLE WELL.

Health Minister, Annette King and Associate Health Minister, Tariana Turia at the launch of He KorowaiOranga, the strategy to support the health and well-being of whanau.

OVER 1.7 MILLION NEW ZEALANDERS

ARE ENROLLED WITH PHOS.

services to Maori. The ReducingInequalities Contingency Funding removesobstacles many impoverishedcommunities and people face when tryingto access health services. Funding targetsthose health providers that work withcommunities with high health needs. Afurther $2.4 million from the fund will begranted in the 2003/2004 financial year.

BOOSTING THE WORKFORCEImproving health services isn't justabout use of health services. We arealso improving service delivery. Healthworkforce planning was badly neglectedfor a decade. The Health WorkforceAdvisory Committee (HWAC) has beenestablished to make sure health workersand services are providing quality,accessible health services.

Initiatives such as our $32 million fundingpackage to maintain a steady workforcein rural areas are evidence of ourstrategic approach to work forceplanning. We're also making sure thereare more radiation therapists in training,from 16 in first year training in 1999 to 38in 2002, and another 38 this year. An $8million package to support 11 innovativeprimary health care nursing initiatives,and to fund primary health care nursingpostgraduate scholarships, furtherbolster the workforce. And we'reincreasing the number of New Zealand-funded medical students by 40 from nextyear. An $11.8 million bridgingprogramme we're setting up to helpoverseas-trained doctors pass the NZGeneral Registration Exam, will also putmore doctors in the community, while

helping shore up shortages in the ruralhealth workforce.

The capacity of the mental healthworkforce is also being strengthenedthrough the creation of hundreds more fulltime community clinical and non-clinicalpositions for adult and child services.

The annual Maori Provider DevelopmentFund of $10 million, and a similar $5million Pacific Provider DevelopmentFund, will target the appropriateworkforce to the right audience.

CHILD AND YOUTH SERVICESWe've developed a plan of action toimprove the health and wellbeing ofyoung New Zealanders. A Guide toAction targets health delivery to youngpeople aged between 12 and 24 yearswith a focus on the problems those whoare socially and economicallydisadvantaged face.

A range of measures was announced inBudget 2003 for the Youth SuicidePrevention Strategy. These include moreresources for Youthline in recognition ofits important role in helping emotionallydistressed young people. Families that

have experienced a suicide, or suicideattempt, will get help from the $2.6million that we've set aside over the nextfour years to help in this area. Budget2003 also provided funding for aResidential Drug Youth Rehabilitationcentre in Christchurch.

The University of Auckland’s WerryCentre for Child and Adolescent MentalHealth will develop high quality researchin child and youth mental health, andprovide workforce training. It will alsoact as an advocacy service for childrenand adolescents.

RURAL HEALTHThe government is funding rural locumsupport schemes, a mobile surgical bus,recruitment and retention grants tosupport the rural workforce, and theHealthline service, which after beingpiloted has now been expanded to coverall New Zealand.

ACCWe believe in a fair and sustainableaccident compensation scheme thatemphasises injury prevention, whileminimising the incidence and impact ofinjuries. Budget 2003 provides an extra$35.5 million over four years forinitiatives to reduce treatment costs forinjury while guaranteeing a high qualityservice. We plan to remove charges forpeople getting physiotherapy from anACC-endorsed physiotherapist from 1April next year. And the rights of ACCclaimants have been enshrined in a newcode that came into effect on 1 February 2003.

IMPROVING HEALTHSERVICES ISN'T JUSTABOUT USE OFHEALTH SERVICES.WE ARE ALSOIMPROVING SERVICEDELIVERY.

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NEW ZEALAND FACES EPIDEMICSOF OBESITY AND DIABETES.A third of New Zealand adults don’t getenough physical activity to benefit theirhealth. Nearly four in 10 are overweight,and it is predicted that three in 10 adultswill be obese by 2011. When HealthMinister, Annette King launched theHealthy Eating-Healthy Action strategyin March she knew Newtown’s St Anne’sschool was a perfect venue.

St Anne’s is part of the ‘HealthPromoting Schools’ initiative, wherenutrition and physical activity arepriorities for students. When Ms Kinglaunched the plan, she walked to theschool as part of the St Anne’s WalkingSchool Bus.

"Children are a priority," said Ms King,and St Anne’s is a model school forencouraging healthy lifestyles.

Healthy Eating-Healthy Action is aStrategic Framework designed toencourage healthier lifestyles and curb therising level of obesity-related illness,physical inactivity, and poor nutrition inNew Zealand.

Many of our most serious conditions,such as heart disease, stroke, type 2diabetes and some cancers, are closelyassociated with physical inactivity, poornutrition, and obesity.

"There are no quick answers topersuading people to change theirlifestyles, but this strategy doesn’t just

focus on personal behaviour. It signalsthe need to reduce social andenvironmental barriers to eating well,being physically active, and achieving ahealthy weight," she said.

St Anne’s also has a ‘water only’ policy,lunch time aerobics classes, fizzy drinksare discouraged, and classrooms havefruit bowls for the children.

NEW SCHOOL HEALTH CENTRE A FIRSTResearch shows that getting youngpeople to the doctor can be difficult.Sometimes it's too expensive. Sometimesgetting there is a problem. But sometimesthey just don't want to go because they'reworried about their privacy.

Research has found that 40 per cent ofstudents don’t seek health care whenthey need it. That's why our governmentis putting so much emphasis on primaryhealth care, particularly by making freeor low-cost access to primary health

care services a priority for schoolchildren. Otahuhu College students nowhave such a service. "Otahuhu College’snew school-based health centre openedits doors in March, focusing on commonareas of health need for young peoplefrom the district.

When Health Minister, Annette Kingofficially opened the centre in May, shesaid Otahuhu should be very proud "tohave a health centre like this".

Ms King said she would like to see moreschools planning similar initiatives."Young people need to be able to go to ahealth service where the staff relate tothem and their problems, where theirconcerns are taken seriously, and wherethey can be assured of privacy andconfidentiality."

The health centre will focus on areassuch as sexual health services, drug andalcohol education, diabetes screening,and skin disorders, and will provide themost appropriate help, using GPs, nurses,counsellors, or other health professionals.

Many people worked hard on the project,including the Otahuhu College Board,South Seas Health Care, and its parentPrimary Health Organisation, theTaPasefika Health Trust, and the Ministryof Education.

The new centre evolved from the Ministryof Education’s Achievement inMulticultural High Schools Initiative(AIMHI), and the Healthy CommunitySchools Initiative.

HEALTH

OLDER NEW ZEALANDERSWe are progressively removing assettesting of older people in long-termresidential care. From 1 July 2005,single people and couples with bothpartners in care will be able to keep upto $150,000, including property andsavings, before their assets are used tocontribute to their care costs – up from$15,000 for single people and $30,000for couples.

Couples where one partner is in carewill retain their current exemptions of ahouse and car (whatever their value),and their cash asset exemption will risefrom $45,000 to $55,000. The exemptionthresholds for all groups will thenincrease by $10,000 a year, progressivelyremoving asset testing.

The new policy means that five and halfthousand additional people will beeligible for subsidised residential carefrom 1 July 2005, taking the proportionof those in care who receive the subsidyto 70 per cent.

DISABLED NEW ZEALANDERSThe funding of support services for olderpeople with disabilities will transferfrom the Ministry of Health to districthealth boards on October 1 this year.This will help district health boardsprovide more integrated services forolder people, and is another steptowards implementing the government’sHealth of Older People Strategy. The second report on the progress of theNew Zealand Disability Strategy has beenreleased. The report covers the activitiesof 10 government departments for thenine months from October 2001 to June2002. Government has also officiallyopened the Office for Disability Issues.

SPECIAL PROGRAMMES • We want to get the rate of

meningococcal disease down. Budget2003 put aside $58 million for thedevelopment, purchase, and delivery ofa New Zealand specific meningococcalvaccine as part of a $200 millionprogramme over four years.

• Development of theMethamphetamine Action Planrepresents a stock take of existingmeasures to combatmethamphetamine use and linkstogether agencies for a ‘whole-of-government’ approach.

• The Healthy Eating-Healthy ActionStrategy will focus on getting the levelof obesity down, improving nutrition,and increasing physical activity. Thestrategy proposes new ways oftackling these problems and signals

the need for urgent action across arange of sectors.

• Towards a Cancer Control Strategy for New Zealand is a discussiondocument launched to outline goals toreduce the incidence and impact ofcancer in New Zealand.

Achievements Last Term• Increased certainty and transparency

in waiting times for elective surgery.

• Provided a health service that focuseson patients, not profit.

• Developed a comprehensive strategicand planned approach in key areas ofhealth to address the years of neglectand lack of planning for future needs.

