Adams Amy: Questions for Oral Answer — Questions to Ministers 
Adams Amy: Questions for Oral Answer — Questions to Ministers 
[Volume:657;Page:6319] 
1. AMY ADAMS (National—Selwyn) 
 to the  
Minister of Finance 
: What recent reports has he received on the economy? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 I have received reports indicating that the economy is showing some early signs of recovery which are welcome but sustainable growth and higher incomes will be possible only if our businesses and exporters are supporting jobs. New Zealand’s terms of trade in the June quarter actually fell by 9 percent the largest quarterly fall since 1975. In terms of trade it is the lowest since September 2006 so we have some work to do to turn this economy round to an export-led recovery. 
Amy Adams 
: Has the Minister seen any reports on alternative policy approaches? 
Hon BILL ENGLISH 
: I have seen reports at the weekend that the Labour Opposition would borrow billions of dollars a year extra to support a range of policies including widening the benefit system to the spouses of people who have lost their jobs reversing KiwiSaver changes and increasing the size of the Wellington-based bureaucracy. This wish list adds up to $6 billion a year. 
Mr SPEAKER 
: The Hon David Cunliffe. [ 
Interruption 
] I have called the Hon David Cunliffe. 
Hon David Cunliffe 
: Why can his Government afford $1.6 billion of taxpayer subsidies to the heaviest polluters or one-third of its tax cuts going to the top 3 percent of earners or $35 million of subsidies to private schools while we are saving nickel and dime out of adult and community education; and who is he to talk in this House about priorities? 
Hon BILL ENGLISH 
: Who is that party to lecture the Government when the heart of its last coalition agreement was a large donation to its coalition partner? In respect of the emissions trading scheme the Government has struck the right balance between its economic responsibilities and its environmental responsibilities. 
Amy Adams 
: What would be the effects of extra borrowing on the economy? 
Hon BILL ENGLISH 
: The Government is already facing cash deficits of $10 billion to $12 billion over the next 4 years as we endeavour to maintain entitlements and public services through a recession. Further borrowing of $6 billion as advocated by the Labour Party would represent a borrowing binge and raise the prospect of a credit downgrade and a sharp increase in interest rates for homeowners and businesses. 
Hon David Cunliffe 
: Can the Minister confirm that at the time of the last general election New Zealand’s net Government debt was approximately zero and can he further confirm that in the last few months of the outgoing Government gross sovereign debt was below 20 percent; if so when is he going to stop blaming the recession for every piece of indecision and bad policy from his Government and grow up and govern? 
Hon BILL ENGLISH 
: The evidence for 10 years of economic mismanagement under Labour is pretty compelling. What I will say is that the further $6 billion of promises that the Opposition has made will be difficult for it to defend at the next election because the public knows that endless debt is bad for the economy and bad for them. 
Amy Adams 
: What other views has the Minister seen about Governments saddling taxpayers with extra debt—[ 
Interruption 
] 
Mr SPEAKER 
: Did the Hon Bill English hear the question? I apologise for— 
Hon Trevor Mallard 
: He’s got it written down. 
Hon BILL ENGLISH 
: No I did not Mr Speaker. 
Amy Adams 
: I am happy to repeat it. 
Mr SPEAKER 
: I have allowed a fair bit of noise because this is obviously an issue that excites some interest but I think when a member at the back of the House is asking a supplementary question we should have a reasonable level of interjection or at least we should desist from too much interjection. I invite Amy Adams to repeat her question. 
Amy Adams 
: What other views has the Minister seen about Governments saddling taxpayers with extra debt by reckless borrowing? 
Hon BILL ENGLISH 
: I have seen one such view which described the idea of any extra Government borrowing as hilarious and crazy and I will quote from it: “I just think it’s mind boggling stupid. You go out and borrow at a time when the international markets are in crisis?”. Those comments came from Helen Clark the former leader of the party that has now promised $6 billion of extra borrowing.