Part 1:

Part 2:

From yesterday and doesn’t need much comment but there must be a limit to how long the Nacts will let English reply on behalf of the Prime Minister.

For those without broadband Hansard is below :-

Hon PHIL GOFF (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that by March 2010 New Zealand will be coming out of the recession “reasonably aggressively”?

Hon BILL ENGLISH (Deputy Prime Minister) on behalf of the Prime Minister: Yes, he stands by his full quote from March 2009. The statement made in March 2009 was borne out by the fact that in the latter half of 2009 and early 2010 the economy went from a 1.5 percent contraction to 1.5 percent growth, which is quite a considerable turn-round.

Hon Phil Goff: Is it reflective of his aggressive recovery that when the Mount Roskill New World supermarket, which opened today, advertised 150 low-paid jobs over the last couple of weeks, it got 2,700 applicants?

Hon BILL ENGLISH: That number of applicants is reflective of the sharp recession that the New Zealand economy went through. The recession was caused by two things: the global financial crisis, and the mismanagement of the previous Government.

Hon Phil Goff: If the New Zealand economy was aggressively coming out of recession, why did nearly 20,000 additional New Zealanders join the dole queue over the last 3 months?

Hon BILL ENGLISH: The member might reflect on that himself, because here is a quote about strong economic growth: “The world economy will grow at around 3.9 percent this year. So New Zealand can also expect strong growth”. That statement came from Phil Goff, Labour leader, in January this year. He was predicting strong growth.

Hon Phil Goff: In order to help young New Zealanders to come aggressively out of the recession, how many additional training opportunities has his Government created to deal with the 65 percent increase in youth unemployment and the 68,000 young people who are currently not in work, education, or training?

Hon BILL ENGLISH: The Government, as part of its overall economic policy, has created both the Community Max and the Job Ops schemes, which offer thousands of jobs to young people. It has an infrastructure investment programme that is supporting tens of thousands of people in jobs. The member can talk to the construction-

Mr SPEAKER: The House is very boisterous. I did not intervene when the Minister answered the previous question, but this question was pretty straightforward. If I recollect the question correctly, it asked how many training opportunities had been created following a certain time. The Minister may not have that information, given the primary question, but the answer should at least attempt to answer the question.

Hon Darren Hughes: Write faster, Steven; write faster.

Mr SPEAKER: I am trying to deal with a Minister who I believe has not adequately answered a question, and that is not assisted by interjections from the Opposition. If Opposition members want to hear an answer, they will show some respect. I expect to hear a better answer to that question.

Hon BILL ENGLISH: As I said in my earlier answer, the Government has created the Community Max scheme and the Job Ops scheme, which provide thousands of on-the-job training places. We have a multibillion-dollar infrastructure programme that is providing hundreds of on-the-job training opportunities. We have, with the existing money, expanded the number of tertiary education places. We are taking widespread action to help young New Zealanders to maintain their connection to the workforce. What we are not doing is cranking up Government spending and encouraging people to borrow-

Mr SPEAKER: When I get to my feet the Minister will resume his seat immediately. It seems that the Minister does not have that information.

Chris Tremain: What other excellent initiatives is the Government implementing to lift New Zealand’s economic growth?

Hon BILL ENGLISH: Our most urgent task has been to undo the damage done by the previous Government, which blew out Government spending, collapsed the tradable sector, and left us with record external debt to foreigners. As part of our plan to fix that damage, we have reformed the taxation system, we have put Government debt under control, we have reprioritised $4 billion of low-quality public spending into front-line services, we have introduced national standards and the Youth Guarantee, we have cut red tape in a whole range of areas, we have injected hundreds of millions of dollars into innovation, research, and development, we are investing billions of dollars in infrastructure, such as roads, the electricity grid-

Mr SPEAKER: Answers are meant to be of a reasonable length. There was nothing wrong with the answer, but it just went on and on.

Hon Gerry Brownlee: Point of order-[Interruption]

Mr SPEAKER: Both members will resume their seat immediately-immediately; both members. The House will come to a little order. It is totally unacceptable, the discourtesy to this place that is being shown. This is question time, and previously when the Minister did not want to answer a question that he was asked about how many jobs, he may not have had that information. But the member who asked the question deserved a decent attempt to answer it. When the Minister was then asked a following question by his own member, to just go on and on is again not reasonable treatment of this House. The Minister made a number of points and did not need to carry on. If the members have a point of order they wish to raise with me, they are welcome to do so.

Hon BILL ENGLISH: I raise a point of order, Mr Speaker. The continuous applause throughout that answer encouraged me to keep going. I think that if you are going to set a standard of reasonable treatment in the House, then I will continue to give as extensive an answer as I can while I am getting such encouragement from Opposition members through their continuous applause.

Hon Trevor Mallard: Mr Speaker-

Mr SPEAKER: I do not think there is really a matter of order that needs to be addressed. I will hear the honourable member, briefly.

Hon Trevor Mallard: I think I could get into trouble if I made the comment that if Government members want to clap in that way-

Mr SPEAKER: There is no need to take this matter any further. I accept the point that the Hon Bill English is making that where there is a lot of interjection, Ministers naturally will feel provoked to carry on. I accept that, so I am not blaming anyone in particular. I ask both sides of the House to just be a little more reasonable. I realise this is the first day back after an adjournment, but a little bit more reasonableness would be helpful to the House.

Hon Phil Goff: How does his broken promise not to increase GST help the economic recovery, when retailers across the country are saying this is the worst period for them in living memory, because over half of workers have had no wage increases, whereas prices are due to go up, by his own reckoning, by 5.9 percent?

