McKelvie Ian: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeMcKelvie Ian: Questions for Oral Answer — Questions to Ministers[Sitting date: 04 March 2014. Volume:696;Page:16240. Text is incorporated into the Bound Volume.]2.IANMcKELVIE (National—Rangitīkei) to theMinister of Finance: What reports has he received on momentum building in the economy—particularly trends in jobs wages and business confidence?Hon BILL ENGLISH (Minister of Finance): Treasury has released itsMonthly Economic Indicators for February which indicates that the positive momentum in the economy in the September 2013 quarter appears to have continued into the December quarter. The number of people employed increased by 66600 in 2013 unemployment fell to 6 percent and total weekly gross earnings were 5.2 percent higher than a year earlier reflecting the combined effect of wage and job growth. Labour forceparticipation—that is the proportion of the adult population available for work—is close to a 28-year high. The rate of building consents is at the highest level since 2008 and has doubled since 2011. Consumer and business confidence are relatively high. All this adds to momentum building in the economy.Ian McKelvie: How are more jobs higher wages and improving growth contributing to the rebalancing of the economy?Hon BILL ENGLISH: The Government is focused on a more productive and competitive economy and that means working to rebalance the economy so that more of it is exposed to world trade. Last month’s trade balance of a $306 million surplus was the highest ever recorded in January. We know that that is driven to a large extent by the rebound of dairy prices. In the long term we need to see less Government spending and less domestic consumption and more focus on profitable export sectors that earn a living for New Zealand from the rest of the world.Ian McKelvie: What recent reports has he seen on business confidence and outlook for economic growth?Hon BILL ENGLISH: The importance of business confidence is that it tends to drive investment decisions. So when business is confident about the future it is more likely to borrow the money or raise it from other sources and invest in the plant and equipment and the opportunities for more higher-paying jobs. Without that confidence we will not get the investment and the better-paying jobs. The ANZ Business Outlook survey shows that 71 percent of firms are optimistic.Hon Annette King: A party political broadcast.Hon BILL ENGLISH: Wait for it. That is the highest level since 1994. We hope by consistent policy to convert that confidence into higher levels of investment which will benefit New Zealanders’ jobs and incomes.Ian McKelvie: As the economy returns to growth what steps is the Government taking to build on recent gains?Hon BILL ENGLISH: The Government is focused on locking in gains from this positive outlook where the Government has a direct role in doing so. Last week we confirmed the adult minimum wage would increase to $14.25 an hour from $13.75 an hour. The minimum wage has increased from $12 an hour in April 2008. So it has increased by almost 19 percent in that time. The Government has sought to balance the needs of workers and businesses to keep the minimum wage at around 50 percent of the average wage and that relationship of the minimum wage at 50 percent of the average wage is the highest in the OECD.