Williams Andrew: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeWilliams Andrew: Questions for Oral Answer — Questions to Ministers[Sitting date: 28 May 2013. Volume:690;Page:10389. Text is incorporated into the Bound Volume.]1.ANDREW WILLIAMS (NZ First) to theMinister of Finance: How many new jobs if any are forecast in Budget 2013?Hon BILL ENGLISH (Minister of Finance): Thank you for asking about jobs a key focus for the Government. The Budget forecasts are done independently by Treasury who predict that there will be 60000 more people employed over the course of 2013 and a further 54000 in 2014. Since the Budget forecasts were finalised the actual numbers for the first quarter of 2013 have been released showing an increase of 38000 of the predicted 60000 for the calendar year growth in employment. However these numbers can fluctuate from quarter to quarter. This reflects in part reasonably strong growth in the New Zealand economy as well as growth in exports low interest rates low inflation and the confidence built by the Government in maintaining its track to surplus.Andrew Williams: Why is annual average employment growth estimated to be minus 0.8 percent in the June 2013 quarter of the 2013 Budget given that Budget 2011 forecast 170000 new jobs by 2015?Hon BILL ENGLISH: That is a very good question and one where I would need to go and look at the detail to be able to answer the member. As I said job growth is forecast based on reasonable growth in the economy. I think we would accept two things. One is that job growth was pretty soft in 2012 softer than was expected so there were fewer extra people in employment than expected and looking out over the next 12 months job growth as measured by these statistical methods is likely to fluctuate from quarter to quarter around the rising trend.Andrew Williams: Given that the June quarter shows a minus 0.8 percent average employment growth and given that Budget 2011 forecast 170000 new jobs by 2015 and Budget 2013 is now halfway through that time frame how many of those 170000 new jobs has the Government actually delivered?Hon BILL ENGLISH: In the first place the Government does not directly deliver jobs; it delivers an environment where businesses are confident enough to make the decision to invest and employ. Secondly in response to the member’s question the fact is that in the calendar year for 2012 job growth was pretty soft and of the 170000 jobs that were forecast in Budget 2010 it is currently about 40000 behind that forecast. However the forecasts ahead of us do look a bit surer because we are closer to the rebuild of Christchurch and there is likely to be more success in getting Auckland housing under way.Todd McClay: What is the Government doing to support more jobs?Hon BILL ENGLISH: Instead of printing money and excessive Government spending what we are doing is focusing the Business Growth Agenda on getting businesses to make decisions that constitute growth. The Business Growth Agenda sets out over 200 initiatives—in fact closer to 300 initiatives—all of which are designed to support and encourage business to invest another dollar and employ another person. The indications from anecdotal evidence and measures of business confidence are that New Zealand business is increasingly interested in hiring more people.Andrew Williams: Does he consider the 354 new jobs at Work and Income New Zealand announced in Budget 2013 to be part of those 170000 jobs forecast in Budget 2011 and why are those new jobs at Work and Income New Zealand required—354 of them—if his Government is predicting a decline in unemployment?Hon BILL ENGLISH: It is precisely because we are shifting the focus of whom Government supports back into work. What has become clear through the welfare reform and the investment approach is that people who are in unemployment who have been the focus of much of Government support activity have a pretty high probability of getting jobs again. However other parts of the beneficiary population—in particular solo parents and sickness beneficiaries—have been left languishing particularly by the previous Government. We have decided they deserve more support and more of them will get work if we support them and that is why the 350 new jobs in Work and Income New Zealand are there.Grant Robertson: Is it correct that the Budget documents show that National will be 61000 jobs short of the promise of 170000 extra jobs that he made in Budget 2010 and repeated on the election trail in 2011?Hon BILL ENGLISH: As I pointed out to the member the job numbers are forecasts made by Treasury in the same way that GDP growth is a forecast made by Treasury. In answer to the question yes and the reason is that the economy was slower last year. But I can tell that member that promises of printing money and stopping all economic growth are not the recipe for more jobs.Grant Robertson: I seek leave of the House to table the National Party’s ad regarding 170000 more jobs from the 2011 election campaign which the finance Minister has just told us will not be met.Mr SPEAKER: Leave is sought to table that. Is there any objection? There is none.Document by leave laid on the Table of the House.Andrew Williams: Given that the number of Kiwis on the unemployment benefit was 23000 when his Government took office and now sits at 49000 how can he claim that his economic management is not putting people out of work?Hon BILL ENGLISH: Well a few events have occurred since we took office that the member may not be aware of. There was a large earthquake in Christchurch there was a global financial crisis there was the worst recession since the Great Depression of the 1930s and in that context we have done pretty well. But if that member wants to stay on “Planet Labour” he will remain out of touch with what is happening in the real world.Todd McClay: What policies has he seen that will reduce jobs?Hon BILL ENGLISH: Well I have seen a few: a policy that will use the emissions trading system to increase power prices by $500 per family and will probably destroy jobs; policies opposing all new mining and oil and gas exploration which will probably destroy jobs; policies designed to shut down the dairy industry which will probably destroy jobs; and policies to print money and erode confidence of business which will probably destroy jobs. Those are the policies of the Labour-Green Opposition.