McClay Todd: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
McClay Todd: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 31 July 2012. Volume:682;Page:4062. Text is incorporated into the Bound Volume.] 
2. 
TODD McCLAY (National—Rotorua) 
 to the  
Minister of Finance 
: How has the Government balanced the need for responsible fiscal management with its continued support for New Zealand families? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Despite difficult economic times in the last 3½ years the Government has been committed to taking the rough edges off the effects of recession for New Zealanders. We have done that by maintaining large programmes such as Working for Families interest-free student loans New Zealand superannuation and early childhood education subsidies. At the same time we have worked hard with the Public Service to improve public services because Government spending increases through the early 2000s were unsustainable. We have been able to do this at the same time as setting a path back to surplus in 2014-15. 
Todd McClay 
: What progress has the Government made since 2008 in getting on top of debt and putting its finances in order? 
Hon BILL ENGLISH 
: We have made steady and consistent progress rather than dramatic progress. However the first forecast the Government received in December 2008 showed sharp rising public debt and never-ending Government deficits leading to net Government debt hitting around 60 percent of GDP by 2026. The steps we have taken since then mean that by 2026 net debt is now forecast to reach zero and the Government remains on track for a small Budget surplus in 2014-15. 
Hon David Parker 
: Is it responsible fiscal management to spend $120 million on consultancy advice and marketing for his sale of State-owned assets programme; if so how are those asset sales going at the moment? 
Hon BILL ENGLISH 
: The asset sales programme remains on track. Some issues—[ 
Interruption 
] There is nothing new or unexpected in the reports from the Waitangi Tribunal. 
Todd McClay 
: Despite tight fiscal constraints how much does the Government currently invest in programmes supporting New Zealanders? 
Hon BILL ENGLISH 
: We believe it has been important to provide New Zealand households and families with security about their income through difficult times. We are spending $2.6 billion a year on Working for Families payments which have recently increased by 5 percent on 1 April. We will spend $1.4 billion this year on early childhood education subsidies—60 percent more than in 2008. We have spent $156.6 million on paid parental leave. This has increased from $135 million in 2008. In fact paid parental leave has increased by $67 per week since 2008. The annual cost is forecast to rise to almost $200 million a year by 2016. 
Todd McClay 
: What reports has he seen that would require the Government to borrow hundreds of millions of dollars more over 4 years? 
Hon BILL ENGLISH 
: I have seen an officials’ report that a proposal to roughly double the paid parental leave scheme would cost taxpayers an extra $439 million over its first 4 years. As I have said the Government is currently spending about $150 million a year and this will rise to $200 million a year by 2016. The Government simply does not have a spare $439 million. It would have to borrow that from overseas lenders. We believe the current extensive support for families has been supportive of their family incomes through the last 3 or 4 years.