Bridges Simon: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Bridges Simon: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 07 February 2012. Volume:677;Page:82. Text is incorporated into the Bound Volume.] 
1. 
SIMON BRIDGES (National—Tauranga) 
 to the  
Minister of Finance 
: What are the Government’s priorities for the economy in its second term? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government intends to get back to surplus and manage the Government’s finances very well. We intend to continue to develop a more competitive economy because we have to earn a living in the next 10 years rather than borrow it as we did in the last 10 years. The Government intends to rebuild Christchurch and our final top priority is to improve public services across the board so New Zealanders get better service for the same or fewer resources. 
Simon Bridges 
: What challenges does New Zealand’s economy face? 
Hon BILL ENGLISH 
: The fundamental challenge is the same now as it was 2 or 3 years ago which is to rebalance this economy from excessive resources in the non-tradable sector to the tradable sector. Much of the growth of the last 10 years was built on borrowed money going into an uncompetitive domestic economy. In the next 10 years we have to earn our living by investing in a competitive export sector. 
Simon Bridges 
: How does the Government intend to tackle the economic challenges? 
Hon BILL ENGLISH 
: In the same considered and balanced way as it did in its first term of office. But I think New Zealanders share with the Government the determination to make real progress over the next few years so that we can have more jobs and higher incomes. 
Hon David Parker 
: Did the briefing he received as incoming Minister from his chief economic advisers in Treasury project that under his Government’s economic settings New Zealand’s net international liabilities would increase by nearly 10 percent of GDP over the next 5 years—an increase of approximately $25 billion? 
Hon BILL ENGLISH 
: That may have been their projection; I would have to go and check. We of course want to continue with the significant improvement in recent years in our net international liabilities. I am somewhat more optimistic than Treasury because I think New Zealanders have learnt the lesson that more borrowing and excessive borrowing are not the way for them to get better incomes and if they refrain from excessive borrowing and get into higher savings the prospects of that projection coming to pass are less. 
Simon Bridges 
: What signs of progress has he seen in the economy? 
Hon BILL ENGLISH 
: Just to give a couple of signs the economy has grown for nine of the last 10 quarters and the forecasts for growth in this economy are stronger than in the US Europe and quite a number of other developed countries. Secondly some of the more detailed changes the Government is making are bearing fruit. For instance on 1 April there will be a $600 million reduction in ACC levies because the Government in the last 3 years applied itself to turning ACC round. That is an example of what can be achieved with public services.