Barry Maggie: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Barry Maggie: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 28 February 2012. Volume:677;Page:567. Text is incorporated into the Bound Volume.] 
1. 
MAGGIE BARRY (National—North Shore) 
 to the  
Minister of Finance 
: What reports has he received on Government debt? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Net Government debt has increased from $6 billion in 2008 to $50 billion at the end of 2011 and is forecast to grow by another $25 billion to $75 billion at its peak in 5 years’ time. The Government is confident that its plans to stop debt rising and start reducing it will mean that Government net debt will peak at $75 billion and start falling.  
Maggie Barry 
: What steps has the Government taken to responsibly manage its finances and reduce the build-up in debt?  
Hon BILL ENGLISH 
: Given the scale of increase in the Government’s net debt it is important that we take decisive steps to slow the rate of increase and stop debt increasing. We have committed to a faster return to surplus in 2014-15 so that we can stop the increase in public debt reprioritised $9 billion of spending over the last three Budgets and committed to selling minority stakes in some State-owned assets which will raise between $5 billion and $7 billion over the next 3 to 5 years so that we do not have to drive that Government debt even higher than its $75 billion peak.  
Maggie Barry 
: Why is it important to keep Government debt under control?  
Hon BILL ENGLISH 
: Mr Speaker—[ 
Interruption 
] 
Mr SPEAKER 
: Order! I apologise to the Minister but I do want to hear the answer and I am sure the House does. 
Hon BILL ENGLISH 
: You only need to watch TV any night of the week currently to see the impacts of excessive debt on some of our communities. The best reason to get on top of debt is to protect our most vulnerable because our most vulnerable are most dependent on sustained support from the Government and Governments with too much debt cannot sustain support for their most vulnerable. 
Rt Hon Winston Peters 
: Given that the Minister’s service in his tenure as Minister of Finance has led to these unparalleled disastrous results— 
Hon Dr Nick Smith 
: Here’s the big spender. 
Rt Hon Winston Peters 
: No we had a surplus son. We had a surplus.  
Mr SPEAKER 
: Order! 
Rt Hon Winston Peters 
: Remember? 
Mr SPEAKER 
: Order! The member will resume his seat.  
Rt Hon Winston Peters 
: Yes; thank you. 
Mr SPEAKER 
: I am on my feet I say to all members. But I should point out to the right honourable gentleman that inserting his opinion into questions is not actually within the Standing Orders. The reason why that question elicited an interjection was that questions should ask questions not express the member’s view about whether something was disastrous or not. 
Rt Hon Winston Peters 
: It is a locative situation. The thing speaks for itself for goodness’ sake! 
Mr SPEAKER 
: The member will just ask his question. 
Rt Hon Winston Peters 
: Does the Minister of Finance think it is a moot point that his time as Minister of Finance has seen the most disastrous economic outcome in this country’s history and if not why has he not long ago resigned? 
Hon BILL ENGLISH 
: I know that the member—[ 
Interruption 
] 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. As someone yourself approaching the age range of the Rt Hon Winston Peters I think you will find as I did the offensive comments about older people from Paula Bennett just very very objectionable. 
Mr SPEAKER 
: Forgive me—I was so focused on the question being asked that I did not even hear what was said. If the member said anything offensive then I will ask her to withdraw. If it was not offensive I will take the member’s word for it. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. I rise to say that I do not take offence at that. I am happy to challenge her to a 100-yard race any day of the week. 
Mr SPEAKER 
: Order! The House should just take a deep breath. If the Hon Bill English remembers the question that was asked he may now answer it. 
Hon BILL ENGLISH 
: I am pleased that the member shares our concern about the level of debt and I will look forward to his support for the measures the Government takes to prevent that debt rising to excessive levels.  
Maggie Barry 
: Has the Minister seen any reports of alternative approaches to managing debt? 
Hon BILL ENGLISH 
: I have heard reports that indicate that other political parties do not believe that it should be managed at all. In fact they are proposing that the Government should not sell shares in some assets because they would rather go to volatile international financial markets and borrow billions more paying interest to overseas lenders rather than dividends to New Zealanders. 
Hon David Parker 
: Did the Minister say following his election in 2008 that in New Zealand “We have room to respond. This is the rainy day that Government has been saving up for.” and when he said that had he inherited in New Zealand amongst the lowest Government debt in the OECD? 
Hon BILL ENGLISH 
: The problem with what we inherited was that that level of debt was unsustainable because Government expenditure was rising very rapidly— 
Mr SPEAKER 
: Order! The member’s question was quite specific in the first part of the question. Admittedly there were two parts to the question but it would be helpful if the answer really addressed at least one part of the question. If the Minister did not hear the question I invite the Hon David Parker to repeat it. 
Hon David Parker 
: Did the Minister say following his election in 2008 that in New Zealand “We have room to respond. This is the rainy day that Government has been saving up for.” and when he said that had he inherited in New Zealand amongst the lowest Government debt in the OECD? 
Hon BILL ENGLISH 
: Yes I did say that and that is why I am surprised that the new version of the Labour Party has no particular concern about debt at all.