3. Business Confidence—Actions and ReportsHon AMY ADAMS (National—Selwyn) to the Minister of FinanceBusiness Confidence—Actions and Reports3. Hon AMY ADAMS (National—Selwyn) to the Minister of Finance: What are the current levels of the Business Confidence Index and Own Activity Index according to the 31 May 2018 ANZ Business Outlook Survey and how do these compare to the previous month?Hon GRANT ROBERTSON (Minister of Finance): The survey referred to in the member's question does not measure current levels of business confidence as it is retrospective. However to be helpful the May ANZ Business Outlook survey showed a drop in headline business confidence and in firms' own expectations of 4 percentage points. I note that firms' expectations of their own activity which is historically more closely related to GDP growth remained positive with a net 14 percent of firms expecting a coming lift in activity.Hon Amy Adams: Is he worried that the separate Auckland business confidence survey has also fallen markedly from just 8 percent of respondents who thought that the economy would deteriorate in June last year to the now 44 percent who expect the economy to get worse now?Hon GRANT ROBERTSON: Those are indeed the headlines of that survey but when you look a little lower the results are significantly varied and the survey does show that 56 percent of people think the situation will improve or remain the same.Rt Hon Winston Peters: Could I ask the Minister of Finance as to whether or not as an indicator of confidence our sharemarket is today at an all-time record high?Hon GRANT ROBERTSON: Indeed. In fact firms all around the country as I've travelled around since the Budget have been indicating that they're pleased with the Budget and that they see a good path ahead of them. I also note today the Victoria University study that says that trust in Government has increased from 48 percent in 2016 to 65 percent today.Willow-Jean Prime: Has the Minister seen any data related to business confidence released today?Hon GRANT ROBERTSON: In addition to what I said in the last answer the ANZ Truckometer was released today with a rise in both the heavy traffic index and indeed the light traffic index. This saw the bank say that in light of less upbeat signals from other data the recent improvement is an encouraging sign that the economy will push through."Hon Amy Adams: Does he consider that it is the actions of this Government such as the lack of a proper Cabinet process and the lack of economic analysis before the announcement that was made to end oil and gas exploration which has contributed to these very low levels of business confidence?Hon GRANT ROBERTSON: No. In fact I can take my lead from OMV the company involved in gas exploration who said the following: "This has no impact at all. It has no impact on existing licences neither on production licences nor on exploration licences. We are in a very good position in New Zealand." That's what OMV said. Perhaps the member should cheer up a little.Hon Amy Adams: Well does he think that the dismissive attitude that Government Ministers have expressed towards small business such as claiming that large minimum-wage increases would be good for small business or that if they can't handle large minimum-wage increases then they don't sound that resilient has at all contributed to the declining levels of business confidence?Hon GRANT ROBERTSON: No. On this side of the House we're extremely supportive of small businesses. It's one of the reasons why we actually picked up the excellent work of the Hon Judith Collins and moved on with the "Amazon tax". Well done Judith.Hon Amy Adams: Well does he agree with Westpac's analysis yesterday stating that business confidence is now so low that it will need to lower GDP growth meaning that our economy has gone from a rock star to a mere support act?Hon GRANT ROBERTSON: We all know that under the last Government the so-called rock star economy was a roadie economy where people had to stand alongside looking at others who were benefiting. On this side of the House we're going to make sure that all New Zealanders get a say in an economy that is productive sustainable and inclusive.Hon Amy Adams: Well given that GDP per capita growth has dropped to only 0.1 percent in the last quarter is he now prepared to accept that strong economic growth is not a continuous cash machine and can't be taken for granted?Hon GRANT ROBERTSON: I remind that member of her former colleague's statement—Steven Joyce said it—"It pays not to look at quarter-by-quarter analysis when it comes to GDP per capita growth." What I know is that the forecasts are for ongoing solid growth in the New Zealand economy of around 3 percent. Do you know what? This side of the House isn't satisfied with that. We want all New Zealanders to actually share in prosperity not just be satisfied that we're generating those levels of growth."