Foss Craig: Questions for Oral Answer — Questions to Ministers 
Foss Craig: Questions for Oral Answer — Questions to Ministers 
[Volume:671;Page:17442] 
3. 
CRAIG FOSS (National—Tukituki) 
 to the  
Minister of Finance 
: What will be the Government’s spending priorities in Budget 2011? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Budget will press on with reducing New Zealand’s vulnerability to foreign lenders getting the Government’s finances in order and building faster growth around higher national savings and exports. Health and education are likely to receive the bulk of new operating spending about $800 million per year and in addition there will be considerable expenditure in rebuilding Christchurch particularly its infrastructure. The operating deficit could be as high as 8 to 9 percent of GDP per year. 
Craig Foss 
: Why is it important that the Government return to surplus and stop accumulating debt within a reasonable time frame? 
Hon BILL ENGLISH 
: For a number of reasons. First New Zealand as a whole has among the highest levels of debt public and private in the developed world and the debt incurred with the earthquake would push us to the limits of our comfort. Also if we can get hold of the deficit and debt we will be able to help keep interest rates low which will help with the creation of jobs and higher incomes. 
Hon David Cunliffe 
: Why is he using the 22 February earthquake as an excuse for proposing cuts to Working for Families when the Prime Minister said he was looking at cutting Working for Families less than a month before the earthquake? 
Hon BILL ENGLISH 
: There is no doubt that the earthquake puts extra pressure on the need for Government to control its expenditure but as we have done in the last couple of Budgets we are taking a considered and consistent approach and we are taking measured decisions. The member will just have to wait but there will not be anything too radical. 
Rt Hon John Key 
: Has the Minister of Finance seen comments made by the Hon Phil Goff at his press conference yesterday when he was asked a question and said in reply that he was opposed to making changes to Working for Families? To the question whether he thinks someone earning $140000 a year needs help from the Government his answer was: “Well the answer to that is probably no.” and when he was asked what about a family with two parents earning $70000 a year—whether their Working for Families payment should be changed—he said: “I’m not going to go through that because I haven’t worked through the detail.” Has he seen those questions? 
Hon BILL ENGLISH 
: Yes I have seen those and I was embarrassed to read them. 
Hon Phil Goff 
: If the Government breaks its word and cuts Working for Families can he inform the House that the money he would save by cutting Working for Families for a couple with a joint income of more than $100000 would be only about $27 million? 
Hon BILL ENGLISH 
: The Government as I said is working through a considered process of making decisions and the member can expect that we will maintain our principle of protecting the vulnerable and supporting New Zealanders through tough economic times. 
Hon Phil Goff 
: I raise a point of order Mr Speaker. Do you believe that the Minister even attempted to answer that question? 
Mr SPEAKER 
: The member asked the Minister whether he could confirm that certain things would or would not happen. The Minister in answering said that a process was being followed. We cannot force the Minister to give a particular answer. 
Hon Rodney Hide 
: I raise a point of order Mr Speaker. I was wondering whether we could ask the Prime Minister through you to table the transcript so the Minister of Finance’s embarrassment can be more widely shared. 
Mr SPEAKER 
: I apologise to the House for being too slow to sit the member down. He knows that is not a point of order. 
Craig Foss 
: What factors will drive total operating spending over the next few years? 
Hon BILL ENGLISH 
: The Government will be slowing down the rate of growth of spending. Core Crown operating expenses will be around $72 billion in 2011-12 which is about $8 billion higher than 2 years earlier. That may be Labour’s definition of slashing expenditure; it is not ours. 
Hon David Cunliffe 
: What does he consider measured and considered about the following process: that last Thursday he said that there will be no cuts to operating spending and by Sunday the Prime Minister said that there will be no new operating spending? 
Hon BILL ENGLISH 
: That is not correct. The Prime Minister signalled early in the year that the Government would be tightening up on spending. We have set about a considered and measured process for doing so. There is no doubt that the earthquake has put more pressure on the need to eliminate some of the wasteful programmes that Labour put in place so we can use the money for better purposes. 
Hon David Cunliffe 
: The Minister has contested the presumption of my previous question. Therefore I seek leave— 
Mr SPEAKER 
: The House will come to a little more order. The member knows that if he is going to seek leave to table a document he should not preface it with that kind of language. I will give him one more chance to get it right. 
Hon David Cunliffe 
: I seek leave to table a copy of the transcript of  
Q 
+ 
A 
 on Sunday which confirms the Prime Minister’s statement— 
Mr SPEAKER 
: We do not table transcripts of recent television programmes. 
Craig Foss 
: How will the Government direct its capital spending in Budget 2011? 
Hon BILL ENGLISH 
: The Government remains committed to the programme of roads of national significance as well as reinvesting in rail and upgrading the electricity grid and in rolling out ultra-fast broadband. That is because we are committed to the long-term investment required to lift productivity and economic performance and therefore produce more jobs and higher incomes.