Ross Jami-Lee: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRoss Jami-Lee: Oral Questions — Questions to Ministers[Sitting date: 20 August 2015. Volume:707;Page:6019. Text is incorporated into the Bound Volume.]3.JAMI-LEE ROSS (National—Botany) to the Minister of Finance: What recent reports has he received on the outlook for the New Zealand economy?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: The Minister of Finance has received a number of reports recently with a range of news on the short-term outlook of the economy. The assessment of ASB in its quarterly economic forecast report is that the New Zealand economy will expand at a rate of between 2.0 and 2.9 percent over this year and next which is a solid sustainable rate of activity for an economy that is in the process of adjusting to recent falls in dairy incomes. We are seeing an adjustment in the engine room of the economy and more resources and investment will shift to new industries well positioned to leverage off their improved international competitiveness due to the decline in the value of the New Zealand dollar and the recent drop in short-term interest rates.Jami-Lee Ross: How are lower interest rates and a fall in the New Zealand dollar helping to support New Zealand’s export competitiveness?Hon STEVEN JOYCE: The decline in short-term interest rates is feeding through to lower borrowing costs for New Zealand businesses and a fall in the New Zealand dollar is raising returns for companies exporting goods and services. For example Statistics New Zealand has recently reported an increase in tourism with guest nights at hotels motels backpackers and holiday parks in June of this year 3.1 percent higher than in June of last year. Most of this rise was due to international guests and encouragingly 10 of the 12 regional areas surveyed reported more guest nights compared with a year ago. Inbound tourist service sectors are more globally competitive than they were a year ago and of course that means more jobs and opportunities for New Zealanders in the period ahead.Jami-Lee Ross: How are rising wages low cost of living increases and higher employment rates supporting higher take-home pay for New Zealand households?Hon STEVEN JOYCE: Well very low increases in the Consumers Price Index our measure of living costs—even though New Zealand recently recorded its 17th consecutive quarter of expansion in output as measured by GDP—is lifting inflation-adjusted or real incomes. The average wage is up 3.2 percent in the latest 12-month period compared with an annual inflation rate of just 0.3 percent so wages are rising well ahead of inflation. The average annual wage now is over $57000 for the first time—that is $10000 more than when National was elected into Government.Fletcher Tabuteau: How can the Minister so easily dismiss Monday’s Auckland chamber of commerce business confidence survey which tells us that 85 percent of businesses there expect conditions to either remain static or deteriorate?Hon STEVEN JOYCE: I am not aware that I have dismissed any of those surveys. I think that in terms of the Auckland chamber of commerce we are seeing a significantly higher level of activity over the last year and the rating that the chamber has identified suggests that it will not increase but also it does not necessarily suggest that it will decline. We are as I have said a number of times expecting a softer growth rate than we have had in the last year as a result of a decline in dairy prices but the New Zealand economy remains strong.Jami-Lee Ross: What reports has he received on continuing job growth in New Zealand?Hon STEVEN JOYCE: Earlier today ANZ released its job ads survey. ANZ reports that the annual growth in the rolling 3-month average of ad volumes lifted slightly to 1.7 percent in July with some interesting ranges around the country. Hawke’s Bay for example saw job ads increase 11.7 percent in the year to July. Job ads in Auckland increased 7.9 percent. Partly offsetting those gains were falls in Canterbury Wellington and the Waikato. Overall moderate increases in job ads are consistent with continuing employment growth on top of the 69000 jobs added in the economy last year. That included over 24000 more jobs in manufacturing and is consistent with an outlook for economic growth of 2 to 2.5 percent.