Bishop Chris: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeBishop Chris: Oral Questions — Questions to Ministers[Sitting date: 12 February 2015. Volume:703;Page:1535. Text is incorporated into the Bound Volume.]1.CHRIS BISHOP (National)to the Minister of Finance: What recent reports has he received about what progress the Government is making to support more jobs and higher incomes?Hon STEVEN JOYCE (Associate Minister of Finance)on behalf of theMinister of Finance: I have seen several reports particularly since this House last sat before Christmas confirming that the growing economy is continuing to support more jobs and higher incomes. For example Statistics New Zealand last week reported that in the past year another 80000 jobs were created across New Zealand. The labour market participation rate increased to a record 69.7 percent and unemployment at 5.7 percent is lower than in most other developed economies. Average weekly wages rose 2.5 percent in the calendar year of 2014 compared with consumer price inflation of just 0.8 percent in the same period and we also now know that mortgage interest rates will stay lower for longer. So the growing economy is helping New Zealanders in many ways but of course there is always more work to do to lock in those gains over the longer term.Chris Bishop: In light of forecasts of further strong economic growth what is the outlook for inflation and interest rates?Hon STEVEN JOYCE: Both inflation and interest rate pressures are low and they are expected to remain that way now for the foreseeable future. The Reserve Bank noted in its latest official cash rate review that low global inflation and the impact of sharply lower oil prices will continue to increase New Zealand households’ purchasing power and will lower the cost of doing business. Headline annual inflation is expected to be below the bank’s 1 to 3 percent target band through 2015 and could become negative for a period before moving back towards 2 percent. In the current circumstances the Reserve Bank expects to keep the official cash rate on hold for some time. Of course that will be welcomed by both homeowners and businesses. Future interest rate adjustments will of course depend on the emerging flow of economic data.Chris Bishop: According to the official statistics how do the latest average wage increases compare with inflation and how does this compare with historical movements?Hon STEVEN JOYCE: The quarterly employment survey which successive Governments have used to set New Zealand superannuation for example shows that average weekly wages rose 2.5 percent in the 12 months to 31 December. As I mentioned earlier this is above the annual inflation rate of just 0.8 percent. In the past 5 years average wages have increased by 15 percent and they are forecast to keep rising faster than the cost of living. This contrasts with the position in 2008 when wages were struggling to keep pace with consumer price annual inflation of more than 5 percent.Chris Bishop: What policy measures has the Government announced that will distribute dividends from the growing economy to New Zealand families and children?Hon STEVEN JOYCE: A number of important changes will take effect in the next few months that will help families and children. For example from 1 April paid parental leave will increase by 2 weeks to 16 weeks and by another 2 weeks from 1 April of next year; the parental tax credit will rise from $150 a week to $220 a week and the entitlement will increase from 8 weeks to 10 weeks; and the Government’s new HomeStart scheme will help around 90000 Kiwis into their first home over the next 5 years. From 1 July children under 13 will have access to free general practitioner visits and free prescriptions and the average ACC levy for a private motor vehicle will fall by around $130 a year. These are just some of the policies this Government is introducing to support families on the back of a strong economy and good fiscal management.Dr David Clark: Can the Minister please tell us by just how much the wage gap with Australia has grown since his Government promised to close it in 2008?Hon STEVEN JOYCE: I do not have those numbers to hand but I can tell the member—and this contributes to that explanation for those numbers—that more and more people are moving to this side of the Tasman rather than to Australia. In fact for the first time since 1990—the first time since 1990—more people are moving from Australia to here than from New Zealand—Dr David Clark: I raise a point of order Mr Speaker. My question was very specific: how much has the wage gap with Australia grown? There was no politics in it. If the Minister does not know he should just sit down.Mr SPEAKER: Order! It is my job to adjudicate when an answer goes on for too long. The Minister answered immediately by saying that he did not have the information with him and that is acceptable. He then did give quite a long answer which was not adding information to the question that was asked by the member and I accept that but it is still my job and not Mr Clark’s job to judge the length of an answer.