McClay Todd: Questions for Oral Answer — Questions to Ministers Questions to Members 
Text is incorporated into the Bound Volume 
McClay Todd: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Sitting date: 20 February 2013. Volume:687;Page:8003. Text is incorporated into the Bound Volume.] 
1. 
TODD McCLAY (National—Rotorua) 
 to the  
Minister of Finance 
: What reports has he received on the Government’s financial position? 
Hon STEVEN JOYCE (Associate Minister of Finance) 
 on behalf of the Minister of Finance: I have received Treasury’s financial statements for the 6 months to the end of December. They show a $3.19 billion operating deficit before gains and losses for the first 6 months of the financial year. That deficit is $158 million lower than forecast by Treasury in its half-year update primarily reflecting lower expenditure than was forecast. The Crown’s operating balance recorded a surplus of $1.7 billion which is $2.3 billion higher than forecast. The result confirms that the Government is maintaining a track to surplus through careful fiscal management. 
Todd McClay 
: What were the main factors behind the Government’s latest financial results? 
Hon STEVEN JOYCE 
: The statements show core Crown expenses at 0.8 percent below forecast. Core Crown revenue is 0.1 percent below forecast. Lower expenditure reflects moderate underspends across most departments which total around $87 million with delay in two complex Treaty settlements until later in the year making up the difference. Core Crown tax revenue was $31 million less than forecast or 0.1 percent reflecting various overs and unders including a higher than expected individual tax take and higher source deductions associated with labour earnings growth. The operating balance was boosted by investment gains from the New Zealand Superannuation Fund and the ACC fund. The figures show that the Government is in control of new spending and is getting better results from existing programmes. 
Todd McClay 
: What steps has the Government taken to manage its finances and get back to surplus? 
Hon STEVEN JOYCE 
: The Government has put spending and revenue initiatives in place to balance the books. On the spending side we have delivered two consecutive Budgets showing zero net new expenditure while maintaining increases in health and education spending. We have launched the Better Public Services programme and reprioritised $4.4 billion over 4 years to ensure New Zealanders will see better results without new resources. On the revenue side the Government has increased income while improving the fairness of the tax system by shutting down loopholes. These things include tightening the tax treatment of property increasing GST making it harder for people to avoid paying tax through trusts and making resources available for the Inland Revenue Department to target tax avoidance. 
Todd McClay 
: What alternative proposals has he seen for managing the Government’s finances? 
Hon STEVEN JOYCE 
: I have seen any number of alternative proposals. These measures include putting a capital gains tax on every productive business and farm encouraging tax avoidance by increasing the gap between the top personal income and company tax rates discouraging all sorts of private investment in the New Zealand economy printing money and so on. That is the Greens-Labour prescription for the New Zealand economy.