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: 08 May 2014. Volume:698;Page:17677. Text is incorporated into the Bound Volume.]1.DAVID BENNETT (National—Hamilton East) to theMinister of Finance: What reports has he received about increasingly broad-based growth in the economy?Hon BILL ENGLISH (Minister of Finance): Quite a range of reports. Building consents are at their highest level since 2007 and almost double the number of consents for new houses issued 3 years ago. Yesterday’s announcement of 41 new special housing areas in Auckland will fast track 18000 more houses. Business confidence remains high and it is flowing through to increased investments supporting longer-term productivity and wages. Yesterday’s employment figures show 84000 more jobs in the year to March the largest increase in employment since 2004. The BNZ-Business New Zealand Performance of Manufacturing Index shows 19 consecutive months of manufacturing growth and despite a strong exchange rate annual exports recently passed $50 billion for the first time.David Bennett: How does growth in employment over the last 3 years compare with forecasts for jobs growth in previous Budgets?Hon BILL ENGLISH: In Budget 2010 there was a forecast of 174000 additional jobs in the economy by mid-2014. Yesterday’s figures confirm we are on track to meet these forecasts. Including the 84000 new jobs created in the past year alone there have been 160000 jobs created since Budget 2010. I can also confirm we are ahead of job forecasts for the two Budgets and two half-year updates in 2012 and 2013. We are seeing increased confidence in our economy more people investing and more employment—that is New Zealanders who did not have jobs getting jobs.David Bennett: What evidence has he seen that increasing employment and rising wages are contributing to increasingly broad-based growth?Hon BILL ENGLISH: Yesterday’s survey showed reasonably encouraging employment growth although I acknowledge that it is not yet sufficient to reduce unemployment to the desirable levels that we would like to see. The survey does show encouraging growth in the regions and for traditionally disadvantaged groups. Employment growth in the year to March was strong in Auckland and Canterbury but even without those centres employment increased 24200—for instance in the Bay of Plenty by 12 percent and in Otago by 7 percent. Youth employment increased by 15600. Employment among Māori was up by 5.8 percent in the year to March and among Pacific people employment was up by 8 percent. Next week’s Budget is about building on these gains and locking them in for all New Zealanders.David Bennett: How will next week’s Budget continue the Government’s support for higher wages and more jobs for New Zealand families?Hon BILL ENGLISH: The Budget will underpin the conditions that allow for more investment and more jobs. Around 170000 jobs are forecast to be added to the economy by mid-2018. The average full-time wage is forecast to increase to $62300 up from $48700 in 2010. The unemployment rate is expected to fall to 4.4 percent. These forecasts of course depend on ongoing control of Government expenditure so interest rates are not pushed higher than necessary and also some cooling in the housing market again to make sure interest rates do not go higher than necessary.Hon David Parker: How can he say the benefits of economic growth are being shared broadly when yesterday’s official figures showed the annual increase in the median wage was the lowest in 13 years?Hon BILL ENGLISH: The member keeps using a measure of wages that is not the one that is used for instance to set national superannuation. I take it from Labour’s policy that it is going to change the basis of setting relativity between national superannuation and wages. The average wage is the appropriate measure and real average wages continue to rise because wages are rising faster than the cost of living. Not every New Zealander has had the wage rise they want.Hon David Parker: Is the broad-based growth he is referring to the enormous growth in house prices up by 40 percent in Auckland to over $650000; is it not the truth that it is the dropping homeownership and growing inequality that are broad based?Hon BILL ENGLISH: No that is not correct. One policy that will certainly create inequality is Labour’s variable savings rate which could cut the take-home pay of thousands of New Zealanders by up to 15 percent if they are forced into a compulsory scheme. That would certainly make inequality worse.Hon David Parker: I raise a point of order Mr Speaker. As you are aware the Minister has no responsibility for other parties’ policies and should not misrepresent them.Mr SPEAKER: Order! I invite the member to go back and look at his two supplementary questions that he asked and the wording to the effect “Is it not the truth?”. The Minister took the opportunity to respond the way he did.Hon David Parker: I raise a point of order Mr Speaker.Mr SPEAKER: Can I just clarify because I do not want to start the day—Hon David Parker: I am seeking clarification.Mr SPEAKER: Order! If the member is seeking clarification I will listen to it.Hon David Parker: I am seeking a clarification as to whether it is now in order for the Government to state what it believes Opposition parties’ policies to be because that would be a new ruling.Mr SPEAKER: No. What I am saying is that the member asked two questions and the Minister in his response addressed the questions to my satisfaction.Hon David Parker: I raise a point of order Mr Speaker.Mr SPEAKER: Can I just clarify now that this is a fresh point of order because my patience may not last for too much longer with Mr Parker.Hon David Parker: It is a further clarification.Mr SPEAKER: I will hear one more clarification.Hon David Parker: I did not say that he had not addressed the question. My point of order was not that he had not addressed the question but that he has no responsibility for Opposition party policy and should not misrepresent it.Mr SPEAKER: The member is right in that the Minister does not have responsibility for Opposition party policy but he can certainly bring a recent announcement by an Opposition party into his answer.