Parker David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Parker David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 14 February 2013. Volume:687;Page:7868. Text is incorporated into the Bound Volume.] 
3. 
Hon DAVID PARKER (Labour) 
 to the  
Minister for Economic Development 
: Does he agree with the Prime Minister’s statement that “I would go back to the most rigorous form of measuring employment in the economy and in relation to the manufacturing sector. That is the household labour force survey”; if so what was the net change in persons employed in manufacturing in the HLFS in the year to December 2012? 
Hon STEVEN JOYCE (Minister for Economic Development) 
: 
 Yes I do agree with the Prime Minister’s statement. It is the most rigorous. But as he has often also said it is also a survey and different measures can be contradictory. For example the household labour force survey last week said there was a net loss of full-time jobs in the last quarter—sorry jobs overall in the last quarter actually and an increase in full-time jobs—while 2 days earlier the quarterly employment survey which the member is sometimes fond of quoting said the number of filled jobs had increased over the same period. Turning to the second part of the question the net change in persons employed in manufacturing in the household labour force survey in the year to December 2012 is 17200 people. It is worth pointing out that in the 2010 year the number of persons employed in manufacturing increased by a similar amount while in the 2011 year the number was static. 
Hon David Parker 
: I raise a point of order Mr Speaker. He mentioned a figure but he did not say whether that change was up or down in respect of the 17000 figure he quoted. 
Mr SPEAKER 
: I think to clarify can I ask the Minister just to repeat the second part where he spoke to the specific second part of the member’s question. 
Hon STEVEN JOYCE 
: I will try to be helpful on that Mr Speaker. Turning to the second part of the question the net change in persons employed in manufacturing in the household labour force survey in the year to December 2012 is as the member asserts a decline of 17200. As I said it is worth pointing out that in the 2010 year the number of persons employed in manufacturing increased by the same amount around 17000 while last year the 2011 year the number was static. 
Mr SPEAKER 
: Thank you. I appreciate that. 
Hon David Parker 
: Does he agree with  
The Economist  
that “Deindustrialisation and slow manufacturing productivity growth hurt a country’s ability to export and eventually lead it into balance-of-payments difficulties. As for tradable services they too depend in the long run on a strong manufacturing base.”; if he does not agree with that why not? 
Hon STEVEN JOYCE 
: I obviously have not seen that particular quote even though I am an ardent reader of  
The Economist 
 but can I point out to the member that what he is referring to has actually been occurring in the Western World for many years including in this country. In fact since the 1970s the number of people working in manufacturing in this country has declined as it has in the agricultural industry since it created mechanised tractors. That is actually— 
Dr David Clark 
: So what are we doing about it? 
Hon STEVEN JOYCE 
: Well if the member would like to pretend we can stop the world and go back to steam engines he can go right ahead and present that to the New Zealand public but actually productivity in the New Zealand manufacturing sector has grown at a faster rate than in many countries in the world and if you just look today the optimism in the manufacturing index today has gone to a 54 point positive which is a positive thing for the manufacturing sector. 
Hon David Parker 
: Given his reference to the manufacturing index in that last answer why is it a good-news story when the employment indicator of the manufacturing index shows that manufacturing which has lost 17000 jobs over the last year is in its eighth straight month of employment contraction? 
Hon STEVEN JOYCE 
: Well the manufacturing sector—the Performance of Manufacturing Index that I referred to—shows manufacturing activity up 5 points from December to 55.2. He is correct in saying that employment is still in a negative indicator in this particular survey but again the member pretends as he often does that the reality is that manufacturing jobs declining as productivity increases is a new phenomenon. It actually goes back 40-something years. It is tough for the individuals involved—I absolutely acknowledge that—but anybody who suggests he can stop that is trying to sell a snake oil solution. 
Hon David Parker 
: Given the Minister’s preference to refer to value rather than jobs in manufacturing why does he continue to claim the manufacturing sector is growing when the real value of manufacturing exports outside the primary sector has declined by 10 percent since 2008 and 5 percent in the last year? 
Hon STEVEN JOYCE 
: The member is being incredibly disingenuous. The manufacturing sector includes a whole range of things including the primary sector such as food processing—which was actually when I went to school in manufacturing. The member is constantly trying to find himself a little statistic that tries to backfill the fact he claims that there is a manufacturing crisis. The reality is that it is difficult in every industry because of the challenging world conditions but New Zealand businesses are doing a good job in growing the New Zealand economy. 
Hon David Parker 
: Did National promise 170000 more jobs at the last election? 
Hon STEVEN JOYCE 
: Well I think the member was in the House yesterday when this question was asked. The answer is of course yes and that was the Treasury forecast at the time. According to the quarterly employment survey we have had 54000 new jobs over the last 2 years.