Cunliffe David: Questions for Oral Answer — Questions to Ministers 
Cunliffe David: Questions for Oral Answer — Questions to Ministers 
[Volume:662;Page:10745] 
5. 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
 to the  
Minister of Finance 
: What reports if any has he received on recent wage growth? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 This week I have seen two reports. The quarterly employment survey showed that the total weekly paid hours worked increased by 1.1 percent in the March quarter. This follows the recession that started in early 2008 which forced many businesses to reduce staff working hours. That trend is now starting to reverse. Secondly the Labour Cost Index shows that public wage and salary rates increased by 2.3 percent in March quarter which is nearly double the 1.3 percent increase in the private sector. 
Hon David Cunliffe 
: When unemployment is at a 16-year high and wage growth is at its lowest in almost 9 years why is Budget 2010 focused on increasing GST and pushing up the cost of living for hard-working Kiwi families? 
Hon BILL ENGLISH 
: Budget 2010 is following on from Budget 2009 in dealing with two things: first the recession that started in New Zealand in 2008 under the previous Labour Government before the global crisis; and second the very poor performance of this economy from about 2004 onwards when it grew at less than 1 percent per year through what were meant to be the best economic conditions in a generation. So we have to undo the damage of the squandered opportunities under that Government and deal with the global recession. 
Amy Adams 
: What was the impact on average household incomes of New Zealand’s economic performance between 2005 and 2008? 
Hon BILL ENGLISH 
: In the 3 years from September 2005 to September 2008 GDP grew on average by less than 1 percent per year. However that figure was outstripped by annual population growth of 1.1 percent meaning that the per capita growth in incomes during the last 3 years of the previous Government was actually negative when the rest of the world was booming. 
Hon David Cunliffe 
: What other job opportunities are open to young unemployed New Zealanders when the only job scheme the Government has announced—the cycleway—has failed to create any jobs as predicted by Treasury; and is that what this Government means by back-pedalling? 
Hon BILL ENGLISH 
: Well the Labour finance spokesperson job might be available to them as well—even for younger ones. The fact is that jobs are being created every week. Several thousand people a week are going off the unemployment benefit as the economy starts to recover. Budget 2010 will help to create the conditions where business has the confidence to invest and employ because until or unless business makes that decision there will not be a reduction in unemployment. 
Amy Adams 
: How have incomes for New Zealanders on New Zealand superannuation which are linked to average take-home wages been affected by recent Government policy? 
Hon BILL ENGLISH 
: Since 1 October 2008 a combination of tax cuts—initially tax cuts put in place by the previous Labour Government and then further tax cuts by this Government—has meant that New Zealand superannuation payments have increased significantly. For instance the single rate for a person living alone has gone from $571 a fortnight to $636 a fortnight—an increase of nearly $65 in the hand per fortnight. For married couples the increase per fortnight has been up to about $100 in the hand or more than 11 percent since 1 October 2008. We believe that policies that continue with adjustments in the tax system and promote economic growth will mean that New Zealand superannuation payments can continue to increase. 
Hon David Cunliffe 
: How does the Minister reconcile his comment in the taxpayer-funded promo  
Plain English 
 that “We can beat those Aussies!” when New Zealand’s average wage has stalled at $959 and the Australian wage has raced ahead to $1580? 
Hon BILL ENGLISH 
: As I said it will take us some time to undo the damage done by 9 years of misdirected economic policy. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. We traversed yesterday the boundary between a factual history of things that he is responsible for actions under the previous Government and his description of the policies of another party which you ruled to be out of order yesterday. You gave him I guess wiggle room in that a passing reference might be allowed but he started his response by talking about the Labour Party and it does not appear there is any way out on this occasion. 
Hon Gerry Brownlee 
: I think that reflection on the question will give a perfectly good reason as to why Mr English was perfectly free to start his answer in the way in which he did. The member over there referred to a taxpayer-funded television programme about which Mr English had made a particular promotional point. At that point the member asked him “How does he reconcile” and then compared wage rates in Australia with those in New Zealand. If we analyse it right down there was no clear question whatsoever. If in fact “How does he analyse” or “How does he reconcile” was the question then Mr English was quite free to reply in the way in which he did. 
Mr SPEAKER 
: I have heard quite sufficient. I have to agree with the Hon Gerry Brownlee. If the member wants Ministers to not deviate from absolutely straight answers the member has to discipline himself by not putting elaborate constructions into his questions.