1. PESETA SAM LOTU-IIGA (National—Maungakiekie) Link to this
to the Minister of Finance
What steps is the Government taking to address the fiscal outlook outlined in the most recent Budget Policy Statement?
Hon BILL ENGLISH (Minister of Finance) Link to this
In the Budget Policy Statement we outlined steps to limit expenditure growth, including dropping the unfunded priorities of the last Government, putting a cap on the growth of the Public Service, and advising departments there will be no new Budget bids apart from the priorities of the incoming Government.
The Government’s tax cut package, which was announced prior to the election, was funded by removing the research and development tax credit and making changes to the KiwiSaver programme that enabled the Government to pass through significant income tax cuts to many, many low and middle income New Zealanders without putting undue pressure on the fiscal outlook.
Hon David Cunliffe Link to this
Can the Minister confirm that he told the Finance and Expenditure Committee this morning that he had received no updated forecasts from Treasury since the Budget Policy Statement in December? And given that he said that officials have better things to do than provide updated forecasts on the economy, can he explain to the House why he does not place a greater value on accurate information?
The reason is that we place a great value on actually making decisions so that people will be protected from the sharp edge of recession, in order to get this economy ready for recovery. This Government is not making the mistake of the last Government, which believed that gathering information and making announcements amounted to doing things.
Peseta Sam Lotu-Iiga Link to this
What is this Government doing to address the rapid rise in public expenditure that occurred under the last Government?
We will need to have greater efficiency and value for money in order to provide better, smarter public services for New Zealanders in a time of restraint. But as an indication of the momentum of Government spending built up under the previous Government, from 2004 to 2012 core Crown expenses will increase by over $30 billion—that is, from $40 billion to $72 billion. We will be looking for evidence that all that extra expenditure has actually led to better services for more people.
Hon David Cunliffe Link to this
Can the Minister confirm that following his appearance at the Finance and Expenditure Committee this morning he submitted a correction on a $30 billion error that he made in testimony to the committee, and that his correction statement itself contained further numerical errors; and when will that Minister lift his game on a matter of great importance to this economy?
I did get one date wrong in my testimony—is it “testimony” these days—to the very powerful Finance and Expenditure Committee, but I have to say that unlike that member, this Government is not preoccupied with all the details; we are preoccupied with getting measures before the House, such as the extensive changes to the Resource Management Act. The whole community has waited 15 years for a Government to grasp the nettle and make those changes.
Hon David Cunliffe Link to this
I seek leave to table a document named Budget Policy Statement 8, which is an inaccurate correction by the Minister to the Finance and Expenditure Committee. This document has been released by the committee.
Mr SPEAKER
Craig FossWe are dealing with this point of order first. Is there any objection to that course being followed? There appears to be no objection.
I raise a point of order, Mr Speaker. I see that leave has been given, but has the correct document been presented today, not the one that may have been presented in the committee?