1. Economic Programme—Fiscal Strategy Research and Development and Business ConfidenceMELISSA LEE (National) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSEconomic Programme—Fiscal Strategy Research and Development and Business Confidence1. MELISSA LEE (National) to the Minister of Finance: What is the Government doing to ensure the longer-term strength of the New Zealand economy?Hon STEVEN JOYCE (Minister of Finance): This Government is continuing to implement its strong economic plan focusing on building better public services and infrastructure steadily reducing net debt as a percentage of GDP and ensuring the benefits of economic growth are shared with Kiwi families. The results are paying off. New Zealanders are benefiting from more jobs being created rising real wages and lifts in exports. But most importantly we are also restoring resilience to the Government's books so that New Zealand can withstand any future shocks that may come along.Melissa Lee: How is the Government ensuring that New Zealand companies continue to innovate and develop valuable products over the long term?Hon STEVEN JOYCE: Innovation and the development of new products and services is a very important part of ensuring a resilient economy and new data released last week showed a significant jump in the research and development conducted by New Zealand companies. Businesses spent $1.6 billion in the year 2016 which was a 29 percent increase from the previous survey 2 years earlier. These figures are tangible evidence that the Government's initiative to stimulate businesses to fund their own research and development activities with the help of Callaghan Innovation and the research and development growth grant programme is working and working well. In addition rising research and development in New Zealand is a sign of the confidence that businesses have in themselves and in our economy.Grant Robertson: Can he confirm that those research and development statistics released last week show that as a percentage of GDP the Government's spending on research and development went down in the last year?Hon STEVEN JOYCE: I do not have that exact number in front of me but fortunately I can confirm for the member that the Government programme known as Innovative New Zealand substantially increases research and development in New Zealand over the next few years. The important point for the member to note is that the increase in business-funded research and development was from 0.54 percent of GDP to 0.64 percent of GDP which was very significant growth and actually the largest growth seen for many years.Melissa Lee: What is the Government doing to ensure that the economic strength he talked about earlier is shared among the regions?Dr David Clark: Well that's a good question. Good question.Stuart Nash: Good question.Mr SPEAKER: Order! Well if it is a good question then we will hear the answer.Hon STEVEN JOYCE: Last week's regional GDP growth figures demonstrate that most of our regions are growing well notwithstanding some members talking them down. Through the regional growth programme the Government is supporting opportunities in our regions to further boost investment jobs and incomes. In Northland for example the Tai Tokerau Northland Economic Action Plan contains over 50 actions to support and enable growth. Successes to date include the Government's commitment of $4 million for the Hundertwasser Art Centre the opening of the Pou Herenga Tai—Twin Coast Cycle Trail and the supporting of the Tai Tokerau Resort College in the Bay of Islands.Rt Hon Winston Peters: And the bridges? And the bridges?Hon STEVEN JOYCE: This is on top of our very significant investment in new roads new bridges and ultra-fast broadband. [Interruption]Mr SPEAKER: Order! [Interruption] Order Mr Joyce!David Seymour: What is the Government doing to ensure that this growth is shared with major metropolitan centres such as Auckland?Hon STEVEN JOYCE: Well let me count the ways. As a resident of that city myself—or just north of that city—I think we have all known that in that city actually it is quite hard to move for all the construction cones that are around the place at the moment. I think of the Southern Motorway widening I think of the Auckland Airport motorway widening I think of the Waterview tunnels I think of the Southwestern Motorway I think of the Northern Corridor and that is just the roading projects.Melissa Lee: What confidence do businesses have in the strength of the New Zealand economy?Hon STEVEN JOYCE: Recent confidence surveys provide further evidence that New Zealand's now nearly 6-year period of stable expansion will continue. In yesterday's quarterly survey of business opinion businesses reported that their own activity outlook remains strong prompting the New Zealand Institute of Economic Research (NZIER) to state that annual growth in the New Zealand economy will remain solid at around 3 percent per annum over the coming quarters. And today's ANZ job data shows that the regions continue to lead the charge with more jobs with every single one of the eleven non - main-centre regions experiencing stronger annual job ad growth and in fact in most regions it is above 15 percent.Grant Robertson: Well in light of his reference to yesterday's NZIER quarterly survey of business opinion can he confirm that it shows a net drop in business confidence?Hon STEVEN JOYCE: Yes and I bring news to the member that actually confidence does vary month to month and quarter by quarter. But I am pleased to report to him that NZIER refers to a modest drop in business confidence". A net 16 percent of businesses expect better economic conditions and businesses report their own activity holding firm suggesting annual growth in the New Zealand economy will remain solid—around 3 percent over the coming quarters. But Mr Robertson is you know absolutely entitled to continue with his trainspotting."