Lotu-Iiga Peseta Sam: Questions for Oral Answer — Questions to Ministers Questions to Members 
Lotu-Iiga Peseta Sam: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:675;Page:20967] 
2. 
PESETA SAM LOTU-IIGA (National—Maungakiekie) 
 to the  
Minister of Finance 
: What steps has the Government taken to build a more competitive export-focused economy? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government has taken a number of steps including getting control of Government debt and laying out a track to return to surplus faster. We have undertaken the largest tax reform in 25 years invested heavily in productive infrastructure managed the economy responsibly and made the public sector more efficient. If re-elected in November the Government will also extend the mixed-ownership model to four energy State-owned enterprises and reduce its shareholding in Air New Zealand. 
Peseta Sam Lotu-Iiga 
: How will the mixed-ownership model be positive for both taxpayers and New Zealand savers? 
Hon BILL ENGLISH 
: It will be a win-win. New Zealanders who are now starting to save for the first time in a decade will get the opportunity to invest in good New Zealand companies and the Government will get access to $5 billion to $7 billion to buy new assets such as rolling out ultra-fast broadband and schools and hospitals without having to borrow from overseas lenders and increase our debt. At the same time the Government will retain 51 percent control of these five State-owned enterprises the same model as Air New Zealand and the Port of Tauranga. 
Hon David Cunliffe 
: Given that New Zealand is currently enjoying a 37-year record in export prices why is his Government still running a current account deficit why is the unemployment rate 6.5 percent and why is he racking up the biggest Government deficit in New Zealand’s entire history? 
Hon BILL ENGLISH 
: Because we are still recovering from the severe damage inflicted on this economy by 9 years of a Labour Government. 
Peseta Sam Lotu-Iiga 
: How will the companies in the mixed-ownership programme remain firmly in New Zealand control? 
Hon BILL ENGLISH 
: In the first place the Government will retain at least 51 percent control on behalf of all New Zealanders and New Zealanders will be at the front of the queue for shares. We would expect that the combination of keen Kiwi mums and dads KiwiSaver funds Crown financial institutions and other New Zealand investment managers will mean that New Zealanders will own at least 85 to 90 percent of these companies. 
Hon John Boscawen 
: How can the Minister credibly argue that the Government is getting debt under control when the deficit to the year ended June 2011 would have been over $10 billion excluding the effect of the Christchurch earthquake; and does he agree that if he really wanted to create a more competitive and export-orientated economy he would take meaningful steps to reduce Government borrowing and Government expenditure to take the pressure off our overvalued exchange rate and to make our industries and our employers more competitive? 
Hon BILL ENGLISH 
: The member’s analysis of the economy is correct. Under the previous Government the economy was dominated by construction and financial services in Government—all of which were far too much funded by debt. The Government took a number of decisions in Budget 2011 to achieve just what the member has said although we are going about it in a more balanced and incremental way than perhaps that member’s party would like. 
Peseta Sam Lotu-Iiga 
: What reports has the Minister seen that support the Government’s plans to offer New Zealanders a minority shareholding in these companies? 
Hon BILL ENGLISH 
: I have seen a number of reports that support our policy. The Tower Investments chief executive Sam Stubbs who manages funds on behalf of thousands of New Zealanders said last week that in fact Tower Investments will be selling overseas shares in order to invest in these State-owned enterprises. I notice also that iwi leaders spokesperson Mr Tuku Morgan confirmed that iwi would be long-term investors in these companies for the benefit of future generations.