McClay Todd: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
McClay Todd: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 20 March 2013. Volume:688;Page:8693. Text is incorporated into the Bound Volume.] 
3. 
TODD McCLAY (National—Rotorua) 
 to the  
Minister of Finance 
: What reports has he received on New Zealand’s balance of payments? 
Hon STEVEN JOYCE (Acting Minister of Finance) 
: 
 Statistics New Zealand this morning released the balance of payments for the December 2012 quarter. This showed a current account deficit for the year ended December 2012 of 5 percent of GDP up from 4.7 percent for the year ended September 2012. There was a decline in exports worth $1.3 billion for the year ended December 2012. It is pleasing to see New Zealand investors in foreign assets earning record high investment income and foreign investors in New Zealand reinvesting over 60 percent of their earnings over the last year. 
Todd McClay 
: What was driving the change in export earnings? 
Hon STEVEN JOYCE 
: The value of dairy exports fell due mainly to falls in dairy prices compared with a year earlier although I would note that total dairy export volumes remain near record levels and prices are expected to be higher in the next quarter. Crude oil exports were lower and earnings from tourists declined due to lower spending although the number of tourists visiting New Zealand is up. Overall the significant growth that we have seen in the export sector in the previous 2 years has come off a bit in the last year but overall exports are up 15 percent in the 3 years to January. 
Todd McClay 
: What was the contribution of oil exports to the balance of payments and what is the Government’s approach to increasing oil exports? 
Hon STEVEN JOYCE 
: Statistics New Zealand reported a 26.6 percent fall in oil exports in the year to December 2012 compared with the same period a year earlier. That shows the importance of growing exploration and responsible development of our oil resources. There is encouraging progress in this sector. The Government has awarded 10 exploration wells on a committed work programme totalling $82 million; Methanex has announced that new gas supply contracts will allow it to commence methanol production at its third train at Waitara; expansion of the Marsden Point oil refinery by 20 percent is under way; and the new Crown minerals bill to be passed by May of this year will streamline and simplify permitting processes. 
Todd McClay 
: How is the Government contributing to reducing the current account deficit? 
Hon STEVEN JOYCE 
: This is a very important point. 
Hon Clayton Cosgrove 
: Oh really? 
Hon STEVEN JOYCE 
: It would be helpful for you Mr Cosgrove. The current account deficit is funded by an investment inflow to New Zealand from foreigners which totalled $3.9 billion in the December 2012 quarter and $3.1 billion of this is the purchase of Government debt by foreign investors. That is why it is very important for the Government to remain focused on returning to surplus so it actually lowers its pressure to borrow on international markets and we are on track to achieve this.