3. Government Financial Position—Surplus and Crown DebtSCOTT SIMPSON (National—Coromandel) to the Minister of FinanceGovernment Financial Position—Surplus and Crown Debt3. SCOTT SIMPSON (National—Coromandel) to the Minister of Finance: How are the Government's financial accounts tracking compared to Budget 2016?Hon STEVEN JOYCE (Minister of Finance): The financial accounts are tracking along well. Currently the Crown accounts for the 8 months to February are showing a $1.4 billion operating surplus compared with Treasury's forecast of a $568 million surplus at the start of the fiscal year. This is also $912 million better than expected at the half-yearly update which was released just before Christmas. The Government's books are in good shape because we have shown spending restraint improved the quality of our expenditure and focused on the areas where we can make the most difference to people's lives.Scott Simpson: What is driving this higher-than-anticipated level of Government surplus?Hon STEVEN JOYCE: Higher tax revenues are the major contributing factor with $3.5 billion more in tax collected in the first 8 months of this year compared with last year. In fact tax revenues are 3.8 percent ahead of Budget 2016 expectations and 7.7 percent ahead of the same period last year. All categories have been growing but company tax was the largest driver of this favourable result. Revenue is $551 million ahead of forecast. That is of course the return the country gets from a consistently growing economy that is responding to a strong economic plan.Grant Robertson: Can the Minister tell the House whether or not the surplus number includes a calculation for the cost of the Kaikōura earthquake and has he been updated on what the likely cost to the Government of the recovery from it will be?Hon STEVEN JOYCE: It does have some costs in it for the Kaikōura earthquake. There will be further costs. We are yet to refine for example the final cost of restoring the State Highway 1 corridor and I will update members in due course as to the final amounts for those particular issues in relation to Kaikōura.Scott Simpson: How is the strong financial position that he has spoken about helping the Government achieve its debt target?Hon STEVEN JOYCE: We are making good progress on achieving our debt target. Net debt currently sits at 23.5 percent of GDP. It does move around and I think in reference to my colleague opposite there are some significant items of expenditure. But we are on track to reduce net debt to around 20 percent of GDP by 2020-21 which will improve the resilience of the New Zealand economy to withstand future shocks.Fletcher Tabuteau: What is the total debt attributable to the Crown inclusive of student loans State-owned enterprises debt and debt owed by councils?Hon STEVEN JOYCE: I am not sure that debts held by councils are attributable to the Crown. I know that some councils would prefer it that way but that is definitely not the case. I would not want to give the indication that that was about to change any time soon. I do not actually have that exact number for the member today but I can tell him that net debt which is the net debt once the assets are deducted is 23.5 percent of GDP currently.Fletcher Tabuteau: I raise a point of order Mr Speaker. It was a question related very much to the primary question. It was precise it was concise and the Minister has not answered it.Mr SPEAKER: No the Minister definitely answered it. He said he did not have that information to hand. That is not an unreasonable answer at all.Scott Simpson: What options does the Government have in order to utilise strong Crown accounts and growing surpluses?Hon STEVEN JOYCE: As I have said the Government's priorities for the upcoming Budget are clear. We will be working on delivering better public services for a growing country. We will also be doing more work to build the infrastructure that we need in growing a modern economy on top of what we are already doing. We intend to keep paying down debt as a percentage of GDP. Finally we remain committed to reducing the tax burden on lower and middle income Kiwi families when we are able to. What we cannot do is look to fritter away the hard work completed to date as I am sure my friend Mr Robertson would love to do.