Bennett David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Bennett David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 12 June 2012. Volume:680;Page:2799. Text is incorporated into the Bound Volume.] 
1. 
DAVID BENNETT (National—Hamilton East) 
 to the  
Minister of Finance 
: What reports has he received on the Government’s financial position? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Last week Treasury published the financial statements for the 10 months ended 30 April. That shows an operating balance before gains and losses of about $1.4 billion better than forecast. Although this is encouraging it is only one set of monthly figures which fluctuate from month to month. The Government remains focused on spending discipline to stay on track to surplus in 2014-15 as we make a moderate adjustment compared with most countries back to surplus. 
David Bennett 
: How does the Government’s financial position compare with that of other countries? 
Hon BILL ENGLISH 
: Although we have had some tight Budgets that do require changes if we are going to produce more public services for less any number of other countries including Australia and Australian states are making much harsher adjustments to their public spending through reductions in family entitlements large-scale redundancies in their public services and a reduction of public services. We do not have to take those measures. 
David Bennett 
: What reports has he received endorsing the Government’s economic programme? 
Hon BILL ENGLISH 
: Last week the International Monetary Fund issued its report on New Zealand for 2012. It noted that if we get back to surplus by 2014-15 that would put New Zealand in a better position to deal with future shocks and take pressure off both interest rates and the exchange rate. It also noted that the New Zealand banking sector remains sound. By comparison with other countries this means we are in a fairly good position for moderate growth. 
David Bennett 
: What other approaches to managing the Government’s finances is he aware of? 
Hon BILL ENGLISH 
: I have seen a number of other reports around suggesting considerable extra Government spending—and of course that would have to be paid for by more Government debt—such as borrowing to pay for reducing the retirement age to 60 for many workers paying for the doubling of paid parental leave and bringing back the research and development tax credit. Those are all Labour Party policies. 
Rt Hon Winston Peters 
: In view of the turmoil in the eurozone and the serious implications for the New Zealand economy if the crisis deepens and further impacts the global financial markets and of Australia’s growth rate which was 300 percent higher than that of New Zealand as of March this year does he not consider it imperative that the Reserve Bank has the appropriate powers to deal with such a potentially dangerous macroeconomic condition? 
Hon BILL ENGLISH 
: That is I think a good question in the circumstances. I believe the Reserve Bank does have sufficient powers to deal with a very significantly negative international event. Those were tested unexpectedly back in 2008 and since then there has been considerable work done by the Reserve Bank both on its own capacities and on how they link with those of the Australian Reserve Bank and bank regulators and I think they are in reasonable shape to handle some significant negative event. 
Rt Hon Winston Peters 
: I seek leave of the House to have the Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill which is in my name drawn from the members’ bills ballot and introduced to the House following question time today. 
Mr SPEAKER 
: Leave is sought for that course of action. Is there any objection? There is objection.