Parker David: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 24 June 2014. Volume:699;Page:18772. Text is incorporated into the Bound Volume.]4.Hon DAVID PARKER (Deputy Leader—Labour)to the Minister of Finance: Does he agree with BERL that “outside of dairy and forestry export receipts have effectively flatlined since April 2009” and that “The risks inherent in such a narrowing of our export base should be of concern to all”; if not why not?Hon BILL ENGLISH (Minister of Finance):I would agree generally with the facts as Business and Economic Research Ltd outlined them and they are that export receipts for categories other than the growing ones have been flat which is a bit like saying that apart from the fact that the All Blacks scored some tries and kicked some goals they actually lost to England.Hon David Parker: Having last week disagreed with the head economist at the New Zealand Institute of Economic Research on his assertions about export performance problems in the regions and widening gaps is he now saying that the head economist at Business and Economic Research Ltd is wrong to warn about the serious problems caused by the narrowing export performance of our country?Hon BILL ENGLISH: Yes. Just bear in mind the situation here. New Zealand has had a quite high exchange rate for 4 or 5 years. Exporters have done a great job of making progress against that head wind. In that context we have had higher prices for dairy and that means that by value it has become a slighter bigger proportion of the export cake. But the member seems to be suggesting we would be better off if dairy prices dropped a long way because then we would have a more diversified export cake. Of course that is silly. We have enjoyed the benefit of high prices for that category. Over the next 3 or 4 years we might enjoy the benefit of for instance fast-growing tourism numbers or a growing IT sector. It does not mean we are becoming less diversified.Hon David Parker: How does a 19 percent real decline in non-primary manufacturing exports since 2008 show that the New Zealand economy is getting more diverse?Hon BILL ENGLISH: What it shows is that the prices for some things in this period like dairy products and logs have been higher and therefore they have grown as a proportion of the total. It changes the composition of our exports. Dairy prices however have been dropping and over the next 4 or 5 years as we see a burgeoning IT industry for instance and an increase in tourist numbers it may well be that service exports are the star of the next 4 or 5 years. The good thing is we have got industries that are capable of competing globally. The Government does not believe it is a problem that the dairy industry has been successful and profitable.Hon David Parker: I raise a point of order Mr Speaker. My question did not—Mr SPEAKER: Order! I can assist the member. I listened to the question; I listened to the answer. Will the member resume his seat please. The question has been addressed. The member has further supplementary questions if wishes to use them.Hon David Parker: I raise a point of order Mr Speaker. I would appreciate my point of order being heard before it is ruled upon—Mr SPEAKER: Order! I did not need to listen any further to the member—Hon David Parker: Oh!Mr SPEAKER: Order! Supplementary question Tim Macindoe.Grant Robertson: I raise a point of order Mr Speaker. With respect Mr Parker was not even able to get out what his point of order was about. I do not know how you knew—Mr SPEAKER: Order! I can help the member. The point of order coming from the member was that the question had not been answered correctly. I ruled—[Interruption] Order! If the members wish to stay for the balance of question time—supplementary question Tim Macindoe.Hon Clayton Cosgrove: I raise a point of order Mr Speaker.Mr SPEAKER: Can I just clarify that this is a fresh point of order.Hon Clayton Cosgrove: I am seeking some advice from you.Mr SPEAKER: Can we just clarify that the member is now raising a fresh point of order and is not in any way relitigating a decision I have just made? Fresh point of order Hon Clayton Cosgrove.Hon Clayton Cosgrove: My question is in respect of the Standing Orders and Speakers’ rulings whether a member is entitled to raise a complete point of order as long as it is within those Standing Orders and are you required to listen to the complete point of order?Mr SPEAKER: No there is no obligation on me to listen to the complete point of order. [Interruption] Order! If the member also wishes to stay he will not interrupt when I am on my feet. I do not want to have to warn the Hon Clayton Cosgrove of that again today. There is no obligation on me to listen to a full point of order. Many points of order take too long. If I feel I have got the gist of the point of order I will rule on that point of order.Hon Trevor Mallard: I raise a point of order Mr Speaker.Mr SPEAKER: Again can I just clarify that this is not an attempt to waste the time of the House—is it a fresh point of order?Hon Trevor Mallard: It is not; it is a genuine request that you share—Mr SPEAKER: Order! I will now hear the point of order.Hon Trevor Mallard: Mr Speaker it is a request that you share with the House the source of your prescience so we can all read the future.Mr SPEAKER: Order! That is not a point of order and it is the sort of thing that leads to disorder in this House. Equally if the Hon Trevor Mallard does not start behaving