1. Economy—Reports Regional Economic Growth and Tax RatesTODD BARCLAY (National—Clutha-Southland) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSEconomy—Reports Regional Economic Growth and Tax Rates1. TODD BARCLAY (National—Clutha-Southland) to the Minister of Finance: How is the Government's management of the economy creating opportunities for New Zealanders?Hon BILL ENGLISH (Minister of Finance): The ongoing growth of the economy is giving businesses the confidence to invest. ANZ's most recent survey of job advertisements shows that on a seasonally adjusted basis job advertisements increased by 0.3 percent in September the eighth consecutive month in which job-ad numbers have increased. On a yearly basis the number of jobs advertised in September was 13.5 percent higher than a year ago—more opportunities for New Zealanders and their families.Todd Barclay: What does the ANZ survey tell us about regional economies?Hon BILL ENGLISH: It shows that job growth was fairly robust in Auckland and Wellington where ads are up 14.8 percent and 13.8 percent on a year ago. But there is a strong lift in employment intentions in the regions including Waikato which is up 27 percent on a year ago; Hawke's Bay which is up 17.6 percent; Manawatū which is up 17 percent; and Otago which is up 19 percent on a year ago. Clearly the regions are generating a lot more job opportunities.Grant Robertson: Does he recall saying on 11 May 2011 that prisons were a moral and fiscal failure and that the Wiri Prison would be the last prison his Government built? In light of his last answer is his plan for regional economic growth just building more prisons—is that as good as it gets?Hon BILL ENGLISH: I do recall saying that and the statement I made about not building any more prisons turned out to be not correct. The Government now—well actually the Government does not have much choice. The courts are sentencing criminals every week and we have got to have somewhere to lock them up.Todd Barclay: What other reports has he seen that demonstrate that New Zealanders are confident in the direction of the economy?Hon BILL ENGLISH: As I said job advertising in the regions is up very strongly on last year. There is also improved consumer confidence. Consumer confidence rose in September for the fifth month in a row and is now at its highest level since late 2014. According to the survey 35 percent of New Zealanders believe they are better off now than they were a year ago and 25 percent think they are worse off; 44 percent expect to be better off in a year's time compared with 13 percent who expect to be worse off.David Seymour: What effects does the Minister believe tax rates have on work saving and investment activity?Hon BILL ENGLISH: I think it is fairly well established that if tax rates are too high they discourage work saving and investment. However because of tax reforms undertaken by this Parliament New Zealand now has one of the lowest labour tax wedges in the developed world—that is for an extra hour of work New Zealanders on average pay less tax than almost anyone else in the developed world.Todd Barclay: What other reports has he received on the state of the economy?Hon BILL ENGLISH: I have seen in the last day or two a report asserting that most New Zealanders have seen their wages barely rise in recent years." That report not only is wrong but overlooks the relationship between inflation and wages. For instance between 1999 and 2008 after-tax wages increased by 35 percent but inflation was 29 percent in that period. Since 2008 the after-tax wage has increased by a little bit less—that is 31 percent on average—but inflation has been only 12 percent. So real wages have increased much more quickly in the last 7 or 8 years than in the decade before that.David Seymour: In light of his earlier answer could the Minister elaborate on how the 51st Parliament has reduced the tax wedge faced by workers?Hon BILL ENGLISH: I am referring maybe to the 50th Parliament—that is the tax reforms done in 2010 where income tax rates were reduced. That now shows up actually in the average source deduction tax as a proportion of GDP which has dropped by 3 or 4 percentage points. That achieves what we set out to achieve which is less tax on work saving and investment and more tax on consumption and property.David Seymour: Does the Minister have any plans to reduce taxes in the 51st Parliament?Hon BILL ENGLISH: I would not want to get into a debate with the member about which Parliament we are in or what might be the next one but as indicated the Government is interested in further lowering taxes should economic and fiscal conditions allow. But that is in the context where as we have seen in the last week or so there is a cacophony of demands for how the Government could spend its surpluses. The great thing is that we are one of the very few developed countries that have those choices because we are one of the very few that have rising surpluses.Rt Hon Winston Peters: Could the Minister of Finance explain to the whole country why it is that the National Government gives the ACT Party a right to ask questions that box him round the ears so that it can look like—in the case of the ACT Party—a real party?Mr SPEAKER: There is no—[Interruption] Order! There is no ministerial responsibility in that question."