Parker David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers[Sitting date: 08 May 2014. Volume:698;Page:17679. Text is incorporated into the Bound Volume.]2.Hon DAVID PARKER (Deputy Leader—Labour) to theMinister of Finance: Does he have confidence in the expenditure figures used in Budget 2014?Hon BILL ENGLISH (Minister of Finance): The Budget is next week so the member will have to see just what the figures are. We do have confidence in the expenditure figures because this Government has taken a considered and consistent approach to controlling Government expenditure by focusing on getting better results for New Zealanders and their communities—that is higher levels of achievement in school lower levels of reoffending and less child violence. Because we are getting good results like sharply dropping crime rates we are able to control expenditure.Hon David Parker: Why is there an agreement between the Hon Gerry Brownlee and the former Mayor of Christchurch Bob Parker to exempt the council 3-year plan from normal auditing processes until the end of 2014 after the election?Hon BILL ENGLISH: Well you would need to talk to Mr Brownlee or Mr Parker about the details of that arrangement. What I can reassure the member about is that the Government is fully behind the recovery of Christchurch. Financing has not been a barrier or a hold-up to that recovery. We have invested up to $15 billion in the rebuild of Christchurch despite the fact that we have had a recession and large deficits and we will continue to invest more through this Budget.Hon David Parker: Why does he have confidence in the estimated Canterbury rebuild costs in the upcoming Budget when it is clear from theKordaMentha report released yesterday that he is trading off the Christchurch rebuild for his arbitrary micro-surplus in Budget 2014?Hon BILL ENGLISH: Well the member is fantasising there I can assure him of that. It is not a surprise that there is ongoing discussion between the Christchurch City Council which has very significant financial burdens to shoulder and the Government which has indicated an open willingness to support the rebuild of Christchurch. I expect that those discussions will continue. There will be differences of views about figures there will be negotiations but there will certainly be further progress in the rebuild.Hon David Parker: I seek leave to table theKordaMentha report which shows a $534 million underestimate of council—Mr SPEAKER: Leave is sought to table that particularKordaMentha report. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.Hon Gerry Brownlee: I seek leave to table the revised figure that was put together by the Christchurch City Council the Canterbury Earthquake Recovery Authority and Treasury along with other assistance post the figure used byKordaMentha—the figure that the council agreed was appropriate for the cost-sharing agreement.Mr SPEAKER: Leave is sought to table that particular document. Is there any objection? There is none.Document by leave laid on the Table of the House.Hon David Parker: Does he agree with the decision by the Hon Gerry Brownlee to commission Morrison Low to review theKordaMentha report; if so why has it taken so long for the Government to consider an independent audit to find the true cost of the rebuild or is not the truth of it just that he is delaying it until after the Budget?Hon BILL ENGLISH: The member is simply wrong. The Government and the Christchurch City Council have been in discussion for at least 2 years over these issues. It has taken quite some time particularly for the council but also for the Government to understand the impact of the earthquake on Christchurch’s finances but I have to say the Minister for Canterbury Earthquake Recovery has been exemplary in his focus on the detail of the financial arrangements. I can reassure the House that the $15 billion committed by this Government to the rebuild of Christchurch is day-by-day achieving value for money and we will get a result we are proud of.Hon David Parker: Will he revise the timing of the estimated Canterbury rebuild costs in his upcoming Budget now that Fletcher Building has been downgraded by market analysts due to the slow Canterbury rebuild progress leading to sharply lower earnings?Hon BILL ENGLISH: As the member has pointed out if Fletcher’s does not win all the tenders it is hardly our fault. The numbers around Christchurch are revised regularly. What is actually striking is that estimates made 2 or 3 years ago including for insurance liabilities have proven to be remarkably stable. We have not had to deal with large unexpected changes in the Government’s finances. The discussion with the Christchurch City Council will continue. Some of the numbers are agreed some of them are disputed—that is hardly unusual.