Foss Craig: Questions for Oral Answer — Questions to Ministers 
Foss Craig: Questions for Oral Answer — Questions to Ministers 
[Volume:668;Page:15290] 
1. 
CRAIG FOSS (National—Tukituki) 
 to the  
Minister of Finance 
: What are the main features of the Government’s economic programme and how are they helping to build sustainable economic growth? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government’s economic programme is focused on jobs and growth and includes strengthening the tax system investment in productive infrastructure supporting business innovation and trade lifting productivity and services in the public sector removing red tape improving education and lifting skills. All of these things are helping to tilt the economy towards savings investment and exports and away from the unsustainable borrowing consumption and Government spending of previous years. 
Craig Foss 
: Within this programme what steps has the Government taken to strengthen the tax system? 
Hon BILL ENGLISH 
: At a time when many other countries are being forced to increase both income and indirect taxes we have delivered across-the-board personal income tax cuts that leave the average household about $25 a week better off. Even after a GST increase to 15 percent the average wage earner is about $15 a week better off. Almost three-quarters of New Zealand earners now have a top statutory income tax rate of 17.5c in the dollar or less. 
Craig Foss 
: With this programme what steps has the Government taken to increase investment in productive infrastructure? 
Hon BILL ENGLISH 
: There are some very significant steps including introducing smarter planning financing and execution of projects. The major investments currently under way are a $4 billion programme to improve the national electricity grid a $4.5 billion programme to restore the relevance of the rail freight network a $1.5 billion programme for rolling out ultra-fast broadband an $11 billion investment in roads over the next 10 years and completing the upgrade of Wellington and Auckland metro rail an upgrade that I acknowledge was begun by the previous Government. Collectively these multibillion-dollar programmes are supporting thousands of jobs and a brighter economic future. 
Craig Foss 
: What measures are under way within the Government’s economic programme to support business innovation and trade? 
Hon BILL ENGLISH 
: As most people are aware the Government’s assertive programme for free trade is progressing with some energy. We have signed agreements with Malaysia Hong Kong and ASEAN and at the weekend the Prime Minister announced that talks were advancing with Russia and the Trans-Pacific Partnership countries. We are also in talks with India the Gulf States and Korea. Despite the fact that the Government has a very limited budget it has announced $140 million per year for the Primary Growth Partnership and this year we confirmed $320 million of extra investment over 4 years in science research and technology. 
Hon David Cunliffe 
: What new policies is he considering to create jobs and lift incomes for New Zealanders given the recent verdict of the 2025 Taskforce that “we do not see any realistic possibility that the gap in real per capita income has narrowed in the past year.”? 
Hon BILL ENGLISH 
: As I told the member last week I do not agree with the 2025 Taskforce and usually Labour disagrees with those people all the time. The Government has a broad and comprehensive programme. It has only just started. There are some good early signs but the Government will continue with its programme as I have outlined it: investment in infrastructure less red tape more productive public services tax reform and so on. 
Hon David Cunliffe 
: Within this so-called broad and comprehensive programme what specific changes to monetary policy if any is he considering to address the high and volatile exchange rates that are crippling New Zealand’s exporters and manufacturers? 
Hon BILL ENGLISH 
: The exercise of monetary policy is properly the province of the Reserve Bank. The Reserve Bank has the power to intervene which it gained under the member’s own Government and the Governor of the Reserve Bank has set out in detail where and how he would intervene. The Government can help exporters by fixing the mess of domestic policy that that member’s Government previously made so we can help exports to become more competitive and start them growing again. Under that member’s Government the export sector went into recession in 2005. It is only now coming out of that 5-year recession.