Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 11 August 2015. Volume:707;Page:5566. Text is incorporated into the Bound Volume.]7.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of FinanceDoes he agree with the Prime Minister that “Dairy is 5% of our economy. So yes dairy prices are down and it’s tough on those dairy farmers who are resilient people but 95% of our economy is not involved in that”?Hon BILL ENGLISH (Minister of Finance): Yes.Grant Robertson: In light of that answer if 95 percent of people are not affected how does he explain retailers in Taranaki who say that the downturn in the dairy market is seeing sales decline between 10 and 20 percent including one retailer who said that the situation was as bad as it was at the height of the global financial crisis?Hon BILL ENGLISH: Because that seems to be a natural consequence of the fact that dairy farmers in Taranaki are earning less so they are spending less.Grant Robertson: What explanation does he have for the following reports on economic confidence: the July Colmar Brunton survey that shows economic pessimism outweighing optimism for the first time in 6 years the Reid Research Services poll that says that 64 percent of people think we are heading for a downturn the ANZ business confidence survey that reports a 6-year low in business confidence or today’s Westpac quarterly economic survey which features a boat that has run aground—symbolising his management of the economy?Hon BILL ENGLISH: I think the reason for that is pretty obvious. People have been adjusting to a stream of what they regard as pretty negative news: first about Greece then about China then more recently about a steadily dropping dairy price and a few other indications that the economy which was growing at 3 to 3.5 percent looks like it is growing at 2 to 2.5 percent. So given how high the levels of confidence were it is not surprising that they dropped somewhat.Grant Robertson: Does he expect to meet forecasts in his Budget for reducing unemployment to below 5 percent or after three quarters of increasing unemployment is he prepared to admit that Westpac is right and unemployment is heading back to over 6 percent?Hon BILL ENGLISH: There will always be differences between forecasts. What has been positive about the labour market has been the continued growth in new jobs and the continuation of a record high participation rate—that is a bigger proportion of the working-age population available for work than has ever been the case. So in light of those positive trends it is still possible that unemployment could rise. We have yet to see. What we do know is that we have an economy that is producing a lot of new jobs and has slightly more New Zealanders showing up for them than there is growth in jobs.Grant Robertson: Why was he so keen to take credit for the state of the economy when it was going well but at the first sign of a downturn it is everyone else’s fault?Hon BILL ENGLISH: The member should go back and have a look because actually this Government has always given credit for the stronger economy to New Zealand households and businesses which in the face of a recession and an earthquake rearranged the way they operated became more efficient and leaner and got themselves through a very difficult period. We have always attributed the strength of the economy to the people who are the economy.