3. Economy—Labour Productivity and CommentaryGRANT ROBERTSON (Labour—Wellington Central) to the Minister of FinanceEconomy—Labour Productivity and CommentaryGRANT ROBERTSON (Labour—Wellington Central): My question is to the Minister of Finance: is Brian Fallow wrong when he says—[Interruption] Mr SPEAKER: Order! I am just going to invite the member to start again with a little less interjection.3. GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: Is Brian Fallow wrong when he says in reference to labour productivity zero growth over four years in what has to be foundation of any sustainable gains in living standards is not encouraging. Nor is it a record the Government can boast about"; if so is the Treasury also wrong given they are the source of the labour productivity data?Hon STEVEN JOYCE (Minister of Finance): As I explained to the member yesterday since 2009 one measure of productivity real GDP per capita has grown 9 percent. Another measure which is also the one used by the OECD is GDP per hours worked which has increased 9.6 percent since 2008. In terms of the last 4 years that Mr Fallow refers to real GDP per capita which I know has been the member's preferred definition in the past of productivity has in fact increased 4.2 percent. So if you look at that measure then Mr Fallow would be incorrect.Grant Robertson: Does he accept Brian Fallow's view that labour productivity is the foundation of how to create sustainable gains in living standards?Hon STEVEN JOYCE: Over time that is correct. Labour productivity is measured a number of different ways and if you measure it the way the member has chosen to in the past—GDP per capita—that has increased 4.2 percent. If you measure it as GDP per hours worked it has increased 6.2 percent since 2009 and 2.4 percent since 2012.Grant Robertson: Is it not true that what Brian Fallow Bernard Doyle and other commentators are telling him is that New Zealand is relying on population growth and people working longer hours to create economic growth rather than lifting the value of what we do and that is why it is not sustainable?Hon STEVEN JOYCE: No Mr Robertson and his friends are wrong. The reality of it is that New Zealand's productivity is growing faster than the UK faster than the US faster than Canada faster than the EU and in fact faster than the G7 and the OECD. That is what New Zealand's productivity has been doing. It has also been growing faster in the last 8 years than in the 8 years prior to that. So for those two commentators who have chosen to be—let us face it—fairly glass half empty they should look at the wider record of New Zealand's productivity in respect of other OECD countries.Grant Robertson: Further to that answer can he confirm that since 2010 growth in New Zealand's labour productivity has been slower than Australia Canada France Germany Spain Sweden and indeed the average for the euro area and the European Union? Hon STEVEN JOYCE: Well we could play this game all day but I can tell him that in the 8 years that we have been in Government which I think is a reasonable test of time in terms of productivity performance if you look at the OECD figures of GDP per hour worked we are growing faster than the UK faster than the EU—which includes France from memory—faster than the US faster than Canada faster than the G7 and faster than the OECD average. That is a reasonable performance particularly when you compare it with the earlier period between 2001 to 2008 when we were behind most of those countries. Grant Robertson: To assist the Minister in the House I seek leave to table a data set gained from the OECD that shows that New Zealand's growth in GDP per hour worked is lower than Australia Canada France Germany Spain Sweden and those other places. Mr SPEAKER: Leave is sought to table that particular OECD information. Is there any objection? There is objection. Grant Robertson: Why does he think that a number of economic commentators have seen the weak labour productivity of the last 4 years as something significant and would it hurt him to admit just for once that maybe someone other than him is right? Hon STEVEN JOYCE: There are any number of commentators most of whom in fact actually say that the New Zealand economy has been performing better than most developed world economies over the last few years. That includes the OECD that includes the IMF that includes Moody's that includes Standard and Poor's—both of which have a passing interest in the New Zealand economy given that they rate the debt agencies and the banks—and a range of other commentators including most of the banks and the Reserve Bank. I understand the member has worked very hard to find that Mr Fallows and JBWere's Mr Doyle are a little bit glass half empty which they have been traditionally but talk to New Zealanders. There are 181000 more jobs over the last 2 years and also a growth in incomes that is double the rate of inflation over the period we have been in office. Grant Robertson: After 9 years of a National Government is it not time for him to admit that he has squandered an opportunity to deliver to New Zealanders a fair share in prosperity and instead he is drifting along delivering stationary real wages weak productivity and rising wealth inequality? Hon STEVEN JOYCE: This might be a slightly longer answer given all the inaccuracies in the member's question. So firstly real wages have grown at about double the rate of inflation in this country since 2008. I know it is not in your talking points Mr Robertson but it happens to be true. Productivity is also growing and in fact it has actually been growing faster than the equivalent period under the previous Labour Government. I can say something else to the member which is that if you voted for tax changes then actually New Zealanders would be a further $26 a week per family better off on 1 April of next year and I note that the Labour Party voted against those. Finally if the member thinks that adding taxes on the productive economy is a way to improve productivity he is sadly sadly mistaken."