Auchinvole Chris: Questions for Oral Answer — Questions to Ministers 
Auchinvole Chris: Questions for Oral Answer — Questions to Ministers 
[Volume:676;Page:21791] 
3. 
CHRIS AUCHINVOLE (National—West Coast - Tasman) 
 to the  
Minister of Finance 
: How has the Government’s economic plan over the past three years laid the foundations for a more competitive economy based on savings exports and productive investment? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government had to set out to lay some foundations because the economy that we inherited was in very bad shape. It was dependent on excessive Government spending it had high levels of household debt it was providing new but unsustainable jobs and we had become less competitive with the rest of the world. We have debt under control; we have changed the incentives for people to work to save and to export; we have cut red tape; we have built infrastructure; we have raised educational standards; and we are increasingly focusing the economy on what we are good at which is trading with the rest of the world. 
Hon David Cunliffe 
: Since he is intent on a walk down memory lane can he confirm— 
Mr SPEAKER 
: Order! 
Hon David Cunliffe 
: —can he confirm that in December— 
Mr SPEAKER 
: Because I accepted that in answering the primary question the Minister of Finance gave some attention to the matters that the Government inherited which was not absolutely necessary to answer that primary question out of courtesy rather than going as normal to the primary questioner for the first supplementary question I went to the Opposition to give the Opposition the chance to question the Minister of Finance in those circumstances. But to start the supplementary question in that way makes the Speaker look stupid for having departed from the normal practice because that is not the appropriate way to start a question and it just makes it difficult in the House. I accept that the Minister of Finance did not need to mention the economic situation that the Government inherited in answering that primary question and that is why I came to the Opposition to ask the first supplementary question. I would like a supplementary question to be asked. 
Hon David Cunliffe 
: Does the Minister recall in December 2008 saying that he had inherited Government books that were in reasonable shape and was that because Government net debt including the assets of the New Zealand Superannuation Fund had been paid off to zero in the year preceding the election? 
Hon BILL ENGLISH 
: Yes Government debt was relatively low but all the forecasts showed it was about to expand in a never-ending almost geometric fashion as the accumulated mistakes and damage of the Labour Government built up over time to create damage to this economy. One of our mistakes I suppose early on was to underestimate just how much damage Labour had done to this economy. 
Chris Auchinvole 
: How did the Government’s tax package last year help to tilt the economy towards savings and exports and away from excessive borrowing and property speculation? 
Hon BILL ENGLISH 
: The tax package back in 2010 which had a total value of around $4 billion cut taxes on work on savings on exporting and on investment across the board and increased taxes on consumption with an increase in GST and tax on speculative property investment. This is going to have a benefit for the economy not over 1 or 2 years but we believe over 4 or 5 years because it fundamentally shifts the incentives in the economy in a way that will strengthen economic growth. 
Chris Auchinvole 
: How is the Government’s multibillion-dollar infrastructure programme helping to build a more competitive economy? 
Hon BILL ENGLISH 
: These are remarkably good questions. The multibillion-dollar infrastructure programme was an effort by the Government to ramp up investment—even in the midst of a recession—in New Zealand’s long-term productivity. That means we will have within a few years an upgraded electricity grid ultra-fast broadband rolled out around the country an upgraded rail network and of course we will be most of the way through a very significant roads of national significance programme. 
Chris Auchinvole 
: What benefits has the Government’s wide-ranging economic programme delivered? 
Hon Annette King 
: Who wrote that? 
Hon BILL ENGLISH 
: Despite answering I think over 400 questions— 
Hon Simon Power 
: I think it is; it is over 400. 
Hon BILL ENGLISH 
: —over 400 questions—and a handful of very good answers—the benefits have been wide ranging but I want to focus on just some. One benefit is that despite a recession New Zealanders have had small real income increases and I think that is a fantastic achievement. Secondly in the past year this economy has added 43000 new jobs. Thirdly our households—New Zealanders deserve congratulations on this—now have positive savings for the first time in more than a decade.