Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 01 March 2016. Volume:711;Page:9207. Text is incorporated into the Bound Volume.]8.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: What was the dollar figure of net core Crown debt when he took office as Minister and what is that dollar figure today?Hon BILL ENGLISH (Minister of Finance): In 2008-09 core Crown net debt was $17.1 billion or 9.1 percent of GDP. Net debt in 2014-15 was $60.6 billion or 25.2 percent of GDP. In between we had the world’s most significant financial crisis since the Great Depression and we had to borrow $17 billion to rebuild Christchurch. Every proposition I have seen from the Labour Party since would drive debt up.Grant Robertson: Has he seen the report by Citigroup entitled “Here Comes a Global Recession” and what is he prepared to do to change his approach to managing the economy to meet that challenge?Hon BILL ENGLISH: I do not have to read Citigroup’s voluminous commentary to hear about coming recession because the Labour Party has been predicting it the whole time the economy has been growing. About every second week it predicts a recession so no I have not read that report.Barbara Kuriger: What steps has the Government taken to return the books to surplus and get on top of debt?Hon BILL ENGLISH: The Government is focused on careful management of new spending. In the last seven Budgets we have spent an average of $680 million in discretionary spend each Budget compared with an average of $3 billion per year in the 7 years before that. We have also focused on getting more for less out of existing public services not just new ones and that has meant pursuing with some vigour value for money in our large spending areas such as in education in health in the justice system and also in welfare using some more innovative techniques that are starting to show long-term benefits.Grant Robertson: Does he stand by his statement in November 2008 when net debt was $50 billion less than it is today: “I want to stress that New Zealand starts from a reasonable position in dealing with the uncertainty of the economic outlook.”?Hon BILL ENGLISH: In respect of net debt levels yes but of course in respect of the policy settings left behind by the disastrous management of the previous Labour Government no.Grant Robertson: Does he recall saying in November 2008 “In New Zealand we have room to respond. This is the rainy day that the Government has been saving up for.” and how are we placed for an upcoming rainy day with $50 billion extra debt?Hon BILL ENGLISH: I did say that and I must say that since then my appreciation of the skills of Dr Cullen as a Labour finance Minister has grown enormously. He had much more understanding and ability to deliver on these things than any of the six finance spokesmen since.Simon O’Connor: What other approaches has the Minister seen to managing the Government’s books?Hon BILL ENGLISH: I have seen proposals just in the last few months for increased spending on public sector wages infrastructure education health tertiary education social services the Venture Investment Fund and the Superannuation Fund. All of these have come from the Labour Party which is advocating that we have got too much debt.Grant Robertson: Is it not true that his failure to grow the New Zealand economy in real terms means that our borrowing is tens of billions of dollars higher and that the rainy day that is coming now we are not prepared for as we were in 2008?Hon BILL ENGLISH: No I would disagree with that. In 2008 although Government debt levels were low it was the product of a time when nominal GDP had grown very rapidly. Inflation was 5 percent first mortgage interest rates then were 10 percent—so although debt levels were low the economy was in very poor shape. This time round debt levels are higher because they have had to be to run a decent community and decent support for the New Zealand people but our economy is in much better shape than it was in 2008.