Foss Craig: Questions for Oral Answer — Questions to Ministers 
Foss Craig: Questions for Oral Answer — Questions to Ministers 
[Volume:658;Page:6919] 
2.  
CRAIG FOSS (National—Tukituki) 
 to the  
Minister of Finance 
: What reports has he received on New Zealand’s economic performance? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 In recent weeks a number of reports have confirmed early signs of a pick-up in business and consumer confidence. For instance the New Zealand Institute of Economic Research’s October survey of business opinion and the National Bank’s  
National Business Outlook 
 confirm that most companies expect better times ahead. We have yet to see whether this upsurge in confidence will translate into more investment and more jobs. 
Craig Foss 
: How will this pick-up in economic and business confidence flow through to jobs and growth? 
Hon BILL ENGLISH 
: In the first place it could well take some time. These are indications that the economy has stopped contracting and promising signs that it may start growing. However unemployment is likely to increase for a number of months yet. In fact most economists forecast that it will increase well into next year. All of these businesses will need a Government that is creating the best possible environment so that they are willing to invest and create new jobs because 60000 people are on the dole. 
Hon David Cunliffe 
: Does the Minister therefore agree with statements that there is an opportunity for a once-in-a-generation reorientation of the tax system and that substantial economic reform is required supported by fiscal consolidation far greater than outlined in the Budget—the proposal for a flat-tax system that was included in papers that he signed and delivered to Cabinet? 
Hon BILL ENGLISH 
: I think there has been a misreading of those papers. In fact there is nothing in them about flat tax. There is advice in them about aligning tax rates. Treasury has been telling Ministers of Finance for years that there is a once-in-a-generation opportunity and they have to take it. 
Craig Foss 
: What feedback has the Minister received on the New Zealand economy from overseas investors? 
Hon BILL ENGLISH 
: The Government is working with overseas investors because over the next 4 years we have to borrow about $40 billion. The indications are that those investors are positive about the New Zealand economy. Although we think that we are not performing that well compared with many other developed countries our economy is coming out of this recession stronger than many others. 
Hon David Cunliffe 
: Does the Minister favour the flat-tax proposal he took to Cabinet which was rejected by the Prime Minister this morning; if not why did he not rule it out last night when asked about it by reporters? 
Hon BILL ENGLISH 
: There was no flat-tax proposal. I never took it to Cabinet and I have ruled it out. 
Craig Foss 
: What other comments has the Minister seen about the Government’s role in supporting the economy? 
Hon BILL ENGLISH 
: I saw a comment that reads: “We cannot simply wish away the implications of reduced taxes or rising debt. We must insist on value for money from the public sector. The state must play its part in stewarding limited budgets and targeting resources to those who need them most.” I agree with those comments which came from David Cunliffe just before Budget 2009.