1. Government Financial Position—Credit Ratings Crown Debt and SurplusDAVID BENNETT (National—Hamilton East) to the Minister of FinanceTUESDAY 6 DECEMBER 2016Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSGovernment Financial Position—Credit Ratings Crown Debt and Surplus1. DAVID BENNETT (National—Hamilton East) to the Minister of Finance: What reports has he received confirming New Zealand's sovereign credit rating?Hon BILL ENGLISH (Minister of Finance): Late yesterday following the Prime Minister's announcement rating agency Moody's confirmed New Zealand's Aaa stable sovereign credit rating—and I think the Prime Minister was slightly disappointed about that! Moody's said that New Zealand's strong institutions support a smooth transition and policy continuity that the New Zealand Government has effectively pursued a policy of fiscal consolidation and Government debt is likely to remain low and that GDP growth has been strong and broad-based.David Bennett: What reports has he received on the Government's accounts showing tax revenues higher than forecast?Hon BILL ENGLISH: Earlier today the Government released its financial statements for the 4 months to October which show that the operating balance is around $0.9 billion better than forecast in Budget 2016 as at a deficit of $131 million. Core Crown tax revenue is $670 million higher largely due to higher corporate tax revenues and GST. However these numbers do not include the anticipated cost of the Kaikōura earthquake but indicate that the economy is growing strongly enough that those costs can be met without a significant impact on the Government books. David Seymour: When might the people who overpaid that extra tax get it back?Hon BILL ENGLISH: They will not be overpaying; they will just be paying what is legally due although as I sometimes point out there is no legal maximum to how much tax you can pay—you are free to pay more if you want to and it will be gratefully accepted. But what the numbers do show is that the economy is a bit stronger than was expected back in Budget 2016.David Seymour: So when will the Government change those laws so it does not tax people more than it requires for its expenditure?Hon BILL ENGLISH: The nature or timing of such decisions is part of the ongoing discussion between the National Party and the ACT Party. We understand the ACT view very clearly. However the National Party believes that there are more opportunities to carefully spend more public money. Where we are collecting more than we need then there is the possibility of reducing taxes.David Bennett: How is debt tracking against forecasts as reported in today's Crown financial statements?Hon BILL ENGLISH: Debt is tracking a little bit better than forecast. We have low Government debt by international comparisons. It peaked at about 25 or 26 percent of GDP and it is gradually dropping—and these accounts indicate it is dropping a bit faster than we expected.Rt Hon Winston Peters: In respect of the finance Minister's discussions and negotiations with the ACT Party on what day at what address and in which telephone booth did those negotiations take place?Mr SPEAKER: I will leave it to the Minister if he wants to answer—the Hon Bill English.Hon BILL ENGLISH: I have heard for many years the member's reference to the meetings that he does conduct in telephone booths but these ones are conducted in the Prime Minister's office because ACT is part of the governing coalition of New Zealand—and New Zealand First is not.David Seymour: Is the Minister aware that history has moved on and most people actually have cellphones now?Hon BILL ENGLISH: Yes.David Bennett: How does lower debt and ongoing discipline in spending support resilience in the New Zealand economy?Hon BILL ENGLISH: The lessons of the Kaikōura earthquake I think demonstrate exactly why reducing Government debt maintains our resilience. This is an earthquake that could cost $2 billion to $3 billion. If the books were in worse shape that would prevent us making other positive choices we could make to invest in transport and infrastructure but because the books are in good shape we should be able to absorb the cost of the earthquake and continue to invest in infrastructure.