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mental disability are all too often used as excuses to divide us and to dismiss. The first step is to acknowledge that as human beings we have much more in common.

The future of our country is at stake. The choices are simple. We can ignore the real inequalities of power and of access to the good things of life that exist in New Zealand, shut our eyes to the injustices, and leave our children and grandchildren to reap the catastrophic consequences, or we can acknowledge the problems and start asking questions about ways of solving them. There are no other choices. I have chosen the second course, as I believe has everyone else on this side of the House, for Panmure, for Auckland, and for New Zealand.

No reira kei te mihi ki a koutou katoa i awhina mai i ahau e te wa poti. Kia ora koutou, kia ora mai tatou.

[Subsequent authorised translation: Therefore I greet you all who assisted me during the period of the election. Greetings to you all, and greetings to us all.]

NICK SMITH (Tasman): Just 25 years ago New Zealand had the third highest standard of living in the world. Today it has the thirty-fourth, and it is still falling. At that time we had full employment; today our dole queues exceed those of the great depression. At that time our education and health services were the envy of the world; today our own people have lost confidence in our schools and hospitals. As a nation we have lost our confidence. The task that attracted me to this House of Representatives was that of restoring that confidence.

It is an honour and a privilege to speak in the address in reply debate on behalf of the people of Tasman. I join previous speakers in expressing respect and thanks to the former Governor-General and his wife, Sir Paul and Lady Reeves, and I congratulate Dame Catherine Tizard on her appointment as our new Governor-General. In 1990 two more bastions of patriarchal society have fallen with Dame Catherine becoming New Zealand's first woman Governor-General and the Hon. Ruth Richardson becoming New Zealand's first woman Minister of Finance. They and the record number of women in the House have a difficult challenge ahead. Society has some way to go in accepting women as civic and financial leaders. If they act with dignity and honour they are too often accused of snobbery; if they act with vigour and determination they are described as being too masculine; and if they act with calmness and feeling they are labelled as weak. All aspects of New Zealand society-Parliament, the news media, and the public at large-must begin to judge women leaders in their own right and not according to the mould of their male predecessors.

In congratulating you, Mr Speaker, on your election to office I quote from a lady who, on attending a debate of the House of Representatives, had this to say: "Another general impression is the bad manners of the House compared to the manners of the ordinary citizen. It is rare to meet in the streets a man who is in liquor, whereas the Speaker of the House is constantly incapacitated by his duties drink, whilst the Leader of the House is frequently boozy in the evenings.". I am pleased to assure you, Mr Speaker, that this quotation is not from a recent observer of the House, but from Beatrice Webb in August 1898. Matters have certainly improved in relation to the behaviour of our Speaker.

The north-western corner of the mainland has a proud history of representation in the House and I am humbled by the members who have preceded me. In 1932 the electors chose a little-known man in his twenties to represent the seat of Motueka, as it was then. That man, Keith Holyoake, rose to be one of New Zealand's greatest statesmen. When he delivered his first address in reply speech he talked of the needs of the people grappling with the hardships of the depression. He spoke of the need for confidence, the problems of interest rates and unemployment, and the difficulties that taxation caused the employers in his district. The issues and conditions today are not dissimilar.

Sir Keith was followed by Gerry Skinner, who served the electors well for 24 years and rose to be Deputy Leader of the Opposition. His death saw the election of Bill Rowling to the Buller seat. That member respected by those from both ends of the political spectrum, and if I service the electorate as well as he did I shall be proud. Bill Rowling received a much deserved knighthood in 1984, and although he has retired from politics his efforts continue for New Zealand, and, in particular, for the Nelson region.

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In 1984 Sir Wallace was replaced by Ken Shirley, a member who also worked hard for Tasman. In Mr Shirley's 6 years in Parliament he became notable for his friendly manner and his efforts in the fishing, horticultural, and forestry sectors. If his Government had had more people with a knowledge of the productive sectors of our economy it would not have suffered such a humiliating defeat in the recent elections.

The bonds between this House and my electorate extend beyond the people who have served here. The very foundations of this building were quarried from Kairuru on the Takaka Hill, adjacent to the Abel Tasman National Park. From there the marble was transported by tramway line to Sandy Bay and on to Port Nicholson. I am sure that it would have been much easier to construct Parliament in the true geographic centre of New Zealand. What is more, parliamentarians could then have avoided the normally grotty weather of this city and enjoyed the sunshine and fruits of the Nelson Province. I hasten to add that the member for Nelson and I have brought this good weather with us today.

