New funding announced in the 2012 Budget, to provide $3 million each year to help create safe and nurturing environments for children, was launched today by Associate Social Development Minister Tariana Turia in Hastings.

Mrs Turia said, “Te Punanga Haumaru aims to assist whānau and communities to create safe environments”.

Education Minister Hekia Parata has today moved to put parents’ and teachers’ minds at rest following decisions made in Budget 2012.

Ms Parata says the Government has decided not to make any change to teacher:student funding ratios.

“We have heard the concerns of parents and are reversing this part of our education plan.

New investment of $8 million over four years will support communities to help prevent suicide, Associate Health Minister Peter Dunne and Associate health Minister Tariana Turia say.

This is in addition to the $5.8 million being invested in the Prime Minister’s Youth Mental Health Package.

“Suicide prevention is everybody’s responsibility,” Mrs Turia says. “The Government cannot make the changes we need without a strong partnership with communities and recognition that everyone has a contribution to make to suicide prevention.

Education Minister Hekia Parata says no school will lose more than two full-time teachers (FTTEs) as a result of the policy changes in Budget 2012.

“As we've previously said, about 90% of schools will either gain, or have a net loss of less than one FTTE as a result of the combined effect of the ratio changes and projected roll growth,’’ Ms Parata says.

“We have examined the effect on the other 10 per cent of schools, and some would be affected more than we would accept.

The Government’s new smartphone and tablet app for Budget 2012 was downloaded more than 8,600 times and was New Zealand’s most popular free-download app on Budget day, Finance Minister Bill English says.

The Budget App, called NZ Budget, allows users to read the Budget speech and key Budget documents, watch video coverage and read ministers’ public statements.

Budget 2012 invests in New Zealand’s future with significantly more money for science and innovation, and health and education, while keeping the Government on track for surplus in 2014/15, Prime Minister John Key says.

“Our priorities are responsibly managing the Government’s finances, building a more productive economy, delivering better public services within tight financial constraints, and rebuilding Christchurch.

Budget 2012 invests in building an innovative and productive economy that sells more to the world, supports more jobs, and delivers better public services while getting back to fiscal surplus, Finance Minister Bill English says.

“It takes the next steps in the Government’s plan to build sustainable long-term growth based on more exports, higher savings, and more effective investment,” he says.

Builds a platform for growth, while returning to surplus in 2014/15

Budget 2012 sets out a programme of balanced measures to ensure the Government remains on track to return to surplus in 2014/15, Finance Minister Bill English says.

“New Zealand will then be one of the few developed countries not running deficits and increasing debt.

“Getting back to surplus is one of the most important contributions the Government can make to increasing genuine national savings and building a more competitive economy.

Budget 2012 has freed up $4.4 billion to invest in improving frontline public services and getting better results, while running a zero Budget, Finance Minister Bill English says.

“At a time when the Government’s finances are constrained, these savings provide significant funding to put into new initiatives aimed at improving frontline public services and getting better results for New Zealanders,” Mr English says.

“At the same time, they allow the Government to run a zero Budget, ensuring a return to surplus in 2014/15, based on Budget forecasts.

Budget 2012 includes further steps towards an innovative, efficient public sector delivering better results for New Zealanders within tight financial constraints, Finance Minister Bill English says.

“This Government is focused on getting better results, rather than just increasing inputs. It’s time to measure success by better outcomes, rather than by how much extra money we are spending, as was the case for much of the 2000s,” Mr English says.

Schools, health, science and innovation, and transport all benefit in Budget 2012 from the Future Investment Fund set up to invest proceeds from the sale of minority shareholdings in four SOEs and Air New Zealand, Finance Minister Bill English says.

"The Government is committed to investing in modern infrastructure that helps build a faster-growing economy with more exports and more real jobs, without borrowing more from overseas lenders,” Mr English says.

Budget 2012 makes changes that will further improve KiwiSaver and lift investor confidence, Finance Minister Bill English and Commerce Minister Craig Foss say.

KiwiRail will receive $250 million of capital in 2012/13 for its Turnaround Plan to help the rail freight business become sustainable, Transport Minister Gerry Brownlee says.

The Budget 2012 appropriation is the final round of a three-year $750 million Government funding package supporting the objectives of KiwiRail’s Turnaround Plan.

“The plan is designed to help the rail freight business become sustainable by 2020 so it can fund its business solely from customer revenue.

Investment from the $5.5 billion Canterbury Earthquake Recovery Fund is on track, with thousands of people benefiting, Canterbury Earthquake Recovery Minister Gerry Brownlee says.

Budget 2012 delivers on the Government’s commitment to building a more competitive and productive economy, with $250 million of new operating funding and $76.1 million in capital funding over four years for science, innovation, and research.

“Science and technological innovation are major drivers of growth and international competitiveness, which is why we have continued to increase funding for them despite tight fiscal constraints,” Science and Innovation Minister Steven Joyce says.

Budget 2012 rebalances the Government’s $4.3 billion investment in tertiary education between expenditure on student support and investment in tuition and research, says Tertiary Education, Skills and Employment Minister Steven Joyce.

“We have one of the most generous student support systems in the world. Rebalancing it allows us to free up money we can reinvest in improving the quality of tertiary education we provide, and help our overall fiscal position,” Mr Joyce says.

Key changes include:

Budget 2012 commits $158.9 million over four years to invest in engineering, science, and research-led learning in our tertiary institutions, Tertiary Education, Skills and Employment Minister Steven Joyce says.

“New Zealand has an under-supply of engineers and we are training about only half the number we require,” he says.

Budget 2012 continues the Government’s support for foundation training for young people, with 3,000 more places funded over the next four years under the Youth Guarantee Scheme.

“With these extra fees-free places, there will be 8,750 tertiary-based Youth Guarantee places in 2013,” Tertiary Education, Skills and Employment Minister Steven Joyce says.

Budget 2012 commits $29.5 million operating spending over four years for Private Training Establishments (PTEs), to create a fairer funding system that rewards competitive innovation across the tertiary sector.

The Government is committing the funding to close the gap between the historical differential funding rates of PTEs and public providers of the same service, Tertiary Education, Skills and Employment Minister Steven Joyce says.

Two Ministry of Economic Development funds with ambiguous aims are being cancelled, with savings returned to the Government, Economic Development Minister Steven Joyce says.

The Government is focused on investment that supports the business growth agenda of building a more productive and competitive economy.

The Enterprising Partnerships Fund and the Transformational Initiatives Fund, set up by the previous government in 2007 and 2008, are being disestablished. This saves $26.1 million operating over the next four years.

A new cross-agency funding pool will give the justice sector flexibility to invest in areas that deliver better results to New Zealanders, Justice Minister Judith Collins says.

The Justice Sector Fund allows money saved in one justice sector agency to be used in another. For example, the fund provides flexibility for savings to be redirected into the wider justice sector’s highest priorities, rather than being restricted to reinvestment in the same Vote.

Better performance in the ACC Non-Earners’ Account will free up $52.8 million of taxpayer funding in 2012/13, which will be returned to the Government, ACC Minister Judith Collins says.

The Non-Earners’ Account covers claims for injuries to people not in the paid workforce, such as students, beneficiaries, retirees, and children. This account is funded by the Government using money collected through general taxation.