Hayes John: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Hayes John: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 14 February 2012. Volume:677;Page:307. Text is incorporated into the Bound Volume.] 
1. 
JOHN HAYES (National—Wairarapa) 
 to the  
Minister of Finance 
: What progress is being made in rebalancing New Zealand’s economy towards paying our way in the world? 
Hon STEVEN JOYCE (Associate Minister of Finance) 
 on behalf of the Minister of Finance: New Zealand is making steady progress rebalancing the economy with an improved merchandise trade result and improved household savings in 2011. Merchandise trade grew to a $3 billion surplus notwithstanding the significant external challenges of a high dollar and of course weak global growth. Overall our exports grew an impressive 9.7 percent by value in the calendar year last year. There is still a long way to go of course but these early signs are encouraging for exporters and reinforce the Government’s commitment to helping build a platform from which our businesses can compete and trade in the wider world.  
John Hayes 
: How much did New Zealand’s merchandise trade with Australia and China grow in 2011? 
Hon STEVEN JOYCE 
: New Zealand expanded exports to our key market Australia by 8.45 percent over the last year to just under NZ$11 billion. This percentage increase is a very significant result given the higher volume of existing trade. It continues a trend evident over the last few years of strong year-on-year growth. In addition New Zealand’s exports to China grew by over $1 billion in the calendar year last year. That is 22 percent annual growth which is a fantastic achievement for exporters and reinforces the importance of China as our second largest export market.  
John Hayes 
: What progress is being made on increasing New Zealand’s national savings? 
Hon STEVEN JOYCE 
: More good news. New Zealand’s savings rates are steadily improving. Statistics New Zealand figures show household savings in the year to March last year were positive for the first time in a decade. This is quite a turn-round from 2007 when households were spending about $1.11 for every dollar they earned. It remains early days but it does show the importance that households are now placing on savings. The shift from net borrowing to savings if it continues will help provide a stronger platform for faster economic growth. 
Hon David Parker 
: By how much are New Zealand’s net international liabilities projected to grow over the next 5 years? 
Hon STEVEN JOYCE 
: I do not have the net international liabilities but I do have the current account deficit which I think alludes to the same thing that the member means in terms of that being expected to widen out from March 2012 to the year to March 2016. That is due to primarily the Canterbury— 
Hon David Parker 
: I raise a point of order Mr Speaker. My question was not about the current account deficit. I do have a question about the current account deficit but this is not it.  
Mr SPEAKER 
: I appreciate the member’s point of order. I think though the Minister indicated he did not have the net liabilities figures with him and he tried to be helpful by at least providing some information about the current account. But I do accept that is not exactly the same issue. 
Hon David Parker 
: I raise a point of order Mr Speaker. This is question No. 1 it is the Government’s own question to the Minister of Finance it is about progress on the economic growth agenda and I have asked about one of the most basic indicators as to whether that is working. I would have thought that the Minister— 
Mr SPEAKER 
: Order! The member is quite correct. It is the Government’s own question and asking about net liabilities is not exactly way out of line; there is no question that the supplementary question is in line. But I take the Minister at his word that he does not have the figures. People can make their own judgment about that but that is what the Minister indicated to the House and there is nothing I can do about that. 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. Could you at least ask the Minister whether he has general indications—for example the percentage of GDP liabilities. I mean any Associate Minister— 
Mr SPEAKER 
: Order! That is not strictly a point—[ 
Interruption 
] Order! The Minister wants to speak to the point of order? 
Hon STEVEN JOYCE 
: That was exactly what I was doing by referring to the increase in the balance of payments deficit— 
Mr SPEAKER 
: No we are now debating the whole issue. New Zealand’s net liability is a reasonably standard figure and it is not exactly the same as the current account deficit. The question was very specific about net liabilities but I take the Minister at the Minister’s word: the Minister does not have those figures. Members can be critical of the Minister for not having those figures—that is the situation we are in—but I cannot ask the Minister to provide what he does not have with him. 
