Bennett David: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeBennett David: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 23 October 2013. Volume:694;Page:14179. Text is incorporated into the Bound Volume.]2.DAVID BENNETT (National—Hamilton East) to theMinister of Finance: What reports has he received on building momentum in the New Zealand economy and how this is supporting jobs?Hon BILL ENGLISH (Minister of Finance): Yesterday the ASB released its quarterly economic forecast pointing to a broad-based improvement in business activity. This follows encouraging reports from other forecasters. The higher dairy payout will add $4 billion of income to the regional economy and that sits alongside a recovery in meat prices although livestock numbers will take some time to rebuild from the drought. The Canterbury rebuild is gaining traction and ASB says the Auckland housing market is on the cusp of a housing construction pick-up. Recent migration figures show fewer New Zealanders are leaving for Australia because of the relative improvement in the New Zealand labour market meaning they are relatively more likely to get a job here than they are in Australia. This is an encouraging picture of consistent economic growth.David Bennett: How is the improved economic momentum being reflected in business and consumer confidence and what growth does this point to over the next few years?Hon BILL ENGLISH: Last week the ANZ released its survey of consumer confidence. Confidence was up in September and remains above the long-term levels of consumer confidence. Consumers report feeling better off than a year ago and more likely to buy a major household item. ANZ also reports that business sentiment is strong. These confidence levels point to reasonably good economic growth in the year ahead with higher incomes and more jobs for more New Zealanders.David Bennett: How is increasing confidence among businesses and consumers delivering jobs and growth in the economy?Hon BILL ENGLISH: It is important that there are new jobs in the economy because in any given quarter up to 100000 jobs disappear from the economy.Hon Member: What about the regions?Hon BILL ENGLISH: So it is pleasing to see higher levels of confidence translating into rising employment. TradeMe jobs reports that job listings are up nearly 10 percent from what they were a year ago. Manawatū and Wanganui job listings are up 17 percent and they are regions. Bay of Plenty listings are up 13 percent and I understand that the Bay of Plenty is regarded as a region. The SEEK website reports that the strongest growth in job listings is in the South Island in particular Marlborough which is a region the West Coast which is certainly a region and Southland which is somewhat metropolitan but probably a region.David Bennett: What reports has the Minister received endorsing the Government’s economic programme and the current improvement in the New Zealand economic direction?Hon BILL ENGLISH: There are so many of these reports but some of them are particularly satisfying. There was one last night and I will quote it in respect of the economy: “It’s certainly heading in the right direction. We celebrate the improvement.” That actually was on Television New Zealand yesterday morning from the current leader of the Labour Party David Cunliffe.Rt Hon Winston Peters: What steps to prevent the recent closure of a Shannon fellmongery and a Rotorua sawmill with large job losses did the Government take including addressing a grossly overvalued exchange rate now heading towards US90c?Hon BILL ENGLISH: We share the member’s concern about the value of the exchange rate. The single most important measure the Government is taking to do what it can to relieve pressure on the exchange rate is to increase the supply of housing more quickly on the ground particularly in Auckland. The Minister of Housing just a couple of weeks ago announced special housing areas for 5000 houses. Otherwise our exchange rate is determined largely by the state of the US economy. As it continues to improve it is likely that our exchange rate will be re-rated downwards.