Shanks Katrina: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeShanks Katrina: Questions for Oral Answer — Questions to Ministers[Sitting date: 11 June 2013. Volume:691;Page:10901. Text is incorporated into the Bound Volume.]3.KATRINA SHANKS (National)to theMinister of Finance: What do recent indicators show about the economy’s performance this year and its outlook for the next three to four years?Hon BILL ENGLISH (Minister of Finance):The New Zealand economy grew 3 percent in the calendar year 2012 among the fastest-growing in the OECD. Growth was broad-based and by the end of 2012 15 of the 16 measured industries were showing growth. The outlook for the next 3 to 4 years is growth of 2 to 3 percent. This is based on increased private consumption supported by higher business and consumerconfidence increased business investment increased residential investment and a continuing wider recovery. Elevated terms of trade and increased dairy and commodity exports are also expected to be long-term drivers of income growth. This is good for families because it means more jobs lower unemployment higher incomes and more opportunities.Katrina Shanks: What has been the basis for the economy’s stronger performance this year?Hon BILL ENGLISH: Recent economic data is reasonably encouraging. Tax revenue is ahead of forecasts. The indexes that measure the growth of the manufacturing sector and the very large service sector are both showing growth. Business and consumer confidence are at 3-year highs. Employment has increased and unemployment is falling although it still remains too high at 6.2 percent. Last week building consents were reported as being up by 43 percent in a year reaching a 5-year high. This is not related just to the rebuild of Canterbury but also to reasonable growth outside that. Dairy prices remain well above long-term averages and they may be supported by the recent welcome falls in the New Zealand dollar against the US dollar.Katrina Shanks: How does New Zealand’s economic growth compare with that of other developed countries?Hon BILL ENGLISH: At 3 percent for the 12 months to the end of 2012 it compares favourably with most other developed economies—that is a higher growth rate than the US Canada Japan the UK and the eurozone and comparable with Australia. On current trends it is likely that over the next year or two New Zealand will grow at similar if not slightly better rates than Australia.Katrina Shanks: What reports has he seen on New Zealand’s economic programme and the Government’s approach to turning round the economy?Hon BILL ENGLISH: I recently read a report from theAustralian Financial Review that says: “What immediately stands out is Wellington’s grown-up and stable Government”. It also says that New Zealand’s bad luck is about to take a turn for the better and it will reap the benefits of disciplined policy making. TheAustralian Financial Review  which is not noted for being a cheerleader for New Zealand notes that New Zealand did not have a mining boom to shield it from the global financial crisis. But it acknowledges that we did have a devastating earthquake in Christchurch and a drought this year. It notes: “John Key’s National Government also had to deal with the legacy of nearly a decade of a back-sliding and big-spending Labour Government.”Grant Robertson: Is it correct that his 2013 Budget says that his Government will fall 61000 jobs short of his election promise of a 170000 extra jobs?Hon BILL ENGLISH: I cannot remember the exact numbers but the number of new jobs has been fewer than was expected. Over the next couple of years though we expect that will pick up. As I just pointed out to the member we have had to deal—and I will quote theAustralian Financial Review —“with the legacy of nearly a decade of a back-sliding and big-spending”—Grant Robertson: I raise a point of order Mr Speaker. It was a specific question. Remarkably the Minister of Finance could not remember his own Budget but he did show—Mr SPEAKER: Order! I gather the point of order. The question has certainly been adequately addressed.