Hayes John: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeHayes John: Questions for Oral Answer — Questions to Ministers[Sitting date: 18 September 2013. Volume:693;Page:13453. Text is incorporated into the Bound Volume.]2.JOHN HAYES (National—Wairarapa) to theMinister of Finance: What recent reports has he received on the New Zealand economy and business growth?Hon STEVEN JOYCE (Acting Minister of Finance): Quite a number of reports. For example the Grant Thornton Global Dynamism Index for 2013 was released today showing that New Zealand is now ranked fourth in the world in terms of the most attractive countries for enabling dynamic business growth. Our fourth placing is up from 13th last year and ahead of countries that we traditionally think of as strong and as fostering business including Singapore the US South Korea Japan and Germany. The index ranks 60 of the world’s largest economies on 22 indicators. Amongst those indicators New Zealand ranks particularly well in its policies around private enterprise and competition political stability legal and regulatory risk broadband lines per head of population and the quality of our overall financial regulatory system.John Hayes: What do the reports he has seen say about the outlook for the New Zealand economy?Hon STEVEN JOYCE: They are very positive. For example the New Zealand Institute of Economic Research recently produced its forecast saying that despite some risks it expects further solid growth. The New Zealand Institute of Economic Research forecasts economic growth to reach 2.6 percent per year over the next 3 years although of course we are all aware that the drought earlier this year means that the June GDP figure due out tomorrow will have taken a knock. That view is supported by the $2.2 billion current account deficit figure out today for the June quarter which was a slight increase largely due to reduced earnings from dairy exports because of the drought.However the New Zealand Institute of Economic Research expects exports to grow at 2.6 percent per year once the drought’s effects have run through. Overall it reports broad-based and higher growth rates over the next 3 years.John Hayes: How are improving economic prospects being reflected in the business sector?Hon STEVEN JOYCE: Very well in fact—in fact right across the business sector. A report out today by Mind Your Own Business theMYOB Business Monitor which surveys more than 1000 business owners and managers shows a significant improvement in the confidence and financial expectations of small and medium sized businesses. It is important that the survey shows that 30 percent of small and medium sized businesses reported revenue rises over the past year with 43 percent reporting stable revenues. Just 24 percent saw a fall which is fewer firms than in the previous 12 months and the 12 months before that. Interestingly it compares with only 18 percent of Australian operators seeing revenue growth in the past year according to a similar survey in Australia.Rt Hon Winston Peters: Can I ask the Minister why on earth is he still the Minister of Finance when another of his misguided decisions—this time to stop investing in the Cullen fund—has missed out on hundreds and hundreds of millions of dollars of global share price rises as the fund earned a stunning 25.8 percent in the 2012-13 year? Why does he not just resign?Hon STEVEN JOYCE: I thought the honourable member had a better grasp of economics than that. The idea that you could borrow money to invest in the sharemarket and raise money is one of those fallacies that most families decide not to do because they realise that actually if you could borrow your way to success we would have done that in this country a long long time ago.John Hayes: What reports has the Minister of Finance seen on business confidence and jobs growth in the economy?Hon STEVEN JOYCE: ANZ recently released its Business Outlook survey showing that a net 43 percent of firms expect their own business activity to improve—a positive signal of investment and hiring intentions. Consistent with this the job site SEEK reports a pick-up in the Labour market with 91000 jobs advertised in the last 4 months which is an increase of 8000 over the first 4 months of this year. Last Friday ANZ released theANZ-Roy Morgan Consumer Confidence survey which showed a slight easing but remained above long-term averages. Together these reports show a consistent picture of steady growth and growing confidence. Both globally and domestically there remain real challenges which is why the Government remains committed to its programme to foster business growth in turn creating the jobs that support New Zealanders and their families.