4. Economy—Commentary and ProductivityGRANT ROBERTSON (Labour—Wellington Central) to the Minister of FinanceEconomy—Commentary and Productivity4. GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: Does he stand by his statement the long-term problem of New Zealand productivity is yet to be solved but we're actually heading in the right direction"; if so what is Treasury's estimate of labour productivity growth in the year to March 2017 according to the July 2017 Monthly Economic Indicators report?Hon STEVEN JOYCE (Minister of Finance): Yes. Since 2009 real GDP per capita in New Zealand has grown 9 percent which is one measure of productivity. Another measure used by the OECD is GDP per hour worked which has increased 9.6 percent since 2008 and we are heading in the right direction by investing more in R & D economic development and tertiary skills training to help boost our productivity. In terms of the Treasury report it was minus 0.4 percent for March 2017. I would like to congratulate the member on finding once again the one negative quarter from the last nine quarters.Mr SPEAKER: Order! [Interruption] Order! Mr Brownlee.Grant Robertson: Why would Bernard Doyle from JBWere say that New Zealand has "been in a productivity recession since 2012"?Hon STEVEN JOYCE: I suggest that the member puts that question to him. I would say this though: I note in his report he said that he was saying to his investors that they should not invest in New Zealand because of this so-called productivity recession. So presumably he is not proposing that they invest in Canada or Europe or in Great Britain or in the US or indeed the G7 or indeed the whole OECD because New Zealand's productivity performance over the last 8 years is better than all of those other places.Grant Robertson: So is he saying that Bernard Doyle from JBWere is wrong when he says "For the past five years all of our economic growth has relied on more people working more hours."—in other words not on growing productivity?Hon STEVEN JOYCE: I think I demonstrated clearly in my answer to the last question I do disagree with him that New Zealand's productivity is not growing because quite patently over the last 8 years it has grown faster than all these other places: Canada Europe Great Britain the US the G7 and indeed the average of the whole OECD. That is according to the OECD. That is not according to JBWere or to me; that is according to the OECD. But it would not be a surprise that the number of hours worked for New Zealanders has grown since 2012 because that was the aftermath of the global financial crisis and since that time the amount of work done by New Zealanders in terms of hours worked and the fact that more people are working has grown substantially since 2012.Grant Robertson: So if JBWere is wrong is Treasury also wrong when it said on page 9 of the Monthly Economic Indicators that average productivity growth over the past 4 March years was essentially flat minus 0.03 percent?Hon STEVEN JOYCE: I appreciate given the member's nickname of "Trainspotter" he would have to go through and look for that. All I can do is show him that the performance of New Zealand over an 8-year period in productivity—and productivity should be taken over a longer period; over 8 years—is 9.6 percent on GDP per hour worked. Interestingly the 8 years prior to that it was just 5 percent. So it was 9.6 percent for the last 8 years with the 8 years prior to that just 5 percent. I am for the life of me trying to work out what changed in 2008.Grant Robertson: Are Treasury JBWere and Brian Fallow all wrong when they say that there has been virtually zero productivity growth in New Zealand for the last 4 years?Hon STEVEN JOYCE: No I am saying the member is wrong because the reality is that the whole world's productivity growth over the last 8 years has not been that strong but New Zealand has been stronger than most. For the 8 years prior to that the world was a bit stronger and New Zealand was weaker than most. So what we are now seeing is that New Zealand's productivity performance is improving relative to the countries that we compare ourselves with which improves our long-term incomes which is why we are growing faster than those countries.Grant Robertson: I raise a point of order Mr Speaker. The final question I asked had a list of people and when I asked whether they were wrong it was specifically over the number for the last 4 years and the Minister did not address that.Mr SPEAKER: I have already thought of a way forward on this. I think the question has been addressed but the way forward is I am going to allow the member an additional supplementary question.Grant Robertson: Thank you Mr Speaker. Does he agree with the recent OECD analysis that states: "In the long run raising productivity is the only way—"Mr SPEAKER: Order! I allowed the member an additional supplementary question so by nature we would all hope that it would be a completely different question.Grant Robertson: Indeed I know. Well I gave up on the last one. Does he agree with recent OECD analysis that states: "In the long run raising productivity is the only way to raise living standards."; if so what does 4 years of falling productivity in New Zealand tell us about what has happened to New Zealand's living standards?Mr SPEAKER: I gave the member one additional question not two.Hon STEVEN JOYCE: I agree with the OECD which is why it is so good that New Zealand's productivity over the last 8 years has improved and I say this for the member again because the member is not listening: it has improved faster than Canada faster than Europe faster than Great Britain faster than the USA faster than the average across the whole OECD and faster than the G7.Grant Robertson: Four years Steven.Hon STEVEN JOYCE: Look I appreciate the member wants to train spot about a smaller part of that and that is his way but actually if you look at what the OECD is saying about the importance of long-run productivity—and I showed the member long-run productivity—you would think he would be happy for New Zealand."