Bennett David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Bennett David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 21 March 2013. Volume:688;Page:8829. Text is incorporated into the Bound Volume.] 
1. 
DAVID BENNETT (National—Hamilton East) 
 to the  
Minister of Finance 
: What reports has he received on the economy? 
Hon STEVEN JOYCE (Acting Minister of Finance) 
: 
 Today Statistics New Zealand has released the gross domestic product data for the December 2012 quarter. It shows that the New Zealand economy grew 1.5 percent in the quarter—the highest quarterly growth since December 2009 and above market expectations. Annual growth was 3 percent year on year. The last time this was higher was before the global financial crisis and before the domestic recession that preceded that crisis. This is a reasonably encouraging result particularly when New Zealand’s 3 percent growth in 2012 is compared with other countries: 1.6 percent in the US 1.1 percent in Canada 0.4 percent in Japan 0.3 percent in the UK and negative 0.9 percent in the euro area. 
David Bennett 
: What are the main drivers of GDP growth in the December quarter? 
Hon STEVEN JOYCE 
: Statistics New Zealand reports broad growth with 15 of the 16 measured industries growing in the December quarter. The main drivers of growth in the December quarter were forestry which grew 9 percent the largest increase since 1999; retail accommodation and restaurants up 2.3 percent driven by retail activity; wholesale trade up 2.1 percent driven by equipment and machinery sales; and construction activity up 1.8 percent which was the fifth consecutive quarterly increase. Manufacturing activity in the December quarter was up 2.7 percent year on year but down 0.5 percent in the quarter and that was mainly due to a fall in oil production. Household consumption increased 1.6 percent and exports increased 2.1 percent. 
David Bennett 
: What is the outlook for New Zealand’s economic growth and how does that compare with other developed countries? 
Hon STEVEN JOYCE 
: Treasury and the Reserve Bank forecast that New Zealand’s economy can expect growth of 2 to 3 percent per year over the next 4 years. This is in spite of the headwinds of ongoing uncertainty in the world economy an elevated exchange rate deleveraging in the household and Government sectors and of course this year’s drought. New Zealand’s forecast growth is higher than consensus forecasts for the eurozone Japan the United Kingdom and Canada. It is in line with forecast growth in the United States of America and slightly below that of Australia. There remains work to do but this shows that New Zealand is broadly heading in the right economic direction. 
David Bennett 
: What are the risks to growth in the next few years and what steps is the Government taking to manage these risks? 
Hon STEVEN JOYCE 
: Although the world economy is showing some positive signs recent events in Europe and questions about the process of unwinding central bank balance sheets shows that some uncertainty does remain. That is why the Government has focused on developing its Business Growth Agenda a comprehensive plan for building a productive and competitive economy and encouraging business investment and growth and also raising national savings by getting back into surplus and developing new financial stability tools which include the macro-prudential framework. 
Hon David Parker 
: Why is the Minister claiming the economy is performing well given that 23000 people lost their jobs and 33000 people left the workforce in the very same December quarter that he has been referring to? 
Hon STEVEN JOYCE 
: It is worth pointing out to the member that actually in the 2 years to December job growth in the quarterly employment survey was 54000 jobs. I appreciate that you know we still have not got a perfect economy but if the member wants to criticise the Government for achieving 1.5 percent growth in one quarter I say make him keep doing it. 
Rt Hon Winston Peters 
: Before he begins crowing about the temporary state of the economy will he tell the hundreds who queued outside a South Auckland factory 2 weeks ago at Carter Holt Harvey’s Pakuranga factory when they will get a job? 
Hon STEVEN JOYCE 
: I do not think anybody has been crowing in this House recently except the right honourable member but the reality of it is that the New Zealand economy— 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. What on earth could that opening sentence have to do with an answer? 
Mr SPEAKER 
: It was a very political question. I want to hear the— 
Rt Hon Winston Peters 
: This is a political place. 
Mr SPEAKER 
: That is absolutely right. Could the Minister please complete the answer. 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. We were listening to your response. We were having trouble hearing it because of the assistance you were getting from the Associate Minister of Finance and the Leader of the House. I do not know whether there is something wrong with the sound system but Mr Speaker while you were ruling you were being overcalled by those two Ministers. 
Mr SPEAKER 
: I did not hear a huge amount of interjection but I fully accept there was some interjection. It goes to prove that interjection from either side of the House when I am making a comment to any member will lead to disorder. Would the Minister please now answer the question that was raised by the Rt Hon Winston Peters. 
Hon STEVEN JOYCE 
: I was pointing out to the member that the only one describing anything as crowing was the member himself. In terms of the job market we certainly accept that the job market remains challenging. Although there has been job growth it is not enough to actually meet the needs of all New Zealanders. That is why the Business Growth Agenda is very very important in terms of encouraging opportunities for investment in the New Zealand economy. 
Grant Robertson 
: It’s not working. 
Hon STEVEN JOYCE 
: Well actually there are very strong signs that it is working relative to the rest of the world. If the member would like me to run through again GDP growth relative to the rest of the world for his benefit I would be happy to do so. 
Rt Hon Winston Peters 
: Will the Minister explain to the country why foreigners are coming here in their thousands on work permits when a record number of young people who are New Zealanders cannot get a job in their own country? 
Hon STEVEN JOYCE 
: I find both of the legs of the question from the member actually factually incorrect. The first leg of the question says that record numbers are coming to New Zealand. Well that is obviously not correct when you look at the migration statistics— 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. This Minister was asked a straightforward question. The record numbers claim was to do with the record numbers of youth out of work and that is a fact. So would you ask him now to address the question. 
Mr SPEAKER 
: The Minister rose and straight away said he did not accept the question that was put by the member and that is a perfectly satisfactory answer. 
Rt Hon Winston Peters 
: No no—he claimed that I said that there were record numbers of foreigners coming in on work permits. I did not say that. The  
Hansard 
 will prove that. Now make him answer the question as you are required to do. 
Mr SPEAKER 
: The member said that there were foreigners coming in in their thousands. The Minister satisfactorily addressed that question by disputing that. He is quite entitled to do so. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. Will he answer the question then? Because he has not answered it yet. 
Mr SPEAKER 
: He did answer the question. 
Rt Hon Winston Peters 
: No he did not. I raised a point of order on him he stopped— 
Mr SPEAKER 
: And I ruled that the question had been answered. The Minister said he just did not accept the supposition in the member’s question. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. With respect if he gets up and he claims I made a statement that I did not make and the  
Hansard 
 will show it how then can you avoid making him answer the question? 
Mr SPEAKER 
: Because I have told the member that I am satisfied that the member answered the question by saying he did not accept the suppositions that were raised by the member in asking the question.