• Restored local democracy to healthdecision-making through electeddistrict health boards.

• For the first time ever, provided a longterm funding path to allow districthealth boards to plan with certainty.

WE ARE MAKING SURE EVERYONE

HAS ACCESS TO AFFORDABLE

HEALTH SERVICES.

Health Minister, Annette King launches HealthyEating- Healthy Action at St Anne’s School.

Senior Citizens Minister, Ruth Dyson at theopening of a new hospital wing.

WE ARE PROGRESSIVELY REMOVING ASSET TESTING OF OLDER PEOPLE IN LONG-TERM RESIDENTIAL CARE.

Health Minister, Annette King launching theOtahuhu College Health Clinic.

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We're Also: • Investing $2.65 million over four years

to help develop best teaching practicefor students from diversebackgrounds. We're also developingprogrammes to support qualityleadership in principals.

• Focusing on attracting Maori intoteaching in te reo Maori, includingTeachNZ scholarships, informationcampaigns, and bilingual teacher studyawards. We're producing moreteaching and learning materials in tereo Maori and developing Maorilanguage curriculum guidelines andresources to support te reo andtikanga Maori teaching. We've alsointroduced special grants soinstitutions can support theparticipation and achievement of Maoriand Pacific tertiary students, and helpdevelop best practice in the tertiarysector.

• Supporting gifted and talentedstudents by spending $1.2 million on17-targeted programmes.

• Introducing a $1 million annualCollaborative Innovations Fund toencourage schools to work togetherand develop better ways of teachingand learning.

• Increasing operational funding toschools. The additional $61.2 millionover four years includes a two per centincrease to per-pupil funding.

PROVING THE DIFFERENCEPlateau School principal VirginiaFrancis is enthusiastic about thegovernment's support for teachingand learning because every week shesees the difference it is making to herstudents.

"Teacher programmes, like theliteracy and numeracy projects, arethoroughly thought through and focuson very specific, measurable changes.That's why I believe the governmentknows what it is doing. Those changesare going to change New Zealandeducation.

"In the past, professional developmenthas had a scattergun approach thatrarely hit the target. Theseprogrammes now get to the heart ofeducation.

"They focus on the difference teacherscan make, and how they can be suretheir students are improving. And wecan prove the difference that fundingis making.

"With extra funding for increased staffallocation this year, I've been able tospend more time doing what schoolleaders should do - helping teachersin the classroom. Already, we've seenpositive results in teaching andlearning programmes across theschool.

"Property funding meant we couldextend the staff workroom andprovided us with a major upgrade to

the administration block, whichbenefits the whole school community.

"At the end of last year, principalswere given laptops under thegovernment lease scheme. Thismeans I now have more ready accessto resources and student files, evenwhen off site. I can also participate inon-line discussions and forums withother principals.

"It leaves me feeling far less isolated.There's a principal's support groupavailable at the touch of a key!

"More than any other measure, I feltthis showed that the government wasvaluing the role of the principal andwas doing it in a very tangible way."

Find out more about the literacy andnumeracy projects onwww.tki.org.nz/e/literacy

In our first term we took steps to consultthe community and establish goals andpriorities for future development. Theseblueprints for all education; The EarlyChildhood Education Strategic Plan, TheTertiary Education Strategy, The MaoriEducation Strategy, and The PasifikaEducation Plan have been combined toform Education Priorities for New Zealand. This document providesthe framework on which to hang futuredecisions on the development of oureducation system.

Achievements This Term EARLY CHILDHOOD Pathways to the Future: Nga HuarahiArataki, a 10-year plan for earlychildhood education, was launched thisterm. The plan has three goals: toincrease numbers using quality earlychildhood education (ECE), to improvequality of ECE services, and to encouragecollaborative relationships. The planincludes strategies for Maori and Pacificpeoples, and six Centres of Innovationwill be set up this year to research anddevelop early childhood education. Lastyear we signed a new agreement with TeKohanga Reo National Trust aimed atstrengthening Maori education anddevelopment.

Budget 2002 has funded an extra 1300new places for children in licensed andchartered centres over the last year,while 80 early childhood educationcentres got $8.8 million to extend,upgrade, or develop their buildings. Thiswill create places for another thousandpre-schoolers.

SCHOOLSWe've put $167 million into increasing thenumber of teachers in our schools. From2004, schools will get a further 774primary and secondary full time teacherequivalents. Programmes such asscholarships, training allowances forpriority subjects, recruitment initiatives,retraining for former teachers, andrelocation grants, should also boostteacher numbers.

The latest international research resultsstrongly back our work to encouragedisadvantaged students to read. Budget2003 drives a concerted approach toimprove effective literacy teaching andlearning in primary schools. $15 millionwill be injected over four years, bringingtotal spending on literacy programmes to$25 million over that time. Last year weintroduced AsTTle assessment tools, aworld leading resource developed for theMinistry of Education. This was part of apackage of assessment initiatives aimed

at lifting literacy and numeracy. ALiteracy Leadership programme that hasbeen running since August 2002 is helpingprincipals, and year 1-8 school leaders, toimprove literacy. Classroom teachers arealso getting more resources, whilematerial for pupils has been enhanced.

Providing laptops to secondary teachersis one of several schemes to promoteinformation communication technology(ICT) in schools. Budget 2003 contains$78 million in new spending to developICT infrastructure and networks, to getschools online, and give them the abilityto build school extranets.

Students will benefit from the ICT skillswe're encouraging teachers to develop.Over the next four years $4 million will beinvested in yearly e-learning fellowshipsto encourage innovation, and supportteachers who are prepared to push theboundaries and explore, in more depth,how ICT can enhance learning.

THE LATEST INTERNATIONAL RESEARCH RESULTS

STRONGLY BACK OUR WORK TO ENCOURAGE

DISADVANTAGED STUDENTS TO READ.

EDUCATION

A GOOD EDUCATION IS THE KEY TO A GOOD FUTURE. OUR

GOVERNMENT IS IMPROVING THE CHANCES FOR ALL CHILDREN,

REGARDLESS OF FAMILY BACKGROUND.

Education Minister, Trevor Mallard shows how numeracy programmes are boosting mathsskills at Petone Central School.

Plateau School principal Virginia Francis.

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We have set up two more world-classresearch centres in our second term, inaddition to the five already running.More than $130 million will go tofunding this programme over four years.The centres bring together researchersfrom tertiary institutions, CrownResearch Institutes, and otherorganisations to collaborate on cuttingedge research.

In Our Last Term We:• Funded an extra $8 million for early

childhood centers in low-incomesuburbs.

• Put 550 more teachers in schools.

• Removed bulk-funding and made suremore went to schools in low-incomeareas.

• Introduced a literacy and numeracybenchmark so no student can get asenior school qualification withoutfoundation skills.

• Allocated $638 million over two years for school property, including 220 newclassrooms, schools, and sites forschools.

• Doubled the number of schools ininformation communication andtechnology clusters.

• Started rolling out high speed internetthrough Project Probe. The rollout isconnecting schools, then communities,with reliable high quality broadband

that will create opportunities forteachers and students.

• Launched four Digital Opportunitiesprojects to enable students to trialdifferent kinds of ICT. One project,which involved giving secondary schoolstudents access to Microsoftqualifications, won an award for itsresults.

• Introduced the Tertiary EducationStrategy to provide a new direction fortertiary education – one thatexemplifies excellence, relevance, andaccess for all.

• Delivered on our promise to keepeducation affordable and accessible bystabilising fee levels, making the loanscheme fairer by not charging interestwhile studying, and expanding accessto allowances.

• Piloted the Gateway and ModernApprentice programmes, and increasedour investment in Industry Training.

• Created five Centres of ResearchExcellence to provide a means oflinking the work of the country’s bestresearchers in fields of nationalimportance.

• Introduced special supplementaryfunding to institutions to improvesupport for Maori and Pacific tertiarystudents, and develop best practice.

TERTIARY EDUCATION We delivered on our promise to cut thecost to students by freezing fees andmaking the loan scheme fairer in our firstterm. This term, we're going to widenallowance eligibility and we areintroducing fee maxima. The maxima is anationwide schedule of maximum feesand course costs that can be charged fordifferent types of courses for next year.This supports our objective of makingsure tertiary education stays affordable.

By formally establishing the TertiaryEducation Commission (TEC), we'vebrought together tertiary educationprovision, funding, and research for thefirst time, and put the Tertiary EducationStrategy into practice. Budget 2003 alsocommits $422 million in further fundingto maintain quality teaching, and supportinnovation and development.

WORK PLACE TRAINING Government's goal is to have all 15-19 year olds engaged in appropriate education, training, work, or other options by 2007. Since it wasintroduced in 2000, over 5000 youngpeople have entered the ModernApprenticeship Programme to giveschool leavers work-based training.This programme has expanded to over200 professions from carpentry tocooking, to graphic design. We are on track to reach our target of 7,500 Modern Apprentices by 2006.

