Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 24 February 2015. Volume:703;Page:1842. Text is incorporated into the Bound Volume.]4.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: What is the additional amount of gross debt that the Crown has taken on since the Government was elected in November 2008?Hon BILL ENGLISH (Minister of Finance): Gross debt in 2008-09 was $43 billion. At the time Treasury was forecasting that it would rise to $125 billion by this year. In fact forecasts now show that gross debt will reach $80 billion. That is a reduction of $45 billion on the forecasts inherited by the incoming National Government. That does not take account of the fact that in 2008-09 those forecasts did not because they could not include the impact of the Canterbury earthquakes and the generally slow recovery from the global financial crisis. So in the circumstances the Government has pursued prudent and balanced policies that have led to an increase in gross debt and if we continue on our current path that debt will start to reduce in the next year or two.Grant Robertson: Despite that answer can he actually confirm that New Zealand’s gross debt has gone up by $51 billion under his watch and now represents 36.1 percent of GDP an increase of 18.2 points since he took office?Hon BILL ENGLISH: The figures will be roughly pointed in the right direction although I cannot confirm the actual figures but it is a bit ironic coming from a party that has advocated more spending the whole way through the last 7 years.Grant Robertson: Further to that answer can he confirm that net debt is currently $66 billion or 28.1 percent of GDP compared with $12 billion or 6.8 percent of GDP in 2008 a fivefold increase under his watch?Hon BILL ENGLISH: Yes it is roughly that although the percentage of GDP is too high because Statistics New Zealand have rebased the GDP number and it is actually closer to 25 percent. But of course the Government has followed a balanced policy where with regard to net debt we have tried to minimise the amount of borrowing in the face of the recession and the earthquakes on the one hand and exercise pretty careful constraint on Government spending so that we do not run debt out of control. Every recommendation that party has made would have ended up with higher levels of debt.Grant Robertson: I seek leave of the House to table a paper from the Parliamentary Library that shows that the figures I just gave on net debt are in fact accurate.Mr SPEAKER: Leave is sought to table that particular Parliamentary Library document. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.Andrew Bayly: What steps has the Government taken to reduce Crown debt?Hon BILL ENGLISH: Just by way of example if I look at the Government’s new spending and revenue initiatives over the past six Budgets net of reprioritised spending over six Budgets that new spending and revenue have totalled less than $2.7 billion over those six Budgets. By comparison the equivalent number for the six Budgets of the previous Labour Government was $20 billion over six Budgets. So the Government has sought to minimise the increase in debt in the face of difficult circumstances by controlling its spending very carefully at the same time as improving public services and supporting the most vulnerable. We believe that we have got the balance about right.Grant Robertson: Can the Minister confirm that New Zealand is now paying $10.4 million in interest each day to service the debt built up under his watch?Hon BILL ENGLISH: That may be around the figure. Of course it would have been higher if we had listened to that member when he protested outside public service buildings around Wellington against any spending restraint.Grant Robertson: I do not think any of that—Mr SPEAKER: Order! Is this a point of order?Grant Robertson: Yes it is. I was going to say that I do not think any of that material was relevant to the answer but if he—Mr SPEAKER: Order! [Interruption] Order! The member will resume his seat.Andrew Bayly: What progress has been made in achieving the Government’s fiscal goals?Hon BILL ENGLISH: As I have indicated we have made measured and incremental progress. We could have gone faster—there is no doubt about that—if we had done what other Governments have done and fired thousands of civil servants. We could have gone slower if we had listened to the finance spokesman for the Opposition and spent a lot more money and run up a lot more debt. But we think we have got the balance about right. The operating balance has shrunk significantly from a peak of around $18 billion to around an estimated $500 million for this year. That is very significant progress.Grant Robertson: Is he satisfied that he is fulfilling his promise to New Zealanders to “reduce total debt to prudent levels” by incurring gross and net debt levels of $85 billion and $66 billion respectively?Hon BILL ENGLISH: Yes and I think the election showed that New Zealanders on average are pleased that they have got a Government that understands that to achieve those things you need to exercise restraint in spending whereas the Opposition finance spokesman has been protesting around Wellington outside public service buildings that the Government is not spending enough.