2. Government Financial Position—Surplus Spending and Government Contributions to Superannuation FundMAUREEN PUGH (National) to the Minister of FinanceGovernment Financial Position—Surplus Spending and Government Contributions to Superannuation Fund2. MAUREEN PUGH (National) to the Minister of Finance: What progress is the Government making on keeping the Crown accounts in surplus?Hon STEVEN JOYCE (Minister of Finance): The Government's operating balance before gains and losses results announced yesterday for the 7 months to January 2017 showed the Crown accounts $1.1 billion in surplus year to date compared with Treasury's Budget forecast of $517 million for those 7 months. Although these year-to-date figures can move around and Budget 2016 forecast only a small surplus for the full financial year it does show the benefits of the Government's continued discipline and focus on balancing the books and the strength of the New Zealand economy.Maureen Pugh: What is driving this better-than-expected result in the Crown accounts for this financial year?Hon STEVEN JOYCE: Stronger tax revenues as a result of a healthier economy are flying through to the Government's financial performance. Tax revenues year to date are just under 4 percent more than they were predicted to be in Budget 2016. Company tax in particular is higher than expected and that reflects the good performance of New Zealand companies in what is still an uncertain world. It is important to note however that the full impact of the Kaikōura earthquake remains the largest unknown variable in this year's accounts but these stronger accounts mean we can afford to step in and help those communities and support them when they are most in need.Maureen Pugh: If those drivers of stronger tax revenues persist what would be the Government's best use of an additional $1 billion?Hon STEVEN JOYCE: Let us not count our chickens. The Government has four key areas in mind when considering its Budget priorities for this year: firstly providing better public services for a growing country which needs to be met through a combination of additional funding and productivity improvements; secondly of course building the infrastructure we need to support a growing modern economy; thirdly paying down debt so it is around 20 percent of GDP by 2020 which will allow us to manage any further shocks that come along in the future; and finally it is very important to consider the tax burden on Kiwi families particularly on lower- and middle-income families that face quite high marginal tax rates.Grant Robertson: In light of that answer can the Minister confirm tax cuts are a higher priority for him than restarting contributions to the New Zealand Superannuation Fund?Hon STEVEN JOYCE: The Government has said that it will look to resume contributions to the New Zealand Superannuation Fund when net debt is down below 20 percent of GDP but actually yes we are very focused on supporting New Zealanders. The member might want to go out and say that he would rather put money into the Superannuation Fund than consider the tax situation for families in New Zealand. I invite him to continue doing that.Maureen Pugh: What other uses for additional spending has the Government considered?Hon STEVEN JOYCE: We have considered a range of things. In fact I have seen proposals from other groups this week that the Government should pay more money into the New Zealand Superannuation Fund even during the global financial crisis in fact when we were borrowing heavily to support New Zealand families. However even if the Government had borrowed an extra $13.5 billion as was advocated by some to continue contributions through the global financial crisis and the Canterbury earthquake recovery the Superannuation Fund would still be contributing only an additional $1.4 billion in 2041. That would leave the proponents of this idea short $2.6 billion in 2041 alone. Unfortunately this idea does not stack up for a number of reasons including financial.Rt Hon Winston Peters: If borrowing to make contributions to the Cullen or Superannuation Fund is bad economics why was borrowing to give tax cuts to his mates good economics?Hon STEVEN JOYCE: With the greatest respect to the member his short-term memory must not be as good as his long-term memory because we did not.Rt Hon Winston Peters: I raise a point of order Mr Speaker. I do not intend to put up with insults like that. My question was direct. I did not impute anything to him and he gets up and starts with a very wanton nasty comment which you and I know will surely lead to disorder.Mr SPEAKER: I think the member makes a reasonable point on this occasion. Such a start to an answer will lead to disorder as has been demonstrated. Would the Minister now please address the question that was asked.Hon STEVEN JOYCE: Mr Speaker happily. The member is obviously mistaken in this instance because actually the tax changes we made in 2010 involved making changes where the GST was increased and personal taxes were reduced. There was not a case where we were borrowing money for tax cuts.