Hudson Brett: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeHudson Brett: Oral Questions — Questions to Ministers[Sitting date: 08 March 2016. Volume:711;Page:9419. Text is incorporated into the Bound Volume.]1.BRETT HUDSON (National) to the Minister of Finance: What reports has he received about progress in improving New Zealand’s external financial position—particularly in bringing down the longstanding current account deficit?Hon BILL ENGLISH (Minister of Finance): The latest data from Statistics New Zealand shows that the current account deficit is 3.3 percent of GDP. This is quite a bit better than was expected in past Budgets. Treasury’s forecast for the current account deficit for the same period in last year’s Budget was 5 percent and back in Budget 2012 it forecast that the current account deficit today would be 7 percent—and it is 3.3 percent. And 3.3 percent is significantly better than when we did have a 7 and 8 percent current account deficit back in 2006 2007 and 2008.Brett Hudson: What reports has he received on improvements in another measure of New Zealand’s external financial position—New Zealand’s net international investment position?Hon BILL ENGLISH: The net international investment position measures New Zealand’s total level of indebtedness to the rest of the world—that is it includes households the private sector and the public sector. The latest figures show that it is now 62 percent of GDP down from 82 percent of GDP back in 2008. Of course 62 percent is still too high; we want to see this falling further. The Government can influence it directly through its own fiscal control and indirectly through sound economic settings and encourage investment employment and exports. [Interruption]Mr SPEAKER: Order! The level of interjection—and it is from both sides of the House—is simply too loud and disruptive. [Interruption] Mr Peters when I am on my feet I expect even very senior members to also respect that.Brett Hudson: How is growth in the export sector supporting lower current account deficits?Hon BILL ENGLISH: The outlook for exports is mixed. Obviously dairy prices are lower and many farmers will be disappointed with today’s forecast payout announcement but other sectors including other sectors of the primary sector are doing pretty well. We are seeing good growth in horticulture and other agricultural sectors and that is alongside growth in tourism manufacturing and education. Despite the fall in dairy prices total exports increased by over $1 billion last year. This of course will help our external balances.Brett Hudson: What role do free-trade agreements like the Trans-Pacific Partnership play in boosting exports and supporting the New Zealand economy?Hon BILL ENGLISH: If you want to improve New Zealand’s current account deficit and net international investment position it makes sense to have a stronger export sector and a key to a stronger export sector is free-trade agreements. The Trans-Pacific Partnership agreement gives us better access to 800 million customers in 11 countries that account for 36 percent of the global economy. We believe the benefits that have been calculated are conservative compared with other free-trade agreements where for instance the benefits of the New Zealand - China free-trade agreement signed by the previous Labour Government turned out to be significantly greater than what was calculated at the time.