Young Jonathan: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Young Jonathan: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 12 September 2012. Volume:683;Page:5129. Text is incorporated into the Bound Volume.] 
3. 
JONATHAN YOUNG (National—New Plymouth) 
 to the  
Minister of Finance 
: What is the Government doing to increase jobs and support a productive and competitive economy? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government has taken a number of quite significant measures to help businesses employ more people and pay them more. The 90-day trial period for new employees has created 13000 jobs. Business tax in New Zealand has been held to 28c in the dollar—lower than Australia’s—so businesses retain more of their profits to invest in their business. ACC levies have been reduced this year by $600 million reducing costs to business. And the Government has removed 170 unnecessary and excessive regulations saving an estimated $200 million in compliance costs for businesses. 
Jonathan Young 
: How has the New Zealand economy and employment market performed over the last 2 years and what is the outlook for the next few years? 
Hon BILL ENGLISH 
: Prior to the last 2 years of course with the global financial crisis in 2008 and 2009 there was a sharp rise in unemployment. In the past 2 years however almost 60000 net new jobs have been created and 150000 new jobs are forecast over the next 4 years. The after-tax average wage is up by 20 percent since 2008. The everyday cost of living is increasing at its slowest rate in 12 years. Interest rates are at the lowest levels in 45 years saving a family with a $200000 mortgage $200 a week compared with 4 years ago. And we would expect consistent with the Budget 2012 forecasts that economic growth of 2 to 3 percent will continue this success. 
Hon David Parker 
: Does he agree with Fitch Ratings that the forecast widening in the current account deficit and the high New Zealand dollar pose a risk to New Zealand; if so does he think he needs to do something about it? 
Hon BILL ENGLISH 
: Yes but I do not believe that the answer to it is a 20 percent devaluation in the exchange rate as advocated by those Opposition parties. It is not clear even how they would do it even if they want to do something that is a bit odd. 
Jonathan Young 
: How is the Government supporting people to move from welfare into work? 
Hon BILL ENGLISH 
: We need to take the opportunity in a growing job market to assist people from welfare into work. In Budget 2012 and over the next few years the Government will be investing around $500 million in welfare reforms. Current programmes include the $62 million Job Streams package for wage subsidies $55.1 million for 155 dedicated Work and Income staff to support job seekers and sole parents looking for work $80 million for early childhood education childcare and the guaranteed childcare assistance payment and $150 million for youth services including wraparound support for young people not in education employment or training. 
Hon David Parker 
: Are record numbers of New Zealanders leaving for Australia because his programme to increase jobs and improve the New Zealand economy is working or are they leaving because his Government has let them down and failed to achieve the promises made when it was elected in 2008 and again in 2011? 
Hon BILL ENGLISH 
: I think a number have been leaving because Australia has experienced a once-in-100-years terms of trade boost which has meant it has been getting record prices for commodities and paying very high wages to dig those commodities out of the ground. In more recent months those commodity prices have dropped off and Australia may become a less attractive option. In fact in the next 12 months New Zealand is likely to grow just as fast as if not faster than Australia. 
Jonathan Young 
: What recent reports has he seen on jobs and growth in the New Zealand economy? 
Hon BILL ENGLISH 
: There have been a number of reports about jobs including jobs that have been lost and new jobs that have been created. But the Manpower Employment Outlook Survey a survey of 650 employers which was released earlier this week found that 27 percent intend to increase hiring and 8 percent plan to reduce hiring. When we have got relatively moderate growth rates some businesses and some sectors will be doing well while others as we have seen in the last couple of weeks will be doing poorly. But on average the economy is producing more jobs.