Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 29 March 2016. Volume:712;Page:9927. Text is incorporated into the Bound Volume.]9.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: Has real gross national disposable income per capita dropped in percentage terms over the last year?Hon BILL ENGLISH (Minister of Finance): No.Grant Robertson: Why then did Mr English the Minister admit on Radio New Zealand last week that incomes are dropping despite GDP growth?Hon BILL ENGLISH: The member is misrepresenting that discussion. The fact is that in a year where dairy income has dropped a long way so incomes in a certain portion of the population—that is dairy farming—dropped a long way it is possible that across the country on average income has dropped a little bit. But that is not wages and it turns out that if that is what I said I was wrong.Grant Robertson: I will give you an easier one Bill. Is it correct that GDP per capita over the last year has grown at less than half of 1 percent?Hon BILL ENGLISH: I do not have that information with me. But if the member is trying to imply that households are not getting ahead he is wrong because wages and salaries income is rising substantially faster than inflation at 2 to 3 percent when inflation is about 0.1 percent. In the farming community incomes are down sharply.Grant Robertson: See whether a picture helps Bill.Mr SPEAKER: Order! We do not need the introduction. When the member rises to his feet to ask the supplementary question just ask it.Grant Robertson: Thank you Mr Speaker. Why is he satisfied with per person growth that is far weaker than Australia the UK the US Japan and many other countries?Hon BILL ENGLISH: Part of the key to this Government’s success is relentless dissatisfaction. But the member needs to bear in mind that he has picked the year that has had the biggest drop in national income for decades and the sharpest rise in population. So it is not surprising that per capita incomes in that year may not have risen as fast as in other years.Grant Robertson: So why is he claiming success for the economy when actually the growth comes from just increasing the number of people in New Zealand rather than increasing productivity?Hon BILL ENGLISH: There he goes again. The member is back on the notion that if you take out all the things that are growing then the economy is not growing. That is true; that would be correct. If you take out the fast growth in immigration—Hon Steven Joyce: Tourism.Hon BILL ENGLISH: —the fast growth in tourism—Hon Steven Joyce: Education.Hon BILL ENGLISH: —the fast growth in education—Hon Steven Joyce: The wine industry.Hon BILL ENGLISH: —the fast growth in the wine industry—Hon Steven Joyce: ICT.Hon BILL ENGLISH: —the fast growth in ICT—Hon Steven Joyce: Immigration—Hon BILL ENGLISH: —well no that is enough—then the economy is not growing.Grant Robertson: Is he aware that per capita growth over the last year was actually 0.3 percent—less than half of 1 percent—and how can he be satisfied with an economy that is not showing substantial productivity growth and is growing only because of population increase?Hon BILL ENGLISH: The Government’s view about productivity is pretty straightforward: in the long run that is what matters the most. The aspect of productivity growth in the economy that we have the most control over is Government services: 70 percent of all modern economies are services. Government is over half of that and that is why we are working so hard to improve the productivity of Government services. We are getting better results for the same or less money and in the long run that will certainly boost productivity in the New Zealand economy.