Auchinvole Chris: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeAuchinvole Chris: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 25 June 2013. Volume:691;Page:11178. Text is incorporated into the Bound Volume.]2.CHRIS AUCHINVOLE (National)to theMinister of Finance: What progress is the Government making in building a more competitive and productive economy and how is this helping New Zealand families?Hon STEVEN JOYCE (Acting Minister of Finance): I am pleased to report we are making very good progress in building a more productive and competitive economy. For example last week Statistics New Zealand reported on gross domestic product for the March quarter. Despite the impact of the drought earlier this year the data confirmed that the economy grew 0.3 percent in the 3 months to March and 2.4 percent in the 12 months to March. It shows that the New Zealand economy is on the right track in line with Budget forecasts of economic growth more jobs rising wages and a return to fiscal surplus in 2014-15. It is good news for New Zealand families providing them with more security in a world that still faces a number of economic difficulties.Chris Auchinvole: How is the New Zealand economy performing compared with other developed countries?Hon STEVEN JOYCE: Very well in fact. The 2.4 percent increase in GDP in the year to March compares favourably with many other developed countries. In the same period the US grew by 1.8 percent Canada by 1.4 percent Japan by 0.2 percent and the UK by 0.6 percent and the euro area’s economic activity contracted by 1.1 percent.Dr David Clark: Worst economic record in 50 years.Hon STEVEN JOYCE: Do not be a parrot Clark. New Zealand’s economic growth was comparable to Australia’s 2.5 percent in the year to March. Although the drought did affect growth in the March quarter forecasters expect momentum to continue this year supported by rising consumer and business confidence and a lift in construction activity.Chris Auchinvole: How has the manufacturing sector contributed to the economy’s improving performance particularly given the declining indicators for manufacturing 5 years ago?Hon STEVEN JOYCE: The manufacturing sector is in much better heart than it was 5 years ago. Since the beginning of 2009 the manufacturing sector has grown 9.2 percent as measured by GDP which means it has been growing faster than the economy as a whole. The BNZ - BusinessNZ Performance of Manufacturing Index is currently at 59.2 showing very strong expansion—in fact one of the highest readings in the world today. This is in contrast to 2008 when manufacturing shrank in 1 year by 12 percent and the performance of manufacturing index reached as low as 35.8. You could even argue that the manufacturing sector was in crisis back in 2008 under the previous Labour Government.Hon David Parker: Is it correct that manufacturing exports outside of the primary sector are down 17 percent since 2008 and 6 percent in the latest year for which there is a record?Hon STEVEN JOYCE: This is the constant attempt by Mr Parker to pare away at the manufacturing sector to try to find some bits that have not been successful. But in answer to him I do not have those exact numbers here but I can confirm to him that the construction sector did decline during the global financial crisis but manufacturing overall has been growing under this Government when it was shrinking under Labour.Grant Robertson: I raise a point of order Mr Speaker. He has finished now but if Mr Joyce did not have the answer that would have been completely sufficient. He should have had it but he did not have it so—Mr SPEAKER: Order! It is not the member’s job to now start designing the answers he wants from the Minister.Chris Auchinvole: What do current improvements in the economy mean for New Zealand families?Hon STEVEN JOYCE: I am very pleased to report that the outlook for both the economy—Hon Trevor Mallard: I raise a point of order Mr Speaker. There seems to be a continuing trend from Government backbenchers to use both unnecessary points at the beginning of questions and in that particular case irony.Mr SPEAKER: Order! The member Chris Auchinvole has every right to ask a supplementary question. He can ask his supplementary question again.Chris Auchinvole: What do current improvements in the economy mean for New Zealand families?Hon STEVEN JOYCE: Notwithstanding the Opposition’s disinterest I am pleased to report that the outlook for both the economy and New Zealand families has improved considerably. For a start the economy is now growing. In 2008 it was deep in a domestic recession that had started before the global financial crisis. There are around 50000 more jobs in New Zealand than there were 2 years ago. The cost of living is low increasing by around 1 percent annually. In 2008 inflation was more than 5 percent. Floating mortgage rates are at 50-year lows and around half of what they were in 2008. The export sector and jobs in that sector are growing. Five years ago tradables—Mr SPEAKER: Order! That is a sufficiently long answer.Hon David Parker: In light of his answer to my last supplementary—Hon Gerry Brownlee: No you can’t ask a question like that.Hon David Parker: —question that he does not know—sorry?Hon Gerry Brownlee: Use the proper question language.Mr SPEAKER: Order!Hon David Parker: Is that a point of order?Mr SPEAKER: It would be helpful—[Interruption ] Order! It would be helpful if interjections were not continued from the front bench of the National Party.Hon David Parker: Given that the Minister in response to my last primary question said that he did not know that manufacturing exports outside of the primary sector were down 17 percent why is it that the Minister of Finance has not been advised by the Minister for Economic Development who has been in that portfolio for a number of years that manufactured exports outside of primary exports are down 17 percent in real terms since 2008 and 6 percent in the last year?Hon STEVEN JOYCE: I am reliably informed that the Minister for Economic Development has been in the role for about a year and a bit but it may feel like some years to those in Opposition. But I can confirm for the member that the volume of non-food manufactured exports—which may or may not be the exact same definition as hehas—actually did drop 5.8 percent in 2008. Since that time it has grown by 14.6 percent.