Our Gateway Programme to help seniorsecondary students into structuredworkplace learning is another educationsuccess story. Piloted in 63 schools, theprogramme has expanded and shouldinclude all 203 1-5 decile secondaryschools by 2007. This means Gateway willbe available to some 12,000 students ayear. Gateway broadens senior secondarystudents' choices by offering traditionaland work-place learning.

Eighty four million dollars will go, overfour years, to the Industry Training sectorto help reach our goal to have 150,000trainees in place during 2005 and 250,000trainees in 2007.

We've shifted to a performance-basedfunding system for research in tertiaryeducation. This will improve knowledgecreation. That’s why the government isinvesting more than $32.8 million moreinto the performance based researchfund over the next four years.

EDUCATION

OUR TERTIARY EDUCATION STRATEGY WILL MAKE

SURE TERTIARY EDUCATION MEETS THE NEEDS OF

STUDENTS, BUSINESS, AND THE COMMUNITY.

Tertiary Education Minister, Steve Mahareywith students during Auckland University’sOrientation.

Sarah Christensen and Minister forEconomic Development, Jim Anderton

OUR GATEWAY PROGRAMME TO HELP SENIOR SECONDARY STUDENTS

INTO STRUCTURED WORKPLACE LEARNING IS ANOTHER EDUCATION

SUCCESS STORY.

GATEWAY OPENS DOORS Unsure of what to do with his life, 17year old Motueka High School studentKris Hill jumped at the chance to getinvolved in the Gateway programme. When Kris began working a few hours aweek at Parker Panel and Paint throughGateway, owner Martin Searle was sopleased with Kris’ work that, after acouple of months, he offered him anafter-school job. This in turn led him toa Modern Apprenticeship inpanelbeating which will take him threeyears to complete.

"It’s a good opportunity," says Kris. "TheModern Apprenticeship has given me achance to go for it."Motueka High School teacher, TonyAitkenhead, says Gateway also providesemployers with an opportunity to get toknow a potential employee.

"Through Gateway, employers get a fairidea if the young person will fit into theirworkplace. It makes them attractive foremployers as far as ModernApprenticeships are concerned, becausethey’ve done the work and proven they

can achieve in that area. The course alsogives students a taste of life in theworkforce while they are still at school,"says Tony.

BREAKING NEW GROUND IN FLOORINGSarah Christensen was attending aTEC (Tertiary Education Commission)Training Opportunities programmewhen she was approached byChristchurch company, KennedyFlooring about becoming a ModernApprentice at the end of the course.

For 18-year-old Sarah, theopportunity was too good to miss."I’m keen to give anything a go. I’mglad I took the ModernApprenticeship." Kennedy Flooring’sGraeme Coey said the rapidlyexpanding company was pleased togive Sarah an opportunity to turn herinterest in flooring into a career.

"We’ve broken new ground inemploying Sarah - the first femaleModern Apprentice in the flooringindustry."

New Zealand’s flooring industry isexpanding, and ModernApprenticeships are helping ensurethere’s a well-qualified workforce.

Kris Hill involved in Gateway.

1918

means life imprisonment forimporting, manufacturing, andsupplying. It also gives police strongerpowers to search and seize without awarrant where there's reasonablesuspicion the drugs are present.

• Police will be able to obtain DNAsamples from burglary suspects incriminal investigations by usingcompulsion orders for the first timeunder the Criminal Investigations(Bodily Samples) Amendment Bill.

MAKING IT TOUGHER FOR CRIMINALS• Introduced the Courts and Criminal

Matters Bill that has provisions to stop"hard core" fine defaulters leaving thecountry.

• Changed the Crimes Act so police arebetter equipped to fight computer-related crime and organised crime.From October 1, new offences willtarget hacking and other computercrimes, while the power of policeinterception warrants will expand tocover emails, text messages, andfaxes. Personal privacy will also beboosted by making the unauthorisedinterception of emails, text messages,and faxes illegal.

• Potential gaps for terrorists to exploitclosed in the Counter-Terrorism Bill bycreating new offences. The bill givesnecessary powers to police andcustoms to investigate and prosecutethose offences.

• The Second Hand Dealers andPawnbrokers Bill will make it moredifficult for criminals to sell stolengoods. Dealers will have to sight ID,and record the contact details andsignature of everyone selling goods tothem. Dealers will also have toundergo checks for dishonestyconvictions before gaining five-yearlicences.

YOUTH OFFENDINGWe are dealing with youth crime seriously,and working to prevent it. The YouthOffending Strategy, launched in April2002, focuses on early intervention as wellas dealing with offenders effectively. Bythe end of that year, over 30 YouthOffending Teams using staff from police,Child Youth and Family, education, andhealth services were set up to providemore co-ordinated youth services. Several new initiatives that target serious

young offenders have been developed. TheYouth Drug Court pilot in Christchurchuses the legal process to refer youngoffenders with serious drug and alcoholproblems to a treatment plan underintensive judicial supervision.

Budget 2003 also provided funding toestablish Project Early, an interventionprogramme for children with behaviouralproblems, in Auckland. It had beensuccessfully piloted in Christchurch. And arange of programmes that work with at-risk families and young people, and youngoffenders, are being evaluated.

We're improving family group conferenceprocedures. Budget 2003 set funds asideto develop education and healthassessment methods for high-risk youngoffenders appearing at Family GroupConferences, and begin regionalimplementation.

LAW AND ORDER

Achievements This Term• A better deal for victims - passed

the Victims Rights Act

• More Police and a mobile DNAsquad for Auckland

• Cracking down onmethamphetamine

• Continuing to implement the YouthOffending Strategy

• The road toll for the past year is thelowest in 40 years

• Introduced the Care of Children Bill

Achievements Last Term• Tougher Sentences for the worst

crimes – passed the Sentencing Actand Parole Act

• Increased the police budget by $165million over four years

• Cracked down on burglary

• Launched the Youth OffendingStrategy

• Provided funding for our YouthJustice package

• Overall reduction in the level ofoffending

• Introduction of specialist highwaypatrol for monitoring road safety

CRIME AND PUNISHMENT Crime doesn't pay. Total recorded crimehas dropped 7.8 per cent against apopulation increase of 4.3 per cent in thelast six years while the police rate ofsolving crime has increased 5 per cent.

While we're cracking down on crime,we're delivering tougher sentences.Both the Sentencing and Parole Actscame into force in July last year.Together they allow for longer prisonterms for serious repeat offenders. Thenew legislation is a response to areferendum at the 1999 election thatreflected public concern about thecriminal justice system. These new lawsmake communities safer.

Sentences handed down for the worstoffenders reflect the Sentencing Act'stougher regime. Earlier this year,William Bell was convicted for the RSAtriple murders and sentenced to lifeimprisonment - 33 years without parole.This is the longest fixed-term prisonsentence ever handed down in NewZealand. And Bruce Howse got a lifesentence with a non-parole period of 28years for the murder of his twostepdaughters.

The Bail Act (2000) delivers on ourpromise to reform bail laws to givecommunities more protection. The newAct makes it harder for serious repeatoffenders to get bail while awaiting trial.

SUPPORT FOR POLICE• More police and more funding for

police than ever before. Budget 2003

delivers 50 more police and a specialmobile DNA squad for Auckland. We have also run special trainingcourses for over 70 police officersrecruited from the United Kingdom towork in Auckland.

• $12 million a year spent on building,upgrading, and refurbishing new policestations and we are continuing themodernisation of the police vehicle fleet.

• Police are working towards meetingtheir target to respond to 97 per centof burglaries within 24 hours.

• Funding two police teams trained inthe cleanup of methamphetaminelaboratories. Starting work nextJanuary, the teams will be based inAuckland and Wellington. In 2002police put 147 methamphetamine labsout of action.

• Methamphetamine has beenreclassified as a Class A drug underthe Misuse of Drugs Act. Class A

POLICE NUMBERS ARE NOW AT THEIR HIGHEST

EVER AND THE POLICE BUDGET IS THE

HIGHEST IT’S EVER BEEN.SENTENCES HANDED DOWN FOR THE WORST OFFENDERS

REFLECT THE SENTENCING ACT'S TOUGHER REGIME.

Justice Minister, Phil Goff with two communityconstables. Our government is working withcommunities to reduce offending, and help thevictims of crime.

Prime Minister, Helen Clark inspecting new police officers.

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LAW AND ORDER SOCIAL DEVELOPMENT

A BETTER DEAL FOR VICTIMS The Victims Rights Act gives crimevictims enforceable rights including theright to be heard in court and to be toldwhen the offender will be released.Budget 2003 also provides $2 millionfunding to Victim Support to bolster itsplan to improve regional services. Thisfunding complements the extension and

strengthening of victims’ rights in theVictims’ Rights Act.

