3. Question No. 3—FinanceHon PAUL GOLDSMITH (National) to the Minister of FinanceQuestion No. 3—Finance3. Hon PAUL GOLDSMITH (National) to the Minister of Finance: Does he stand by all of the Government's policies statements and actions in relation to the economy?Hon DAVID PARKER (Associate Minister of Finance) on behalf of the Minister of Finance: Yes in the context they were delivered made and undertaken.Hon Paul Goldsmith: How does he reconcile a statement yesterday that the fundamentals of the New Zealand economy remains strong" with the Reserve Bank's key policy judgment yesterday that "Economic growth has slowed over the past year and is likely to remain soft in the near term."?Hon DAVID PARKER: Because unemployment is down to the lowest rate in many years; wages are up; exports are up; the Government Budget is in surplus; growth rates are higher than in Australia Japan Europe the UK USA and Canada; and whilst the Governor of the Reserve Bank is right to say that heightened uncertainty and declining international trade have contributed to lower trading partner growth it is also true that the fundamentals of the New Zealand economy are strong.Hon Paul Goldsmith: How can he say the Government is ramping up infrastructure spending when Budget 2019 actually showed Government capital spending forecasts were trimmed back by $3.3 billion over the next five years?Hon DAVID PARKER: In fact the Wellbeing Budget announced a capital investment package of $10.4 billion over the next four years including billions for schools billions for hospitals $1 billion into KiwiBuild and a record land transport fund focused particularly on the regions.Hon Chris Hipkins: Why does he stand by his statement that the fundamentals of the New Zealand economy are strong?Hon DAVID PARKER: Because unlike the current Leader of the Opposition who said one person's misinformation is another person's fact—SPEAKER: Order! Order!Hon Paul Goldsmith: Is he concerned at all by the prospect of negative interest rates and the effect that they will have on New Zealanders who have worked hard their entire lives to build up savings for retirement?Hon DAVID PARKER: Negative interest rates aren't a prospect for New Zealand in the near future. I would also note that whilst the member decries a decrease in interest rates—which of course have reduced the cost of living for everyone with a floating mortgage rate—in 2016 the then Government claimed that interest rates coming down were a sign of a Government responsibly managing the country's finances and that government by this side of the House would lead to rising interest rates and fewer jobs. The outcome has been the opposite: we've got more jobs higher wages and lower interest rates. Hon Paul Goldsmith: Did he not hear the Reserve Bank Governor's mention of the possibility of negative interest rates being not far off?Hon DAVID PARKER: No I wasn't there.Hon Paul Goldsmith: What growth policies has he got in place to avoid such a thing coming to pass?Hon DAVID PARKER: We have the stimulus provided by increased income supports to low-income people we've got the massive increase in capital expenditure and we've got the very increases in spending in the Government Budget that that member criticised when the Budget was passed.Hon Paul Goldsmith: Does he agree with the Reserve Bank Governor's assertion this morning that the banks are "scaring the public" about the possible effects of the Reserve Bank's proposed capital requirements?Hon DAVID PARKER: Again I haven't read those comments in detail but I do have confidence in the Governor of the Reserve Bank."