Bakshi Kanwaljit Singh: Oral Questions — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeBakshi Kanwaljit Singh: Oral Questions — Questions to Ministers Questions to Members[Sitting date: 19 August 2015. Volume:707;Page:5931. Text is incorporated into the Bound Volume.]4.KANWALJIT SINGH BAKSHI (National) to the Minister for Economic Development: What reports has he received on the growth of New Zealand’s technology software and services industry over the last seven years?Hon STEVEN JOYCE (Minister for Economic Development): I am very pleased to answer that question. I have seen a number of very positive reports. They show that the technology software and services sector has been growing at a rate of 9 percent per year since 2008 and now contributes 1.7 percent of New Zealand’s GDP. Exports of IT services have more than doubled from $416 million in 2008 to just under $1 billion in 2014 and the number of people employed in computer system design and related services has increased from 28000 in 2008 to nearly 37000 in 2014. That is a growth of 30 percent in just a short period of time. Along with the growth in a number of other industries the information and communications technology sector is a new sector showing the ongoing diversification and strength of the New Zealand economy.Kanwaljit Singh Bakshi: What is the Government doing to encourage growth in the information and communications technology sector?Hon STEVEN JOYCE: A number of things. Of course we are rolling out ultra-fast broadband and the Rural Broadband Initiative to connect New Zealand around the country and with the world; we have established Callaghan Innovation a new high-tech hub that supports innovative New Zealand companies; we have increased the number of tech companies that New Zealand Trade and Enterprise is working with—something like now one-third of its portfolio; we are encouraging more international investment in research and development and innovative New Zealand companies through research and development grants and an investment attraction programme; and we are setting up information and communications technology graduate schools around the country to grow the next generation of high-tech graduates that the industry will need to continue growing.Kanwaljit Singh Bakshi: Why is it important to encourage growth in all parts of the economy?Hon STEVEN JOYCE: It is important to encourage growth in all parts of the economy in order to avoid being too reliant on one or two industries. A recent example of course would be the decline in dairy prices and the ongoing uncertainty there. So it is good to see other industries growing. We are seeing export revenues from industries like beef for example up nearly 35 percent in the last year to $3.1 billion. Wine exports are $1.4 billion which is up 8.2 percent on the previous year and high-tech manufacturing has grown from a $139 million business in 1991 to a $1.4 billion one in 2012. This is an indication that there is a range of industries continuing to grow prosper and carry their share of the load in terms of New Zealand’s economic development.Dr David Clark: If everything is going so well why do the official New Zealand statistics show that information media and telecommunications are now a smaller portion of the economy than when the member took office?Hon STEVEN JOYCE: Well the member just needs to have a look at that because that is a bundled-up version of communications services information and communications technology services and software. The member may not be aware of this but the value of the communications sector has been declining as people get cheaper broadband and cheaper data services. If he needs a briefing perhaps he could get one from the Minister of information and communications technology who would explain the elements of that. But what I can tell the member is that software and services exports have doubled since 2008 and no matter how he spins it—Mr SPEAKER: Order!