Shanks Katrina: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Shanks Katrina: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 13 November 2012. Volume:685;Page:6489. Text is incorporated into the Bound Volume.] 
1. 
KATRINA SHANKS (National) 
 to the  
Minister of Finance 
: How is the Government’s economic programme helping New Zealand families by increasing savings keeping interest rates low and minimising cost of living pressures? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Mr Speaker—[ 
Interruption 
] 
Mr SPEAKER 
: Order! The Minister has not even opened his mouth yet. 
Hon BILL ENGLISH 
: I would just irritate them anyway. The Government is focusing strongly on building a more competitive economy with a wide range of policies designed to assist businesses to make the decision to invest further and employ more people therefore creating more jobs and higher incomes. We are also focusing on stable monetary policy and on getting Government back to surplus on a moderate fiscal adjustment. We believe these are the best ways to help increase national savings take pressure off inflation and interest rates and ensure that future generations of New Zealanders are not saddled with excessive debt. 
Katrina Shanks 
: What results has he seen of progress in the Government’s programme to build a more competitive economy? 
Hon BILL ENGLISH 
: We have seen good steady results although of course not as strong or as quickly as we would wish. Despite the ongoing economic problems around many parts of the world our economy grew by 2.6 percent in the year to June—better than most developed economies—the cost of living increased by just 0.8 percent in the year to September and the annual increase in the food price index has been 0.3 percent in the last 12 months. Our responsible fiscal policy is helping take pressure off interest rates—a family with a $200000 mortgage is paying $200 a week less than 4 years ago—and household savings are positive for the first time in more than a decade. 
Katrina Shanks 
: What reports has he received on the current global economic situation and its likely impact on New Zealand? 
Hon BILL ENGLISH 
: Treasury’s latest monthly  
Economic Indicators 
 indicates that world growth has been below expectations in the past year or two. The IMF warns that not only is the outlook for the global economy weaker but the downside risks are greater than before. Just last week the European Commission said that the eurozone will virtually grind to a halt next year and Germany will come close to recession. New Zealand is not immune from these forces. 
Katrina Shanks 
: What reports has he received on alternative economic approaches that would leave New Zealanders worse off by pushing up their cost of living and their interest rates? 
Hon BILL ENGLISH 
: I have seen reports on policies that would do just that. They would involve printing money tinkering with monetary policy in the misguided belief that there is some kind of magic solution in changing monetary policy borrowing and spending more for expensive Government programmes imposing more taxes on New Zealand businesses and opposing every single policy that would create new jobs. That is Labour and Green policy. 
Hon David Parker 
: Which of the recent economic statistics does he regard as best reflecting his success as Minister of Finance: the highest public debt in New Zealand history the worst growth record of any New Zealand Government since GDP records started the highest unemployment seen this century or a world-leading current account deficit? 
Hon BILL ENGLISH 
: None of those because on “Planet Labour” the worst recession in two generations never happened and that is what caused those figures. 
Hon David Parker 
: Could he advise the House whether rising unemployment falling business confidence falling exports and a rising balance of payments deficit represent a healthy growing economy; if so what would an unhealthy economy look like? 
Hon BILL ENGLISH 
: None of those things reflects an unhealthy economy. What they reflect is New Zealand businesses and households adapting to some of the most difficult economic conditions in a generation. The Labour Party might think New Zealand businesses and households have failed. We do not. We believe they are doing the best they possibly can in the difficult circumstances in which they find themselves.