4. Question No. 4—FinanceHon PAUL GOLDSMITH (National) to the Minister of FinanceQuestion No. 4—Finance4. Hon PAUL GOLDSMITH (National) to the Minister of Finance: Is the Government delivering on all its commitments to New Zealand in relation to the economy?Hon GRANT ROBERTSON (Minister of Finance): We are delivering on our commitments with economic growth forecasts in every year to be higher under this Government than it averaged under National. Also under this Government unemployment hit an 11-year low and wage growth is at its highest in a decade. We're making a $12 billion investment into New Zealand's infrastructure on top of what has already been invested taking our capital investment to the highest level in 20 years. This Government is committed to building a strong economy and we're getting on with the job.Hon Paul Goldsmith: If he's delivering on all its commitments why is New Zealand back in deficit?Hon GRANT ROBERTSON: As has been discussed when the half-yearly update was released we have had two years of very solid surpluses. We will have further years of surpluses across the forecast amounting to about $12 billion. There are a number of factors in this year's accounts including revaluation of ACC that have affected the operating balance before gains and losses but across the period of time of Government we are running strong surpluses across the economic cycle as we have committed to do. I do note that the former Government didn't run any surpluses at all in their first two terms of Government.Hon Paul Goldsmith: Is he telling the House that we are at a point in the economic cycle where we should be running a deficit at the moment?Hon GRANT ROBERTSON: Well if the member had been paying attention to the international news reports in recent times he would have seen that there has been a significant slow-down in global growth. The good news for the New Zealand economy is that we are continuing to grow at a faster rate than Australia than the UK than Canada than Japan than the eurozone which is a sign that our economy is strong but yes there are some global headwinds and the point in the economic cycle where we're at now is a challenging one but New Zealand's getting through it.Hon Paul Goldsmith: Were New Zealanders right to expect his Government would be in surplus every year unless there's a significant natural event or a major economic shock or crisis"?Hon GRANT ROBERTSON: I invite the member to look at the wording in the Budget Policy Statement and in the Budget Economic and Fiscal Update which commits the Government to a surplus across the economic cycle. On this side of the House a surplus is what happens when we meet all of the commitments the Government has. A surplus is not manufactured by pretending that they funded health and education properly or being fast and loose with the numbers. This Government has had two surpluses and we will have surpluses in the future as forecast in the half-yearly update.Hon Paul Goldsmith: Well will he give a categorical assurance that next year's Budget will not forecast a second deficit next year?Hon GRANT ROBERTSON: Next year's Budget will be done next year and I am very optimistic that Treasury's forecasts as they have been in the past will continue to be accurate.Rt Hon Winston Peters: Can I ask the Minister of Finance as to whether his Government this Government intends to replicate the ratio of borrowing of the previous Government which was to inherit a total debt of $10 billion and take it to $82 billion?Hon GRANT ROBERTSON: As noted in the earlier question this Government inherited a net debt to GDP ratio of around about 22.7 percent. There is no year in the forecast where it gets back to that level.Hon Paul Goldsmith: Does he think there is a single New Zealander who has forgotten about the global financial crisis and the Christchurch earthquakes? [Interruption] SPEAKER: Order!Hon GRANT ROBERTSON: I'm interested by the member's realisation that global economic factors have an impact on New Zealand. So for the remaining time that he is questioning me and decides that economic headwinds don't matter I shall recall that very insightful question.Hon Paul Goldsmith: Isn't the most relevant current economic indicator the fact that New Zealand has the highest terms of trade in recent modern history and we're still growing very slowly and running a deficit?Hon GRANT ROBERTSON: We can all pick our most relevant economic indicator but the one I want to leave with the member is this: we as a country are growing faster than the UK Australia Canada Japan and the eurozone. No country with which we trade or compare ourselves is growing how they were two or three years ago. We are ahead of the pack and we're doing well as a country.Rt Hon Winston Peters: With respect to the terms of trade is it not a fact that they're affected by the fact that our dollar is not US82c but really between 64 and 66 and that's been magnificent for an export-dependent economy and for provincial New Zealand in particular?Hon GRANT ROBERTSON: Indeed exporters are doing well in New Zealand and that's something that we can be proud of but that doesn't necessarily mean that that money goes on something other than paying down debt. It may not go back into the economy but what we can be is extremely proud of the performance of our exporters alongside a stable exchange rate.Hon Paul Goldsmith: Which of the countries he listed in the answer to my previous question are we growing faster than on a per-person basis?Hon GRANT ROBERTSON: On a per-person basis I don't have the information the member asked for but what I can tell the member is this: when we came into Government we ranked 34th in the OECD on GDP per capita and we've improved that. We're up to 32nd and we will keep moving forward. On another measure that the OECD has in terms of per capita on real expenditure when we came into office we were at 30th and we're now 18th so we're making good progress.Hon Paul Goldsmith: What happened to this commitment from the Speech from the Throne: "Through its KiwiBuild programme this Government pledges to build 100000 high quality affordable homes over the next 10 years half of them in Auckland."?Hon GRANT ROBERTSON: On this side of the House we are extremely proud of the fact that we have built over 3500 new State houses. We've seen the highest rate of building from a Government since the 1970s. We're getting on top of homelessness and we've made sure that more people can buy their first home with first-home buyers lifting as a percentage from 20 percent to 24 percent. We inherited a housing crisis denied by that Government over there and we're getting on with fixing it.Hon Stuart Nash: How does this Government's current and forecast net capital spending on key infrastructure compare to the previous Government's over their nine years?Hon GRANT ROBERTSON: It compares extremely well and I believe I might have a chart somewhere. If I don't I'm sure there's someone who can help me with it. [Several members hold up chart]SPEAKER: Order! Order! Ginny Andersen will stand withdraw and apologise for being the last to put it down. I want to say that all members in the House know that that sort of performance breaches the Standing Orders. So the member will withdraw and apologise and there will be an additional set of supplementary questions going to the Opposition.Ginny Andersen: I withdraw and apologise Mr Speaker.Hon Paul Goldsmith: Is he surprised that National could deliver so much infrastructure with its investment while Labour has delivered so little with its?Hon GRANT ROBERTSON: The infrastructure investment that's come in from this Government which will be $50 billion of capital spending over the next five years represents the kind of commitment that you would expect the Government to have. To have a year in which only $1 billion went into capital spending is the very reason why we have an infrastructure deficit.Hon Paul Goldsmith: Does he think it takes great skill on his part to announce the intention to spend other people's money?Hon GRANT ROBERTSON: The job of Government is to spend on behalf of taxpayers wisely and on this side of the House we'll do that. So we got on with fixing the infrastructure deficit left to us—[Interruption]—in hospitals in schools in rail and yes in roads as well Mr Bridges because that is our job.Hon Paul Goldsmith: If the Government's delivering on its commitment to improve access to tertiary education why do figures out today show a rise in the proportion of students from wealthy areas going to university and a decline in the number from poorer areas?Hon GRANT ROBERTSON: That's not what the figures show."