The Target Hardening initiative givesrepeated victims of crime on lowincomes help with equipment such aslocks and alarms and information aboutsecurity.

FAMILY LAWThe Property (Relationships)Amendment Act 2001 brings more equityand balance to the problem of de factoand matrimonial property when couplesseparate. And we've modernised lawsgoverning on going care arrangementswhen parental relationships break downwith the Care of Children Bill. This will replace the Guardianship Act 1968.

PROBATION SERVICEGovernment is responding to theincreased pressure the ProbationService has come under by increasingthe number of probation officers by 22per cent over the next three years. Thereis also to be a 79 per cent increase inthe service’s training budget in each ofthe next two years.

HOUSINGDecent affordable housing isfundamental to the health and wellbeing of families and communities.

We are building up the state-housingportfolio to help meet housing needs.Budget 2003 provides for an additional318 houses on top of the 3000 morehomes already planned. There are 3200additional houses in the state houseportfolio since 1999. This includesAuckland properties previously owned bylocal government. We have alsodeveloped programmes to modernise

and reconfigure state homes to bettersuit the tenants, and provide warmer,safer, more suitable accommodation.Over 53,000 low-income state housetenants now pay an income related rent.When income related rents were re-introduced families were able to saveabout $35 a week on average, and insome areas that figure rose to between$50 and $60. The re-introduction ofincome related rents has enabled manylow-income families to move into, andstay in, affordable quality housing.

We provided $63 million to begin aHealthy Housing scheme to fightinfectious disease and reduceovercrowding. The scheme extendsexisting homes to accommodate largefamilies, modifies homes to improveventilation and insulation, and provideshealth support and information.

JOBS Sustainable employment is a key goalfor our government. Unemploymentreached a 15-year low last December,and Work and Income has achieved arecord number of stable job placements.Unemployment Benefit numbers havedropped by 30 per cent since 1999.Funding was approved in this year'sbudget to further help match jobseekers to work and support their casemanagement.

We are working hard to assist thosepeople who find it hard to get a job. Thisyear a number of initiatives will focus onmigrant and refugee job seekersthrough helping with employment

coaching, multilingual services, and skilldevelopment. Moving greater numbersof migrants into work will help inmeeting skill and labour shortages.

We've increased subsidised childcareand out-of-school care (OSCAR)assistance from 37 to 50 hours perweek. This improves support for low-income parents getting into work. Thisincrease is part of our ‘Make Work Pay’scheme that promotes the rewards ofgetting a job. Other initiatives includeincreasing the income thresholds forFamily Support and the Child Tax Credit.

Youth employment is a major focus forthis government and we're committed togetting youth into employment, training,or education. This year funding willprovide for the Youth Transition Strategythat helps disadvantaged young peopleinto work. We are also investing in twopilot schemes in Porirua and Waitakerethat involve central and localgovernment, schools, businesses, andwider communities to match trainingand skill development with employment opportunities for young job seekers.

Police Minister, George Hawkins visiting theHalfmoon Bay Police Station on Stewart Island.

Associate Justice Minister, Rick Barkercongratulating a new police officer traininggraduate.

BUDGET 2003 ALSO PROVIDES $2 MILLION FUNDING TO VICTIM

SUPPORT TO HELP IMPROVE REGIONAL SERVICES.

SUSTAINABLE EMPLOYMENT IS A KEY GOAL

FOR OUR GOVERNMENT.

Social Development Minister, Steve Maharey launches the ‘Get Going with Breakfast’ campaign.

Prime Minister, Helen Clark with resident OliveSmith at the handover of the former AucklandCity Council housing to Housing New Zealand.

Unemployed Benefit

Household Labour Force Survey - numbers employed

Unemployment Benefit (excluding training) vs

Household Labour Force Survey - numbers employees

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VICTIMS SAY RESTORATIVEJUSTICE HELPS THE HEALING PROCESSThe victim of an aggravated robbery inInvercargill and the mother of a murderedNelson man believe meeting theoffenders face-to-face has helped theirhealing process.

Both women had the chance to meet theoffenders under section 9 of the Victims'Rights Act, which came in to force inDecember 2002, and both came awayfrom their meetings with a more positiveoutlook on life.

The Nelson mother said her son'smurderer was reduced to tears when shesaid she forgave him.

"When the boys (the murderer'sbrother faced related charges) cameinto the room it was a bituncomfortable but from it I think myhealing process has gone forward inleaps and bounds," the mother said.

"I am now where it took me 25 years toget to after my brother (who wasmurdered 26 years ago) died. It helped tremendously."

The 24-year-old shop assistant, who suffered nightmares and daytimeflashbacks for several monthsafterward having a knife pulled on her, came away feeling she couldfinally see the end to her ordeal.

She was told to expect the court case tobe all about the offender, not about her.After the meeting she feels as though shehad been given consideration, and thather attacker now had some insight intowhat he had actually done.

"I told him exactly what he had done tome. I probably think I've made adifference to how he thinks," she said.

Both women are now encouraging othervictims to take part in similar meetings ifthey believed it would help with theirgrieving process.

"I now have faith in the system. There'speople out there obviously that do careabout victims" said the robbery victim.

RENEWAL PROJECT HELPSWHOLE COMMUNITYThe Christchurch suburb of Aranui hasa new lease of life, thanks toCommunity Renewal, a partnershipbetween government and local peopleto build safe, healthy, and confidentcommunities.

As part of the project, the communityidentified 12 two-storeyed units, partlyfire damaged and vandalised, as aneyesore that had to go. They weredemolished and 10 new homes,designed with community input, wereconstructed in their place. Tenants weregiven a choice of type and design ofimprovements.

Local unemployed were given jobs onthe project, alongside students from thelocal high school's Trades Academywho were in their second year of workexperience on exterior painting work.

Community renewal is about more thanjust housing though. It can help:

• Improve the environment andfacilities.

• Make neighbourhoods safer.• Access community services.• Provide tenancy and property services.• Make links to grow employment and

businesses.• Build social networks.

It's not a "one size fits all approach"because different communities havedifferent needs.

Since the project started in Aranui twoyears ago, there's better street lightingfor safety and homes have more fencesand garages - priorities for thiscommunity. The local park has a newchildren's playground, skate circuit,toilets, and new trees – thanks to acommunity planting day.

A new community and informationcentre provides a base for Housing NZCorporation and Christchurch CityCouncil staff, as well as theEmployment and Training Service whichhelps local people access training andemployment.

The Aranui Community Trust, funded byover $850,000 from Child, Youth andFamily is working on locally selectedinitiatives to support the social needs offamilies and children.

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SOCIAL DEVELOPMENT

HEARTLANDSPlans are underway for an extra fiveHeartland Service Centres, which bringpeople in rural communities face to facewith government services. The projectbegan in 2001, and is being expanded to32 centres following its success. Budget2003 also establishes two new pilot‘Special Purpose Metro’ HeartlandService Centres. These will provide a basefor multidisciplinary teams of workersthat are easily accessible for users.

FAMILYA Families Commission will be establishedby July 2004. The Commission will workfor families by promoting a betterunderstanding of family issues and needsamongst government agencies, and in thecommunity. Positive and successfulparenting will be an initial focus for theCommission.

We're investing in new services toimprove the research and information

collection on family violence. Theservices will help co-ordinate, promote,and disseminate research and bestpractice information on family violenceto a range of groups. This is part of thegovernment’s commitment to implementTe Rito: The New Zealand FamilyViolence Prevention Strategy, which waslaunched in March 2002.

We've also increased Child, Youth andFamily’s baseline funding by over $13million in this financial year, and futureyears, to help it meet increaseddemands. The baseline funding forChild, Youth and Family has increasedover 40 per cent in the last three years.

The government is investing for afurther year in a development projectthat aims to strengthen whanau. Thisrecognises that whanau and hapu arebest placed to determine their ownneeds. The 2000/01 Budget provided $3million over three years towards severalpilots that work with Maori communitiesto develop initiatives to strengthen theirwhanau structures.

Community and Voluntary Sector Minister,Tariana Turia at a picnic on the front lawn ofParliament to celebrate Early ChildhoodEducation Awareness Week.

Minister, Lianne Dalziel opens the newcommunity and information centre at theAranui Community Renewal project.

A FAMILIES COMMISSION WILL BE ESTABLISHED BY JULY 2004.

IT'S NOT A "ONE SIZE FITS ALL

APPROACH" BECAUSE DIFFERENT

COMMUNITIES HAVE DIFFERENT NEEDS.

