Bennett David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeBennett David: Questions for Oral Answer — Questions to Ministers[Sitting date: 10 December 2013. Volume:695;Page:15346. Text is incorporated into the Bound Volume.]2.DAVID BENNETT (National—Hamilton East) to theMinister of Finance: What progress has the Government made with its economic programme in 2013?Hon BILL ENGLISH (Minister of Finance): The Government has made encouraging progress in its economic programme in 2013. The economy is building good momentum. It is generating more jobs which lift people out of welfare dependency and out of poverty. It is generating higher incomes and more opportunities. In the 12 months to June the economy grew by a relatively strong 2.5 percent. Updated figures for the September quarter will be issued next week and forecasters expect the annual growth rate to improve further in the second half of 2013. The growth in the economy is now broad-based across almost all sectors of the economy and almost all regions which means that many New Zealanders are beginning to benefit from that economic growth. The OECD is forecasting growth of over 3.5 percent in New Zealand in 2014 which will make New Zealand one of the better-performing developed economies.David Bennett: How have the stronger economy and improving business and consumer confidence in 2013 translated into more jobs?Hon BILL ENGLISH: It does take some time for more confidence and for employment and investment intentions to translate into jobs. However in the September quarter alone 27000 more New Zealanders had new jobs and the increase in jobs over the year to September was 53700—that is 53700 more jobs this September than in the previous September. Employment levels increased by 2.4 percent in that year and labour market participation increased to 68.6 percent. [Interruption]Mr SPEAKER: Order!Hon BILL ENGLISH: Regional employment data was reasonably strong with eight regions having lower unemployment than Auckland. Again that shows the broad-based nature of the economic recovery.Phil Twyford: Why is his Government trying to claim credit for the exemption of new builds from loan-to-value ratios and at the same time claiming that decisions on loan-to-value ratios are made by an independent Reserve Bank without any interference from the Government or is his desperate attempt to have it both ways just a symptom of a housing policy that has completely collapsed leaving massive uncertainty in the market place?Hon BILL ENGLISH: The Government has not tried to claim credit for a decision that was not the Government’s; it was a decision of the Reserve Bank. I think the Opposition is probably trying to claim credit for it even though it was a decision of the Reserve Bank. As the member will know from seeing what is happening on the ground in Auckland the Government’s policy of focusing on increasing the supply of houses on the ground in Auckland and in Christchurch is beginning to gather some momentum.David Bennett: How is the Government’s economic programme helping improve the fairness of the tax system and supporting those families most in need? [Interruption]Mr SPEAKER: Order! Before the Minister starts can we have a little less noise from my left-hand side of the House.Hon BILL ENGLISH: A particular feature of the Government’s programme through the recession has been firstly that we have protected the most vulnerable at all stages and secondly that income inequality has dropped slightly over the last 4 or 5 years despite the predictions of many that a recession and tax changes would make it a lot worse. So the Government has been able to demonstrate that with sensible and moderate economic management we can achieve a growing economy more fairness and protection for the most vulnerable.Hon David Parker: Was the asset sales programme a centrepiece of his economic programme in 2013; if so given that it has raised billions of dollars less than was projected and has resulted in the sale of shares to only 2 percent of New Zealanders rather than the broad spectrum that he previously promised why would New Zealanders have confidence in the rest of his management of the economy?Hon BILL ENGLISH: In answer to his first question no it is not the centrepiece of the Government’s economic programme but it has—[Interruption] It actually amounts to something like 2 percent of the Government’s total assets. However it has been a centrepiece of the Opposition’s criticism of the Government. Opposition members do not know what they are going to say after the referendum and when the asset sales process is over. What will the Labour Party then stand for if it is not against asset sales?David Bennett: What reports did he receive in 2013 supporting the Government’s economic programme and how is that programme supporting growth in certain sectors of the economy?Hon BILL ENGLISH: The Government of course understands that the credibility of economic growth will be measured by people other than the politicians. For instancethe OECD back in June confirmed that New Zealand’s macroeconomic policies strike the right balance between supporting a recovery from recession and ensuring sustainable medium-term growth. It noted our work in improving productivity to support long-term growth and it supported the Government’s focus on getting back to surplus. For an international body that has an overview of the economic policies of all developed countries and many developing countries that is a pretty reasonable verdict. Just yesterday Statistics New Zealand confirmed that the manufacturing sector is in good heart with strong sales volumes—numbers that indicate that perhaps there is not a crisis in manufacturing.