Scott Alastair: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeScott Alastair: Oral Questions — Questions to Ministers[Sitting date: 27 August 2015. Volume:708;Page:6242. Text is incorporated into the Bound Volume.]2.ALASTAIR SCOTT (National—Wairarapa) to the Minister of Finance: What reports has he received that expect the economy to deliver more jobs and higher wages for New Zealand families over the next three years?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: I have seen a recent report from the New Zealand Institute of Economic Research that makes some good comments about the New Zealand economy—if I could just find my answers—and says that it will continue to grow continue to add jobs and continue to lift New Zealanders’ incomes in the years ahead.Alastair Scott: What is the New Zealand Institute of Economic Research’s assessment of the outlook—Grant Robertson: I raise a point of order Mr Speaker.Mr SPEAKER: I hope that it is a sensible point of order.Grant Robertson: Oh it is a very important point of order. I just wanted to give the Minister a little time to find his laminated—Mr SPEAKER: Order! That is not a point of order. [Interruption] Order! That is the sort of point of order that actually creates more disorder.Alastair Scott: What is the New Zealand Institute of Economic Research’s assessment of the outlook for various sectors in the economy?Hon STEVEN JOYCE: Although the New Zealand Institute of Economic Research notes that the fall in dairy prices has had a significant effect a range of industries continue to support growth. Construction activity remains strong supported by much higher levels of house-building activity in Auckland and increased non-residential construction. Wool kiwifruit pipfruit and meat are all undergoing a revival. Kiwifruit export volumes are soaring. Business investment and hiring intentions remain solid. The New Zealand Institute of Economic Research reports that tourism and manufacturing are benefiting from a lower New Zealand dollar and higher global demand and the lower New Zealand dollar and the high US beef prices are providing some relief to dairy farmers who are culling unproductive stock.Alastair Scott: What reports has he received showing that increasing exports are supporting growth and resilience in the New Zealand economy?Hon STEVEN JOYCE: This is very interesting for the House. Yesterday Statistics New Zealand released its report on overseas merchandise trade for July. The value of goods exports was $4.2 billion in July of this year just over half a billion dollars or 14 percent higher than in the same month a year earlier. Meat exports were up 24 percent led by beef and that was up 40 percent due to higher prices alone. Fruit exports increased by 32 percent to $311 million and the value of dairy exports was up slightly by nearly a million dollars to $932 million with increases in cheese dairy spreads and milk protein offsetting the fall in milk powder exports.Julie Anne Genter: Can he confirm that 52000 more people are unemployed now than when he took office—that is 54 percent—and why does he think that the policies that he has been implementing over the past 7 years will give a different outcome over the next 3 years?Mr SPEAKER: Hon Steven Joyce either of those two supplementary questions.Hon STEVEN JOYCE: The member may or may not be aware that actually the number of people employed is significantly higher than it was 7 years ago because the labour market has expanded substantially over that period. Of course again the member may not be aware that we had the global financial crisis and the Canterbury earthquakes which caused significant dislocations to our employment market over that period. The Government is confident that New Zealand is continuing to deliver very high levels of employment—I think from memory about the fifth highest in the OECD—and that that is continuing to improve over time through the careful stewardship of the economy which encourages investment and growth.Alastair Scott: What steps is the Government taking to support the New Zealand economy in uncertain times?Hon STEVEN JOYCE: The Government is continuing to undertake a range of measures as part of its plan to support a resilient growing economy. The Government’s fiscal constraint is taking pressure off exchange rates and interest rates which supports less borrowing and higher national savings. We remain on track to surplus and to begin paying down debt. We are reducing costs through ACC levy reductions. We have lowered taxes for work and savings. We are boosting business research and development funding. We are on track to deliver $110 billion of investment in infrastructure over the next 10 years. The Government’s Business Growth Agenda is helping businesses to have the confidence to invest and is supporting regions to take advantage of economic opportunities.Julie Anne Genter: Has he seen any reports such as that from President Obama that job growth in the American solar industry is 10 times higher than in other industries and what specific actions is his Government taking to remove the barriers to growth in low-carbon industries?Mr SPEAKER: Again the Hon Steven Joyce may answer either of those two supplementary questions.Hon STEVEN JOYCE: The Government is making a considerable effort to make sure that there are no regulatory restrictions on the development of new industries. But where I would probably differ from the member is that we will not be planning big new subsidies for new industries either because that would actually be a drag on the New Zealand economy rather than encouraging growth in the New Zealand economy. This Government is focused on growing the New Zealand economy. Of course the good news for the member is that renewable energy is probably higher in New Zealand than in most of the developed world.Julie Anne Genter: Supplementary question. [Interruption]Mr SPEAKER: Order! I am just waiting for the colleague.Julie Anne Genter: How can he claim that his Government does not want to pick winners when Ministers in this House are constantly standing up and talking about the support that they are giving to the dairy industry the wine industry and the fossil fuel exploration industry; and why would he not support renewable growth as that is going to not only grow jobs but also help us—Mr SPEAKER: Order! Hon Steven Joyce either of those two supplementary questions.Hon STEVEN JOYCE: Where the Government does make a contribution—and the member has identified some areas—is in the area of research and developmentin particular through such things as the Primary Growth Partnership through the Callaghan Innovation research and development growth grants spend and so on. The member may be interested to know that industries such as information and communications technology and high-tech manufacturing are seeing very considerable growth in research and development and in activity generally in terms of the development and diversification of New Zealand industries. That is fine; in fact that is available now to all of the renewable energy industries that the member talks of. But what we are not prepared to do is go further than that and subsidise for example the price or the uptake of a particular industry.