2. Economy—Tax Growth Financial Position Compared with Before Global Financial Crisis and SurplusANDREW BAYLY (National—Hunua) to the Minister of FinanceEconomy—Tax Growth Financial Position Compared with Before Global Financial Crisis and Surplus2. ANDREW BAYLY (National—Hunua) to the Minister of Finance: What impact is New Zealand's growing economy having on the Government's tax revenues?Hon STEVEN JOYCE (Minister of Finance): New Zealand's growing economy is having a number of positive effects: increased exports rising real wages and as I mentioned yesterday good growth in employment. That growth is flowing positively through to the Government's books. Core Crown tax revenue in the year to November which is the latest data was $72.9 billion up from $67.5 billion in the previous November year an increase of 8 percent or 6.6 percent in real terms.David Seymour: Can the Minister describe a scenario where a growing economy would not increase the Government's tax revenues?Hon STEVEN JOYCE: The member of course is quite a strong advocate for decreasing tax revenue so I could imagine one if he were ever the Minister of Finance.Andrew Bayly: How does this growth in tax revenue compare with Treasury's forecasts?Hon STEVEN JOYCE: It compares well. As I have stated in the primary answer tax revenue was up 8 percent over the previous year. That compared with a forecast increase in Budget 2016 of 4.7 percent. So it is again worth reminding members that forecasts are only forecasts whether they are positive or negative.David Seymour: Did the Minister intend to imply in his earlier answer that the only way taxpayers will get tax relief is if ACT holds the Treasury benches?Hon STEVEN JOYCE: The member is drawing a long bow and no. I think for the sake of the whole country if that were what was required that would be a very bleak outlook because it does not appear it will happen for some time yet.Andrew Bayly: How does our financial position now compare with where it was at the height of the global financial crisis?Hon STEVEN JOYCE: It has been a significant recovery. Tax revenue in the year to November 2016 was $72.9 billion compared with tax revenue in the November 2009 year of just $51.8 billion. So it has grown 27 percent in real terms when adjusted for inflation. Of course back in those days we had bigger deficits because we maintained spending for the vulnerable in society and through the Canterbury earthquakes. These increases do highlight the importance of having the right economic policies in place to encourage economic growth.David Seymour: In light of the Minister's earlier answer how much more revenue does this Government have to collect than its expenditures require before it will consider reducing tax rates or adjusting tax brackets?Hon STEVEN JOYCE: As I have said previously to the member there are a number of considerations that the Government has in terms of allocating its budget—for example public services the infrastructure that the Government invests in and also of course making sure we get debt down to below 20 percent of GDP which is a target this Government has set to happen by around 2020. But yes tax considerations are very important and as I have said more than once in this House it is important to remember that the money that this Parliament gets to appropriate comes from the work of hard-working Kiwis.Andrew Bayly: What impact is the improved financial position having on the Government's surpluses?Hon STEVEN JOYCE: It is too early to say yet as I would note we have some significant costs coming through like the Kaikōura earthquake and of course other demands on spending to support a growing economy. It does however show the importance of fiscal discipline and a focus on economic growth in what is still an uncertain global environment so that we are in a position to deal with any significant economic shocks and also unplanned events like the earthquakes that Kaikōura has just experienced.