Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 17 March 2016. Volume:712;Page:9870. Text is incorporated into the Bound Volume.]3.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: Does he stand by his reported statement from February this year that he is not overly concerned about the broader impact of the slump in dairy prices?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: In the context in which it was made yes. As I said earlier there is a difference between being concerned for farmers and being concerned that the dairy sector will drag the rest of the economy into recession. Of course we have seen that that will not necessarily happen because of the GDP figures today. Of course we are concerned about the welfare of farmers but this does not detract from the fact that we are seeing continued growth across the rest of the economy. Despite the fall in dairy prices for example exports actually increased by almost $2 billion for New Zealand last year and as I mentioned in the earlier question tourism beef exports international education and wine are just four examples of that growth.Grant Robertson: Is Waimate mayor Craig Rowley wrong when he says that the dairy downturn is going to have a “massive onflow” in his town and that “There will be no winners. It’s a struggle for everybody.” or should the people of Waimate not be overly concerned either?Hon STEVEN JOYCE: Obviously there are some towns that are being affected by the downturn in dairy prices. I can think of a number that I have visited in recent times that are affected on that basis.Grant Robertson: So they should be concerned?Hon STEVEN JOYCE: They of course will be concerned because of their local economic environment. My point to the member who constantly says that the only thing in New Zealand is the dairy industry is that the figures we have now prove that New Zealand has a diversified economy that is growing well and that is actually good for all those towns because if we were not growing well at this point they would have more reason to be concerned.Grant Robertson: Is AgriBusiness Group economist Stuart Ford wrong when he says that “The flow on effect for … places like Christchurch are absolutely massive” from the dairy downturn or should the people of Christchurch not be overly concerned either?Hon STEVEN JOYCE: The Christchurch economy is New Zealand’s second-largest and has a whole range of industries in it.Grant Robertson: So he’s wrong as well?Hon STEVEN JOYCE: Grant just quieten down for a little bit—Mr SPEAKER: Order!Hon STEVEN JOYCE: —and wait for your question. [Interruption]Mr SPEAKER: Order! Complete the answer please.Hon STEVEN JOYCE: My point is that the Christchurch economy is a large economy that is diversified in areas such as ICT high-tech manufacturing construction and the food sector more generally including the meat sector and a whole range of fisheries production. The Christchurch economy is a strong economy. It will of course be affected to some degree by the dairy downturn but as we have seen across New Zealand as a whole the New Zealand economy continues to perform well and is one of the highest performing economies in the OECD notwithstanding the challenges of the dairy industry.Grant Robertson: In light of that answer is not what the GDP numbers actually show is that whatever growth we do have is not sustainable because it does not come through increased productivity or output but rather comes from population increase and debt-fuelled household spending?Hon STEVEN JOYCE: No. The member’stalking points are simply wrong. But where he has a point is where if you remove every part of the New Zealand economy that is growing you will find that the balance is not growing. It is a bit like a Monty Python sketch but if you remove immigration education tourism the wine industry the meat industry the ICT industry and—for all I know—ethnic restaurants you will find that there is no growth in the New Zealand economy.Fletcher Tabuteau: Does the Minister not think that his current apathy and silence on New Zealand dairy farmers opens this Government up to the very reasonable label of fair-weather friend?Hon STEVEN JOYCE: I think there are some parties that could be called fair-weather friends of the dairy sector but it is not this one. The Government is very involved and has always been involved in the dairy sector. Where was the member’s party on well the Trans-Pacific Partnership for a kick-off irrigation and on encouragement of the Primary Growth Partnership programme which encourages the development and progression up the value chain of the dairy industry. All of these things this Government has been involved in for a very long time and I am pleased that the member is finally turning up with some concern for the dairy industry.