3. PESETA SAM LOTU-IIGA (National—Maungakiekie) Link to this
to the Minister of Finance
What did the Crown accounts for the 9 months to 31 March 2009, issued yesterday by Treasury, show?
Hon BILL ENGLISH (Minister of Finance) Link to this
The Crown’s operating balance before gains and losses for the 9 months to 31 March 2009 was a deficit of $233 million. This compares with a forecast surplus of $1.9 billion in the pre-election update last October, which is a turn-round of minus $2.1 billion. Including losses from Government investment funds, the operating deficit for those 9 months was $7.7 billion. That is $11.2 billion worse than the pre-election forecast released by the previous Government.
The turn-round in the Government’s operating balance, including losses from Government funds, in the last 6 months has been $11 billion. The main factors were that tax revenue is around $2 billion lower than the forecast made before the election, and $700 million lower than the forecast made in December. Investment losses from the superannuation fund, the Earthquake Commission, and the Accident Compensation Corporation have totalled $5.7 billion in those 9 months, and increases in liabilities of the accident compensation scheme and the Government Superannuation Fund add up to $4.4 billion. This is why the Government needs to take decisive action to get its books in order.
Hon David Cunliffe Link to this
With net debt at only 3 percent of GDP and gross debt levelling off after the last 3 months, is it not true that he is trying to scare New Zealanders into accepting his “black banker’s Budget”, rather than putting Kiwi jobs first? Is he aware that the latest UMR Insight poll says that a majority of decent hard-working New Zealanders are most concerned about their job security, and why is he not doing more to protect it, given that unemployment has such a serious impact on the Budget?
The Opposition finance spokesman might be the only person in New Zealand who believes the recession is over, but it is not. He might pay some attention to the unemployment figures released today, which show that far too many New Zealanders are losing their jobs, but it is a bit better than expected and that is partly because of the Government’s stimulus package.
Peseta Sam Lotu-Iiga Link to this
Has the Minister seen reports claiming that the state of the Government’s books is deteriorating, while at the same time claiming that the Government’s overall debt position seems to be stabilising?
Yes, I have seen one report from the Opposition finance spokesman making those claims yesterday. In fact, if the Government’s books are deteriorating, the Government’s overall debt position cannot be stabilising, because we are out borrowing money all the time to fill the gap between expenditure and revenue.
Hon David Cunliffe Link to this
One element that proves the Minister wrong is a recent report that shows the New Zealand Superannuation Fund value has increased—
Mr SPEAKERThe member will sit down. I am not insisting on members starting questions with a question word. This is not W3. But I think we do need to hear a question reasonably soon after a member starts asking one.
Hon David Cunliffe Link to this
Has the Minister seen reports that the value of the New Zealand Superannuation Fund increased by $1.75 billion between March and April this year, and does he agree with New Zealand Superannuation Fund chief executive Adrian Orr that now is a once-in-a-lifetime opportunity to be buying; if so, why would he consider suspending contributions at precisely the worst possible time?
This Government takes a long-term view about the sustainability of New Zealand’s financial position. As I have pointed out many times, the Government has to weigh up the benefits of contributing to the superannuation fund with the reality of the fact that it would have to borrow the money. We know that borrowing does not bother Opposition members, because they want us to borrow to do everything that they want. But we want to be responsible about it.