Parker David: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 11 December 2013. Volume:695;Page:15472. Text is incorporated into the Bound Volume.]2.Hon DAVID PARKER (Deputy Leader—Labour) to theMinister of Finance: Which if any is his greatest failing in 2013 as Minister of Finance?Hon BILL ENGLISH (Minister of Finance): This question does test one’s humility. Without doubt though my greatest failing as a Minister of Finance was as it has been for each of the past 5 years underestimating the damage done to this economy by the previous Labour Government and overestimating the ability of Labour members to understand that and apologise for it.Hon David Parker: Which of his achievements is he most proud of as Minister of Finance—is it the widening gap between the rich and the poor; the collapse of Solid Energy; shutting first-home buyers out of the market with failed housing policies leading to loan-to-value ratios; 150000 unemployed; or the three botched asset sales that came in $1 billion short and did not achieve widespread New Zealand ownership?Hon BILL ENGLISH: Just to deal with a couple of those things actually the asset sales programme has been a success. I know the Opposition members are envious of the $4 billion that the Government now has in the bank. Secondly the gap between the rich and the poor is actually closing. I do regard that as an achievement given the circumstances of the global financial crisis and the severe stresses on this economy. More New Zealanders have more jobs and higher incomes and there is some real confidence in New Zealand’s future.Hon David Parker: If he does not like that list is he most proud of borrowing more than $400 million a month; the uncertainty around Chorus ultra-fast broadband and his Government’s threats to overrule the Commerce Commission; the $30 million corporate welfare subsidy paid to RioTinto without a jobs guarantee; Skycity; the sluggish Canterbury rebuild; or is it the 265000 children living in poverty that he is most proud of?Hon BILL ENGLISH: I do not agree with any of that. When the member mentions debt what we can say is that it is $4 billion less than Labour would have because we have gone ahead and partially sold down some Government-owned companies. Actually in respect of the debt the Government is quite happy that it has followed a sensible programme. We have borrowed pretty extensively to rebuild Christchurch to support New Zealand’s most vulnerable citizens and to support our households through a difficult time precisely because we have a plan to get back to surplus and repay that debt. That has been sensible moderate economic management which I have to say few developed countries have been able to copy.Andrew Williams: Does he consider New Zealand’s net international investment debtor position of $151 billion as at 30 June 2013 which is equivalent to 71 percent of gross domestic product and $35000 of debt per man woman and child in NewZealand as further evidence of the failure of his Government’s economic policy; if not why not?Hon BILL ENGLISH: As the member will know that net international investment position is the result of accumulated habits of New Zealanders over the last 30 years. In the circumstances of a pretty significant recession I actually think it is a bit better than we expected. Given the prospects for our export industries and the growing resilience and confidence of New Zealand businesses and households I would expect it is going to continue to improve gradually over the next 3 to 5 years.Hon David Parker: How will his billion-dollar shortfall on asset sales impact upon the $84 billion of spending his Government has already promised from the $6 billion Future Investment Fund?Hon BILL ENGLISH: The member seems to have his billions a bit mixed and matched between different parts of the Government Budget. There is a pretty simple fact. When we sold the shares in the Government companies we handed out share certificates to tens of thousands of New Zealanders who are the proud owners of shares in large New Zealand companies and they gave us $4 billion. So the taxpayer has $4 billion where it used to have 49 percent of the companies and we can now go and invest that in public assets. The Opposition has yet to rise to the challenge of promising to buy back the assets although it says it is so firmly opposed to their sale.Hon David Parker: Has he received any requests from the Minister of Science and Innovation to use the Future Investment Fund to fund research into whether the moon landings were faked so as to satisfy his desired coalition partner?Mr SPEAKER: The Hon Bill English—in so far as he has ministerial responsibility.Hon BILL ENGLISH: No we have not but I have had requests to investigate some of the even wackier ideas that come not from small parties but the Labour Party. They are policies that would be very bad for New Zealand and we will be investigating some of them and testing those next year.Tim Macindoe: What further progress has the Government made in 2013 in improving the range of negative economic indicators it inherited 5 years ago?Hon BILL ENGLISH: In the first place I would say the credit for progress goes to the households and businesses of New Zealand which have dealt with difficult circumstances with remarkable resilience and fortitude and they are achieving results. The economy is growing 2.5 to 3 percent—one of the fastest growth rates in the OECD. We are on track to surplus by 2014-15—one of a handful of countries that will achieve surplus by that time. Back in 2008 the current account deficit was over 8 percent of GDP and it currently sits at less than 4 percent of GDP. Five years ago inflation was running at 5 percent. It is now running at just over 1 percent. Five years ago mortgage interest rates averaged almost 11 percent. Floating rates are now less than 6 percent although forecast to rise somewhat next year. The tradable sector which went into recession in 2007 is now succeeding and we are particularly gratified that the manufacturing sector is expanding and even more gratified that the regions are expanding many of them at a faster rate than in Auckland.Hon David Parker: Will he agree that arguably his greatest failure as Minister of Finance in 2013 was not to use the Future Investment Fund to purchase Gerry Brownlee a larger kilt to prevent overexposure to the market or would that have required an extraordinary appropriation?Mr SPEAKER: In so far as the Minister has responsibility—the Hon Bill English.Hon BILL ENGLISH: I understand that the traumatic event to which the member is referring occurred in 2012 which is outside the current Budget cycle.