For those who have not visited my electorate let me expand on its physical features. It is vast and diverse, spreading from Murchison in the south to Farewell Spit in the north and out of it the city of Nelson is carved. In the south it includes vast tracts of indigenous forest and mountain lakes drained by the awesome Buller River. Moving north over the Hope Saddle the electorate expands into 40,000 hectares of Pinus radiata plantation interspersed with high-country farms. Over the centuries the erosion from those hills has created the alluvial Motueka and Waimea plains that today support a diversity of horticultural crops seen nowhere else in this land. To the west of those plains the electorate flows over the Takaka Hill into the dairying lands of Golden Bay.

The two national parks in the electorate are testament to the area's diversity and richness. Abel Tasman National Park hosts golden beaches backdropped by bush-clad hills, and is disturbed only by the world-renowned Abel Tasman track. The Nelson Lakes National Park encompasses the beautiful lakes of Rotoiti and Rotoroa, which are surrounded by the most northern peaks of the Southern Alps.

Before the next member for Tasman delivers a maiden speech I should like a third national park to be created. The north-west corner of the electorate encompasses an area of exceptional character that is held in public estate. Its natural features comprise the most complete record of the geological progression that has formed this land of New Zealand. It contains more than 50 species of flora that exist nowhere else in the world, that being a consequence of its being a plant refuge during the most recent ice ages. Some of New Zealand's most rare species, such as the grey spotted kiwi, the kaka, the rock wren, and the giant carnivorous snail, depend for survival on the area's large tracts of undisturbed wilderness. The combination of those exceptional characteristics makes it the most outstanding area of natural land in the country, and it offers the best single opportunity to conserve the natural diversity that distinguishes the New Zealand land mass. For that reason I commend to the House the establishment of a north-west Nelson national park.

It is true that when lands are set aside for conservation purposes short-term economic opportunities such as mining may be lost. A characteristic of the people who inhabit that corner of the mainland is that while many might not have been born and bred locally, they have chosen, as I have, to live in the region for reasons other than the size of their pay­packet. The area's superb climate and recreational resources are unmatched anywhere in the world and attract people interested in the quality of life.

The physical diversity of my electorate is matched by a variety of land uses. The horticultural lands of the Waimea and Motueka plains produce tonnes of pipfruit, kiwifruit, berryfruit, hops, tobacco, and grapes. The rich soils of the Golden Bay area and Murchison support a substantial dairy industry, while the pastoral lands of the upper catchment area support cattle, sheep, deer, and goats. Those farms are interspersed with the most significant forestry plantations outside the central North Island. Those land­based industries are complemented by significant fishing and tourism sectors.

Bringing the regional economy to life is one of the issues that I shall deal with this afternoon, for without a growing economy the health, educational, and social services that we desire are unaffordable. For too long, politicians have been more concerned with spending than with creating wealth. A growing economy will be achieved only when

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investment returns to productive sectors of the economy. The late 1980s saw irresponsible corporates rape New Zealand of its investment capital for non-productive purposes. In the cities there were new BMWs, multimillion-dollar homes, and corporate jets, while factories and farms in the regions went bust. How much stronger the economy would have been today if that investment capital had gone into new tourism ventures, fish-processing plants, or "high tech" timber mills.

For small efficient entrepreneurs in Tasman the key issue affecting investment is interest rates. While New Zealand's interest rates remain the highest in real terms in the Western World its entrepreneurs will neither invest nor employ staff and the economy will continue to stagnate. There are members in the House who are keen to surrender responsible monetary policy to deliver lower interest rates. However, they are mistaken. Inflation is like whisky-a little is never enough; it blurs reality, and it leaves one helluva hangover. The real solution to getting interest rates down lies in the Government getting on top of its own expenditure and in individual savers regaining some confidence in the financial sectors.

The task of getting on top of Government expenditure has averted Governments for nearly 20 years. The easy options of borrowing or quitting some Crown real estate have always been taken. Perhaps as the youngest member in the House I have a longer perspective on matters and seek longer term solutions. I do not want to be part of any Government that mortgages the next generation for the grocery bill of the present. Rebuilding the confidence of small investors is a task that will not be achieved by a rewriting of business laws alone. Honesty cannot be legislated for; it must be inbred and be part of the establishment. Until the corporate sector rids itself of unscrupulous operators and embraces a new ethos of integrity New Zealand's sharemarkets will remain depressed. ·

Taxation reform must also play a key role in initiating economic growth in the regions. The entrepreneurial flair of too many people in my electorate has been snubbed out by an overzealous taxation system that discourages investment and buries small business people in paperwork. The anomalies of the livestock tax regime that result in farmers with no income paying tax must be addressed. So, too, must the position of the crazy forestry tax regime be looked at. It is nonsense that when the Government sells Crown forests it argues black and blue that the forest is a crop and not an asset, then for taxation purposes it argues the opposite in relation to private citizens. That anomaly requires the urgent attention of Parliament.

