2. Job Creation and Unemployment—Employment Rate and Climate ChangeJONATHAN YOUNG (National—New Plymouth) to the Minister of FinanceJob Creation and Unemployment—Employment Rate and Climate Change2. JONATHAN YOUNG (National—New Plymouth) to the Minister of Finance: What reports has he received on job growth in the New Zealand economy?Hon STEVEN JOYCE (Minister of Finance): Over the last year 137000 jobs have been added to the New Zealand economy. This job growth has been accompanied by rising wages for Kiwi families with the average wage growing at twice the rate of inflation to $58700 annually currently and forecast to reach $66000 by 2021. Our strong employment growth has been coupled with strong economic growth of over 3 percent. This has not happened by accident; it is the result of hard work by households and businesses backed by the Government's clear economic plan for our country's future.Jonathan Young: How do New Zealand's employment statistics stack up against our international competitors?Hon STEVEN JOYCE: Very well in fact. New Zealand's employment rate for the proportion of the total population aged 15 years or older—right up to 115—at work is 66.9 percent. That is the highest rate that New Zealand has ever had and the second-highest employment rate in the whole of the developed world. In particular we are significantly ahead of our closest neighbour Australia whose employment rate is only 60.8 percent.Jonathan Young: Are the jobs being created in New Zealand predominantly full time or part time and how does this compare with Australia?Tracey Martin: Full time being 30 hours.Mr SPEAKER: Order! I am just waiting for Tracey Martin to stop interjecting and then we will have the answer.Hon STEVEN JOYCE: The bulk of the jobs being created in New Zealand are full-time jobs. In just the last year the percentage of New Zealand's labour force employed full time rose to just under 75 percent. If you compare that with Australia its rate fell to just 64 percent. In fact over half of New Zealand's entire population over 15 is now employed full time compared with just 42 percent in Australia. With this record it is strange to see some commentators advocate for New Zealand's monetary policy framework to be more like Australia's. We have achieved excellent results in this country and I think it is possible that Australia needs to change to ours.Jonathan Young: How is New Zealand's actual job creation tracking against previous estimates of job growth?Hon STEVEN JOYCE: Very well. There have been 328000 jobs—in addition—created since 2008 and Treasury expects further strong growth over the coming years. Members may recall Treasury's 2011 estimate which was for 170000 jobs to be created over the following 4 years. This was attacked by some critics as a failure and a broken promise because they did not think it would be achieved only for the actual figure to come in at 197000 some 27000 more jobs than anticipated. It would be a shame for these critics to repeat their mistakes just because it is election year.Grant Robertson: According to the household labour force survey how many more New Zealanders are unemployed now than when his Government took office?Hon STEVEN JOYCE: I do not have the exact number with me but the key point is—for the member's benefit—how many people are employed. In New Zealand—in this country—we have passed 2.5 million people employed for the first time and we have the second-highest employment rate in the OECD. That is progress.James Shaw: Has he seen any reports about the loss of jobs and livelihoods caused by more frequent and more severe floods and droughts resulting from climate change?Hon STEVEN JOYCE: No I have not seen any recent reports in that regard. What I can say to the member is actually all the reports in New Zealand are of increasing numbers of jobs in net terms. As I said 137000 extra jobs were added to the New Zealand economy last year—the second-highest employment rate in the OECD—and that is under the existing Government's policies with support for the existing Government monetary policy framework which seems to me an indication that other countries should look to us for inspiration.James Shaw: What reports has he seen about the jobs lost because of the 2013 drought that wiped $1.5 billion off the economy or more recent droughts in Northland and North Canterbury?Hon STEVEN JOYCE: One of the challenges to the New Zealand economy particularly in the primary sector is that droughts occur from time to time. That is one of the reasons why this Government is so keen to encourage the development of water storage in those areas so that those businesses can be more sustained and can retain and grow more jobs. Those dams also provide better environmental outcomes by improving water flows. So given the member's concern I look forward to his support for that policy.James Shaw: What reports has he seen about jobs lost and small businesses ruined from severe flooding in Whanganui Northland Auckland or Edgecumbe? Hon STEVEN JOYCE: The member raises some challenging times in terms of those floods for affected businesses and the Government has been very supportive not just in terms of floods but in terms of earthquakes as well. We are very supportive of tiding businesses over where we can until their solutions are solved and their insurance pays out. This country is challenged by some of the weather events and has been for pretty much all the time that people have lived here. It is important that we set up a system that helps them respond but New Zealanders are very resilient and actually we saw more than 100000 jobs added just last year. That indicates the resilience of the New Zealand economy—137000 jobs in fact. James Shaw: Does he agree with the Insurance Council's position that if nothing is done to adapt to climate change then there are going to be increased claims and higher losses which could lead to higher premiums and cover being withdrawn?Hon STEVEN JOYCE: Well actually the insurance industry and New Zealanders respond to changes in the insurance environment all the time. The biggest impact on risk for New Zealanders is in fact earthquakes and the challenges that they bring and we have seen that in sharp relief in recent years. Flooding is another risk. There are other risks of course in terms of fires and so on. The way we actually ensure that New Zealanders are resilient and able to respond to that is by keeping their incomes high and growing by encouraging the development of our economy and investment in our productive industries and by ensuring that the Government accounts are strong enough to be able to support people in their hour of need and that is very much the focus of this Government. James Shaw: I raise a point of order Mr Speaker. There were two parts in my question which was whether he agreed with the Insurance Council's position—Mr SPEAKER: Order! No I—[Interruption] Order! I heard the question very clearly and I do not think it has been addressed. I will invite the member to ask the question again. James Shaw: Thank you Mr Speaker. Does he agree with the Insurance Council's position that if nothing is done to adapt to climate change then there are going to be increased claims and higher losses which could lead to higher premiums and cover being withdrawn?Hon STEVEN JOYCE: Well the Insurance Council obviously always has its views in terms of how things could be impacted on not just by climate change or earthquakes. I was pointing out to the member that there are a range of risks to New Zealand. Those risks and the insurance industry's perception of those risks change from time to time. I appreciate its view. Certainly I think New Zealanders know that they do have to be prepared and this Government is focused on being prepared for any events but not just climate events. James Shaw: When New Zealand jobs are on the line does he agree with the Prime Minister that when it comes to the question of whether climate change is causing more floods and more droughts that we don't spend time trying to connect the two"? Hon STEVEN JOYCE: Well the Government focuses on the range of risks that present for New Zealanders and those risks that you identify is one group of risks. As I have pointed out to you a number of times today already some of the bigger risks are those that do not involve climate change including earthquakes and so on. So you have to respond to all of the range of risks that present for people. It is something the Government focuses on a lot and certainly in terms of making sure that our books are resilient so that if we have big incidents and shocks in the way that we have seen in recent years we can respond and support New Zealanders. James Shaw: I raise a point of order Mr Speaker. My question was whether he agreed with the Prime Minister's quote. He did not even mention the Prime Minister in his response.Mr SPEAKER: It is a very marginal call on my account because you then talked about a range of risks and the Minister responded to that and the Minister said it was a focus of his Government. But on balance I will let the member ask that question again. James Shaw: Thank you Mr Speaker. Does he agree with the Prime Minister that when it comes to the question of whether climate change is causing more floods and more droughts that "we don't spend time trying to connect the two"? Hon STEVEN JOYCE: Well I agree with the sentiment from the Prime Minister which is actually that we focus on the risks and managing those risks."