McKelvie Ian: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeMcKelvie Ian: Oral Questions — Questions to Ministers[Sitting date: 26 February 2015. Volume:703;Page:1981. Text is incorporated into the Bound Volume.]1.IAN McKELVIE (National—Rangitīkei) to the Minister of Finance: What progress is the Government making in building a more competitive and productive economy as one of its priorities for this term of Parliament?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: In the last hour or so the Minister gave a speech in Auckland that covers this very question. There is broad agreement amongst commentators that New Zealand is doing well compared with other developed economies and that we are making good progress. Our economy is growing employment is increasing wages are rising and households and businesses are benefiting from low inflation and a long period of stable low interest rates. We are also making good progress in improving public services in areas like welfare health education and law and order and we are pressing on with wide-ranging economic reforms under the Business Growth Agenda to support more jobs and higher incomes.Ian McKelvie: How will the Budget on 21 May build on the progress with the Government’s economic programme and what will be its main areas of focus?Hon STEVEN JOYCE: The Government’s seventh Budget on 21 May will set out the next steps in our economic programme. We have 3 very busy years ahead of us and there is much to do. Our approach will remain clear and predictable. We will stay focused on the four main priorities which are responsibly managing the Government’s finances building a more productive and competitive economy delivering better public services and continuing to support the rebuild of Christchurch. We have progressed all of these priorities in the last term and that is helping us to ensure that New Zealanders and their families benefit from a growing economy and the Government’s responsible management.Grant Robertson: How does the Minister think a “more competitive and productive economy” will be created when today we learn that total goods exports were down by $371 million or 9.1 percent in the last year?Hon STEVEN JOYCE: I would say to the member to just be careful not to get carried away with each month’s exports or you will be in this emotional rollercoaster up and down. What I can tell the member is that last year New Zealand’s exports of goods passed $50 billion for the first time despite the high exchange rate that exporters have been challenged with.Grant Robertson: What progress does the Minister think he is making to his 7-year target of lifting exports from 30 percent to 40 percent of GDP when they have fallen by 9 percent on a 1-year basis not on a monthly basis Minister?Hon STEVEN JOYCE: Again the member needs to be aware that just before that decline there was a big increase. He can take the view that it is all turning to the proverbial in a handbasket but actually most New Zealanders are impressed with the resilience of New Zealand’s export sector through a very tough period of the global financial crisis and high exchange rates relative to the US dollar. We will continue to challenge that target but I would point out to the member that the other thing that has happened in the meantime is that Statistics New Zealand has rebased New Zealand’s exports over the last 20 or so years and that has made the target harder to achieve.Ian McKelvie: How are the growing economy and the Government’s responsible economic management translating into real benefits for New Zealand families?Hon STEVEN JOYCE: New Zealand’s families are benefiting from the Government’s programme in several important ways. For example from 1 April this year paid parental leave will increase by 2 weeks to 16 weeks and by another 2 weeks from 1 April next year; the parental tax credit will rise from $150 a week to $220 a week and the entitlement will increase from 8 to 10 weeks; the Government’s new Homestart scheme will help around 90000 Kiwis into their first home over the next few years; and New Zealand superannuation will increase by another 2.07 percent which means that superannuation will have increased by 31 percent since April 2008 double the rate of inflation over that time. Then from 1 July children under 13 will have access to free general practitioner visits and free prescriptions and the average ACC levy for a private motor vehicle will fall by around $130 a year.Ian McKelvie: What other indicators confirm that the economy is heading in the right direction particularly compared with many other developed countries?Hon STEVEN JOYCE: There are a number of positive indicators. Our challenge over the next few years is to ensure that the economy continues to grow solidly. Current signs are very encouraging. Business investment increased from $30.5 billion in 2010 to $38.4 billion last year. That is an $8 billion improvement in real terms in just 4 years. And 146000 additional new jobs created in the past few years represent the strongest employment growth we have seen in this country for over a decade. Forecasts show the economy growing by an average of about 3 percent a year over the next 5 years following annual growth of between 2 and 3 percent over the last 3 years. This would be if it comes to pass an 8-year stretch of sustained growth supporting more jobs and higher incomes following the domestic recession we inherited in 2008 and the global financial crisis.