Adams Amy: Questions for Oral Answer — Questions to Ministers 
Adams Amy: Questions for Oral Answer — Questions to Ministers 
[Volume:653;Page:2050] 
3.  
AMY ADAMS (National—Selwyn) 
 to the  
Minister of Finance 
: My question is to the Minister of Finance—[ 
Interruption 
] 
Mr SPEAKER 
: Amy Adams is at the back of the Chamber. It is hard to hear. 
AMY ADAMS 
: What reports has he seen on the state of the economy? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Yesterday the latest consensus forecasts collated by the New Zealand Institute of Economic Research were released. These forecasts confirm the difficult situation the Government has inherited. All forecasters have revised their forecasts downwards and are now on average expecting two more quarters of negative growth. 
Hon Dr Michael Cullen 
: I raise a point of order Mr Speaker. I am sorry to interrupt the Minister on this matter. The Labour Party submitted a question: “Has he seen the latest economic forecasts of the New Zealand Institute of Economic Research?” which the Clerk’s Office ruled out because apparently the Minister has no responsibility for the institute. That of course is true but it seemed to us that whether he had seen those reports was certainly a matter of ministerial responsibility. Yet the Government has been allowed to ask the question: “What reports has he seen on the state of the economy?”. Of course the Minister has launched into an answer about consensus forecasts the institute etc. I simply draw that to your attention Mr Speaker because we do not want to get into long arguments with the Clerk’s Office. It does seem to me that there are not entirely even-handed rulings from the office on these questions. 
Mr SPEAKER 
: I do not think that last point was fair but the member makes an interesting point. As he well knows having served many years as a Minister in this House the rules that apply to answers are a little different from the Standing Orders that apply to questions. Of course although the Minister cannot be questioned about something that he is not responsible for as long as the reports that he is asked about are in the area that he is responsible for he can refer to those reports. That has been longstanding practice. I invite the Minister to continue his answer. 
Hon Dr Michael Cullen 
: I raise a point of order Mr Speaker. I think you may have slightly misunderstood my point. My point was that the question that was submitted in the name of Mr Cunliffe asked whether the Minister had seen certain reports and it actually named those reports. This question from Ms Adams asks: “What reports has he seen on the state of the economy?”. It is hard to see the difference between those two questions unless the Minister is confined to reports for which he has direct responsibility. Quite properly he is not answering along those lines because the Minister of Finance has responsibility to be aware of any reports on the state of the New Zealand economy. 
Mr SPEAKER 
: I think the interesting thing that the member might like to reflect on is that he could have submitted a further question along the lines of the question that has just been asked. He acknowledges that it is different from the question he sought to lodge. It is slightly different. I assure him that I will endeavour to make sure that questions are treated in the same way. I will be watching for that.  
Hon BILL ENGLISH 
: The latest consensus forecasts show that all forecasters have revised their forecasts downwards and are now expecting two more quarters of negative growth. The New Zealand Institute of Economic Research forecasts all show ongoing twin deficit problems. The consensus view shows the balance of payments deficit persisting above $12 billion in each of the next 2 years. That is about the worst level that New Zealand has experienced. 
Amy Adams 
: What is the outlook for economic growth as reflected by the consensus forecasts? 
Hon BILL ENGLISH 
: The consensus forecasts show 2 years of declining output. GDP is projected to decline by almost 1 percent in the year ending March 2009 and by a further 0.6 percent over the 12 months after that through to March 2010. That will have a considerable impact on Government revenues. 
Amy Adams 
: What does this outlook imply about the basis for future growth? 
Hon BILL ENGLISH 
: I wish the forecasts could show that there was a strong basis for future growth but actually they show how poorly the foundations for growth have been laid over recent years. The previous Government oversaw a period of growth based on an unsustainable credit-driven boom notably in housing and very low productivity. This boom is now reversing in spectacular fashion and it will take a considerable period of well-founded economic policy to lay some foundations for growth.