Parker David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers[Sitting date: 04 September 2013. Volume:693;Page:13231. Text is incorporated into the Bound Volume.]2.Hon DAVID PARKER (Labour) to theMinister of Finance: Does he stand by his statement that “our companies are becoming more competitive”?Hon BILL ENGLISH (Minister of Finance): Yes. I am pleased the member asked that question because this morning the Global Competitiveness Index for 2013-2014 was released. This shows that New Zealand has risen five places in the last year to a ranking of 18. This is the first time New Zealand has placed ahead of Australia which has slipped back to 21stplace. New Zealand was ranked first in the world in the following measures: procedures to start a business days to start a business investor protection and inflation. We are ranked second in the world for soundness of its banks and for trade barriers. We also ranked highly for health education quality of institutions goods and labour market efficiency. Of course there were other areas where New Zealand was ranked lower and we will of course move to improve those rankings.Hon David Parker: How does intervening to override the determination of the independent Commerce Commission for the benefit of one company Chorus demonstrate his Government’s commitment to competitive and fair markets given that it will increase both fibre and copper broadband prices and reduce competition?Hon BILL ENGLISH: I disagree with most of what the member said. As the member will know the issues around Chorus and fibre pricing are to do with the Government’s project to roll out ultra-fast broadband a project that was fully supported as I understand it by the Opposition. Of course it represents a Government interventionin the market. That is the point of it because we believe that the market would not have delivered ultra-fast broadband to most New Zealand households probably for another decade.Hon David Parker: Does he support the effort of the Minister for Communications and Information Technology to set the price for copper-based broadband at higher levels than recommended by the Commerce Commission?Hon BILL ENGLISH: I do support the measures that the Minister for Communications and Information Technology is taking. As the member will know at some stage the country will have to pay the price of a new ultra-fast broadband infrastructure. This Government decided that that time is now not in 10 years’ time.Maggie Barry: What alternative policies has he seen that would affect the competitiveness of New Zealand businesses?Hon BILL ENGLISH: The fact that New Zealand is rising in the ratings of competitiveness but still has some way to go to get from No. 18 to No. 1 means we should look out very carefully for policies that are going to hold that progress back because a more competitive economy delivers more jobs and in particular higher incomes. I have seen proposals for a capital gains tax on every business and farm increasing emissions trading scheme taxes minimum wage increases up to $18 an hour the cancellation of the 90-day trial period winding back of ACC changes extra transport charges and proposals to borrow a lot more money. These are all coming from the Labour leadership campaign.Hon David Parker: Does he believe Chorus and its competitors are being treated in an even-handed manner by this Government given that Chorus already has a 14 year $1 billion interest-free loan subsidised by the taxpayer and that other companies that tendered for the ultra-fast broadband contract could not get a base price for copper that it is now giving to Chorus?Hon BILL ENGLISH: The Government’s programme to roll out ultra-fast broadband roughly 10 years ahead of when it would have occurred has been completely transparent. We spent a good couple of years discussing with market participants the process that we would follow. We went through a fully transparent completely commercial process the result of which was that Chorus and others won the contract to roll out ultra-fast broadband. The Government makes no apology for intervening in that market to bring forward the roll-out of that network. Until today I thought the Labour Opposition supported that. It is now clear that along with its policy of wanting to close the smelter it wants to stop the roll-out of ultra-fast broadband.Rt Hon Winston Peters: Could the Minister tell us how many subcontractors are about to go belly up becauseTransfield Services which is associated with the much-vaunted ultra-fast broadband programme about which he speaks is not paying out and is months behind in its payments?Hon BILL ENGLISH: No.Hon David Parker: Why can the Minister not understand that with the RioTinto subsidy the revisions to the Chorus subsidy and the casino convention centre deal the Government is saying to business and investors that it is easier to get ahead in this economy bygrifting corporate welfare from the Government via private phone calls and dinner with the Prime Minister than it is to succeed as a smaller business using innovation and creativity to compete in the market place?Hon BILL ENGLISH: The member is talking nonsense. If there was no ultra-fast broadband roll-out if the smelter had closed and if there was no convention centre those members would be saying: “Why aren’t you a smart interventionist Government like we would be?”. No one believes Labour with that kind of contradiction. He is talking rubbish.