The reform of international trade is also critical to the prosperity of the Nelson Province. New Zealanders are getting sick of the free-market rhetoric of the nation's trading partners not being matched by action. The most recent incident of the nation's Australian neighbours delivering an underarm bowl at the pipfruit industry by disallowing market access is a disgrace that requires the urgent attention of the Government.

The pipfruit industry is one of a few success stories in the present difficult international market-place, with record returns to growers. I have a simple message for those members from the previous Government who seemed determined to undermine the effectiveness of the Apple and Pear Marketing Board: if it works, do not try to fix it. Fishing is a key industry for the Tasman electorate, employing hundreds of people both on shore and off shore. Incompetent management of the quota system combined with a revenue-hungry Treasury has resulted in the development of a chasm between the industry and the Government. Rebuilding the trust from the Minister's office all the way down the chain to the fishing-wharf is essential for the future of that industry. The increased catch by New Zealand- flagged vessels from the exclusive economic fishing zone looks impressive on paper but is deceiving. The vast proportion of the deep-sea fishery is being caught under foreign charter and never approaches New Zealand's shores. The challenge in the next decade is for New Zealand to catch and process that fish.

The real strengths of any region are the resources and motivation of its people. Prosperity is driven more by public attitudes than by the Government. On two fronts New Zealanders' attitudes are holding us back. The first is our attitude to education and technology. New Zealand has become so open-minded about education that its brains have fallen out. Today New Zealand must focus on those subjects that will give its work­force the edge in the international market-place. If New Zealand continues to depend on

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bulk commodity prices for its prosperity it can only wait to join the Third World nations of the planet. New Zealand must have the technological advantage in the applied sciences that complements its successful industries in agriculture, horticulture, forestry, and fishing. In order to develop further such expertise, New Zealand must boost the emphasis on science and mathematics through the school system and encourage the best of students to take up careers in the applied sciences. One needs only to consider the strong economies of the world to see the link between prosperity and scientific excellence.

After having invested in the expertise, New Zealand must ensure that its research institutions are dynamic and rewarding of success. Too often in recent years the best of the country's scientific expertise has been frustrated with bureaucracy and has left for the powerhouse economies. With development in the nation's scientific skills base New Zealand must then be prepared, both in industry and in government, to put resources into carefully targeted research. The dividends from investment in research come slowly but they come surely.

Earlier I spoke about the need to change attitudes on two fronts. The first related to applied technology. The second is our attitude to welfare. The problem could not be better illustrated than by the recent experience of the Nelson branch of the New Zealand employment service. With the berryfruit crop ready to harvest, the employment service took the initiative to write to all of those who were registered as unemployed in the vicinity to notify them of the availability of work. For various reasons, two-thirds replied saying that they were unavailable. That is an indictment of a welfare system that has allowed itself to become a crutch. It is perceived as a fat cow that is there to be milked. The financial crisis in which we find ourselves leaves us no choice but to take on that sacred cow. Welfare reforms must be implemented with a soft heart and a firm head, so that those in real need are provided for but, also, so that people are provided with an incentive to stand on their own two feet.

The success and acceptance of those reforms will depend on fairness. There is a willingness in the community to accept a tightening of the belt, but that tightening must be fair. It is a lack offairness that has brought the House into disrepute recently. By no issue was that more greatly highlighted than through the infamous superannuation deal for members of Parliament. That scheme, which provides for a generous "super" package for former members of the House, hides under the facade of being self-funding. In fact, very substantial taxpayers' contributions are necessary to keep it afloat. The scheme was amended by the House recently to boost the payout and to reduce the age of eligibility from age 50 to age 45. That deal is particularly offensive because since then the House has reduced the real level of the pension for the average citizen and has openly promoted the idea of raising the retirement age to 65 years. It is time that the gold-plated superannuation deal for members of Parliament was restricted in order to be self­funding-although I suspect that it may take more than 7 minutes to agree on it!

That shameful charade brings me to the last issue that I want to speak about-electoral reform. Eleanor Roosevelt once said: "Democracy cannot be static; what is static is dead.". When one considers the upheaval that industry, commerce, farming, and the State sector have gone through in recent times it would seem that the only institution that has remained unscathed is Parliament.