PACE TAKING OFF IN NELSONPACE, the Pathways to Arts andCultural Employment scheme, isproving that real career prospects existfor skilled artists.

"PACE gives our clients the opportunityto focus on their art and get out oftemporary work and the unemploymentgroove," says PACE co-ordinator, AliBoswijk from the Nelson ArtsMarketing Trust.

Ali Boswijk says the Nelson scheme hasenjoyed great success. "For many years,one of our clients had a cycle of six monthsin work, with Wearable Arts, and sixmonths out of work, trying to eek a living.With PACE, he was able to focus on hisown work for a change. He formalised oneof the casual contracts he had, lined up hisown studio and now, with an Enterpriseallowance from Work and Income NZ, isgoing from strength to strength."

Some clients don't need the full sixmonths the scheme offers, like the

designer who just needed to know howto make contacts, and the confidence togo out and do it. Within three months,she had a job with Weta Workshops.

One of the benefits of the scheme is thepartnerships it builds with others in thelocal community. "We've had greatsupport from key partners like theairport. They've made wall spaceavailable to hang works from PACEclients alongside established localartists, and it's all selling," said Ali."This is proof these artists are beingintegrated into the mainstream of theindustry and that's incredibly empowering.

"I never realised how demoralisingunemployment was for people. Helpingthese artists in to work is incrediblyrewarding for me and will boost thelocal economy too.

"We already know that the arts sector is asignificant driver for tourism in Nelson.Now we can measure the difference we'remaking to the local economy over time."

BEST OF LAST TERM• Guaranteed New Zealand

Superannuation and reversedNational’s cuts.

• Returned income related rents for statehouse tenants so that low-incometenants pay no more than 25 per cent oftheir income in rent.

• Commissioned Judge Mick Brown to doa comprehensive review of care andprotection of children and put hisrecommendations into action.

• Made significant investments inservices to care for children andsupport families with an additional$216 million over four years provided inBudget 2001 alone.

• Achieved record numbers of job placements to help people move intopaid work.

• Invested in better support and servicesfor job seekers, such as case manage-ment, training, and skill development.

• Addressed problems faced by seasonalworkers, and put in place programmesto assist the mature unemployed,Maori, and Pacific people gainmeaningful employment.

Prime Minister, Helen Clark with AssociatePacific Island Affairs Minister, Taito Phillip Fieldat Pasifika – New Zealand’s largest PacificIslands community event.

We are working actively with localcommunities to conserve and protectour environmental heritage for theenjoyment of all. Nature tourism,outdoor recreation, and conservation aremaking a major contribution tosustainable economic development. Wehave also restored New Zealand’sreputation as a leading and effectivevoice for the environment internationally.

PRESERVING OUR LAND We are securing land of ecological andrecreational importance so all NewZealanders will benefit. We have createdOtago's first conservation park from oneof our most extensive intact tussockgrasslands. The new park, Te Papanui,consists of over 20,000 hectares oftussock plains on the LammermoorRange in Central Otago. It’s the secondgrassland park to open after theKorowai/Torlesse Conservation Park in

Canterbury and delivers on a goal of theNZ Biodiversity Strategy - to protect thefull range of our ecosystems andhabitats. The park offers recreationalopportunities such as walking, biking,four wheel driving, horse trekking, andcross-country skiing.

The Nature Heritage Fund, agovernment-funded body charged withprotecting nature on private land, hassecured for protection a brace of specialnatural areas. Key new reserves inMarlborough, Hawke's Bay, Auckland,and the West Coast are home tonumerous native species, includingkereru, long-tailed bat, shining cuckoo,and kakariki.

These formerly privately owned areasare now protected as public land foreveryone:• 650 hectares of indigenous forest on the

Akitio River near Weber in the Southern

Hawkes Bay.• 437 hectares of indigenous forest in the

Wairau River Valley in Marlborough.• 178 hectares of red-silver beech forest

that will be added to the Lewis passNational Reserve in the Upper MaruiaValley on the West Coast.

• 467 hectares of lichenfield, peatland,and shrubland adjacent to the FiordlandNational Park at Monowai, Southland.

The first round of grants worth $625,000was distributed to community applicationsfor projects to protect nature on privateland in January. Almost four times that -$2.3 million, will be available in the nextfunding round. The government is verykeen to support private landowners,community groups, and iwi to protectnative plants and animals on private land.The projects funded include pest andweed control, information and advisoryservices, and support for regionalbiodiversity programmes.

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CONSERVATION & ENVIRONMENT

Government bought 150 hectares ofoutstanding scenic coastal land atWaikawau Bay in Coromandel earlierthis year. Waikawau Bay is a magnificentstretch of beach in a popular recreationarea. Public access to this area is nowsecured in perpetuity. Government alsoacquired 378 hectares of rocky coastline,sandy beaches, estuaries, wetlands, andpohutukawa forest in Northland'sKarikari Peninsula late last year.

An exceptional slice of Southland nativeforest is now secure thanks to ournegotiations in the first of our new SouthIsland Landless Natives Act 1906(SILNA) conservation proposals. Thenew reserve spans 125 hectaresbordering the Wairaurahiri River in aremote scenic area of WesternSouthland. It is part of the large WaitutuForest given to Maori under the SouthIsland Landless Natives Act 1906 andnow managed by them for conservationpurposes. Last year the government setaside over $16 million over seven yearsfor the Nature Heritage Fund tonegotiate conservation settlements oversome SILNA land.

SAVING OUR MARINE AREASThe Sub-Antarctic Auckland Islandsmarine reserve and Te Matuku Baymarine reserve off Waiheke Island are twonew marine reserves established thisyear. Currently just 0.1 per cent of inshoreareas around the mainland are protectedcompared to almost a third of our land.Our aim is to provide some degree ofprotection to 10 per cent of New Zealand’smarine environment by 2010.

We’re protecting the criticallyendangered Maui’s dolphin by banningset nets in key areas along the upperwest coast of the North Island. Aresearch programme is also beingworked on to examine whether trawlingand Danish seine fishing pose a threat tothe mammals.

KEEPING US BIO-SECURE We're developing a comprehensiveBiosecurity Strategy to keep new pestsout and deal with those already here. Adraft biosecurity strategy was releasedin December 2002 for public comment. It will help integrate and coordinate thebiosecurity work of various governmentdepartments, local authorities, andothers.

The decision to expand the programmefor the eradication of the painted applemoth last September is an example ofhow seriously we take bio-security. Thesevere impact the insect could have onflora and fauna was a major considerationin the government's decision to commit$90 million to the Painted Apple MothEradication Programme.

We’re introducing tough new penaltiesfor people who sabotage New Zealand'swildlife sanctuaries. The penalties in theReserves Act, the Conservation Act, andthe National Parks Act will be increasedfrom a maximum sentence of one monthin prison or a $500 fine to one year inprison or a fine of $100,000 as part ofefforts to bolster the Department ofConservation's ability to protect New Zealand's natural heritage.

SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE Government attended the Rio +10 EarthSummit in Johannesburg last year,demonstrating our commitment tointernational efforts for economic,social, and environmental sustainability.We released our SustainableDevelopment Programme of Actionfollowing this. The programme coversfour areas: sustainable cities, energy,water, and youth development. Moneywas put aside in this year's budget toadvance work in each area.

We ratified the Kyoto Protocol on climatechange and have developed acomprehensive policy platform to meetour obligations to reduce greenhousegas emissions such as giving incentivesfor projects that reduce emissions. Thegovernment has already distributedKyoto Protocol emission units, or'carbon credits' to energy generationprojects such as TrustPower’s Tararuawind farm expansion, to ensure thefinancial viability of the project.

We’re putting aside $1.6 million for newpartnership programmes in the Pacific.The new initiatives will work onimportant issues for Pacific people suchas energy, water sanitation, and disastermanagement. The partnerships havebeen developed with Pacificgovernments and regional organisationsbased on needs identified by the World Summit on SustainableDevelopment.

WE ARE SECURING LAND OF ECOLOGICAL ANDRECREATIONAL IMPORTANCE SO ALL NEW ZEALANDERS WILL BENEFIT.

Environment Minister, Marian Hobbs launching the Enviroschools programme.

Conservation Minister, Chris Carter withHenry the tuatara.

WE’RE INTRODUCING TOUGH NEW

PENALTIES FOR PEOPLE WHO SABOTAGE

NEW ZEALAND'S WILDLIFE SANCTUARIES.

WALK ON THE WILD SIDEA trail linking Cape Reinga to the Bluffcame a step closer to completion whenPrime Minister Helen Clark openedthe Herekino Forest Track inNorthland earlier this year. The 15kilometre track is an important link inTe Araroa, The Long Pathway, aproposed chain connecting New Zealand top to bottom, becauseit's the first to cross Department ofConservation land.

