1. Economic Programme—ProgressMARK MITCHELL (National—Rodney) to the Minister of FinanceWEDNESDAY 10 AUGUST 2016Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSEconomic Programme—Progress1. MARK MITCHELL (National—Rodney) to the Minister of Finance: What progress is the Government making in building a more competitive and productive economy?Hon BILL ENGLISH (Minister of Finance): Good progress. The Government has four priorities: responsibly managing the Government's finances building a more productive economy delivering Better Public Services and rebuilding Christchurch. We are making progress on all of these. Two hundred thousand more people are in work now than 3 years ago and a further 170000 jobs are expected by 2020. The average wage is forecast to rise to $63000 a year and we are on track for moderate growth of 2 to 3 percent over the next 4 years.Mark Mitchell: Given the outlook for continuing growth what steps is the Government taking to lock in these gains through investment in infrastructure education and better social outcomes?Hon BILL ENGLISH: As set out in Budget 2016 we are focusing on increasing investment in infrastructure and getting better results for public spending for instance: a $700 million investment in science skills and regional development; a $2.1 billion package for public infrastructure including the complete rebuild of the Inland Revenue Department's tax systems; $650 million for social investment to support vulnerable New Zealanders; and in Budget 2016 there was a $2.2 billion health package. It is the results that this spending will achieve however that will be beneficial to New Zealand households.Mark Mitchell: What are some of the consequences of lower interest rates for households and the economy?Hon BILL ENGLISH: The track for New Zealand interest rates reflects what is happening with interest rates around the world and that is that they are reaching all-time lows and in some countries negative interest rates for the first time in living memory. That in part is what is driving up asset prices in stock markets exchange rates and land and house prices. However lower interest rates reduce the cost of borrowing and that means that households have lifted their debt levels because they can service larger debt at about the same proportion of interest payments in their income.Mr SPEAKER: I just need to inform Mr Seymour that with enthusiasm he used his complete allocation of questions yesterday. Supplementary question—Grant Robertson.Grant Robertson: Happy news Mr Speaker. [Interruption]Mr SPEAKER: Order! If the member wishes to seek leave he is entitled to do so.Grant Robertson: What progress is the Government making towards its target of exports as a percentage of GDP rising from 30 to 40 percent and if he does not have the exact figure can he indicate whether it is progress or regress?Hon BILL ENGLISH: The Government is making good progress towards its 2025 target. Of course as that member will be aware the impact of the Christchurch earthquake and the fact that thousands of New Zealanders are staying home instead of leaving mean that there has been significant commitment of capital and labour resource to domestic growth. As we continue on the back of this success to get the houses built and Christchurch finished those resources will be available to divert to the export sector.Hon Gerry Brownlee: I raise a point of order Mr Speaker. Although we cannot always be certain of the quality of the question the Government would be prepared to give one of its supplementary questions to Mr Seymour so that he might be able to ask his question.Mr SPEAKER: On that basis I will certainly accept a supplementary question from Mr Seymour but in the future the arrangement needs to be a little more formal otherwise it is very difficult for me to keep an accurate score here.David Seymour: Has the Government's fiscal discipline been strong enough to enable tax cuts next year in election year?Hon BILL ENGLISH: That is yet to be seen. What we do know is that fiscal discipline in itself is not sufficient to ensure that New Zealanders get the best results from their public services. We need to actually focus on delivering effective services to people who really need them. What we have found is that the more we do that the less need there is in the longer run for Government services and that means more opportunities for lower taxes.Hon Peter Dunne: I raise a point of order Mr Speaker. I have been reflecting upon the exchange that has just taken place because my colleague to the left wanted to ask a supplementary question. Although I accept the principle that has been established for a long time of primary questions being allocated on a proportionate basis around the House I do wonder whether it is time for you to give fresh consideration to the allocation of supplementary questions. My colleague to my left is extremely enthusiastic. I am not sure that he should be punished for his enthusiasm and I wonder whether it is time to take a more flexible approach to the granting of supplementary questions based on a member's interests rather than the size of the party they represent. [Interruption] Mr SPEAKER: Order! [Interruption] Order! I will hear from Chris Hipkins.Chris Hipkins: Ultimately the Business Committee makes an indicative allocation of supplementary questions but the discretion of course always rests with the Speaker in making a final decision on how supplementary questions should be allocated. Speakers have traditionally allocated supplementary questions on the basis of proportionality in the House which is what the indicative allocation of supplementary questions is based upon. If members were to suggest that supplementary questions be allocated based on quality I would suggest that we get a lot more supplementary questions over on this side of the House than on that side of the House.Mr SPEAKER: No I do not—I will hear from Ron Mark. [Interruption] Order!Ron Mark: I rise to lend some support to the views of the very experienced Hon Peter Dunne who stands as one of the longest-serving Ministers in New Zealand's Parliament. I think that—if I could just add something to maybe take into account what Chris Hipkins from Labour has said—if you could come up with a formula that lends credence to the level of interest a particular party has in a particular issue plus balance it by its numbers in the House we would I think wholeheartedly consider that.Mr SPEAKER: I thank all members for their contributions. The Hon Peter Dunne has asked me to give consideration to the matter. I will do so but I do remind members that the allocation of questions both primary and supplementary is discussed at length at the start of each Parliament and has by tradition for many years now been allocated on a proportional basis. I note that members to my right often do not use their full allocation; members to my left certainly do. The arrangements by which some of the smaller parties do not get perhaps what they see as a fair share is often made then by informal arrangements between a major party and a coalition party. What I do need is for that arrangement to be relatively formal so that I can keep score. But in regard to Mr Dunne's issue I will give it further consideration. I may raise it as an item for discussion at the Business Committee next week.David Seymour: I raise a point of order Mr Speaker. I just ask you to confer with the officials. I think I actually do have two supplementary questions remaining this week quite apart from anything else—and thank you for the freebie. Thank you.Mr SPEAKER: I will check that out again but not according to the records that are being presented to me. The member is entitled to two questions; there are an additional three that have been granted by the National Party to Mr Seymour. That makes a total of five and as I have pointed out with great enthusiasm he asked five supplementary questions yesterday.Grant Robertson: Does he agree with the Minister for Economic Development that growth in per capita GDP last year was about half a percent"; if so is Hamish Rutherford not correct that New Zealand's economic growth is "driven almost exclusively by rising population"?Hon BILL ENGLISH: I consult with a range of economists and statisticians and Hamish Rutherford I understand fits neither of those descriptions—but he is a journalist. No he is not correct but I do notice that the Opposition and to some extent commentators always say that whatever is causing growth at the moment is not valid growth and that if you took it out growth would be zero. Well that is true—if you take away everything that is growing there is no growth. But in fact for the 21-year-old Māori and Polynesian males who have just got apprenticeships in Auckland and will get more because we are announcing the Tāmaki regeneration project they think it is real growth.Mark Mitchell: What international reports has he received on the performance of the New Zealand economy?Hon BILL ENGLISH: There was a recent article in the Australian Financial Review that said in one of the rare occasions that it reports on New Zealand that the New Zealand Government has "achieved an increasingly rare feat in any advanced economy. That includes returning a budget to surplus while managing better growth along with substantive social economic and … taxation reform." That is not a bad verdict from the Aussies."