Hayes John: Questions for Oral Answer — Questions to Ministers Urgent Questions 
Text is incorporated into the Bound Volume 
Hayes John: Questions for Oral Answer — Questions to Ministers Urgent Questions 
[Sitting date: 28 March 2013. Volume:688;Page:9055. Text is incorporated into the Bound Volume.] 
1. 
JOHN HAYES (National—Wairarapa) 
 to the  
Minister of Finance 
: What reports has he recently received on business confidence investment and growth? 
Hon STEVEN JOYCE (Associate Minister of Finance) 
 on behalf of the Minister of Finance: I have received a number of reports showing that business confidence is continuing to be strong and positive. For example ANZ yesterday published its latest Business Outlook survey. It confirmed that business confidence remains elevated with a net 35 percent of businesses expecting general business conditions to get better over the year ahead. Also yesterday Statistics New Zealand reported that spending on research and development by New Zealand businesses reached $1.2 billion in 2012 up almost 25 percent since 2010 and official data on Tuesday showed that the value of exported goods rose $290 million or 8 percent to $3.9 billion in February compared with February last year. 
John Hayes 
: What observations did ANZ’s Business Outlook survey make about business confidence and the improving outlook for the economy? 
Hon STEVEN JOYCE 
: The Business Outlook survey growth indicator is pointing to 2.8 percent growth in the economy during the year ahead. After accounting for seasonality there was a rise of confidence in March which ANZ said was encouraging against the backdrop of concern about the drought. It noted that the current net 35 percent of businesses expecting better times in the year ahead is well above the historic average of 8 percent. It also noted that the services sector which accounts for nearly two-thirds of GDP is now the most optimistic followed by construction. Finally a net 32 percent of firms are optimistic about their own business prospects and that compares with a long-term average of 26 percent. 
John Hayes 
: What does Statistics New Zealand’s Research and Development Survey for 2012 conclude about investment in research and development? 
Hon STEVEN JOYCE 
: Statistics New Zealand noted that the almost 25 percent jump in research and development spending by businesses to $1.2 billion was very widely based. In fact the increase was observed across almost all industries. Total research and development spending across business Government and higher education was more than $2.6 billion in 2012 and that in itself is a 9 percent increase over 2 years. Statistics New Zealand noted that as a proportion of GDP New Zealand’s research and development spending continues to be below that of many other OECD countries—and that is a long-term issue but the trend is in the right direction—and that Government funding directed at business research and development has helped grow research and development by businesses. 
Hon David Parker 
: Were the number of hours worked in New Zealand in the latest quarter for which there is data fewer than the number of hours worked when he took office and is that because the economy under National is not working for ordinary New Zealanders or is it because so many people have left for Australia? 
Hon STEVEN JOYCE 
: I do not have that exact data to hand for the member but I do know that he combs through the data to find convenient data at all times to continue to talk down the New Zealand economy. There is no doubt that there are still challenges in terms of job growth—and in particular in part-time jobs—in the New Zealand economy but what we are seeing is increasing confidence. We are seeing faster growth of around 3 percent year on year last year which is actually bodes well for a continued pick-up in employment in the year ahead. [ 
Interruption 
] 
Mr SPEAKER 
: Order! 
John Hayes 
: What factors were behind the encouraging increase in New Zealand’s merchandise exports in February? 
Hon STEVEN JOYCE 
: With the normal caveats about monthly statistics Statistics New Zealand reports that the $290 million increase in merchandise exports in February was led by an increase in exports to China which is up by over $0.25 billion or 49 percent compared with February a year ago. Milk powder pine logs and sheepmeat were amongst the main exports to China during February. It is important to be cautious. The ongoing drought is expected to have an impact on dairy volumes in the year ahead at least although offsetting price movements will help contain those issues. 
Dr Russel Norman 
: Why is he encouraging Kiwi mums and dads to invest in Mighty River Power when the value of those investments is in doubt due to the risk of the Tiwai smelter closing? 
Hon STEVEN JOYCE 
: Investors in the Mighty River Power offer will make their own assessment as to whether to invest or not. But in terms of the matter the member raises it has actually been well-known about the Tiwai Point smelter and the reliance that Meridian Energy places on it for many many years and these are not new issues. 
Dr Russel Norman 
: Has Rio Tinto not got the Government over a barrel with regard to the Tiwai Point negotiations because it knows that the Government has committed itself to the asset sales and now it is going to try to get as much money from the taxpayer as possible because Rio Tinto knows that if the smelter closes the asset sales programme is bunk? 
Hon STEVEN JOYCE 
: Well whatever Rio Tinto’s view is if it is as described by the member that is not shared by the Government. In terms of his supposition at the end of his question I do not think that is the case at all.