Developed by the Te Araroa Trust, it'shoped The Long Pathway will providetourism and recreation opportunitiesfor small towns up and down New Zealand. And it's expected that asthe track develops, it will cross moresections of DoC land.

Conservation Minister, Chris Carter saidDoC is very supportive of the initiative."By opening up a trail through theHerekino Forest, the Te Araroa Trust,together with the local community andtangata whenua, have opened up new

opportunities for local people as well asvisitors to enjoy this beautiful forest andits conservation values."

The trust aims to have The LongPathway completed by 2005.

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CONSERVATION & ENVIRONMENT

MANAGING RESOURCESThe Resource Management Act has beenmade more efficient withoutcompromising the rights of publicconsultation and participation. TheEnvironment Court's budget has alsobeen doubled to $4 million a year. Thecourt now operates more efficiently withless delay.

Clean abundant water is essential to oureconomic prosperity, health, andenjoyment. Water is a precious resourceand improving the quality of our lakesand rivers, especially those of nationalimportance such as Lake Taupo, is ofprimary importance. We recently signedthe Dairying and Clean Streams Accordwith Fonterra and Local GovernmentNew Zealand, aimed at substantiallyreducing the pollution of our waterwayscaused by dairy farming. And as part ofour Sustainable Development Action

Programme, we have put aside $2million over the next two years toimprove water management.

Government is proceeding with cautionwith GM while preserving opportunities.We’re managing genetic modificationsafely and wisely. Legislative changesare being introduced to provide a strictercivil liability and penalties regime.Ministers also have additional powers tocall in GM applications when there aremajor cultural, ethical, or spiritualimplications. We have built from theRoyal Commission’s report, which wasone of the most thorough andindependent investigations into GM everundertaken.

We are promoting energy efficiency andrenewable energy and are looking at thelong term challenges in energy, water,and transport.

REDUCING, REUSING,RECYCLING"Reduce Your Rubbish", a campaign toencourage people to change theirbehaviour towards the environment byreducing their waste and increasingwhat they recycle has been funded bythe Ministry for the Environment. Byworking with local councils, we havealmost hit the NZ Waste Strategy targetof 95 per cent of New Zealandershaving access to recycling facilities.

We’re working with iwi to encouragetheir participation in resource andenvironmental management. Wefunded a toolkit 'Te Raranga A Mahi' toassist whanau, hapu, and iwi to developenvironmental management plans. Ngai Tahu's Freshwater Policy, whichexplains the runanga's relationship with its freshwater resources, the way it manages those resources, and the environmental results it seeks is an example of this proactive iwiapproach.

Central government agencies, includingthe Ministry for the Environment andHousing New Zealand, have producedtheir first triple bottom line reportsassessing the social, economic,environmental, and cultural impact oftheir work. Triple bottom line reportingaims to provide a fuller picture of anorganisation’s impact on society. A new ministerial portfolio of UrbanAffairs to focus ministerial attention onthe need to make our urban centresgreat places to live, work, and play hasbeen created.

BY WORKING WITH LOCAL COUNCILS, WE HAVE ALMOST

HIT THE NEW ZEALAND WASTE STRATEGY TARGET

OF 95 PER CENT OF NEW ZEALANDERS

HAVING ACCESS TO RECYCLING FACILITIES.

Achievements Last Term• Launched the New Zealand

Biodiversity Strategy, together with themost substantial funding commitmentever made by a New Zealandgovernment to the conservation of ournative species and ecosystems.

• Protected 19 seamounts – submergedmountains – as marine ecosystems ofspecial importance.

• Protected over 130,000 hectares ofpublicly owned lowland rainforests onthe West Coast. Nearly 18,000hectares went to national park,including the famous Okarito forest.

• Established new parks includingRakiura National Park (Stewart Island)and Korowai/Torlesse TussocklandsPark in the Canterbury foothills of theSouthern Alps.

• Provided the largest-ever fundingincrease for outdoor recreation onpublic conservation land, doubling theDepartment of Conservation budget formaintaining and upgrading huts,tracks, and other outdoor facilitiesover the next 10 years.

• Created five kiwi sanctuaries, almostcertainly preventing the extinction ofthe North Island Brown Kiwi, OkaritoKiwi, and Haast Tokoeka.

• Improved the implementation andperformance of the ResourceManagement Act by working with LocalGovernment NZ to improve best practiceand provide greater resources forenvironmental legal assistance andenvironment centres. We also increasedEnvironment Court funding.

• Implemented the New Zealand WasteStrategy to achieve a phased outreduction of solid and liquid wastes.

• Increased support for clean-ups ofcontaminated sites, such as Mapuaand the Tui Mine.

Research Science and Technology Minister, Pete Hodgson visiting Hort Research in Palmerston North.

Prime Minister, Helen Clark and Conservation Minister, Chris Carter at the opening of the Herekino Forest Track.

WATER IS A PRECIOUS RESOURCE AND IMPROVING THE

QUALITY OF OUR LAKES AND RIVERS, ESPECIALLY THOSE OF

NATIONAL IMPORTANCE IS OF PRIMARY SIGNIFICANCE.

MORE• The TVNZ Bill passed in March

establishes TVNZ as a crown company.This enables it to implement its charterand to balance commercial, social, andcultural objectives.

• Budget 2003 allocated Radio NewZealand $14 million over four years toset up a nationwide FM service, meetthe rising cost of essential services, andbroadcast more programmes throughRNZ International.

• Increased resources for the HistoricPlaces Trust and Department ofConservation to preserve our culturalheritage. A $3 million capitalcontribution was previously allocated tothe Historic Places Trust in 2000, as wellas additional operating funding of $0.5

million per annum. Budget 2003increased heritage funding by $15.2million over the next four years. Thatheritage funding package included acontribution of $400,000 over four yearsto the Antarctic Heritage Trust tosupport the Trust’s search forinternational sponsorship of itsproposed preservation of historic sitesin Antarctica.

• The release of screen production anddesign taskforce reports to developstrategic approaches in these sectors.Funding has been put aside to respondto the reports’ recommendations.

• $1 million more per annum has beenallocated to support New Zealandauthors and literature. Of this almost$500,000 has been added to the

Author's Fund, $100,000 for the recentlyannounced Fellowship in Literature, andthree Prime Ministers' Awards forLiterary Achievement – fiction, nonfiction, and poetry.

Last term's Cultural Recovery Package isproof of our commitment to the creativesector. The package injected over $145million into the arts and placed some ofour most treasured cultural institutions ona secure footing.

Creative industries worldwide are thefastest growing part of the service sector.In New Zealand, they contribute more than3 per cent to New Zealand’s GDP.

SUPPORT FOR FILMThrough film, New Zealand can promoteits uniqueness to the world. Last termthe film Whalerider was the first tobenefit from a film production fund setup by government to ensure that more New Zealand films were made.Whalerider has gone on to winnumerous coveted international awardsand critical acclaim.

The Lord of the Rings (LOTR) trilogyhighlights both New Zealand's scenicbeauty and the skills of our film makersand crews. Over the past two years, thegovernment has helped leverageopportunities arising from the films. InDecember, Wellington will host theworld premiere of the trilogy's finalpart, Return of the King. To ensure wemake the most of this and otheropportunities associated with the film,an additional $4.4 million was providedin Budget 2003.

The production expenditure grants forbig budget film and television announcedin July this year will help attract filminvestment to New Zealand.

Last Term We Also:• Developed a new Regional Museums

policy to help fund significant regionalmuseum and art gallery projects.

• Put aside $12 million a year toimplement the TVNZ Charter. Fundingfor NZ on Air was boosted to over $60million a year.

• Developed a voluntary Code of Practicefor commercial radio. Progress is ontrack to reach the target of 20 per centcontemporary New Zealand music by2006. Already New Zealand music hadreached 15 per cent in commercial radioin the first quarter of this year.

• Funded the establishment of the MusicIndustry Commission to support thedevelopment of the contemporary NewZealand music industry. We alsoprovided funding for initiatives such asthe World Series showcases to attractinternational interest in NZ music.

• Launched the Maori Made mark torecognise Maori art.

• Set up the Pathways to Arts and CulturalEmployment (PACE) programme toassist job seekers to develop a career inthe arts and creative industries. SinceNovember 2001 more than 1,200 peopleon the programme have found work, andthe vast majority of them (77 per cent)have found long-term employment.

CREATIVE BOOSTThis term an extra $11.6 million has beenput aside over four years for Creative

New Zealand to encourage, promote, andsupport arts and culture. This is on top ofthe funding boost Creative NZ received in2000. That earlier funding boost, of $20million over three years, has beencontinued in Creative NZ’s baselinefunding from 2003/04. In total, thefunding enables Creative NZ to support alively high quality arts and cultural sector.

