4. Question No. 4—FinanceHon PAUL GOLDSMITH (National) to the Minister of FinanceQuestion No. 4—Finance4. Hon PAUL GOLDSMITH (National) to the Minister of Finance: What was the extent of fiscal and economic stimulus during the June quarter and what is Treasury's best estimate of the stimulus since then?Hon GRANT ROBERTSON (Minister of Finance): Fiscal and economic stimulus comes from a range of sources in terms of the Government but also the wider economy. In terms of monetary policy in March the Reserve Bank lowered the official cash rate from 1 percent to 0.25 percent and committed to keep it there for at least a year. The Reserve Bank is also keeping long-term interest rates down by buying up to $60 billion of New Zealand Government bonds New Zealand Local Government Funding Agency bonds and New Zealand Government inflation-indexed bonds in the secondary market. It's also announced the total size of its large-scale asset purchases programme is $60 billion over the next 12 months. To date it has repurchased about $22 billion of these bonds on the secondary market. In terms of fiscal stimulus according to the Treasury's monthly Crown accounts total Crown expenses in April and May were $30.286 billion. In terms of the month of June and the second part of the member's question the Government accounts for June and July and the first 5½ days of August have not yet been finalised. But the Treasury estimates that Crown expenses would be about $30.792 billion across June and July.Hon Paul Goldsmith: How much borrowed money has the Government put in to hold up the economy since the COVID crisis began?Hon GRANT ROBERTSON: As the member knows the New Zealand economy was robust there was some money in the kitty but given the substantial amount of spending that has been done over the last few months much of it has been borrowed. If the member cared to put that question down in writing he would have had a chance to have it answered more fully than that.Hon Paul Goldsmith: Well isn't it critical during these extraordinary times to have a clear sense of the extent of stimulus holding up the economy right now?Hon GRANT ROBERTSON: It is and I outlined to the member the numbers that Treasury are able to provide at this time. I think the stimulus that's gone into the economy is the very thing that's ensured that New Zealanders have been able to stay in work that we've been able to support small businesses and it's very important that the Government continues to take the attitude of supporting New Zealanders not heading down a path of austerity. Hon Paul Goldsmith: Does he agree that the current state of the New Zealand economy rests more on the size of the stimulus than it does on the brilliant leadership" that his colleagues refer to?Hon GRANT ROBERTSON: As I've said before in this House it's the team of 5 million that is responsible for the position that New Zealand finds itself in today.Hon Paul Goldsmith: Does he agree that the historically unprecedented level of stimulus has so far masked the true economic consequences of COVID-19 but that the 67000 additional New Zealanders who have gone on to Government unemployment support since March know those consequences only too well?Hon GRANT ROBERTSON: If the member by saying "masks the true economic consequences" means a Government that actually is prepared to stand alongside New Zealanders help them stay in work help them put food on the table help them support their families and their communities then the wage subsidy scheme worked in that regard.Hon Paul Goldsmith: How has his Government used the time that this historically unprecedented stimulus has bought us to prepare for a stronger economic recovery?Hon GRANT ROBERTSON: Well Mr Speaker I'll be at risk of incurring your wrath but quite clearly a Budget that concluded $15 billion of new spending designed over the forecast period to help create 300000 jobs is a good start in that regard."