Hon David Parker 
: Given that the Minister in answer to the last supplementary question acknowledged that New Zealand’s current account deficit is projected to grow over the next 5 years from $5 billion this year to a $17 billion deficit in 2016 is he surprised to learn that over that period New Zealand’s net international liabilities are projected to grow from $140 billion to $200 billion—an increase of 10 percent of GDP? 
Hon STEVEN JOYCE 
: I do understand that the current account deficit figures and the international liabilities figures—it would not surprise me at all which I think underlines the point that we were making with the primary question which is the importance of growing exports and the importance of also—[ 
Interruption 
] The importance of growing exports. The reality of it is that that is due to happen because of the Canterbury rebuild—[ 
Interruption 
]  
Mr SPEAKER 
: Order! I apologise to the Minister. Look the Labour spokesperson on finance asked a supplementary question. I presume he wants to hear the answer and the Minister is answering this question. I think the interjections are beyond reasonableness.  
Hon STEVEN JOYCE 
: The point I was making is that the member inadvertently underlines the exact point that I was making in the responses to the question. The way you deal with that is by improving domestic savings and by improving our exports as we sell to the rest of the world. Those are the ways in which you primarily address those issues and I was reporting to the House that we are making some reasonable—in fact good—progress in doing that. 
Hon David Parker 
: I seek leave to table two documents both prepared by the Parliamentary Library. The first is a graph of New Zealand’s increasing net liabilities; the second is the graph of the increase in the current account deficits every year to 2016. 
Mr SPEAKER 
: Leave is sought to table those documents. Is there any objection? There is no objection. 
Documents by leave laid on the Table of the House. 
Rt Hon Winston Peters 
: Can I ask the Minister as to how he concludes that a seriously overvalued dollar massive borrowing and key asset sales to foreign ownership could do anything other than balance our economic position worse? 
Hon STEVEN JOYCE 
: Although some people undoubtedly believe the New Zealand dollar to be overvalued I think the point is that actually our total exports grew last year to $47.7 billion. So although it obviously had an impact on some exporters it did not obviously have an impact on all exporters because we had that growth in exports over the full calendar year of 2011. So the dollar is challenging but it is good to see that our exporters are continuing to grow. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. I asked him about the seriously overvalued dollar and massive borrowing which everybody admits. The third aspect was key asset sales to foreign ownership. He answered one part of that question— 
Mr SPEAKER 
: Order! 
Rt Hon Winston Peters 
: —but I asked only one question. 
Mr SPEAKER 
: The Minister is required to answer only one part of a supplementary question. It has been a longstanding requirement in this House of Ministers— 
Rt Hon Winston Peters 
: Point of order— 
Mr SPEAKER 
: The member may resume his seat while I am on my feet. Thank you. It has been a longstanding practice in this House that a Minister is required to answer only one part of a supplementary question. If members want to put more than one part to a question that is the risk they run. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. I did not put more than one part to the question. The question was relating to the rebalancing of this country’s economy. I gave it three aspects and asked which one of those or those collectively would do what he said. I am not asking three questions; I am asking questions with a few details. Surely the Minister is capable of answering that. 
Mr SPEAKER 
: Well the member just destroyed any merit his point of order had because he does not make that kind of derogatory comment under a point of order. I am sorry but— 
Rt Hon Winston Peters 
: My point of order Mr Speaker is— 
Mr SPEAKER 
: Order! I have not recognised the member yet. Does he wish to raise a further point of order? 
Rt Hon Winston Peters 
: I do Mr Speaker. 
Mr SPEAKER 
: I have ruled already that the Minister has answered that question so it must be a further point of order and a different point of order. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. It is a different point of order. I want to know how it is that one could ask a question like I have put with facts a b and c. If I am to get b and c answered how does one make that question work in this House? 
Mr SPEAKER 
: Very simply questions do not contain facts; they seek facts.