Ballet too was a winner in this year’sbudget. The Royal New Zealand Ballet isreceiving an extra $2 million. Thisfollows a one-off $760,000 grantallocated to the ballet in 2000.

Legislation has been introduced to reflectthe New Zealand Symphony Orchestra'sstatus as a cultural institution. In 2000,we delivered a one-off $3 million capitalinjection to the NZSO to put it on a morestable ground. An extra $1.4 million hasbeen in baseline since then.

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ARTS, CULTURE, & HERITAGE

THE ARTS GIVE VOICE TO OUR CULTURE ANDHERITAGE. A VIBRANT ARTS COMMUNITY HELPS USLOOK TO THE PAST AND THE FUTURE.

OUR NATIONAL ORCHESTRA CAN PLAN WITH

CERTAINTY, THANKS TO LEGISLATIVE AND

FUNDING CHANGES.

Prime Minister, Helen Clark and AssociateMinister for Arts, Culture, and Heritage, JudithTizard at the opening of the new ChristchurchArt Gallery, Te Puna O Waiwhetu.

Prime Minister, Helen Clark announced extrafunding for Heritage projects at Auckland’sNorth Head fortifications, which will be one ofthe sites restored through the extra funding.

NZSOOur national orchestra can plan withcertainty, thanks to legislative and fundingchanges.

"Quality and coverage is our mantra – it’sthe justification for having a nationalorchestra," says Peter Walls, ChiefExecutive of the New Zealand SymphonyOrchestra.

"Before the 2000 Cultural RecoveryPackage though, the orchestra facedconstant worry about its financial status.

"That package has made a huge differenceto us. It means we can plan with confidenceand security and focus on taking great

music to people all over New Zealand.Previously we couldn't deliver the rangeof activities people expected. Now, wecan attract excellent artists, and planmodest expansions in our activity.

"We've been able to commit to theHeartland and Mainland tours where wetake symphonic music to provincialcentres like Gisborne and Invercargill.Letters and emails after those tours havebeen fantastic.

"Our education programme is secure. We can be out and about, encouragingtalented young New Zealand musiciansand developing programmes to nurturefuture audiences.

"The new Bill making the NZSO a crownentity (rather than a crown-ownedcompany) will be a very positivedevelopment. It recognises that ourprimary role and responsibility is thedelivery of world-class performances andhelping to build a distinctively New Zealand cultural environment for ourlocal performers and composers.

"We have an excellent product to sell. The government's confidence in what wecan do has rubbed off on others, with thecorporate sector swinging in behind uswith sponsorship. In the end, governmentsupport and commitment is the key toeverything."

programme and offering support tobusinesses in the most vulnerabledevelopment stage.

New rules simplify taxes for Maoriauthorities. The 19.5 per cent tax raterecently passed in the Taxation Act helps

tackle the unnecessary restrictions,complex processes, high compliancecosts, and double taxation that havehindered Maori economic and socialdevelopment. The act also allows Maorientities such as marae to meet the"charitable purposes" requirement.

Previously, they may have beenexcluded from this exemption simplybecause blood ties may have connectedmembers.

The Maori unemployment rate in Marchthis year, the latest figures available,was 10.8 per cent, down from 17.9 percent in September 1999.

HEALTH – TE HAUORAWe are making health care moreaccessible and affordable for Maori. OurPrimary Health Organisations providewhanau-based health care which focuson early intervention. PHOs bringtogether GPs, nurses, and communityhealth workers with families to promoteall aspects of whanau wellness. Tangatawhenua are playing a lead role inestablishing PHOs across the country sothat Maori communities benefit.

The Treaty provides the foundation tobuild mutually respectful relationshipsto support whanau, hapu, and iwi, andhelp Maori communities reach theirpotential.

TE REO MAORI We're supporting the revitalisation of tereo Maori by:

• Providing te reo Maori resources andprogrammes in schools.

• Recruiting more teachers with te reoMaori skills.

• Increasing the number of kurakaupapa Maori.

• Funding iwi based te reo Maorilearning projects for whanau.

• Setting up the Maori TelevisionService.

• Promoting the use of te reo Maori inthe TVNZ charter.

• Building capacity within iwi radio.

The passing of the Maori TelevisionService MTS (Te Aratuku WhakaataIrirangi Maori) Act marked a new era inMaori broadcasting. MTS had $7 millionfunding in this year's budget andannounced it will broadcast using UHFand satellite transmission. When it firstgoes to air it will reach 75 per cent ofthe general population and 70 per centof Maori. Iwi radio has also had anextra $1 million to help promote te reoMaori.

EDUCATION – TE RAPU MATAURANGAGood quality early childhood educationgives children a good start in life andwe've provided for more than 400 extraplaces for Maori children in EarlyChildhood Centres.

We're encouraging more Maori andMaori-medium teachers into our schoolsand have set aside over $5 million overfour years to increase numbers and helpwith their professional development.

Gateway funding now helps over 30 kurakaupapa Maori, Maori boarding schools,Wharekura, and other schools that teachin Maori. The Gateway programme ispart of a $56 million package to get all15-19 year olds in education, training, orwork-based programmes by 2007.

There are now record numbers(13 per cent) of Maori students intertiary education, higher than thenational average of 9 per cent.

JOBS AND TRAINING – TE WHAI MAHI ME TEWHAKANGUNGUThe Maori Business Facilitation Scheme(MBFS) is proving a success. The servicewas set up to provide businessdevelopment ideas and information tonew and existing businesses. Over 3,500businesses use the service. 225 newbusinesses have registered since July 1last year. A post start-up mentoringservice is building on the success of the

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MAORI DEVELOPMENT

THE MAORI UNEMPLOYMENT RATE IN MARCH THISYEAR WAS 10.8 PER CENT, DOWN FROM

17.9 PER CENT IN SEPTEMBER 1999.

THE TREATY OF WAITANGI IS NEW ZEALAND'S FOUNDING DOCUMENT AND THE BASIS OFCONSTITUTIONAL GOVERNMENT.

Maori Affairs Minister, Parekura Horomia at the International Performing Arts AotearoaWananga graduation ceremony.

Prime Minister, Helen Clark with Associate Economic Development Minister, Dover Samuelstouring the country’s newest deep water port at Marsden Pt in Northland.

PHOS PROMOTING MAORI HEALTH Tangata whenua are helping set upPrimary Health Organisations (PHOs)across the country. Now communitiescan access cheaper health care thatpromotes all aspects of whanauwellness.

1.7 million New Zealanders aregetting health care from 47 PHOs.More than 800,000 patients are payingno more than $20 for a doctor visit.

But PHOs are doing a lot more than justsaving dollars for patients. Many PHOsare also providing more coordinated

health services to families, includingimmunisation, managing diabetes,family planning, sexual health services,and programmes to reduce heart disease.

"For our people, quality of service isthe key to improving the health statusof whanau. The emphasis is on GPschanging the old approach, away fromtreating the illness of individualpatients, to focus instead on the well-being of whanau," said AssociateHealth Minster Tariana Turia.

"PHOs provide a structure for doctors,nurses and other health professionalsto work cooperatively with whanau,

and make real improvements to thehealth of our people."

Several Maori providers such as NgaMataapuna Oranga PHO, KawerauPHO, Tamaki Health, and NorthHarbour PHO have taken the lead insetting up PHOs. Ngati Porou PHO, TeKupenga a Kahu PHO, and Te TihiHauora o Taranaki PHO are made upentirely of Maori health providers, withhigh proportions of Maori enrolled.

All PHOs, though, have to show howthey work with Maori to meet theirneeds and how iwi are involved in thegovernance process.

MAORI DEVELOPMENT - TE WHAKAPAKARI AKE I TE IWI MAORI Our government is supporting flax rootsMaori development through CapacityBuilding, Direct Resourcing, and LocalLevel Solutions. The Capacity Buildingprogramme is part of a whole ofgovernment approach to empoweringand enabling Maori to develop andachieve their own solutions.

A whanau development hui, HuiWhakapumau Whanau, was held so flaxroots workers and whanau could meet todiscuss and exchange ideas aboutwhanau development.

TE TIRITI O WAITANGI Over $5 million extra funding has beenallocated to help streamline treatynegotiations. The extra funding will helpspeed the overall pace of settlementswithout compromising the process. The Office of Treaty Settlements isworking with more than 25 claimantgroups. Government now expects abouttwo settlements a year.

Highlights this term include the passingof legislation to enact the Te Uri o Hauand Ngati Ruanui settlements. Deeds ofSettlement have been signed with NgatiAwa and Tu Wharetoa ki Kawerau in theBay of Plenty: the first North Islandsettlements to include major Crownforest assets. Terms of Negotiation have

been signed with Ngati Kahu and TeRarawa from the Far North, NgatiWhatua o Orakei in Auckland, andWhanganui River iwi.

