Parker David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Parker David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 21 March 2013. Volume:688;Page:8832. Text is incorporated into the Bound Volume.] 
2. 
Hon DAVID PARKER (Labour) 
 to the  
Minister of Finance 
: Does he agree with Westpac economist Nathan Penny that the increase in the annual current account deficit to $10.5 billion 5 percent of GDP is a “worrying symptom of New Zealand’s two-speed economy and re-emerging imbalances”; if not why not? 
Hon STEVEN JOYCE (Acting Minister of Finance) 
: 
 A range of views have been expressed on yesterday’s results and not all the Minister would agree with. The Minister would agree with Mr Penny who also said that the economy is clearly improving and “household spending and business confidence are on the up.” But if Mr Penny is concerned about the current account deficit now then he must have been apoplectic about it when the current account deficit averaged over 8 percent under the previous Government. 
Hon David Parker 
: If 30 percent of Mighty River Power shares being sold go offshore will this have a further negative effect on New Zealand’s current account deficit? 
Hon STEVEN JOYCE 
: In terms of the first part of his question there is no indication that that is the case at all beyond Mr Cosgrove actually asserting it yesterday and we generally do not take advice from Mr Cosgrove in these matters. But in terms of the member’s question with regard to investment and investment income it all depends on the quality of that investment income. I would point out to the member that in the balance of payments yesterday if you look at the investment flows there were two main influences: New Zealanders were earning record amounts from their investments offshore which I think the member would argue was a good thing; also those that are foreign investors investing in New Zealand invested something like 60 percent of their earnings back in the country which is also a good thing. The third thing is to point it out to the member the actual investment balances—yes they were affected by Government borrowing and that is why the Government is very very focused on getting back into surplus which is something that his colleagues on the Opposition side do not seem to understand. 
Hon David Parker 
: How can he credibly claim that his Government has rebalanced the economy which was its stated objective when there is double-digit housing inflation in Auckland persistently high unemployment and a large current account deficit? 
Hon STEVEN JOYCE 
: Well I would have a look at the GDP statistics today if I was the member which showed broad-based growth across the New Zealand economy in 15 of the 16 categories measured. The 16th was manufacturing. If you take oil and gas out of that manufacturing was also positive over the quarter and over the year. In fact the oil and gas one is the one of course that there is only one party in this House or perhaps also the parties that work alongside— 
Mr SPEAKER 
: Order! That is not a necessary part of the answer. 
Hon David Parker 
: Why does he downplay the importance of his failure to rebalance the economy when it is not just the Westpac economists but also the BNZ economist Doug Steel who said that yesterday’s current account numbers are “part of the slippery slope that we think the external accounts are on”? 
Hon STEVEN JOYCE 
: It is just you know incredulous being lectured by that member because from 2005 to 2008 the balance of payments deficit was 8 percent of GDP on average for the entire 3 years so this Government is rebalancing the economy. But the mess we were left with— 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. That surely cannot be within the Standing Orders—to get up make no attempt to address the question and then start hammering on about some other party’s record which he is not responsible for. 
Mr SPEAKER 
: And it is certainly not desirable for the Minister to start with such a personal attack. It is a political contest but it would be helpful if Ministers would frankly just answer the question.