Calder Cam: Estimates Debate — In Committee 
Text is subject to correction 
Calder Cam: Estimates Debate — In Committee 
[Sitting date: 01 August 2012. Volume:682;Page:4184. Text is subject to correction.] 
Dr CAM CALDER (National) 
: 
 Citius altius fortius—faster higher stronger. We all recognise the Olympic motto but “faster higher stronger” can also describe New Zealand’s performance in the tradable sector under this Government. It is a stark contrast as despite the best economic times in decades under the heavy regulatory hand of the unlamented last Labour Government the tradable sector languished. We have turned that round. We are building a more productive economy. We are encouraging faster growth. We are producing products that people want and need and getting higher prices for our products and our tradable sector is stronger and more resilient under the indefatigable Tim Groser and his team. We have got a clear goal of trade contributing to 40 percent of our GDP by 2025.  
Hon Clayton Cosgrove 
: What are you doing about it? 
Dr CAM CALDER 
: Growth in New Zealand Mr Cosgrove over the next 4 years is forecast to be higher than growth in Europe the US the UK Japan and Canada—citius altius fortius. This Government is a safe pair of hands a responsible pair of hands and we are getting on with the job.  
Prudent management of our debt and fiscal discipline is fundamental to New Zealand’s well-being. The financial markets are intolerant of poor fiscal policy. Any profligacy would be penalised by higher interest rates and increased debt-servicing costs. We need a buoyant New Zealand economy weighed down by the least debt possible to ride out the troubled waters ahead. The global markets in case you have noticed or have not noticed are experiencing ongoing turmoil.  
Let us take a look at the international financial situation. In the US unless Congress acts across-the-board income taxes will expire on 31 December meaning there will be steep tax increases. The deep automatic Government spending cuts of US$1.2 trillion over 10 years are slated to begin on 2 January 2013. There is a need early in 2013 of course to raise the US borrowing authority or face a debt default and Congress must decide to fund programmes beyond 30 September the end of the current fiscal year to avert Government shutdowns.  
These factors combined will be enough according to some commentators to push the US economy over a fiscal cliff—colourful language but what does it mean? Well the Congressional Budget Office estimates that with these spending cuts and the increase in taxes the US gross domestic product could drop by 4 percent—4 percent. Right now the US economy is not looking a picture of health as growth has slowed to an annual rate of 1.5 percent as Americans have cut back on spending. This will not be enough to lower the unemployment rate which was 8.2 percent last month. House sales are weakening and there is a fair old notion that the US economy is threatening to stall.  
Hon Clayton Cosgrove 
: Let’s talk about the New Zealand economy. 
Dr CAM CALDER 
: Sadly the political environment ahead of 6 November is not likely to be one of compromise and negotiation. Once again local political brinkmanship and posturing in the US is likely to severely discommode the global financial confidence in structures.  
Let us look at Europe Mr Cosgrove. I know your view is normally somewhat more insular—summit follows summit band-aid is applied to elastoplast. Two elections were necessary before Greece could receive its latest tranche of funds. The IMF the European Central Bank and the EU are all looking at it to see whether the austerity measures demanded will be enforced and already last-chance options are being considered. Portugal and Ireland are also under scrutiny. Are they following the tough austerity measures demanded of them? 
Hon Clayton Cosgrove 
: I raise a point of order Mr Chairperson. I apologise to the member. I was very reluctant to raise a point of order given what we had some half an hour ago and I am conscious of Speaker’s ruling 20/8 but last time I checked these are the New Zealand appropriations. This is Vote Finance—in New Zealand. It is not Greece or Spain or the US or Botswana or anywhere else. This is the New Zealand financial accounts and a New Zealand debate. I know it is appropriate to refer to other jurisdictions from time to time but we have had 4 or 5 minutes talking about every country other than this one. Last time I checked this was the New Zealand Parliament.  
The CHAIRPERSON (H V Ross Robertson) 
: Well thank you for bringing it to the attention of the Committee Mr Cosgrove. I appreciate that. But I know that the member is coming closer and closer and he has not got too much time left.  
Dr CAM CALDER 
: Thank you. I will speak more slowly for Mr Cosgrove because I did mention that the whole point of this was prudent financial management. Meanwhile Spain is putting up its hand and signalling that between now and 2015 we are going to need €540 billion to bail Spain out. And of course the principal point here is that a Greek-style bailout of Spain is not possible once— 
Hon Trevor Mallard 
: I raise a point of order Mr Chairperson. I have done a quick check of the estimates and there is no €540 billion to bail out Spain in these estimates.  
The CHAIRPERSON (H V Ross Robertson) 
: Can I just say to the member that it is a debatable point and the member has— 
Hon Trevor Mallard 
: No it’s fact. 
The CHAIRPERSON (H V Ross Robertson) 
: Well I can only go on what the member is saying in the Chamber and I would expect the member to be able to refer to the appropriations as they reflect for this financial year. 
Dr CAM CALDER 
: Thank you Mr Chair. It is all about context and really the Opposition benches are showing why it was such a disastrous period of time when they were in power because they had no idea of the global context that this country is operating and trading in. The President of the European Central Bank Mario Draghi told business leaders in London just in the last week that it will do “whatever it takes”.