himself today he will not see the balance of question time.Rt Hon Winston Peters: I raise a point of order Mr Speaker. Can you tell us as a matter of clarification whether the Standing Orders and Speakers’ rulings of this House have changed?Mr SPEAKER: Will the member please raise his point of order again?Rt Hon Winston Peters: Could you please tell us as a matter of clarification and for the edification of all of us whether the Standing Orders and Speakers’ rulings of this House have changed?Mr SPEAKER: Well over the time that I have been here the Standing Orders and Speakers’ ruling have changed considerably. I am sure—Rt Hon Winston Peters: Since yesterday?Mr SPEAKER: Since yesterday? The House was not sitting yesterday. But for the benefit of the member there has been no very immediate change to the Standing Orders or Speakers’ rulings at all but certainly over the time that I have been here and the time that the member has been here there has been substantial change.Rt Hon Winston Peters: That is not what I meant.Mr SPEAKER: The member might want to explain himself further. I will listen.Rt Hon Winston Peters: Since the House commenced its sitting today has there been a change in the Standing Orders or the Speakers’ rulings of this House?Mr SPEAKER: I assume the member is now going back and relitigating a point I made earlier. If the member likes to refer to Speaker’s ruling 20/2 he will see that there is no obligation on a presiding officer to hear a full point of order. I presume that is the point the member is making but no Speakers’ rulings and the Standing Orders do tend to change over time.Gareth Hughes: I raise a point of order Mr Speaker.Mr SPEAKER: Order! Again before I hear the point of order I just want to clarify that the member is not in any way relitigating where we have been in this discussion. If it is a fresh point of order I am happy to hear it.Gareth Hughes: It is related to the discussion. I seek to draw your attention to—Mr SPEAKER: Order! No. The member will sit down and resume his seat. We have now wasted a considerable amount of the House’s time. [Interruption] Order! We have now wasted a considerable amount of time. If the member wants further clarification on any decision I have made I invite the member to come see me immediately after question time but we are not having continual points of order being raised as a means of relitigating a decision I have made.Tim Macindoe: What recent reports has the Minister seen on New Zealand’s export performance?Hon BILL ENGLISH: New Zealand’s exports are growing—in fact primary production exports passed $5 billion in a single month for the first time in March this year and annual primary production exports exceeded $50 billion for the first time also in March. I have also seen reports that the regions are performing particularly well particularly those chosen by the Labour Party as the worst performing—for instance Northland is at the top of the annual growth stakes. The report also notes that Otago is going well particularly those parts represented by a National MP I might say. International milk and timber prices have moved around in the last few years so looking at shares of exports by value will be affected both by the higher price and the increase in quantities as exporters respond to higher profitability.Hon David Parker: Does he agree with the New Zealand Manufacturers and Exporters Association that “If you look at New Zealand as a business you’ve got two products and one customer. That’s not a very good business … in terms of resilience …”?Hon BILL ENGLISH: Let us set the context for the share of exports. In in 2013 dairy good exports were 23 percent of all exports; non-dairy agricultural products 22 percent; non-agricultural products 30 percent—so dairy is not the biggest single category—and services exports 25 percent. That contrasts for instance with Australia where hard commodities plus oil and gas constitute 70 percent of Australian exports and the bulk of the hard commodities go to one market in China. So New Zealand has a relatively diversified range of exports. And again—Hon David Parker: It is narrowing.Hon BILL ENGLISH: Well the member is simply wrong. The fact that you get high prices in some periods for some exports does not mean the export base is narrowing. What it means is some exports have done pretty well in the recent years. Over the next 4 or 5 years it might be different exports that have higher prices. Higher prices in Labour’s world are bad. In our world higher prices for exports are good.Hon David Parker: I seek leave to table a table showing that non-primary manufactured exports are down—Mr SPEAKER: Order! I just require the source of the document.Hon David Parker: Well it is a spreadsheet based on Statistics New Zealand information.Mr SPEAKER: I am not going to put the leave. New Zealand statistics are available to all members.Tim Macindoe: What policies would put New Zealand’s outstanding recent export performance at risk as occurred in the 2000s when the export sector was put into recession?Hon BILL ENGLISH: Any number of policies that I can think of because I have heard them mentioned: a State-run monopoly electricity system which would raise electricity prices; a $25 carbon tax five times the world price and much higher than required; and of course runaway Government spending that sucked up resources that could otherwise be invested in our successful productive and resilient export sector.