Now we turn to health and education.

The health and education ministries of government are both burdened by similar problems, the biggest of which are general inefficiency and poor incentives.

For example, of all the money we pay in tax towards education, only about two thirds of it actually reaches our schools.

These bureaucratic empires had been allowed to grow virtually unchecked, principally because the people who administer them are not accountable to the people who pay for them - the consumer - you and me.

And as everybody knows, services perform best when consumers have choices.

Under the present tired old bureaucratic system we have no choice, we are compelled to pay tax and the harder we work the more we pay and those taxes are fed into an all embracing government funding pipeline.

At the other end of the pipeline are the schools and hospitals and so on, which, if we do not subscribe to a private health or education system we are compelled to use regardless of how good we think their services are.

Because it is driven by compulsion rather than choice, there is nothing to keep the pipeline working efficiently. It develops leaks and blockages where huge amounts of your tax money disappear.

ACT says let's cut out the pipeline and instead steer your money to pay directly for the actual products and services you want - schools and health care institutions that suit the needs of you and your family.

In a sense ACT is offering a contract to every New Zealander which says:

Firstly, we will entrust in you the money you need to pay directly for your own health, education and superannuation - in return we guarantee that money is held in trust and will be used only for those purposes. It is untouchable by the state for any other purpose.

Secondly, it says if you haven't got enough income to cover the costs of these services whether they're health care premiums, school fees or retirement levies, that's okay, the government will top up your individual trust accounts.

Thirdly, it says because the sum of those targeted payments is sufficient to run our schools, hospitals and superannuation funds, we do not need you to pay any income tax.

Fourthly, it says successive generations of New Zealanders should not have to pay off the debts of their parents.

Over the next 18 years, ACT will eliminate the country's indebtedness through a two pronged attack.

• The state's unpublished 260 billion dollar debt to people retired, or about to retire - we'll fund that partly through an immigration levy where some immigrants will make a contribution towards the country's infrastructure they will come to enjoy, and partly through a new levy on employers. These two levies, along with indirect taxes other than GST and personal savings, will actually generate a surplus.

• The state's published 40 billion-dollar debt we'll get rid of by cashing up some non-essential government securities and assets and by applying the surplus I mentioned earlier.

This is the contract ACT offers all New Zealanders. It is a contract for a debt fee path to independence, self-reliance and fairness, and an end to the intergenerational robbery that has so characterised New Zealand politics for the last forty years.

At first glance no income tax, better health, education and retirement, coupled with no public debt all sounds too good to be true. But what a growing number of ACT supporters are starting to discover is that we can in fact achieve all this and relatively quickly and painlessly.

We are asking people to stop and consider what ACT is saying. We know you are heartily sick of all the broken promises, but ACT is backing up the promises we make with all the how to's. ACT is the only party with a plan on the table.

Our plan represents a new way of thinking, but it works. It sets out a new relationship between the state and families, the state and individuals. Only under ACT is the historical base of that relationship fundamentally changed; under ACT ordinary people are the masters of that relationship.

Isn't that what all New Zealanders want? Isn't that the real reason people say they are disillusioned by political leadership? I want to show you how individual New Zealanders in different age brackets will benefit from these policies.

The elderly who will see out their retirement and old age in better health and security knowing they aren't relying on future generations. No tax on other income - no surtax - a $200 increase.

The middle-aged who can start to look forward to real security and better health care in retirement and worry less about their children's need - more cash in hand and a higher retirement income.

The young families who will probably benefit the most - simply because they have more years left in the workforce - they can really plan their lives knowing exactly what it is going to cost to educate their children and look after their health. With the savings they'll achieve from zero income tax they'll pay off their mortgage, in less than half the time it takes now, and know also that all the time they are saving for their retirement.

The young will come out of school better educated and better equipped to take on the challenges of the 21^st century. They'll know that in the years ahead they'll be able to make choices that will demonstrably improve the quality of their lives.

Choice, freedom and security. These are the tangible improvements in life ACT is offering all New Zealanders and we're offering much more money in everyone's pockets so everyone can exercise and enjoy their new choices. Only ACT offers these choices; ACT must become the irresistible choice of all common sense New Zealanders. You cannot keep down a good idea.

And what about those New Zealanders who for whatever reason, cannot, or do not wish to exercise those choices, under ACT they are also looked after, much better than they are now or ever have been. Under ACT there will still be a need for government to set the rules, run essential services and provide for those who can't provide for themselves. But that is all a further government should do.

Can you trust an ACT government? That's what many people will rightly ask. You can. You can be sure ACT won't be copying the Alliance and spending taxpayer dollars to spread their message. Like all parties that espouse self-reliance, ACT New Zealand pays its own way - you will only need to trust ACT once. After that you only need to trust yourself.

I believe you can trust ACT because as leader of this party I have always trusted the public. Throughout my political career I have always told the public precisely what I believe should be done. I have always done what I said I would do.

I believe ACT's candidates, advocates and supporters share the same basic honesty I have tried to bring to New Zealand politics. We are motivated by what we believe is right for New Zealand.