Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 29 April 2015. Volume:704;Page:2997. Text is incorporated into the Bound Volume.]6.GRANT ROBERTSON (Labour—Wellington Central)to the Minister of Finance: Is it Government policy that the Government will return to surplus this financial year and stay there so it can reduce debt reduce ACC levies on households and businesses and start modestly reducing income taxes?Hon BILL ENGLISH (Minister of Finance):Yes it is the Government’s policy to return to surplus to maintain surplus so that we can reduce debt to 20 percent of GDP by 2020 to reduce ACC levies on households and businesses and in 2017 to begin reducing income taxes. One more point the member missed is that if there are any positive revenue surprises we would use those to get debt down but there do not look to be any positive revenue surprises.Grant Robertson: In light of that answer does the Minister of Finance recall this document Our 2014 Priorities from the National Government which lists as the first priority “Return to Budget surplus in 2014/15”?Hon BILL ENGLISH: Yes I do and the Government has worked very hard—and I must indicate support for Ministers and public servants who over recent years have worked very hard—to contain Government expenditure at the same time as improving public services consistently across the board. However they do not have any control over revenue and it is the revenue that amounts to a challenge to getting back to surplus.Grant Robertson: In light of that answer can the Minister explain this document featuring the same photograph of a smiling Prime Minister with Our 2015 Priorities which lists as the first priority “Return the Government’s books to surplus”—leaving out the date 2014-15?Hon BILL ENGLISH: Yes I do and I am pleased to see that the member as the new finance spokesman is studying sound public policy so intently. He can be reassured—Hon Simon Bridges: No he’s just looking at the pictures.Hon BILL ENGLISH: He is just looking at the pictures? No no he has read it. He has read it. Give him some credit. And I can assure the member that all the numbers related to the surpluses of course are fully transparent.Grant Robertson: In light of the Minister’s desire for transparency why did he ditch his 2014 promise for a surplus this financial year just months after making that election promise?Hon BILL ENGLISH: It is not a matter of ditching promises; it is a matter of dealing with reality. The member may not have noticed that in the Half Year Economic and Fiscal Update which is a statutory requirement of any Government to publish in December we forecast a $550 million deficit for the 2014-15 year so there is nothing new or exciting or different about that. We budgeted a surplus a number of things have changed—like I think there is $6 billion less GDP because of low inflation and the half-year update forecast a deficit for that year. I do not know why the member seems surprised about that or seems to think it is a secret.Grant Robertson: In light of that answer can the Minister of Finance understand why it is not a surprise to New Zealanders that he is once again breaking a promise—this time one made in 2014 that there would be a Budget surplus in 2014-15; or is this not just the smoke and mirrors that the New Zealand Herald has accused him of of breaking yet another promise?Hon BILL ENGLISH: The process is incredibly transparent—in fact more transparent than almost any other country on earth. That is at the half-year update halfway through the financial year 2014-15 Treasury published a forecast that said that in 2014-15 there would be a small deficit. That is pretty clear and it is an indication that achieving a surplus in 2014-15 is going to be quite difficult.