2. Question No. 2—FinanceGREG FLEMING (National—Maungakiekie) to the Minister of FinanceQuestion No. 2—Finance2. GREG FLEMING (National—Maungakiekie) to the Minister of Finance: Has she seen any recent reports on the New Zealand economy?Hon NICOLA WILLIS (Minister of Finance): Great question. Yes. This morning Statistics New Zealand released the latest GDP figures. These showed that real GDP fell 0.1 percent in the December quarter of last year. Looking a little further back the release also shows that GDP fell in the December quarter of 2022 the March quarter of 2023 and the September quarter of 2023. So 2022 and 2023 were certainly difficult years for the economy and therefore difficult years for New Zealanders and their families.Greg Fleming: Where is the New Zealand economy right now?Hon NICOLA WILLIS: The member raises a good point because GDP is reported some way after the event—the release today is about what happened last year. What I can tell members is that when I talk to people and to businesses around the country they are definitely doing it hard. But economic conditions will improve. GDP is expected to pick up this year although strong population growth will limit per capita growth. In next week's Budget Policy Statement the Treasury will say more about its current view of the economy.Greg Fleming: Does today's GDP release have any impact on this year's Budget?Hon NICOLA WILLIS: The Government's plans for the Budget have not changed. These include delivering tax reductions to provide cost of living relief to New Zealanders who have seen no change in personal income tax rates and thresholds for 14 years. Can I reinforce to members that those tax reductions will be funded by reprioritisations savings and new revenue measures. This package of measures will not add to debt. I make an observation about those who oppose tax reduction. When the economy is going well they say tax reduction must not happen because it will be inflationary; when the economy is not going well they say tax reduction must not happen because we can't afford it. The truth is that members opposite believe the Government can spend money better than New Zealanders can on their own families; well I disagree.Greg Fleming: Does today's release have an impact on other Government activities?Hon NICOLA WILLIS: Declining GDP in the December quarter does reinforce the importance of the Government's plan to restore fiscal discipline to public spending and to drive more economic growth. I've said a lot about fiscal discipline in the House recently. Last Friday I gave a speech to the Auckland Business Chamber setting out the Government's growth strategy. This Government knows that a strong economy determines our standard of living job and business opportunities and the quality of public services. We are focused on rebuilding the economy after years of economic mismanagement.Chlöe Swarbrick: Does she agree with Deputy Prime Minister Winston Peters who said that the Sunday Star-Times is right of course" when they reported that the Government is facing a fiscal hole of $5.6 billion?Hon NICOLA WILLIS: Well the Deputy Prime Minister is right and would prefer that the member opposite I'm sure quoted him in the full context because what is true is that our Government has inherited a fiscal hole from a previous Government who had in place a structural deficit spending beyond the country's means. What is not the case is that Vernon Small's figure bears any relation to the affordability of our tax package and I can reassure the member opposite that when the families in Auckland Central get their tax reduction and get their childcare tax rebate they can be sure it will be funded responsibly through reprioritisation and I look forward to her explaining to them why she would stop them getting it. Rt Hon Winston Peters: Can I ask the Minister of Finance as to whether she has received apart from the 100000 ways of spending the taxpayers' money one idea from over there on how to make the taxpayers' money? Hon NICOLA WILLIS: Mr Speaker—SPEAKER: Well yeah it's—you've got—Hon NICOLA WILLIS: Let me give it a go. SPEAKER: You'd love to give it a go but you've got no responsibility for any ideas that may or may not exist on the other side of the House. Rt Hon Winston Peters: Point of order Mr Speaker. There's no proscription as to where the Minister of Finance might get advice or submissions from. She gets them from all around the world—she gets them from the IMF she gets them from the OECD—so why are you proscribing it? It's a very reasonable question; they'll hate the answer—that's the only problem with it. SPEAKER: Well let me hear it again. Ask the question again. Rt Hon Winston Peters: Can I ask the Minister of Finance: alongside the 100000 ways that she has received by way of advice to spend the taxpayers' money has she received one idea on how the taxpayers may make some money from those parties over there? Hon NICOLA WILLIS: Well the Deputy Prime Minister makes two very good points. There have been occasions where the member opposite and I have shared ideas and the unit title reform bill is an example of that. But the Deputy Prime Minister also highlights something very important which is that those who wish to spend a country's money should probably also be thinking of ideas for making it. On this side of the House we are resolutely pro-growth pro-development and anti - red tape and I wish the Greens would join us in that mission. Chlöe Swarbrick: Would the Minister consider addressing that structural deficit in the economy which she just cited through recommendations from the Treasury or even the likes of the IMF whose recent reports stated—and I quote—that we could achieve a more efficient equitable tax system with a comprehensive capital gains tax? Hon NICOLA WILLIS: No. No country has ever taxed its way to prosperity and how wrong-headed is it that the answer to every economic problem that member ever sees is always "Tax them more." Chlöe Swarbrick: Does the Minister then disagree with the consistent advice from the Treasury that we would have a more productive economy with the implementation of a capital gains tax fixing the incentives which currently see far too much money flowing into bidding up house prices?Hon NICOLA WILLIS: I disagree with quite a lot of the Treasury advice and I also agree with quite a lot of the Treasury advice and what I think the member opposite should be very careful about is cherry-picking Treasury advice because I can tell her that Treasury don't agree with her anti-growth pro-regulation perspective. They know that that's a recipe for disaster in our economy."