Parker David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Parker David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 04 December 2012. Volume:686;Page:7001. Text is incorporated into the Bound Volume.] 
8. 
Hon DAVID PARKER (Labour) 
 to the  
Minister of Finance 
: Does he stand by his statement regarding migration to Australia “What’s the point of standing in the airport crying about it?”; if so how many people have left permanently for Australia since he took office in November 2008? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 As I said in answer to the same question from the member on 24 July 25 July 26 July and 1 August yes. My full statement was “What’s the point of standing in the airport crying about it? We’ve just got to compete. They can pay more but it’s hot and there’s lots of flies. We pay less but you can go for a bike ride at lunchtime.” Statistics New Zealand reports 173715 people migrated to Australia in that time period. I note that in this period 59000 people migrated from Australia to New Zealand leaving a net outward migration of 114000. There are signs that this migration is levelling off. I note that in the 9 years to October 2008 despite benign economic conditions 310000 people left for Australia. 
Hon David Parker 
: Given that more than 173000 people have left for Australia since he took office in 2008 and the year to October 2012 saw 53695 Kiwis leave does he agree that his Government has failed to fulfil its 2008 promise to reduce the number of people leaving for Australia? 
Hon BILL ENGLISH 
: No. I think the reason that there has been higher out-migration has been pretty straightforward. Australia had a once-in-a-century boom in its resource prices. That means that up until recently it has been sheltered from the effects of the global financial crisis. The out-migration is directly proportional to the fact that Australia’s growth rate was higher than New Zealand’s. Over the next few years they look to be pretty similar and that is why the out-migration is likely to slow down and the number leaving Australia to come to New Zealand which was 59000 in the 4 years that the member referred to is likely to increase. 
Hon David Parker 
: Is he aware that the 173715 New Zealanders who have left for Australia represent 4 percent of New Zealand’s total population which is more than the population of Hamilton more than the population of Napier and Hastings combined and equivalent to Dunedin and Invercargill combined? 
Hon BILL ENGLISH 
: I would believe those numbers if they came from Statistics New Zealand and not from the Opposition spokesman on finance; in this case I would have to divide them by seven to get it right. But he is probably right. 
Hon David Parker 
: Does he agree that the New Zealanders leaving for Australia in record numbers are doing so because of low wages and a lack of jobs in New Zealand; if not why are 54000 Kiwis leaving for Australia every year? 
Hon BILL ENGLISH 
: As I explained to the member and which I think he knows in around 2007 Australia experienced a once-in-100-years more than doubling of its commodity prices. That gave Australia a large unexpected increase in income and that has meant high wages which have attracted New Zealanders. Over the next few years our growth rates are pretty similar around 2.5 to 3.5 percent and I would expect that those flows will slow down a bit. The main thing for us to do is to focus on the competitiveness of our businesses so that they can for instance grow their businesses and exports to Australia and can employ more New Zealanders to do so. 
Hon David Parker 
: Why has the wage gap between Australia and New Zealand continued to widen—using the purchase price parity figure that the Prime Minister prefers to use it is now $27.73 a week wider under his Government—after he campaigned in 2008 to narrow the gap? 
Hon BILL ENGLISH 
: We could argue about how to measure the wage gap. As the member will know because of New Zealand’s tax changes our after-tax incomes are actually much closer to Australia’s than those figures would indicate. Actually when you look at the Australian figures it is surprising. If you take out the Western Australia wage rates it makes a significant difference. In fact if you take out Western Australia growth rates the Australian and New Zealand economies and wages have grown at pretty similar rates through the last 3 or 4 years. Last year Western Australia grew at 14 percent. That is almost one and a half times the growth rate in China and frankly we are going to have to focus very hard on competitiveness of our businesses to be able to match the enormous wages paid in Western Australia. 
Todd McClay 
: In light of recent migration trends and their impact on the housing market what reports has the Minister received detailing alternative approaches to housing? 
Hon BILL ENGLISH 
: Migration trends do have a significant impact on housing. Just how many houses those migrants might need of course depends on whether you get your numbers wrong by 700 percent as became apparent in the answer to a question in the House last week where our spokesperson pointed out that building 100000 houses over 10 years requires one house to be built every hour night and day for an entire decade. The Opposition spokesman on finance however thinks that that adds up to 600000 houses not 100000 houses.