Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Volume:618;Page:13966] 
3.  
CLAYTON COSGROVE (Labour—Waimakariri) 
 to the  
Minister of Finance 
: What reports has he received on the New Zealand economy? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 The May trade balance out yesterday showed a surplus of $656 million. That is some seven times the $91 million figure economists were expecting. The  
New Zealand Herald 
 described it as whopping and said it continued a string of dazzling economic news. The reference list to the March quarter current account and gross domestic product figures released last week shows both of those are also at the top end of or above market expectations. 
Clayton Cosgrove 
: What further reports has he received on the economy? 
Hon Dr MICHAEL CULLEN 
: I was delighted to see yesterday that the leader of the National Party was forced on the back of that data to stop the Jeremiah act and to concede the economy was “going well”. That was after moaning in his Budget speech and around the country that Government policies were destroying growth. I hope that he is feeling very uncomfortable about that. 
John Key 
: Does the Minister believe that the recent growth rate is primarily as a result of the policies of this Government or of those of the Governments of the 1980s and the 1990s and if he does think it is primarily as a result of the actions of this Government could he possibly give the House an indication of when it is likely that New Zealand will achieve the Government’s stated goal of getting back into the top half of the OECD? 
Hon Dr MICHAEL CULLEN 
: I am pleased to say that we are already in the top half of the OECD on more than two-thirds of all the social indices. That is what actually counts for many New Zealanders. It is of course the story from the National Party that this Government has merely been lucky. If we are always lucky then I invite New Zealanders to continue to vote for luck rather than the ill luck that has always dogged Dr Brash during his career. 
John Key 
: I raise a point of order Mr Speaker. I did not really ask the Minister that question. I asked him whether he could give us an indication of when this Government would get us back into the top half of the OECD. 
Mr SPEAKER 
: The Minister did address that part of the question. 
Rt Hon Winston Peters 
: Is the Minister aware amongst all those reports of for example the Singaporean people exporting $65000 per capita per annum against New Zealand’s under-$8000 per annum or of the Irish economy last year coming in at $159 billion in exports as opposed to New Zealand’s $29 billion; and amongst those figures what would disguise the fact that we are heading for the Third World? 
Hon Dr MICHAEL CULLEN 
: For the last 3 years we have had one of the highest growth rates in the First World not the Third World. We are catching up. Our exports are higher per capita than those of for example Australia or the United States. 
Hon Richard Prebble 
: Has the Minister of Finance sought any reports on the increased growth and prosperity of the New Zealand economy that would occur on the introduction of a low flat rate of tax; if not why not? 
Hon Dr MICHAEL CULLEN 
: If ACT’s new leader cares to write to me giving his permission I would be very happy to run through the Treasury taxation model ACT’s proposal to give a $6.5 billion tax cut with no corresponding reduction in expenditure and to model that through. 
Gordon Copeland 
: Does the Minister acknowledge that a two-speed economy remains in New Zealand; if so given the favourable economic conditions that currently exist will he now concentrate on addressing the ongoing problems hindering our export economy—for example the remaining $4 million charge on exports that is to be imposed with the bill that is No. 2 on today’s Order Paper? 
Hon Dr MICHAEL CULLEN 
: Our exports run into tens of billions of dollars a year. Even the gloomiest of New Zealand’s business commentators would not believe that a $4 million impost would ruin that exporting success. I remind the member that the May figures just out showed a very substantial trade surplus.