2. Economy—Government Financial Position Taxes and Fuel and Electricity MarketsMELISSA LEE (National) to the Minister of FinanceEconomy—Government Financial Position Taxes and Fuel and Electricity Markets2. MELISSA LEE (National) to the Minister of Finance: What reports has he received on the Crown's financial performance?Hon STEVEN JOYCE (Minister of Finance): The Government accounts out this morning for the 11 months to 31 May show a surplus of $4.5 billion which is $1.5 billion ahead of forecast. The good shape of the Government's books reflects a strong economy that is responding well to the Government's consistent economic plan. This result following on from the buoyant confidence numbers released last week and early this week indicate that the economy is growing well despite the best efforts of some commentators to talk New Zealand down.Melissa Lee: Why are the Government's accounts performing well?Hon STEVEN JOYCE: Driving this rising operating balance before gains and losses surplus is stronger than forecast tax revenues particularly company tax which was $688 million above forecast. These results reflect strong consumer confidence and businesses getting ahead and growing jobs for New Zealanders. Our diversified economy is delivering across the country. While our surpluses are growing they will be needed to meet the cost of the significant investments we have committed to including the Government's $32.5 billion infrastructure programme over the next 4 years.Melissa Lee: What impact has the improving nature of the Government's accounts had on core Crown net debt?Hon STEVEN JOYCE: The core Crown net debt stands at $59.3 billion or 22.4 percent of GDP and is $1.2 billion lower than forecast. As we announced in April our new target for reducing net debt is to between 10 and 15 percent of GDP by 2025. The good news about the Government's strong fiscal position is that it gives us the ability to invest in growing social services deliver a strong infrastructure programme and lift family incomes from 1 April next year with the Family Incomes Package as well as reducing net debt as a percentage of GDP.Ron Mark: How much of this strong fiscal position is derived by his Government creaming off taxpayers on each litre of petrol from the excise tax the emissions trading scheme tax and GST which is a tax on a tax?Hon STEVEN JOYCE: Well leaving aside the inaccuracy of the last part of that statement in terms of excise tax of course that is hypothecated to the roading system. So the investments that we see—for example in the Waterview tunnel which is helping Aucklanders get about; the Kapiti Expressway north of Wellington here; the motorway around Christchurch Airport; the bridge on the West Coast; and the Waikato Expressway—are all funded from that tax. I think that most New Zealanders would appreciate the fact—particularly those who use their vehicles—that the Government is making a massive investment in New Zealand's roading system.Melissa Lee: How does this country's fiscal performance compare internationally?Hon STEVEN JOYCE: New Zealand is in a strong position compared with our international peers. We have balanced the Government's books and surpluses are now growing. Our net debt position has peaked and is tracking downwards as a percentage of our economy. This is a better performance than our friends in Australia the UK the US and Canada for example. We have achieved this by making responsible spending decisions over the last several years while supporting New Zealanders through the global financial crisis and the Canterbury earthquakes. Unfortunately there are those of course who want to spend lots more money with no willingness to think of the taxpayers of New Zealand.Ron Mark: Given the very strong position of the New Zealand economy what is it that the Government intends to do to reduce power prices in rural provincial New Zealand and to get petrol prices down to a level that the Government itself thinks should be more appropriate given its attacks on the oil industry which it—Mr SPEAKER: Order! Bring the question to a conclusion.Hon STEVEN JOYCE: Well I am pleased to report to the member that the Government's electricity reforms led by the former Minister of Energy and Resources my colleague Mr Brownlee have made a very positive outcome in terms of making sure that electricity prices stay down for all New Zealanders. In fact it has been an excellent result in that respect. In terms of petrol prices the current Minister of Energy and Resources Minister Collins is very focused on that and in fact just by speaking and organising a report she has managed to get petrol prices down.Question time interrupted.