Cunliffe David: Questions for Oral Answer — Questions to Ministers Questions to Members 
Cunliffe David: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:676;Page:21404] 
4. 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
 to the  
Prime Minister 
: Is it his policy to “muddle through” the current economic uncertainty? 
Rt Hon JOHN KEY (Prime Minister) 
: 
 No the Government has actively taken a number of steps to ensure New Zealand can minimise any fall-out from global economic events. For example we have set a faster track back to surplus and we have limited debt to under 30 percent of GDP. We have front-loaded our borrowing programme during favourable market conditions which will cover the Government’s obligations over coming months should markets show signs of tightening and the Reserve Bank has ensured it can provide temporary liquidity to sound institutions. It does not mean we are immune to any global events but we are certainly in a lot better shape than the one we inherited from that hapless Labour Government 3 years ago. 
Hon David Cunliffe 
: Given the answer to the primary question was no it was not his plan does he then agree with the sentiments he ascribed to his Minister of Finance this morning that it was sufficient for New Zealand to muddle through the current economic turbulence; or does he aspire to a better plan? 
Rt Hon JOHN KEY 
: I have never said the words in the quote that the member has just said. In fact I have the quote in front of me. The question from Rachel Smalley was “Do you believe a double-dip recession is on the horizon?” to which I said “while the atmosphere and the mood is very dark in the United States”—by the way that is the place where the President has Camp David as a retreat—“and in Europe … we may just muddle through” “we” being the world not New Zealand. 
Hon David Cunliffe 
: I seek leave to table a transcript of the Prime Minister’s response to that question from TV3’s  
Firstline— 
Mr SPEAKER 
: We do not table transcripts from TV shows. 
Hon David Cunliffe 
: Does he recall the Minister of Finance giving a speech in 2009 wherein he said “we want to do better than just muddle through”; and 2 years later on with growth of just 0.1 percent and 47000 more people out of work than when he came into office is it not time he delivered on this aspiration? 
Rt Hon JOHN KEY 
: Yes I recall that speech. Notwithstanding the earthquakes that have taken place in Christchurch which have clearly had an impact on the economy we have grown at 1 percent for the first half of this year. The OECD average has been 0.3 percent for the first quarter and 0.2 percent for the second quarter. It might be worth thinking about what those quarters looked like in 2008: March was minus 0.2 percent June was minus 0.6 September was minus 0.6 and December was minus 1.2. That is a remarkable set-up from that hapless Labour Government. 
Hon David Cunliffe 
: I seek leave to table a document. It may assist the Prime Minister’s memory if I were to table this graph of GDP statistics which shows the change in trend since— 
Mr SPEAKER 
: What is the source of the document? 
Hon David Cunliffe 
: Statistics New Zealand and the Parliamentary Library. 
Mr SPEAKER 
: It is prepared by the Parliamentary Library is it? 
Hon David Cunliffe 
: The Parliamentary Library and Statistics New Zealand. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection. [ 
Interruption 
] A point of order is being dealt with and it will not be dealt with that way.  
Chris Tremain 
: What economic conditions did the Government inherit in 2008? 
Rt Hon JOHN KEY 
: That is an excellent question. When the Government came into office in late 2008 we inherited the following economic conditions: inflation was 5.1 percent mortgage interest rates were 10.5 percent food prices had gone up 11 percent the economy had gone backwards for four quarters in a row Treasury was forecasting deficits for ever and debt was meant to go to 60 percent of GDP and never come back down again. That was the going-away present that Labour delivered an incoming National Government. I am proud to have led a Government that has turned that situation round. 
Hon David Cunliffe 
: When the Prime Minister promised New Zealanders an “aggressive” recovery and that the country would come “roaring” out of recession did he mean that 3 years later he would be muddling through and growth would be crawling along at 0.1 percent well below the rate of population growth? 
