Parker David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers[Sitting date: 28 May 2014. Volume:699;Page:18390. Text is incorporated into the Bound Volume.]4.Hon DAVID PARKER (Deputy Leader—Labour) to theMinister of Finance: Does he agree that Scenario 2 in the Budget 2014 Economic and Fiscal Update which is based on net migration being over 40000 people forecasts higher interest rates increased housing demand higher inflation more household dis-savings and that “… additional consumption is funded through increasing levels of household debt and this constrains consumption growth further as debt servicing costs increase”?Hon BILL ENGLISH (Minister of Finance): No.Hon David Parker: Given that immigration numbers are now tracking to over 40000 net for the year does he agree with his party’s paid pollster David Farrar that discussing the relationship between migration and housing is xenophobic?Hon BILL ENGLISH: No but we do not agree that there is a problem with the economy or that that problem is too many Chinese too many Indians too many Samoans and too many vans clogging up the truck lane on the motorway. We do not believe that Labour’s answer of slashing immigration is the answer for the economy.Hon David Parker: Is it xenophobic or racist of Treasury to say that “immigration policy should be more closely tailored to the economy’s ability to respond to population increase.”?Hon BILL ENGLISH: No but it is surprising that the leader of the Labour Party believes that he can slash inflows of migration without any impact on the supply of skills to the economy or without getting a few questions at the next ethnic celebration day that he goes to where he says that he loves having them in New Zealand.Hon David Parker: I seek leave to table a Treasury paper dated April 2014 entitledMigration and Macroeconomic Performance in New Zealand which includes—Mr SPEAKER: Order! The paper has been well described. I just need to check whether it is something that is freely available to members.Hon Dr Nick Smith: It’s on the web.Hon David Parker: Well just about everything is on the web but it has not been circulated. I had to find it.Mr SPEAKER: Order! I will put the leave. The House can determine. Leave is sought to table a Treasury document dated April 2014. Is there any objection? There is not.Document by leave laid on the Table of the House.Hon David Parker: Is it racist or xenophobic of the Government of China to control immigration levels and ban overseas purchase of Chinese houses and farms by New Zealanders?Mr SPEAKER: In so far as there is ministerial responsibility the Hon Bill English.Hon BILL ENGLISH: No we do not have any responsibility for the policies of the Chinese Government in the same way as the Labour front bench wishes it did not have responsibility for its leader.Louise Upston: How does the forecast net migration peak of 41500 under Treasury’s scenario two in the Budget compare with recent trends in net migration?Hon BILL ENGLISH: The forecast peak is not unusual by recent standards. For example in the year to May 2003 net migration peaked at more than 43000—somewhat outside the range that the Leader of the Opposition said was the case—and net migration was above 30000 to February 2004. That followed a period of net outward migration that had hit negative 13000 in February 2001. So in the space of just over 2 years at that time net migration went from minus 13000 to plus 43000 under a Government that has now been described as “managing a period of steady predictable migration flows”.Hon David Parker: Is it xenophobic or racist of the Reserve Bank to link immigration to house prices when it says that a 1 percent increase in population causes an 8 percent increase in house prices over 3 years and is it not the truth that it is the Prime Minister who is dog whistling in an attempt to cover up his Government’s failure to control house prices at affordable levels for all New Zealanders be they recent migrants or born here?Mr SPEAKER: Order! The question has been asked—the Hon Bill English.Hon BILL ENGLISH: I disagree with the member’s assertions. The Labour Party has a dog whistle in its mouth and it cannot decide whether to blow it or not. And then when it talks to its front bench it disagrees.Louise Upston: What recent reports has he seen about possible ways of managing migration flows in and out of New Zealand?Hon BILL ENGLISH: Because this issue has been discussed extensively there are a number of reports but I have sorted out one or two. The first from Saturday 18 May said that the easiest way to keep net migration within a zone of 5000 to 15000 was to better manage the points system; the second report on Monday 20 May was from a spokesman confirmed as leader of his party who would look to get net migration stable between 5000 and 15000; and a third report just the next day said “That’s not our position. I think at the present time it is going to be difficult to do that.” That was from the leader of the Labour Party who had originally proposed the policy.