Smith Nick: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Smith Nick: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 29 May 2012. Volume:680;Page:2567. Text is incorporated into the Bound Volume.] 
1. 
Hon Dr NICK SMITH (National—Nelson) 
 to the  
Minister of Finance 
: How did Budget 2002 contribute to the Government’s long-term programme to build a more competitive economy? 
Mr SPEAKER 
: I think it is 2012. 
Hon David Parker 
: I raise a point of order Mr Speaker. Yes I think the question could be re-read.  
Mr SPEAKER 
: As long as the Minister of Finance understands that it is Budget 2012. 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The 2012 Budget sets out the next steps in the Government’s programme to build a long-term sustainable growing economy based on more exports higher savings and more effective investment. In particular the Budget continues an extensive programme of investment in infrastructure; further development and refinement of and accessibility to our skills system; and significant investment in science and innovation as well as significant progress in improving our public services. 
Hon Dr Nick Smith 
: Why is it important for the Government to continue responsibly managing the Government’s finances? 
Hon BILL ENGLISH 
: Good financial management of the Government’s books is important because it helps the Government pursue its other economic priorities. For instance if we stop running deficits we can then stop New Zealand’s debt to overseas lenders from increasing. That can allow us to have lower interest rates for longer which makes it easier for businesses then to build a productive and competitive economy with more jobs and higher incomes. 
Hon Dr Nick Smith 
: What are some of the measures in the Budget that will help achieve the Government’s priority of building a more productive and more competitive New Zealand economy? 
Hon BILL ENGLISH 
: There are a number of particular measures that are focused on assisting businesses to make the decisions that grow the economy and they are the decisions to invest more to employ another person and to pay a higher wage. That is why the Government continues to invest in infrastructure but in particular in the roll-out of ultra-fast broadband which will support businesses; extensive investment in further innovation and research focused on the manufacturing and high tech industries; and further refinement of our skills system so that it is providing younger people with the skills that will make them competent citizens and enable them to take part in the kind of further training that enables them to get jobs in new industries. 
Hon David Parker 
: Did he say in his Budget speech in 2011 that that Budget built “a platform for faster growth more jobs and higher incomes”; and do his forecasts in Budget 2012 in fact show lower growth fewer jobs and lower incomes than he projected in 2011? 
Hon BILL ENGLISH 
: In the first place as I pointed out to the member under New Zealand statute law Treasury makes the forecasts and those forecasts represented its best professional judgment at the time when there was great uncertainty around the world. It is our contention that New Zealand is doing pretty well actually when we look at how difficult conditions are across the developed world. We will have more jobs we will have higher growth and we will have more investment and in today’s developed world that is somewhat exceptional. 
Hon David Parker 
: I raise a point of order Mr Speaker. I think the Minister is at liberty to go on to elucidate an answer when he does not like the primary answer that he has to give in response to a pretty direct question but he did not actually address my question. 
Mr SPEAKER 
: The member makes a reasonably valid point. One assumes the answer was yes. If the Minister was not saying yes to the question he should correct me. The Minister appears not to be wishing to correct me. 
Hon Dr Nick Smith 
: How will the Budget help deliver on the Government’s other main priority of delivering better public services within tight financial constraints? 
Hon BILL ENGLISH 
: The Government has focused on getting results because if we can get better results with our public services in the long run we will save more money. Two months ago the Prime Minister set out 10 challenging and specific results for the public services to achieve over the next 3-5 years including reducing crime reducing long-term welfare dependency and reducing educational underachievement. In the Budget delivered last week the Government has found a lot of money for new initiatives by moving cash from programmes and initiatives that do not work to programmes that will achieve results. 
Hon Dr Nick Smith 
: What reports has he seen in reaction to last week’s Budget? 
Hon BILL ENGLISH 
: There has been a range of reports and opinion. Some of them particularly from ratings agencies are quite positive but the verdict that I thought was appropriate was the so-called average family published in the Auckland media who thought it was a sensible Budget for difficult times.