2. Government Financial Position—ReportsDAVID BENNETT (National—Hamilton East) to the Minister of FinanceGovernment Financial Position—Reports2. DAVID BENNETT (National—Hamilton East) to the Minister of Finance: What reports has he received on the Crown's finances?Hon BILL ENGLISH (Minister of Finance): Some surprisingly good reports. Today the financial statements of the Government were released for the 2015-16 year. They report a surplus of $1.8 billion. This is $1.2 billion higher than was forecast in the Budget just a few months ago. Revenues were about $1.6 billion higher than forecast and expenses were $600 million lower than forecast in Budget 2015. Total Crown assets have now increased to $293 billion—the highest ever—and the Government is on track to reduce debt to 20 percent of GDP.David Bennett: What have been the main drivers of the improvement in the Government's accounts?Hon BILL ENGLISH: The financial statements show that tax revenue increased by $3.8 billion and expenditure grew by $1.6 billion and that accounts for the growth in the surplus. Interestingly the $3.8 billion increase in tax revenue consists of $1.2 billion growth from wages and salaries which indicates that despite the Opposition's criticisms wages and salaries in New Zealand are increasing faster than was budgeted. The corporate tax take was almost a billion dollars higher and GST was around a billion dollars higher. David Bennett: What are the Government's fiscal priorities and how is the Government balancing increasing investment in public infrastructure with debt repayment?Hon BILL ENGLISH: Our priorities which were set out in the Budget are to maintain rising surpluses reduce net debt to 20 percent of GDP begin to reduce income taxes if conditions allow and use any further fiscal headroom to reduce debt faster. At the same time we are also lifting the investment in public infrastructure—in fact the Government's capital spend has almost doubled since 2013 and will be maintained at high levels when you take into account commitments such as funding half of the City Rail Link project in Auckland.Grant Robertson: With reference to that last answer was the order of priorities that he gave for the Government in fiscal terms the order he actually has them in—i.e. that tax cuts come ahead of lowering debt?Hon BILL ENGLISH: The Government will consider the weighting of the various choices we have. We are one of the few countries in the developed world that has the choices of paying off debt improving public services and investing in infrastructure. The member will just have to wait and see. [Interruption] Mr SPEAKER: Order! I am waiting as well.David Bennett: How do New Zealand's accounts compare with those of other countries?Hon BILL ENGLISH: Pretty well. Compared with say Australia and the UK we have a surplus; they have significant deficits and it is increasingly the case as time goes by that we have one of the lower public debt levels compared with the peer countries we compare ourselves with.Grant Robertson: Has he called for the sacking of the Minister responsible for HNZC in light of reports from his officials saying that Housing New Zealand's balance sheet is at risk and cannot service their debt levels."?Hon BILL ENGLISH: No. Housing New Zealand is in a sound financial situation and because it is embarking on large-scale redevelopment of housing it may need some further support from the Government because it will not be able to finance all of that growth itself and that is perfectly normal for public entities and private businesses."