Ross Jami-Lee: Oral Questions — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeRoss Jami-Lee: Oral Questions — Questions to Ministers Questions to Members[Sitting date: 23 October 2014. Volume:701;Page:200. Text is incorporated into the Bound Volume.]1.JAMI-LEE ROSS (National—Botany)to the Minister of Finance: What measures is the Government taking to help the New Zealand economy become more productive and competitive?Hon STEVEN JOYCE (Associate Minister of Finance):on behalf of theMinister of Finance: The Government is taking a large number of measures to help the economy become more productive and competitive. It is of course only by having a strong economy that we can lift opportunities and incomes for Kiwi families and provide world-leading public services. This literally requires us to do hundreds of things well. Within the Government’s wider economic plan the Business Growth Agenda sets out around 350 of these initiatives in the areas of growing exports capital markets innovation skilled and safe workplaces natural resources and infrastructure.Jami-Lee Ross: Within the Business Growth Agenda what are the Government’s main priorities for this term of Parliament?Hon STEVEN JOYCE: We have laid out many priorities but during the election campaign we highlighted 10 priorities in particular for the Business Growth Agenda on returning to Government. They are all aimed at increasing New Zealand’s long-term growth rate and to create more opportunities for New Zealanders and their families. These priorities include negotiating and signing free-trade agreements including with Korea the Trans-Pacific Partnership and the World Trade Organization Government procurement agreement. They also include passing the Employment Relations Amendment Bill which is currently before the House to ensure flexible labour markets that create more jobs for Kiwis. Another priority is introducing and passing a Resource Management Act reform package to provide more certainty timeliness and cost-effectiveness in resource allocation decisions.Jami-Lee Ross: What priorities within the Business Growth Agenda will the Government pursue to improve skills and support more jobs within the economy?Hon STEVEN JOYCE: In a growing economy—and of course that is what we do have—it is important that we quickly fill any emerging skill gaps to help encourage thriving Kiwi businesses to continue to grow. That is why two of the 10 Business Growth Agenda priorities I identified previously are aimed at training and attracting more young people to innovative and growing parts of the New Zealand economy with initiatives like information and communications technology graduate schools more places in engineering and holding a series of job fairs in Australia. Yesterday my colleague the Minister for Economic Development announced that the Government would be holding these jobs fairs in capital cities across Australia to encourage more expat Kiwis and indeed skilled Australians to help contribute to the growth of New Zealand businesses. The first two fairs will be held before the end of the year in Perth and in Sydney in late November with job fairs planned for Brisbane and Melbourne in the first quarter of next year.Jami-Lee Ross: Why has the Government decided to hold job fairs in Australia?Hon STEVEN JOYCE: Well that is an excellent question. Between December 1999 and December 2008 well over a quarter of a million New Zealanders—277000 in fact—moved to Australia which of course provided a lot of skilled labour to help grow the Australian economy but now it is time to get more of those people moving back the other way to do the same here. We are making progress on that. In the year to September there was a net outflow of only 6000 people to Australia which is the lowest net outflow since December 1994. In fact it included a net loss of only 68 people in the month of September. One of the reasons that has changed is because of the Government’s unrelenting focus on growing the New Zealand economy. Our economy grew by 3.9 percent in the year to June compared with 3.1 percent in Australia and our unemployment rate at 5.6 percent is below Australia’s now at 6.1 percent.Dr David Clark: Does the Minister agree with the Hon Steven Joyce that a target of exports reaching 40 percent of GDP in 2025 is still achievable given that the export to GDP ratio is forecast this year to plummet to its lowest level in a quarter of a century?Hon STEVEN JOYCE: This appears to be the new manufacturing crisis.Rt Hon Winston Peters: Just answer the question.Hon STEVEN JOYCE: OK grumpy. Come on grumpy. Come on grumpy.Mr SPEAKER: Order! If I may also add just answer the question.Hon STEVEN JOYCE: The member is wrong. Actually in world dollar terms and in volume terms New Zealand exports continue to grow. Yes because of the high dollar in New Zealand dollar terms they look lower than they otherwise would do. But actually I bring good news to the member. I was at the TIN100 launch in Auckland last evening and for the member who professed his interest in the information and communications technology and high-tech sectors there was once again a further growth in exports of that sector—the top 100 tech companies in New Zealand—of up to $5.6 billion in exports over the last year. That is growth of 2.3 percent in New Zealand dollar terms at the highest New Zealand dollar they have had to face possibly for 50 or 60 years.Dr David Clark: I seek leave to table a document showing that Treasury expects exports to further drop as a percentage of GDP for the year to March 2015—Mr SPEAKER: Order! The document has been described. What is the source of the document?Dr David Clark: The Parliamentary Library.Mr SPEAKER: I will put the leave; the House will decide. Leave is sought to table that particular document prepared by the library. Is there any objection? There is none. It will be tabled.Document by leave laid on the Table of the House.Dr David Clark: Given that exports relative to GDP in 2016 are forecast to reach their lowest level in 40 years the worst since Robert Muldoon became Prime Minister how much faster will exports have to grow relative to GDP to reach Steven Joyce’s 40 percent target in 2025?Hon STEVEN JOYCE: We tend to work in actual volumes not necessarily Treasury predictions. I have been expecting a significantly higher inflation rate for example than what has turned out in this last quarter where New Zealand’s inflation—Hon Annette King: He’s pretty arrogant isn’t he?Hon STEVEN JOYCE: Well actually no it is not arrogant at all.Hon Annette King: He is pretty arrogant.Hon STEVEN JOYCE: No it is actually a 1 percent CPI rate and Treasury only a few days ago was expecting a higher number.Dr David Clark: Does the Minister understand Steven Joyce’s numbers?Hon STEVEN JOYCE: Does the member just want to take a break and listen? [Interruption]Mr SPEAKER: Order! I think it just goes to demonstrate that interjections as loud as that do lead to more disorder. It would be much appreciated if the Minister could simply answer the questions being asked.Hon STEVEN JOYCE: As I was going to say the Government is working hard to reach that target by 2025. We are working hard of course to take New Zealanders with us and the industries that I referred to in my answer to the previous supplementary question are achieving great progress as well. We are also working of course to try to be in Government in 2025 to see that target met.Dr David Clark: I raise a point of order Mr Speaker. I am not sure how that addressed the question.Mr SPEAKER: On this occasion I think the question has been addressed. It may not have been satisfactorily addressed for the member and other members in the House but it has been addressed.