Hon Rodney Hide: I raise a point of order, Mr Speaker. At the risk of interrupting, I think it is an unacceptable procedure to load a question in that way, by saying there was a “broken promise”. That is an accusation from across the House. One could argue that it is for the Minister to respond that there were no promises broken, but actually that would be the question then. I just ask you to rule on these sorts of epithets that get thrown around.

Mr SPEAKER: The Hon Rodney Hide is absolutely correct that that kind of question is out of order. It is to me disappointing that my having supported the honourable Leader of the Opposition to try to obtain information from the Government, he then asked a question that, strictly, was out of order. I did not rule it out, because I thought there was licence now for the Minister to have a real flick back, and I do not like to stop Ministers. I would rather see Ministers use those opportunities to attack back where members are foolish enough to make that kind of accusation in a question, but then members should not seek my help if they do not like the answer that they get. I do not like inserting myself too much into question time. However, the member asked that question, and I will not give him the luxury of asking a further question. I invite the Hon Bill English to answer it.

Hon BILL ENGLISH: On 1 October this year GST will increase by 2.5 percent, not 15 percent as the Labour Party alleges, and New Zealanders will receive extensive tax cuts. So the average family, on 1 October, will be $25 per week better off after paying their increased GST. We are advising families not to be misled by Labour, which seems to be unable to calculate what 15 percent GST is in the pamphlets it has published.

Hon Darren Hughes: I raise a point of order, Mr Speaker. Just as the ACT leader was concerned about questions being loaded-having loaded a few bullets himself today-the answer talked about a party misleading-

Mr SPEAKER: I have heard sufficient. As I warned members, if they ask a question like that, which accuses a Government of breaking a promise, they should not seek my protection if the answer is not attractive to the side that asked the question. I ask members to be a bit more thoughtful when asking questions.

Hon Phil Goff: Did the Prime Minister ever forewarn New Zealanders that National would increase GST, or did he explicitly say “National will not be increasing GST.”?

Hon BILL ENGLISH: This Government ran the most open pre-Budget policy process that the country has ever seen, with a 15-month national discussion about the changes that were required in the taxation system in order to undo the damage done by the previous Government to our economy. Many New Zealanders have welcomed the Government’s changes to the taxation system, because they will help to undo the damage done by that previous Government and will lift our growth prospects for the future.

Hon Phil Goff: I raise a point of order, Mr Speaker. The question was quite explicit: did the Prime Minister ever forewarn, or did he explicitly say that National would not be increasing GST? I did not hear the answer to that question.

Hon Dr Nick Smith: Yes, you did.

Hon Phil Goff: No, I didn’t.

Mr SPEAKER: A point of order is being considered. I say to the House that it would be helpful if Ministers actually did listen to questions that are asked. On this occasion there was no insertion of an accusation into the question; it was a fair question. I think that the Leader of the Opposition has a legitimate gripe that not much of an attempt was made to answer that question. I accept that there is a dispute over what I believe took place. I invite the Hon Leader of the Opposition to repeat his question. We will all listen very carefully to the question and the answer.

Hon Phil Goff: Did the Prime Minister actually assure New Zealanders explicitly: “National will not be increasing GST.”?

Mr SPEAKER: That was not exactly the question that I heard.

Hon Phil Goff: Did the Prime Minister forewarn the country that National would be increasing GST, or did he say explicitly “National will not be increasing GST.”?

Hon BILL ENGLISH: As I said in my earlier answer, the country was forewarned. This Government ran the most open pre-Budget policy process that the country has ever seen, running from about March 2009 right through to the 2010 Budget. At the time that the announcement was made, everyone knew that it would happen.

Chris Tremain: What reports has the Minister seen on real wage growth over the past decade?

Hon BILL ENGLISH: I have seen a report that was so incredible that it was hard to believe. It stated that in the 9 years that Labour was in power, real after-tax wages rose by 3 percent in 9 years. I found that number incredible, and we are going to check it. But the best advice I have is that in the 9 years that Labour was in power, real after-tax incomes grew by 3 percent. There were a couple of reasons for that: firstly, inflation was consistently high, and, secondly, the Government’s taxation system-

Mr SPEAKER: Order.

Hon Phil Goff: Has the Prime Minister-

Hon Paula Bennett: Three percent.

Hon Phil Goff: That is about what she is worth, yeah. That is about the-

Mr SPEAKER: I say again to both sides of the House that interjections like that will lead to disorder, especially today with the House being quite prickly. I ask members to be reasonable.

Hon Phil Goff: Has the Prime Minister ever assured the country that he was opposed to compulsory savings schemes, and is he now considering one?

Hon BILL ENGLISH: The Prime Minister has made a number of statements on that matter over the last couple of days.

Chris Tremain: Does the Minister have any view on why real wage growth was only 3 percent over the past decade?

Hon BILL ENGLISH: I do have a view, and it is that the policies that meant that households had only 3 percent growth in their after-tax real incomes were the same polices that blew out Government spending. But, worst of all, they left New Zealand owing foreign lenders $170 billion, and we have a huge job to turn that round.

David Garrett: How does the Government’s management of the economy since November 2008 compare with New Zealand’s economic performance prior to November 2008?

Hon BILL ENGLISH: The Government has faced a very big challenge from 2008 To give Parliament some measure of it, I say that in the 4 years to March 2010 the Australian economy grew by 11.6 percent and the New Zealand economy grew by a total of 2 percent. Turning that round will be a massive, decade-long job. We are only now realising how much damage the previous Labour Government did to this economy.

Hon Phil Goff: What are the milestones that Gerry Brownlee said the National Government had to measure its progress in closing the wage gap with Australia?

Hon BILL ENGLISH: Our milestone is to close that gap by 2025, and there is any number of publicly available economic indicators for the public to assess our progress by.

This entry was posted on Wednesday, August 18th, 2010 at 2:23 pm and is filed under Cost of Living, economy, national, parliament. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.