Ngaro Alfred: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeNgaro Alfred: Oral Questions — Questions to Ministers[Sitting date: 19 March 2015. Volume:704;Page:2429. Text is incorporated into the Bound Volume.]3.ALFRED NGARO (National) to the Minister of Finance: What recent reports has he received on New Zealand’s economic growth?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: Perhaps for the benefit of that member “Mr Parrot” opposite earlier today Statistics New Zealand released gross domestic product data for December 2014. [Interruption]Mr SPEAKER: Order!Hon STEVEN JOYCE: It confirms the economy grew by 0.8 percent in the December quarter and by 3.5 percent in the year to December. This is the highest growth rate since before the global financial crisis—in fact since September 2007. Economic growth was reasonably broad-based with 13 out of 16 industry sectors growing. Growth was led by retail trade accommodation property services and manufacturing which means of course that the manufacturing crisis—Hon Ruth Dyson: I raise a point of order Mr Speaker. During the early part of the Minister’s answer he referred to a member opposite using an unparliamentary term. You clearly did not hear it because you did not sit him down and ask him to apologise. That was the cause of the disorder which you did notice and I draw that to your attention now and ask that you ask the Minister to withdraw and apologise for the unparliamentary comment.Mr SPEAKER: Order! Let us be clear as to why the noise arose. The noise arose because of an interjection from my left which is a very—[Interruption] Order! It is a very regular interjection that I hear from the member and it was a response to that. If the member is offended by the term that was used then the member should rise to his feet and state that he has been offended and then I can act. But otherwise it is not for another member to be offended on behalf of the member who could have been offended by the term. [Interruption] I will hear from the Hon Ruth Dyson.Hon Ruth Dyson: The point of order I raised was not that I was offended by the term; it was that it was an unparliamentary term.Mr SPEAKER: No I am—no. The use of that word is not in my opinion deemed to be unparliamentary—[Interruption] Order!—on the assumption that we are talking about the same term but be aware—[Interruption] Order! I am on my feet. Be aware that the reason for the disruption was an interjection that came from my left. It is a regular interjection and it does not help the order of this House.Dr David Clark: Speaking to the point of order if it helps—Mr SPEAKER: No it does not help to speak but if the member wants to raise a point of order he is perfectly able to.Dr David Clark: I raise a point of order Mr Speaker. I want to make it clear that as the person I think it was directed to I am not offended. I believe—Mr SPEAKER: Order! Then that is—[Interruption] Order! Resume your seat. Again the member is very lucky that he is remaining. That is not a point of order. Does the Minister the Hon Steven Joyce wish to complete his answer? No he does not.Alfred Ngaro: How does current growth in the New Zealand economy compare with growth in other OECD countries?Hon STEVEN JOYCE: Earlier today New Zealand’s 3.5 percent growth rate in the year to December was noted and it is among the strongest performing economies in the OECD so it is sort of all trousers I think on this occasion. It compares with growth of 2.4 percent in the United States for the December year 2.5 percent in Australia for the December year 2.6 percent in Canada for the December year and 2.7 percent in the United Kingdom. So that is New Zealand’s 3.5 percent compared with those. Growth in the euro area was 0.9 percent and in Japan growth was actually minus 0.7 percent. So under any comparisons New Zealand is doing reasonably well but of course there is much work to do as we seek to sustain this growth rate over a much longer period of time.Alfred Ngaro: How is the growing economy delivering higher wages and more jobs helping New Zealanders and their families to get ahead?Hon STEVEN JOYCE: The outlook over the next 2 to 3 years is for ongoing growth that delivers income and job growth for New Zealand families. Alongside the growth of 3.5 percent in the last year 80000 jobs were created over the same period and Treasury’s current forecast shows that an additional 153000 people are expected to be in work by mid-2019. The average wage is expected to increase from $56000 currently to $62200 in the third quarter of 2018. The Government is playing its role by maintaining a track to surplus and debt repayment alongside an ongoing microeconomic reform programme that is encouraging more investment more jobs and higher wages.Grant Robertson: In light of those answers has he seen the report from Moody’s Analytics that describes the export sector as weak and has he taken the Minister for Economic Development to task for his appalling performance in creating such a weak export sector?Hon STEVEN JOYCE: I have seen the particular report the member refers to which he describes a little floridly. The reality is that Moody’s has a very strong and positive view of the New Zealand economy. It confirmed New Zealand’s triple A rating just in the last couple of weeks. It says: “New Zealand’s economy is growing strongly. Moody’s expects New Zealand’s real GDP to remain robust through to 2016. Compared to similarly rated countries New Zealand has a track record of faster and more stable growth. New Zealand’s strong economic profile is reinforcing Government finances.” If the member wants to quote Moody’s I am happy to do it all day.Alfred Ngaro: What reports has he received on the outlook for continuing growth in the New Zealand economy over the next 2 years?Hon STEVEN JOYCE: Earlier this week the New Zealand Institute of Economic Research released its consensus forecast. Growth for the year to March 2015 which will of course be announced in June is expected to be around 3.3 percent. The institute expects growth to moderate somewhat to just under 3 percent in 2016 and 2.8 percent in 2017. This is in line with other forecasts and is consistent with the Government’s goal of steady and ongoing growth in the New Zealand economy. Job growth is expected to continue even though net migration continues to be strong.