Rt Hon JOHN KEY 
: Again I did not say “roaring” so the member if he wants to quote me should get the facts and read them out properly as well as the full quote as he knows well. Relatively speaking we are doing pretty well—not as well as we would like; of course we would like to do better. I am reasonably confident about quarter three and four growth. 
Hon John Boscawen 
: Has he seen the IMF  
World Economic Outlook 
 report projecting New Zealand’s real GDP growth between 2006 and 2016 at just 0.8 percent per annum; if so rather than muddling through is he prepared to reconsider his decision to shelve the last two 2025 reports which outlined a plan for New Zealand to boost its growth? 
Rt Hon JOHN KEY 
: No I have not seen that report but what I would say is let us have a little bit of context about the last 3 years at least. We have had a global financial crisis which has affected— 
Hon David Cunliffe 
: Oh it’s always someone else’s fault. 
Rt Hon JOHN KEY 
: Well if David Cunliffe really thinks New Zealand can be the only country in the entire world that would be immune from the global financial crisis then I think “Camp David 1” should swap over to “Camp David 2” because he is clearly not demonstrating any form of leadership. Secondly if one looks at the earthquakes and the economic impact of those which has been enormous on the New Zealand economy and then within that context one looks at what is happening in New Zealand I think one can take a view that says we are starting to do better and are improving within that environment. We have grown for eight of the last nine quarters we will be back in surplus by 2014-15 our debt is one quarter of the OECD average we have interest rates at a 45-year low unemployment is starting to fall we have created 45000 jobs and I think in the context of that environment it is not too bad. 
Hon David Cunliffe 
: Why is the Prime Minister content to roar about the success of the Rugby World Cup and the record dairy payout outside the Chamber but barely able to squeak about the performance of his Government—because it is all someone else’s fault such as the global recession or previous Governments—when he gets into the Chamber? 
Rt Hon JOHN KEY 
: I was actually slightly conscious that I was roaring inside the Chamber but for the purposes let us go through it one more time. We have grown in eight out of the last nine quarters—not bad. We have interest rates at a 45-year low—not bad. Unemployment is starting to fall—not too bad. We are likely to create 170000 jobs in the next 4 years we have reformed the Resource Management Act and by the way we are on track to win the Rugby World Cup. 
Hon Members 
: Yay! 
Mr SPEAKER 
: That is enough. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. It was a little difficult— 
Mr SPEAKER 
: Now look. The House will come to order. It has had its fun and will come to order. The member will resume his seat— 
Hon David Cunliffe 
: It was a little difficult to hear— 
Mr SPEAKER 
: I thank the honourable member; I just want the House to settle down for a moment. Now it is a point of order the honourable member wishes to raise. 
Hon David Cunliffe 
: It was a little difficult to hear with that background noise but I was wondering whether I heard the Prime Minister say when he will return to surplus— 
Mr SPEAKER 
: That is not a point of order. The member knows that. 
Hon John Boscawen 
: Does he consider it satisfactory that the International Monetary Fund is projecting a lower 10-year growth rate for New Zealand than for 148 other countries all of which have been affected by the global financial crisis including Australia at 1.6 percent per annum and Singapore at 2.6 percent per annum; if not when can New Zealanders look forward to his Government implementing the recommendations of the 2025 Taskforce? 
Rt Hon JOHN KEY 
: About as soon as we look forward to decriminalising cannabis. I have not seen that particular report so I cannot tell the member that detail because the context of it would need to be seen. What I can tell the member is that in the last 6 months—if we just look at the last 6 months as an example—we have grown at double the rate of the OECD average. 
Hon John Boscawen 
: I seek leave to table a graph— 
Mr SPEAKER 
: The House must settle down. 
Hon John Boscawen 
: I seek leave of the House to table a graph prepared by the International Monetary Fund showing projected growth rates over a 10-year period from 2006 to 2016 putting New Zealand at the 148th slot. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is no objection. 
Document by leave laid on the Table of the House.