3. Question No. 3—FinanceHon PAUL GOLDSMITH (National) to the Minister of FinanceQuestion No. 3—Finance3. Hon PAUL GOLDSMITH (National) to the Minister of Finance: Does he agree with the Reserve Bank that there has been a sharp decline in GDP growth" while he has been in office?Hon GRANT ROBERTSON (Minister of Finance): I take the opportunity to welcome the member to the portfolio. As I have previously acknowledged in this House the rate of GDP growth in New Zealand has slowed. But I also note that Statistics New Zealand who produce the GDP data said in last week's release "Annual growth in GDP has been slowing since the December 2016 quarter."Hon Paul Goldsmith: What effect does an economy that is losing momentum have on the day-to-day lives of Kiwis?Hon GRANT ROBERTSON: We all know that we need sustainable economic growth in New Zealand in order to support all of the things that we want for our country. The New Zealand economy continues to grow—as the OECD said—at sustainable and solid levels. We also continue to grow at a faster rate than most of the countries that we compare ourselves to. So yes sustainable economic growth is important. What's also important is caring about who shares in that growth.Hon Paul Goldsmith: Does he accept analysis from the OECD that healthcare "is strongly dependent on the economy and the GDP correlates with lower child mortality higher life expectancy higher literacy rates and greater life satisfaction."?Hon GRANT ROBERTSON: The member may not have heard my answer to his last supplementary question. We need sustainable economic growth. That means building that growth on lifting levels of productivity actually investing in innovation in our regions and in infrastructure—all of the things that the last Government failed to do. So while it's all very well to be able to quote the OECD it's this Government that actually has a plan to address the issues that they've raised.Hon Paul Goldsmith: Did he note the comments today from the IMF saying on the risks to the downside "On the domestic side the fiscal stimulus could be less expansionary if policy implementation were to be more gradual than expected" and does that in quotes mean "if the Government stuffs up the implementation" like it has with KiwiBuild?Hon GRANT ROBERTSON: I would invite the member to read all of the IMF's statement. I know just getting past the first few lines might be a struggle but I'll help him out here. The financial year 2019-20 Budget "strikes an appropriate balance between supporting policy priorities and maintaining prudent debt levels." "New Zealand's sound fiscal framework has been strengthened further." I could go on but what the IMF is saying is that this Government has got the balance of its priorities right.Hon Paul Goldsmith: Is he willing to contemplate a return to Budget deficits in 2020 or 2021 if the slowdown continues and his Government continues significantly increasing spending?Hon GRANT ROBERTSON: That is a hypothetical and I have huge confidence in the businesses and the workers of New Zealand that are supported by a Government that's investing in skills in research and development in infrastructure. We will be able to see a sustainably growing economy over that period. The member shouldn't take on a pessimistic tone.Hon Paul Goldsmith: Well regarding that pessimistic tone isn't the real threat to the economy coming not from anything I say but what he and his Government is doing with policy after policy driving down growth and a lack of delivery on infrastructure and housing?Hon GRANT ROBERTSON: It is a little bit rich from a Government that failed to invest in infrastructure year after year to stand up in this House and say that this Government's not doing enough in that area. I think the parents of children who are being taught in assembly halls because that Government failed to invest in schools will find that a bit rich. I think the people who are in hospitals where the lifts don't work and the heating doesn't work because that Government failed to invest in the health infrastructure know that it is this side of the House that has their best interests at heart.Hon Simon Bridges: What role does he believe uncertainty in Iran has on eight of 11 regions in New Zealand suffering dramatically declining economic confidence this last quarter?Hon GRANT ROBERTSON: I would've thought the member who's come to the aid of his new spokesperson there would know that businesses in our regions are incredibly connected to the world and what they're concerned about is making sure as they turn into an export business that there is a stable global economy. They know that New Zealand is an exporting nation that has to care about what happens in the rest of the world. But I understand that the member who asked that question's more focused on internal matters.Hon Simon Bridges: So to be clear is he seriously saying it is uncertainty in Iran that is causing eight of 11 regions in New Zealand to suffer sharply declining economic uncertainty?Hon GRANT ROBERTSON: I'm sure the member is aware that Iran is one example of global uncertainty. The Prime Minister when she spoke before gave a number of examples. She mentioned Brexit; she mentioned the trade war between China and the US. That member well knows that New Zealand as a small nation has to make sure that it's aware of what happens in the rest of the world. We know that the greatest threat to that member is sitting very close to him.Rt Hon Winston Peters: If the issue of business confidence is what's important here how come the New Zealand sharemarket is at new record levels?Hon GRANT ROBERTSON: Indeed there are many examples in the New Zealand economy of where businesses and companies are doing well where people want to invest in innovation where the Government is alongside them making sure that we're adjusting to the climate change challenge and making sure that we're transforming the economy. It's the difference between a Government that's firmly focused on building an economy that's appropriate for the 21st century and an Opposition that's pessimistically looking in the rear-view mirror."