Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


PQ 2. Economic Programme—Progress

2. Economic Programme—Progress

[Sitting date: 29 July 2014. Volume:700;Page:2. Text is subject to correction.]


2. DAVID BENNETT (National - Hamilton East) to the Minister of Finance : What progress has the Government made in delivering on its economic objectives for this term of Parliament?

Hon BILL ENGLISH (Minister of Finance): The Government has made good progress. That progress amounts to a significant, strong platform for further sustained growth in the New Zealand economy. For example, New Zealand’s economy grew by 3.8 percent in the year to March 2014—among the top half-dozen growth rates in the developed economies. Growth is forecast to reach 4 percent this year, a far cry from the deep domestic recession that began in 2008. This is delivering benefits to hard-working Kiwis. Average wages have increased by around $3,000 in the past 2 years to nearly $55,700. They are forecast to grow to $62,300 by 2018.

David Bennett : How are the benefits of the Government’s economic programme being reflected in the labour market, and how do average wage increases compare with cost of living changes?

Hon BILL ENGLISH : I am pleased that member and the Opposition have raised the issue of jobs. In the past year alone, 84,000 new jobs were created across New Zealand, and Treasury forecasts another 172,000 over the next 4 years. As some members of the House will recall, back in 2011 there was a forecast of 171,000 new jobs to be added by 2015. The latest household labour force survey shows we are on track to achieve those 170,000 new jobs. This will bring unemployment down to 4.4 percent by mid-2018.

David Bennett : How has the Government’s economic programme helped to address the twin fiscal and current account deficits this Government inherited 6 years ago?

Hon BILL ENGLISH : The Government has more influence over the fiscal deficit than the current account deficit, where it has an indirect influence. When we came to office the previous Government’s final Budget predicted a $3.9 billion deficit in 2008-09 and never-ending deficits into the future. The current account deficit was between 7 and 8 percent of GDP—that is, at record high levels. Since then, of course, we have got back on track. In Budget 2014 we are on track to a small fiscal surplus in this next year, and the current account deficit has narrowed to 2.8 percent of GDP in the year to March, although it is forecast to increase over the next few years.

David Bennett : How is the Government’s economic programme helping to keep interest rates lower for longer, and what reports has the Minister received suggesting New Zealanders are supporting its programme?

Hon BILL ENGLISH : There are two things the Government can do to prevent us reaching Labour’s record interest rate levels, where first mortgage rates were over 10 percent in 2008. Those two things are to restrain Government spending and to limit, as far as we can, rapid increases in the price of houses. On both of those fronts we are making considerable progress. In answer to the second part of the question, New Zealanders are supporting this programme because they are staying home rather than leaving New Zealand. There was no net loss of New Zealanders to Australia in June. That is zero net outflow to Australia for the first time since 1991

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news