Tremain Chris: Questions for Oral Answer — Questions to Ministers 
Tremain Chris: Questions for Oral Answer — Questions to Ministers 
[Volume:655;Page:4569] 
1. CHRIS TREMAIN (National—Napier) 
 to the  
Minister of Finance 
: What reports has he seen about New Zealand’s economic performance relative to other countries? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 For most people the measure of a recession is whether they have a job as much as it is a measure of changes in GDP. The Government determined in the Budget to persist with spending on public services and infrastructure to ensure that New Zealanders who lose their jobs have the best possible opportunity to find new ones. New Zealand’s unemployment rate is currently 5 percent and is forecast to increase over the coming year. However it compares very favourably with those of other developing countries—the US at 9.4 percent the UK at 7.2 percent the eurozone at 9.2 percent and Australia at 5.7 percent. 
Chris Tremain 
: What economic challenges did the Government inherit after the 2008 election? 
Hon BILL ENGLISH 
: The Government inherited a number of economic challenges that it is certainly capable of dealing with. Unusually New Zealand had been in recession for almost a year and unemployment was already rising quickly. New Zealand had a record current account deficit of 9 percent the trade and export sector had been in recession for 5 years business was being choked by red tape and regulations the Government’s books showed deteriorating fiscal deficits and rising Crown debt and the public sector has been used to years of lots of extra money for no extra output and needed a great deal of change. 
Hon David Cunliffe 
: Can the Minister explain how focusing on the unemployment levels of other countries will help the 60000 New Zealanders forecast to lose their jobs in the next year and when will he present a real jobs plan for New Zealanders? 
Hon BILL ENGLISH 
: When National came into office it found an economy in recession with rising unemployment; then the global recession took hold over the following 6 months. In the Budget this Government made balanced decisions where it has continued with orthodox stimulus measures such as tax cuts increased public spending and spending on infrastructure. We will continue with that balanced approach as we move into long-term measures to increase the country’s economic performance. No person will get a new job until a business makes a decision to invest and employ. 
Hon David Cunliffe 
: Which of the Minister’s positions is the real one: that New Zealand’s unemployment was the second-lowest in the OECD or that it was rapidly rising or that New Zealand was in a very severe recession or that the Government really could afford those tax cuts that the bloke sitting next to him personally pledged? 
Hon BILL ENGLISH 
: The Government has instituted a range of policies that are supporting jobs. According to one estimate by the New Zealand Institute of Economic Research’s economic forecasters the Government stimulus package is supporting around 10000 jobs. The rest of New Zealand apart from the Labour Party has a pretty clear understanding that the global recession means that people will lose jobs and they are strongly supporting a Government getting on with the task of creating a business environment where new jobs will be created. 
Te Ururoa Flavell 
: Tena koe Mr Speaker. Has the Minister seen the analysis by Child Poverty Action Group economist Dr Susan St John that New Zealand has one of the highest levels of income disparity in the OECD and what work is being undertaken to address the hardship faced by many low-income families? 
Hon BILL ENGLISH 
: Yes I was surprised to see that analysis. I thought that after 10 years of listening to Labour about how it was going to fix that it was surprising to see that in some respects it has got worse. The best thing this Government can do is to get the economy growing again so we have enough income to deal with child poverty and a strong enough economy to provide jobs. 
Te Ururoa Flavell 
: Does the Minister accept that genuine economic and social progress will be made only when poverty is eliminated and when will a target date be set to end child poverty? 
Hon BILL ENGLISH 
: I certainly do accept the first point and that it why it is absolutely vital we sort out the imbalances in this economy bring an end to the reckless fiscal spending of the previous Government and create new jobs so people can have decent incomes.