Jones Shane: Questions for Oral Answer — Questions to Ministers Questions to Members 
Jones Shane: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:629;Page:1230] 
9.  
SHANE JONES (Labour) 
 to the  
Minister of Finance 
: Has he received any reports on New Zealand’s GDP per capita performance in relation to Australia in recent years? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 For the last 5 years for which we have comparable data GDP per capita grew 13 percent in New Zealand and 9.5 percent in Australia. So New Zealand’s rate grew some 40 percent faster per person than Australia’s. 
Shane Jones 
: Has he seen any other recent reports comparing Australia and New Zealand? 
Hon Dr MICHAEL CULLEN 
: Yes I have seen many but in particular a report this morning from the chief executive of Fletcher Building stating that the personal tax situation in New Zealand is far more friendly than Australia’s and that unlike Australians New Zealanders do not pay $100 a week in road tolls nor do they pay stamp duty when they buy houses nor do they pay general capital gains tax. I have also seen a report from the same business leader perhaps the most successful chief executive officer in recent years in New Zealand stating that those who were trying to talk up a recession were being irresponsible—a report that specifically mentioned the Leader of the Opposition Dr Brash. 
Dr Don Brash 
: Is it not true that the brief period during which New Zealand’s GDP per capita has risen slightly faster than Australia’s GDP per capita is explained by a very significant increase in hours worked and a very poor record of productivity growth in New Zealand and that unless our productivity growth improves markedly Australia’s per capita incomes will continue to rise relative to those in New Zealand? 
Hon Dr MICHAEL CULLEN 
: It is interesting that the claim is made that Australian wages have risen faster than New Zealand wages over recent years but doubtless there is always some difficulty with comparability because we have different kinds of indices. If that were true it would show that Australian workers have captured a larger share of the benefits of economic growth than New Zealand workers. Undoubtedly the major reason for that is a much more heavily regulated labour market and more powerful trade unions—policies that I am sure Dr Don Brash would not wish to support. 
Dr Don Brash 
: I raise a point of order Madam Speaker. The Minister of Finance in no way addressed the question I asked. I asked him whether it was not true that the faster GDP per capita growth in New Zealand in the last couple of years has been explained by a very large increase in hours worked plus a very poor rate of productivity growth in New Zealand and that unless New Zealand’s productivity growth improves markedly Australian incomes will continue to rise relative to those in New Zealand. 
Hon Dr MICHAEL CULLEN 
: I will elaborate further. One of the reasons why productivity growth is certainly stronger in Australia is that there is a higher cost of labour in Australia and therefore a greater incentive to invest in labour-saving machinery. The National Party favours further deregulation of the labour market which will lower the cost of labour as it did in the early 1990s thereby removing the incentive for productivity growth. 
Dr Don Brash 
: Can the Minister of Finance answer a question that the Prime Minister could not answer yesterday: can he name a single economist who believes that on present productivity trends on both sides of the Tasman New Zealand incomes will overtake Australia’s within one decade two decades or even three decades; if so who is that economist? 
Hon Dr MICHAEL CULLEN 
: If I were to believe what neo-liberal economists prescribe for this economy we would ensure that wages grew even more slowly in this country while Australia’s moved even further ahead. Unfortunately the prescription of deregulation in the labour market asset sales and tax cuts for the rich does not add up to an economic policy for this particular country. 
Dr Don Brash 
: I raise a point of order Madam Speaker. Can I understand that answer to be no? 
Madam SPEAKER 
: The member can take from the answer that it did generally address the question. 
Dr Don Brash 
: I assume it was no. 
Madam SPEAKER 
: Ministers are not required to answer yes or no to questions; they are just required to address them. 
Dr Don Brash 
: Question time becomes a total mockery if Ministers are asked a question that has a yes or no answer. As Mr Peters used to say it is rhubarb rhubarb rhubarb. 
Madam SPEAKER 
: I thank the member for his observations. 
Rt Hon Winston Peters 
: Madam Speaker—[ 
Interruption 
] 
Madam SPEAKER 
: Is this a supplementary question? 
Rt Hon Winston Peters 
: Yes and if the rabid dogs over there can keep quiet I will get it out. 
Madam SPEAKER 
: Please ask the question. 
Rt Hon Winston Peters 
: You would have to be down here to hear the kinds of insults from the people on our right purely because they have their noses pressed against the window for the next 3 years. [ 
Interruption 
] 
Madam SPEAKER 
: Would both members please sit down. Would members please just ask their questions and stop prefacing them. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. I think Mr Peters should be asked to apologise for that. That was an unnecessary remark—an aspersion cast on the Opposition side of the House. I know how much he hates the new title “Sergeant of ‘Helengrad’s’ Republican Guard” but we are not going to use that for him. We just do not want him to go down that track. I think his apologising would be a good idea. 
Madam SPEAKER 
: I am not sure what he should apologise for. 
Rt Hon Winston Peters 
: If I have to apologise for them having their noses against the window for the next 3 years I will but that is a fact. I am sorry for them but it is a fact. My question to the Minister of Finance is this: does he not recall a certain economist extolling the virtues of the Douglas regime and the Richardson regime the very prescription that Australia refused to follow; and is it not the case therefore that there was such an economist and that his name is Don Brash? 
Hon Dr MICHAEL CULLEN 
: It is absolutely correct to say that since the early 1980s New Zealand has followed much more closely the prescription of the neo-liberal economists of which Dr Brash is one and as a consequence our growth rate has been slower than Australia’s for most of that period. The only period of over 5 years in which our per capita GDP has exceeded Australia’s in that period is that under this Government.