While there is widespread agreement in the community that Parliament needs to be reformed, the public is frustrated by an inability to stop the juggernaut of government from slamming legislation through the Chamber, and by the lack of any mechanism to express its concern. Furthermore, the system by which members are elected to the Chamber ignores the dominance of the party system. It is the habit of Oppositions to bleat about the need for electoral reform, but there is also a bad habit that when they come into Government they ignore the problems and become obsessed with the task of retaining office. I say to the House and to my colleagues in the new Government that the very fabric of our democracy will be put at risk without the fulfilment of our commitment to a fair and proper electoral reform referendum in 1992.

I favour mixed-member proportional representation, similar to that recommended by the royal commission of inquiry. My preference would be for a House of90 members who would directly represent electorates, and 30 members representing political parties. Such a system would ensure that people would enjoy the benefits of a local member of Parliament

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but it would also allow for a fairer mix of representation in the House, more akin to the wishes of the voting public. Some people are afraid that such a system may lead to one party's not dominating the House, and that compromises may have to be made as a result. I believe that that is a strength, not a weakness. Some people have also expressed a concern that there would be members residing in the House who would not have electorate responsibilities. I argue that that, too, is a strength, not a weakness.

I recall the comments made by many retiring Cabinet Ministers from the previous Government, and others, that it is impossible to be an effective Minister and to serve the electorate properly. The system I propose would allow senior party members to put their full efforts into being effective members of the Executive. I also believe that, apart from the reform of the electoral system, a better mechanism must be provided for direct input into public policy-making. A system of citizens-initiated referenda, as used in many countries, allows the public to send a powerful message to the Government of the day. I am pleased that the Government has indicated that legislation will be introduced to provide for a system of citizens-initiated referenda.

It is indeed an honour and a privilege to have spoken today on behalf of the people of Tasman, a few of whom have travelled to the city to hear my speech. I owe them my thanks for giving me this opportunity to make a contribution to the wise Government of the country.

JOHN BLINCOE (Nelson): E te whare e tu nei, te whare Paremata-ara, ko "te ana raiona"-tena koe. E nga ahuatanga o nga merna tawhito-Maori, pakeha, katoa-tenei ahau, he merna hou, e mihi atu ki a koutou. E te hunga ora: nga merna Maori o nga rohe e wha, tena koutou. E aku hoa merna, Maori, pakeha, katoa: tena koutou. Tena koutou. Tena koutou, Mr Speaker.

[Subsequent authorised translation: The House that stands before rile, the "den of lions", greetings to you. In respect to the older members of the House, both Maori and pakeha, I stand here before you as a new member and extend greetings to you all. To the living, to the four Maori members, I greet you. To my fellow members of Parliament, both Maori and pakeha, greetings, greetings, greetings.]

It is a very great honour to be the member of Parliament for Nelson, and to address the House for the first time in that capacity. I am particularly pleased to extend greetings to the retired Governor-General, Sir Paul Reeves. The performance of Sir Paul and Lady Reeves in the viceregal office was simply superb. At a time when pakeha New Zealanders have been struggling with the concept of biculturalism and the need to honour the Treaty of Waitangi, Sir Paul and Lady Reeves provided uniquely inspirational leadership to our nation. The people of Nelson have greatly appreciated their contribution and wish them well as they embark on the next phase of their lives.

I was delighted on behalf of my constituents to be present at the swearing-in of the new Governor-General, Dame Catherine Tizard. She will enrich the office with her own distinctive style and flair. And, as her address at the swearing-in made clear, she will also bring to the office a deep understanding of the character of this nation. We look forward to welcoming Her Excellency to Nelson. Mr Speaker, I have known you for only a short time, but already, sir, you have impressed me with your sense of fairness, your commitment to the proper running of the House, and, particularly, your protection of the rights of the somewhat diminished minority. I shall enjoy serving under you.

Nelson has produced many fine sons and daughters. It is a particular pleasure to me that one of Nelson's finest daughters is a near neighbour of mine on the back benches. I refer, of course, to the member for Pencarrow, who is regarded with great affection by my constituents, and who occupies an indelible place in Nelson's history. I could also, I think, claim to have more former Prime Ministers residing in my electorate from time to time than any other member-and, in that, I refer to the Rt. Hon. Sir Wallace Rowling and the Rt. Hon. Geoffrey Palmer. Both are held in the highest regard in Nelson for the enormous contribution they made while in this House and for the continuing contribution that they are making to the life of the nation. We in Nelson are proud to claim them.

Geoffrey Palmer spoke at two meetings in my somewhat short campaign. He was magnificent. His powers of analysis, his vision, and his passionate commitment to saving

Smith, Nick: Address in Reply [Sitting date: 18 December 1990. NZPD Volume: 511; Page: 386]