A new three year public informationcampaign will help promoteunderstanding of the Treaty of Waitangiby making it easier to access treatyinformation. $6.5 million has been putaside for this.

The Waitangi Fisheries Commission’sproposed quota allocation model He KawaiAmokura has been reviewed and acceptedby the Minister of Fisheries. Legislation toimplement the model will be introduced toParliament later this year.

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MAORI DEVELOPMENT

Treaty Negotiations Minister, Margaret Wilson with Parliamentary Under-Secretary, Mita Ririnui at the Ngati Awa Deed signing ceremony at Parliament.

WE’RE DEVELOPING PROGRAMMES ACROSS THEWHOLE OF GOVERNMENT TO SUPPORT, FACILITATE,

AND FAIRLY RESOURCE WHANAU, HAPU, IWI, ANDMAORI COMMUNITIES TO MANAGE THEIR OWN

SOCIAL AND ECONOMIC DEVELOPMENTS.WE’RE PUTTING IN MORE FUNDING TO INCREASE THE PACE OF

TREATY OF WAITANGI SETTLEMENTS WHILE ENSURING THE

INTEGRITY OF THE PROCESS IS NOT COMPROMISED.

TOTALLY SUCCESSFUL TOHUThe winner of a Trade New ZealandExport Award is a role model for Maoribusiness.

Set up in 1998, Tohu Wines Ltd hasearned more than $4 million in foreignexchange in just five years, with 95 percent of its wine exported. Productionhas grown from 3,000 to 30,000 casesand is expected to increase to 120,000by 2007, generating almost $20million in export sales.

Tohu Wines has worked with TradeNew Zealand’s Maori Enterprise teamsince its inception. "They've beenfantastic. They helped us identify ourtarget market, and helped with focuswork, branding, and marketing," saidChief Executive, James Wheeler.

A wholly owned Maori wine company,Tohu Wines is the first of its kind toexport quality wine and our indigenous

story to the world.

"We’re aggressively telling the Maoristory through all aspects of ourbusiness – from the label on the winebottle to international wine fairs andrestaurateurs around the world." The company is a joint venturebetween three entrepreneurial Maoriorganisations – Wi Pere Trust inGisborne, Wakatu Incorporation inNelson, and Ngati Rarua Atiawa IwiTrust in Motueka, with a small office inLower Hutt. It provides employmentfor more than 20 full time equivalentpeople at various times through theyear, from picking gangs to qualified viticulturlists.

"We do see ourselves as role modelsto a certain extent, by changingexpectations and showing youngpeople what can be achieved. Other iwi are already learning fromour experience."

Key Achievements Last Term• Engaged kanohi ki te kanohi with

Maori throughout New Zealand.

• Established the Capacity Building fundand invested in Local Level Solutionsdesigned and delivered by whanau,hapu, iwi, and Maori communities.

• Ensured Maori representation on alldistrict health boards.

• Provided almost 300 Maori healthscholarships.

• Implemented specific initiatives toimprove Maori participation andachievement rates from earlychildhood education through to tertiary education.

Prime Minister, Helen Clark at thegovernment Hui in Nelson withmembers of the Nelson Maori Women'sWelfare League in May this year.

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1. JOBS AND THE ECONOMY• More jobs. Over 130,000 more people are

working in paid employment comparedwith four years ago. Unemploymentreached a 15 year low in 2002.

• New Modern Apprenticeshipsprogramme with over 5,000 modernapprentices.

• Increasing access to new informationtechnology. We aim to get high speedbroadband internet access to 95 per centof New Zealand communities by 2005.

• Backed innovative new businesses withfunding for seed and start-up stages ofproduct development and 15 businessincubators.

• Tackled the backlog of transportproblems through increased funding formore roads and public transport.

• Record numbers are now taking part inindustry training and we aim to have250,000 participating by 2007.

• Support for small enterprises so theycan focus on their core business. Wehave simplified the tax process andfurther tax simplifications are planned.

• Increased the minimum wage and youthminimum wage four times in four years,and ensured trainees receive a minimumwage.

• Introduced a 12 weeks paid parentalleave scheme.

2. HEALTH• Better access to primary health care so

problems can be tackled early. Over 1.7million New Zealanders are enrolledwith a Primary Health Organisation(PHO).

• Cheaper primary health care. FromOctober all PHOs can provide low feesfor patients under 18 and all doctors canprovide free visits for children under 6.From October the maximumprescription fee will be $3 for patientsenrolled in access PHO and for childrenbetween six and 17 enrolled in interimPHOs.

• Cutting waiting times. Our aim is forno-one to wait for more than 6 monthseither for first assessment or forsurgery following assessment.

• Invested $257 million over four years inmental health services and we arebuilding the capacity of the mentalhealth force. Hundreds more full timecommunity clinical and non-clinicalpositions have been created.

• Commitment to removing, over time,asset testing of older people in long-term residential care.

3. EDUCATION• More places in early childhood education

so all New Zealanders can get a goodstart.

• 774 extra teaching positions in schoolsfrom next year.

• Focus on reading and maths in primaryschools with new programmes and tools.

• $78 million for InformationCommunication Technology (ICT) inschools to make sure our children are upwith the latest.

• Better matching of education, training,and skill development with employmentopportunities. The successful GatewayProgramme where senior schoolstudents get work place experience hasbeen expanded to include all 1 – 5 decilesecondary schools by 2007.

• Keeping tertiary education accessible,affordable, and of world-class standards. Full-time students and low income part-time students pay no interest on studentloans while studying. The new feemaxima will provide certainty and keepthe costs to students down. This termwe will widen eligibility to studentallowances.

4. LAW AND ORDER• Recruited and funded more police. We

now have the highest number of policeand the biggest police budget ever.

• Tougher sentences for the most seriousoffenders. The new Sentencing andParole Acts allow for longer prison termsfor serious repeat offenders.

• Cracked down on burglary and youthoffending to help break the crime cycle.We have put in place several newinitiatives that target serious youngoffenders.

• Extended victims rights to include theright to be heard in court and to be toldwhen the offender will be released.

SUMMARY

New bail laws make it harder for seriousrepeat offenders to get bail whileawaiting trial.

5. SOCIAL DEVELOPMENT• Over $320 million of new investment is

helping people move off welfare and in topaid work.

• Increased the maximum number ofsubsidised childcare hours to 50 tosupport parents moving intoemployment.

• Guaranteeing current superannuation foreveryone in the future by setting up theNZ Superannuation Fund.

• Restored income related rents for lowincome state house tenants who now payno more than 25 per cent of their incomein rent.

• Commitment to making sure all youngpeople are in education, work, ortraining by 2007.

6. CONSERVATION AND ENVIRONMENT• Securing land of importance including

the creation of Te Papanui park inCentral Otago, new reserve in WesternSouthland, and the purchase of land atWaikawa Bay in Coromandel to ensurepublic access.

• Creation of two new marine reserves.• Comprehensive Biosecurity Strategy

being developed to deal with pests.• New Sustainable Development Action

Programme.• NZ Waste Strategy target of 95 per cent

of New Zealanders having access torecycling facilities almost met.

• Proceeding with caution with GM whilepreserving opportunities. We’remanaging genetic modification safelyand wisely. We are also introducing astricter civil liability and penalties regime.

7. ARTS AND CULTURE• Established a film production fund to

help boost the local industry WhaleRider was the first to benefit and hasgone onto win critical acclaim.

• New support for big budget film andtelevision productions through a 12.5per cent production expenditure grant.

• New TVNZ Charter.• Support for Royal NZ Ballet, NZ

Symphony Orchestra, and extra fundingfor Creative NZ to develop strategies for

regional and Maori arts.• Under Pathways to Arts and Cultural

Employment (PACE) job seekers havereceived help to get jobs in the arts andcultural sectors. Since the programmebegan in November 2001 1,200 peoplehave used PACE to find work. 77 percent have found long term positions.

8. MAORI• Encouraged the revitalisation of te reo

Maori. We are providing resources andprogrammmes in schools, recruitingmore teachers with te reo Maori skills,increasing the number of kura kaupapaMaori, and funding iwi based te reoMaori learning projects for whanau. Wehave also allocated an extra $1million tostrengthen iwi radio and haveestablished the Maori Television Service.

• Supporting Maori development througha whole of government approach toempowering and enabling Maori todevelop and achieve their own solutions.

• Supporting business development andgrowth through the Maori BusinessFacilitation Scheme.

• Continuing Treaty settlements andbuilding a better understanding of theTreaty of Waitangi through a new publicinformation programme.

SUMMARY

36

NOTES

KEY ACHIEVEMENTS JULY 2003WWW.BEEHIVE.GOVT.NZ