Ardern Shane: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Ardern Shane: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 21 June 2012. Volume:681;Page:3216. Text is incorporated into the Bound Volume.] 
2. 
SHANE ARDERN (National—Taranaki - King Country) 
 to the  
Minister of Finance 
: What reports has he received on the economy? 
Hon STEVEN JOYCE (Associate Minister of Finance) 
on behalf of the Minister of Finance: I am surprised and pleased to have the opportunity to report that Statistics New Zealand this morning issued gross domestic product data for the March quarter of 2012. It showed that the economy grew 1.1 percent in the 3 months to 31 March which means that the economy in the quarter to 31 March was 2.4 percent larger than it was in March 2011 which is better than the growth in most other developed countries. 
Hon David Cunliffe 
: Better than growth in the last 2 years. 
Hon STEVEN JOYCE 
: Although the data is stronger than market expectations—and I appreciate Mr Cunliffe is surely disappointed to see New Zealand going better than he thought—we are likely to continue to see fluctuations in growth from quarter to quarter. But the figures do confirm underlying moderate strength in the New Zealand economy despite the uncertain international mood and ongoing difficulties in Europe in particular. 
Shane Ardern 
: What were the main reasons for economic growth in the March quarter? 
Hon STEVEN JOYCE 
: GDP growth in the March quarter was actually reasonably broad-based including manufacturing business services and agriculture. The economy has grown moderately since emerging from a recession that started in 2008. Importantly this is sustainable growth as households and businesses have built their incomes around higher savings and earnings rather than around consumption and debt which we saw in the last decade. That is a good thing. The excessive debt and Government spending that marked much of the 2000s were clearly unsustainable. It is important that the Government takes a long-term view of building New Zealand’s competitiveness and productivity. This will help us deal with the headwinds from the uncertain global environment and that remains the focus of the Government’s economic plan. 
Shane Ardern 
: How does New Zealand’s current economic growth compare with the position inherited by the National-led Government in 2008? 
Hon STEVEN JOYCE 
: I am pleased to confirm that the current position is significantly stronger on pretty much every score. In late 2008 the New Zealand economy had been in recession for almost 1 year—well before the global financial crisis and well before other countries went into recession. And in late 2008 the incoming Government was confronted by forecasts of never-ending fiscal deficits ever-rising Government debt and net international liabilities approaching 85 percent of GDP. Despite the global financial crisis and the series of debilitating earthquakes in Canterbury this Government has taken a series of sensible and balanced decisions to get the economy growing to get on top of debt to set a path back to surplus and to reduce our net international liabilities to 70.9 percent of GDP. 
Hon David Parker 
: Does the Minister of Finance stand by his statement in the House yesterday that “banks and officials are going to make forecasts and some are going to be pessimistic and some of them are going to be optimistic.” and has he seen that Treasury and the Reserve Bank are pessimistic the IMF is pessimistic the ANZ is pessimistic and the BNZ is pessimistic about our current account deficit and rising net international liabilities; if so who is it that is optimistic about these matters? 
Hon STEVEN JOYCE 
: I am sure he agrees with his statement in the House yesterday. I think he would probably note that Treasury the Reserve Bank and sundry other forecasters not only were pessimistic about some things; they were also pessimistic about the March GDP numbers and it turned out that the optimists were right on that occasion and the pessimists were wrong. 
Rt Hon Winston Peters 
: Why did he not as Minister of Finance tell the Prime Minister to stop comparing us favourably with Australia for the first 4 months of this year only to find that Australia’s growth rate at the end of March was 4.3 percent 300 percent stronger than New Zealand’s or was it the fact that he was irresponsible in advising the Prime Minister to keep on making a fool of himself? 
Hon STEVEN JOYCE 
: I am just trying to work out which one of those questions I would possibly answer on behalf of the Minister of Finance. Perhaps I will answer the serious one because the rest is with the greatest respect a whole lot of bumf. In response to the member’s serious question around New Zealand’s growth rate we absolutely are focused on growing the New Zealand economy stronger. I would point out that it is now completely without doubt that Australia’s growth rate is driven by minerals and oil exploration in Australia and I would welcome the member’s assistance in working with other members of the House to advance the Government’s agenda in that regard. 
Hon David Parker 
: Why is it that the Minister of Finance seems to be the only person who thinks we have rebalanced the economy given our rising current account deficit and projections that show rising net international liabilities to 2016 and beyond by which time National would have—should New Zealand be unlucky enough—been in power for more than 8 years? 
Hon STEVEN JOYCE 
: You know you really sort of wonder whether Mr Parker remembers where his Government got us to back prior to 2008. As Labour left office New Zealand’s net international liabilities were 85.9 percent of GDP; as at today they are 70.9 percent which is 15 percent less— 
Hon David Parker 
: It’s the insurance. 
Hon STEVEN JOYCE 
: Oh right. So we have to factor out everything that is positive! The balance of payments when Labour left office was 8.8 percent of GDP. Today we are debating the difference between 4.2 percent and 4.8 percent. I do not think the rest of the country looks at those numbers and says that Labour has any clue about economic management.