[Sitting date: 04 December 2014. Volume:702;Page:3. Text is subject to correction.]

3. CHRIS BISHOP (National) to the Minister of Finance : How is the Government’s economic plan helping New Zealand families?

Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of the Minister of Finance : The Government’s economic programme is helping New Zealand families in a number of ways. This includes, in particular, ensuring the economy is growing and supporting more jobs and higher incomes. Members will recall that Budget 2014 in May invested almost half a billion dollars more in the well-being of New Zealand’s children and families. This comprehensive package included extending paid parental leave to 18 weeks, increasing the parental tax credit from $150 a week to $220 a week, extending free doctors visits and prescriptions to children under 13, providing another $155 million for early childhood centres, and setting aside more than $33 million extra to help vulnerable children.

Chris Bishop : How is the Government’s focus on supporting a growing economy translating into more jobs and higher incomes for New Zealand families?

Hon STEVEN JOYCE : The latest gross domestic product data shows our economy grew by 3.9 percent over the four quarters to June 2014. That puts New Zealand amongst the faster-growing developed economies in the world. By comparison, figures out just yesterday in Australia, for example, showed its economy grew by a respectable 2.7 percent in the four quarters to September. New Zealand’s growing economy is supporting more jobs and higher incomes. In the year to September an extra 72,000 new jobs have been created across New Zealand, and average hourly wages rose 2.3 percent over the last year, compared with the cost of living rising by just 1 percent over the same period.

Chris Bishop : What other indicators confirm that the growing economy is helping New Zealanders to get ahead under their own steam?

Hon STEVEN JOYCE : I can point to a number of additional indicators that are helping New Zealanders get ahead under their own steam. Firstly, unemployment is continuing to fall. At 5.4 percent the unemployment rate is now the lowest since March 2009 and well ahead of Australia, where unemployment is sitting at 6.2 percent. Secondly, mortgage interest rates are expected to remain lower for longer. The average floating mortgage rate is around 6.7 percent, yet it is considerably lower than the level of almost 11 percent back in 2008. Finally, New Zealand’s household savings rate has now been positive for 5 consecutive years—something that has not happened since the early 1990s. In fact, before 2010 household savings had been negative in all but one year since 1995.

Chris Bishop : How do some of the key economic indicators affecting New Zealand families compare with the situation the National-led Government inherited 6 years ago?

Hon STEVEN JOYCE : We have certainly made good progress. On just about every score, economic indicators affecting household budgets are better now than they were 6 years ago. I mentioned that the cost of living, for example, increased by just 1 percent in the last year. In late 2008 consumer price inflation was running at more than 5 percent.

Iain Lees-Galloway : That’s when National was in Government.

Hon STEVEN JOYCE : I would count that one back, if I were you. As I have also mentioned, New Zealand’s economy is now growing quite strongly and the outlook is for further solid growth into the future. Back in 2008 the economy was mired in recession, nearly a year before the global financial crisis struck. It is little wonder, then, that Kiwis are voting with their feet—

Mr SPEAKER : Order! The level of noise coming from my left is simply unacceptable. I am sorry to interrupt the Minister. He can complete his answer.

Hon STEVEN JOYCE : It is little wonder, then, that Kiwis are voting with their feet, and either staying home or coming home. Net migration from Australia to New Zealand was positive in the month of October, for the first time in 21 years.

Grant Robertson : How are New Zealand families being helped by the lowest rate of homeownership in 60 years, housing costs increasing far faster than incomes, and the fact that the average house price in Auckland earned more in a year than the average worker did?

Hon STEVEN JOYCE : I will pick out the second part of that member’s question to answer. He is wrong, because in actual fact the survey he refers to talks about how people are spending more on their houses but they are paying down their mortgages.

Grant Robertson : Is he still committed to his promise to increase average annual full-time wages by $10,500 a year; if so, how is that helped by the annual growth in average weekly earnings slumping to their lowest level in 4 years?

Hon STEVEN JOYCE : I think the member is referring to a Treasury projection for the period 2017-18, but, nevertheless, it is very important that real wages increase—

Grant Robertson : Are you committed to that?

Hon STEVEN JOYCE : Just listen, Mr Robertson. You might pick something up. It is important that real wages increase, and under this Government that is exactly what is happening, whereas under the previous Government—

Grant Robertson : So that’s a no, then.

Hon STEVEN JOYCE : Just give it a minute, Grant. You have had your turn. Under the previous Government, prices were rising faster than wages. Under this Government, wages are rising faster than prices.

Mr SPEAKER : Order! Before I call the next question I just want to remind all Ministers, particularly, that it is not acceptable to use simply a Christian name. I acknowledge that the Minister was responding to an interjection, and the interjection was probably not helpful to the order of the House, but it is absolutely expected at all times that members will be addressed properly in this House.

ENDS

© Scoop Media