Ross Jami-Lee: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeRoss Jami-Lee: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 12 February 2014. Volume:696;Page:15831. Text is incorporated into the Bound Volume.]2.JAMI-LEE ROSS (National—Botany) to theMinister of Finance: How is the Government’s economic programme supporting stronger economic growth more jobs and higher incomes?Hon BILL ENGLISH (Minister of Finance): The steps taken by the Government over the last 5 years are starting to deliver results as we are working alongside New Zealanders to recover from the recession and build a platform for growth. Last week’s household labour force survey and quarterly employment survey exceeded expectations with annual jobs growth to the year to December at 66000. That is 66000 more people were employed at the end of 2013 compared with the end of 2012. Labour force participation increased to 68.9 percent. That is 68.9 percent of the adult population available for work. This is the second-highest level ever recorded. So the decrease in unemployment has occurred at the same time as the number of people available for work is at its second-highest ever level. In respect of the crisis in manufacturing employment and manufacturing suffered yet another blow because employment grew by 3000 to 169000! Incomes are rising. Since 2008 after-tax average wages have increased by 25 percent at a period when the cost of living has increased by 10 percent.Jami-Lee Ross: How has New Zealand’s stronger economic performance benefited New Zealanders by delivering higher incomes?Hon BILL ENGLISH: It has delivered higher incomes although not as rapidly as we would have liked and not yet for every New Zealand household. Last week’s labour market statistics showed that 2013 weekly earnings grew by 2.8 percent in 2013 above the 1.6 percent increase in the cost of living. This is from the quarterly employment survey which is the best measure of wage growth. This measure has been used by successive Governments to adjust New Zealand superannuation and paid parental leave. I would also note the average wages used by the Green Party for its policies on minimum wages and welfare benefits despite arguing here that the quarterly employment survey is not the right measure of wage growth.Hon David Parker: Why does the Government use the Labour Cost Index in its determination of the minimum wage? Is it because the index is the official measure of the change in wage rates?Hon BILL ENGLISH: The Government does not use the Labour Cost Index to determine the minimum wage. Second the Labour Cost Index does not measure what people get paid. It is an index of the value of labour for specific skill sets and specific industries. What measures what people get paid is the quarterly employment survey and that shows rising real incomes.Hon David Parker: I seek leave to table the document that shows that the Government uses the Labour Cost Index as the basis—Mr SPEAKER: Order! I need the source of the document.Hon David Parker: It is a combination of Statistics New Zealand information and information released by the Government at the time the minimum wage is set.Mr SPEAKER: I think it is a marginal call but on the basis that the House can decide leave is sought to table that documentation. Is there any objection to that being done? There is objection.Jami-Lee Ross: What other reports has he seen on the improving performance of the New Zealand economy?Hon BILL ENGLISH: There are a wide range of reports on improvements in the New Zealand economy. The most recent quarterly survey of business opinion shows a near 20-year high in business confidence. The manufacturing crisis can be measured by the BNZ-Business New Zealand Performance of Manufacturing Index which has shown growth in manufacturing for 15 consecutive months. The most recent performance of manufacturing index recorded the highest rate of employment growth in manufacturing since 2007—yet another sign of the manufacturing crisis! Recent data from the job site SEEK shows that job ads are up by 13 percent compared with January last year.Jami-Lee Ross: How is the improving economy helping vulnerable families to get ahead?Hon BILL ENGLISH: The Government believes that the most important way to help vulnerable families is through more jobs and a business environment where they can be paid more. There is no better news for those who are vulnerable and dependent on the State than to see a continued improvement in the jobs market and rising real wages. Those people stuck in long-term welfare dependency will never benefit from a strong economy if they are left in that dependency. The Government is continuing to work with those families through ongoing investment in the welfare system and over the last two Budgets we have invested around half a billion dollars to help people off welfare and into work. In the last 12 months 17000 people have come off a benefit.