Key John: Questions for Oral Answer — Questions to Ministers 
Key John: Questions for Oral Answer — Questions to Ministers 
[Volume:616;Page:11999] 
8.  
JOHN KEY (National—Helensville) 
 to the  
Minister of Finance 
: Does he believe the Government’s current economic direction has the endorsement of the business community; if so what evidence does he have to support his view? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Some surveys show that business is not putting its mouth behind the Government but the same surveys also show that business is putting its money behind the Government by continuing to invest expand their enterprises and employ more staff. The member must decide which is the more important. 
John Key 
: Does the Minister think that the Government is failing in its self-proclaimed top priority to “engage with business leaders” when only 2.8 percent of businesses surveyed think the Government’s business partnership model is working; if so what does he intend to do to improve this statistic? 
Hon Dr MICHAEL CULLEN 
: Putting aside the question of who actually hand-picked the sample I refer to where seven times the number of businesses were going to engage in more capital expenditure than less over the next year 11 times were going to engage in more information technology expenditure than less over the coming year and more than four times were going to increase their staff as opposed to reducing it. I will be satisfied if those numbers continue year on year into the long-term future as I remain Minister of Finance. 
David Parker 
: What does the  
New Zealand Herald  
survey show about business intentions over the next 12 months? 
Hon Dr MICHAEL CULLEN 
: It shows as other surveys have shown a very positive outlook in terms of expenditure on new capital equipment on information technology and on new staff. Those are the things that actually count for ordinary New Zealanders—jobs and incomes. 
Rt Hon Winston Peters 
: With regard to an endorsement of the business community what was the comment made last Wednesday at the announcement of a certain party’s policy on business and could he regard that as a ringing endorsement or otherwise?—[ 
Interruption 
] 
Mr SPEAKER 
: Would the member repeat the question? 
Rt Hon Winston Peters 
: Having regard to the issue of an endorsement by the business community has he received any reports as Minister of a policy that was first announced on Wednesday last week and could one regard those reports as signifying a ringing endorsement or otherwise? 
Mr SPEAKER 
: In so far as the reports are concerned the Minister may comment. 
Hon Dr MICHAEL CULLEN 
: I have indeed received reports including reports from business leaders that state that last year Dr Brash said that lowering the top tax rate was crucial to growth and last week he said it was not so important after all. This morning in front of the same people he reaffirmed that he was going to lower the top tax rate in the first term if he got the chance—a double U-turn! 
Gerry Brownlee 
: I raise a point of order Mr Speaker. The Minister indicated to the House that he had reports that would back up the comments he made. Members on this side of the House know that what he said is absolute drivel and wrong. We would like to see the reports he is quoting. 
Mr SPEAKER 
: That is not a point of order I can rule on and the member knows that. 
John Key 
: Does he expect that his comment this morning that business leaders are “curiously ill informed” will help the confidence of the 82.2 percent of business leaders who think the Government’s partnership with business is not working; and does he acknowledge that it might be better for the Government to start listening rather than criticising its so-called partners? 
Hon Dr MICHAEL CULLEN 
: I think it is useful if everybody listens. When business people tell us that more of them think the immigration policy is negative than positive when all their leaders have been praising the immigration policies followed by this Government clearly listening is a two-way process. When business tells us that we are not doing enough on bilateral trade agreements and the Chinese Ambassador announces that we were probably first in line for one they clearly are not listening. 
John Key 
: Does he stand by his comment this morning that “rational analysis has recently been absent from the general tenor of business comment”; if so how does he then characterise the advice he received from his own Treasury department which echoes the call of businesses for lower tax rates to improve investment and economic growth? 
Hon Dr MICHAEL CULLEN 
: I note that when this Government put up the top tax rate it was told that it would stop economic growth in its tracks. For 4 years in a row we have equalled or exceeded the OECD average in the same way that under President Clinton 8 years of continuous economic growth followed an increase in the top tax rate yet President Bush lowers it and has one of the worst results in terms of 2 years of economic decline. 
John Key 
: Does the Minister acknowledge that a statement from business leader Rod Deane that “compliance costs are just becoming formidable” is consistent with all the advice given by the Small Business Advisory Group on that topic and if he will not listen to business Government-established advisory groups or his own department Treasury who on earth will he listen to? 
Hon Dr MICHAEL CULLEN 
: I shall answer that with another question. Will the member or anybody listen to Rod Deane private citizen senior businessman saying that there should be less regulation or Rod Deane the chairperson of Telecom saying that there should be more regulation to protect that business? 
Mr SPEAKER 
: I will now ask the Minister to address the question. 
Hon Dr MICHAEL CULLEN 
: I would suggest that Mr Rod Deane as he has long done in many cases often speaks from self-interest. 
John Key 
: I raise a point of order Mr Speaker. I seek some clarification. Will it be normal that Ministers will be able to make comments and general statements before they actually answer questions? 
Mr SPEAKER 
: No and that is why I made him answer the question. 
John Key 
: I seek leave to table the summary of the chief executive officers’ survey of small and medium businesses in New Zealand that shows amongst other things that 94.1 percent of all New Zealand businesses do not believe that this Government has a growth strategy. 
Document by leave laid on the Table of the House. 
Hon Dr Michael Cullen 
: I seek leave to table the same survey which shows that the vast majority of businesses are more likely to be investing in growth for the future than disinvesting. 
Document by leave laid on the Table of the House. 
Rt Hon Winston Peters 
: I seek leave to table authoritative business opinion as a result of last Wednesday’s announcement which proves that they have found it totally underwhelming. 
Mr SPEAKER 
: Leave is sought to table that. Is there any objection? 
Gerry Brownlee 
: I raise a point of order Mr Speaker. I seek clarification then. We do not want to block the member tabling something. Of course every member should be able to table something when he or she wants to. Unfortunately the current member has a well-established habit of seeking to table something the House grants him leave but he never fronts up with it. I wonder whether we can have some assurance from him that that portfolio of comment will be tabled. 
Rt Hon Winston Peters 
: My challenge to Gerry Brownlee is this—if I table the evidence which I will will he resign from Parliament? 
Mr SPEAKER 
: I think that is one all. 
Documents by leave laid on the Table of the House.