Foss Craig: Questions for Oral Answer — Questions to Ministers 
Foss Craig: Questions for Oral Answer — Questions to Ministers 
[Volume:669;Page:15823] 
3. 
CRAIG FOSS (National—Tukituki) 
 to the  
Minister of Finance 
: What reports has he received on the Government’s financial position? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Yesterday Treasury issued the Crown accounts for the first 4 months of the financial year. They show that the impact of the Canterbury earthquake and lower than expected tax revenue contributed to a higher than forecast $4.4 billion operating deficit in the period. The $1.1 billion lower than forecast tax take for the period was largely the result of lower than expected business profits and lower GST as New Zealanders spend less and save more. This drop in revenue was partially offset by a $440 million lower than forecast Government expenditure showing the merits of Government control over spending and the need for ongoing fiscal discipline. 
Craig Foss 
: What steps is the Government taking to manage its finances responsibly? 
Hon BILL ENGLISH 
: The Government will continue to focus right across the activities of the Crown on reducing low-priority and ineffective spending and on redirecting that spending to front-line services and more worthwhile initiatives. We are also committed to capping future new budget spending at $1.1 billion per year adjusted for inflation. As a result the deficit over the next couple of years might be a bit higher than previously forecast but Government deficits will from this year on begin to shrink. 
Craig Foss 
: What measures will the Government consider next year to ensure agencies operate more efficiently? 
Hon BILL ENGLISH 
: The Government has taken a pretty considered approach to our objective of achieving better public services for fewer resources. Over the last couple of years all Government agencies have had to learn a lot more about how their organisations run what costs drive their budgets and how they will improve their services to the public. Over the next couple of years we would expect to see as a result of that greater understanding and the tools that the Government has given them to use considerable and significant change across most Government agencies as they aim to provide more services for less money. 
Craig Foss 
: What alternative approaches to managing the Government’s finances would lead to bigger budget deficits and more debt? 
Hon BILL ENGLISH 
: I have seen some alternatives: expensive spending promises and a return to bloated bureaucracy tax increases borrowing on world finance markets to invest in world share markets borrowing another $250 million to take GST off fruit and vegetables and not taking dividends from electricity State-owned enterprises. But I am confused about whether these— 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. You have ruled several times that the obviously desperate Minister over there— 
Mr SPEAKER 
: No no. The member will resume his seat. There will be no comment. I am afraid the member just blew his point of order. I think we have probably heard a sufficient answer. 
Hon BILL ENGLISH 
: I had not finished. 
Mr SPEAKER 
: I think the member indicated a range of policy possibilities that would have a negative impact. That is what he was asked and I believe that the House heard a fairly lengthy list. I think that should be the end of that. 
Hon Sir Roger Douglas 
: Does the Minister agree with the policy of Labour’s finance spokesman “David Caygill” that State-owned assets should be partially privatised; if not why not? 
Hon BILL ENGLISH 
: Perhaps one of the reasons the Leader of the Opposition is confused about whether he is working with David Cunliffe or David Caygill is that I think the second David announced the other day that Labour is now interested in partial privatisation. That might explain why Phil Goff called him David Caygill. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. 
Hon Phil Goff 
: He’s got a bit more hair. 
Mr SPEAKER 
: The House is having a bit of fun but a point of order is being raised by the Hon David Cunliffe. 
Hon David Cunliffe 
: Only to state the obvious—the Minister has ministerial responsibilities for neither David and this one has more hair thank you. 
Mr SPEAKER 
: Now that the House has had a bit of fun we will come back to order. The question asked an opinion and it was highly marginal; I accept that. The answer was in reasonably good humour. 
Hon Sir Roger Douglas 
: Does the Minister support Phil Goff’s pledge to cut national debt at a faster rate than the present Government; if so what steps is he taking to speed up his current slow progress? 
Hon Darren Hughes 
: I raise a point of order Mr Speaker. The Minister is not responsible for any pledge made by any person in this House other than the Minister’s. 
Hon Rodney Hide 
: The question was actually asking the Minister of Finance whether he agreed and supported the pledge. Certainly the Minister has responsibility for whether he supports a policy. 
Mr SPEAKER 
: The member raises an interesting point. The dilemma I have as Speaker is that questions seeking opinions are allowed under the Standing Orders these days. In essence the Hon Sir Roger Douglas has asked the Minister of Finance for his opinion—whether he supports a statement that is claimed to have been made by the Leader of the Opposition. I think the Minister in answering would need to be a little careful not to go too far over the top in expressing his opinion because it is marginal. Opinion questions are allowed but he should be a little careful in answering it. 
Hon BILL ENGLISH 
: I do support Mr Goff’s undertaking but I cannot understand how he is going to do it by spending more money which I understand is the rest of his policy.