Henare Tau: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeHenare Tau: Questions for Oral Answer — Questions to Ministers[Sitting date: 05 December 2013. Volume:695;Page:15285. Text is incorporated into the Bound Volume.]1.Hon TAU HENARE (National) to theMinister of Finance: What reports has he received showing progress in lifting economic growth and creating new job opportunities?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: The Minister has seen several reports pointing to steady job growth as the economic momentum created by a combination of Government policies and the hard work of New Zealanders bears fruit. The OECD is now forecasting that New Zealand will be one of the fastest-growing developed economies next year forecasting a growth rate of 3.6 percent in calendar year 2014. The stronger economy is being reflected in employment indicators. For example the Ministry of Business Innovation and Employment’s Medium-Long Term Employment Outlook shows employment growth averaging about 1.6 percent a year or about 36000 new jobs each year on average up to 2016. In the same period it projects unemployment to fall to 4.8 percent.Hon Tau Henare: What other reports has he received confirming improvements in the job market?Hon STEVEN JOYCE: The Government’s economic programme and especially the Business Growth Agenda is creating the conditions for businesses to invest for jobs and growth and that is exactly what is happening. The most recentANZ Job Ads survey reveals that total advertising for jobs rose by a seasonally adjusted 4.5 percent in October building on rises in the previous 4 months. That came from a rise in newspaper ads of 6.1 percent and internet ads rising by 4.2 percent. The ANZ noted that this was the first time in 4 years that internet job advertising had increased for 5 consecutive months. The ANZ said: “It is very encouraging that the labour market is finally lifting more markedly. Given already-high household debt levels income growth is the key toa more sustainable consumption upturn not selling houses to each other at ever-higher prices.”Hon Tau Henare: How is New Zealand’s improving economy and labour market affecting trans-Tasman migration?Hon STEVEN JOYCE: It is affecting it very positively. I have seen a report from Hays recruitment agency saying that New Zealand’s buoyant economy is attracting the attention of an increasing number of Australians. Hays reports that there has been a 25 to 30 percent increase in inquiries from Australians about taking up permanent roles in New Zealand. That trend is supported by the latest migration data which shows that the net loss of people to Australia has fallen every month since last December. In the October 2013 year New Zealand had a net gain of 17500 migrants compared with a net loss of 2300 in the previous year. The latest figure is above the average annual net gain of 11300 migrants over the last 20 years and is almost certainly attributable at least in part to our favourable growth rate compared with many other developed countries.Hon David Parker: If the economy is going as well as he claims why are 150000 people unemployed just as many as there were 3 years ago in the midst of a recession and why are average and median wages growing at the slowest rate in 13 years?Hon STEVEN JOYCE: The member I know is pretty unaware of this event that occurred that was called the global financial crisis. I appreciate that it has not really permeated his understanding of economic life but the reality is—Hon David Parker: It was 5 years ago.Hon STEVEN JOYCE: He says that it was 5 years ago. He should pop out and go and have a look at what is happening in the US he should have a look at what is happening in Japan he should have a look at what is happening in Europe he should have a look at what is happening in the UK and then he should thank his lucky stars that he lives in New Zealand.Hon Tau Henare: What other indicators show that the economy is performing better than it was 5 years ago?Hon STEVEN JOYCE: Other than employment rising unemployment falling and inward migration increasing we are making considerable progress as a country in reining in debt. Before our first Budget back in 2008 Treasury warned that if the Government continued on the previous Labour Government’s spending track we would run deficits forever and net debt would soar to over 60 percent of GDP by 2023 and never come down. So under our careful and prudent policies we are now on track to achieve a surplus in 2014-15 and net debt is expected now to peak below 30 percent of GDP despite dealing with the $15 billion expected cost to the Crown of rebuilding Christchurch. Back in 2008 the current account deficit was around 8 percent of GDP and New Zealand’s net external debt was 84 percent of GDP. The current account deficit is now below 4 percent of GDP and net external debt is 71 percent of GDP. The economy is in much better shape than it was 5 years ago but there is more work to do and this Government is doing it.