8. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
What reports, if any, has he received on international economic developments?
Hon BILL ENGLISH (Minister of Finance) Link to this
The member will know that there is an endless number of reports on international economic developments.
Hon David Cunliffe Link to this
Has the Minister, for example, seen reports that the Australian Budget includes measures that will protect up to 210,000 jobs? Can New Zealanders expect his Budget to address their fears about rising unemployment, and the loss of their jobs, homes, and dignity, by delivering significant job-saving measures?
What I can confirm is that Australian unemployment is consistently higher than New Zealand’s, and its Budget deficit forecasts are higher than recent forecasts I have seen from New Zealand. So whatever we are doing, it seems to be working better than what Australia is doing.
Hon David Cunliffe Link to this
Further to the work of the previous Labour Government, does the Minister agree with the Australian Treasurer’s moves to invest the $5.7 billion being spent on education and innovation to help those who have lost their jobs and to help the country grow out of recession? Is this not exactly the sort of investment New Zealanders can expect to see from him in his Budget?
Of course, our investments are going to be better targeted, and that will show up in lower unemployment in New Zealand. I can assure the member that, despite his anxiety, the Government will be continuing investment in education, innovation, and infrastructure on a larger scale, and with much better focus, than his Government ever achieved.
Peseta Sam Lotu-Iiga Link to this
How does the New Zealand response to these developments compare with other major economies?
We are responding actively and assertively to global economic developments, but we start with some disadvantages; New Zealand was in a recession before the global crisis struck. None the less, there are some encouraging signs. The lift in the unemployment rate to date has been modest, and remains well below that of most Western countries, and certainly remains well below that projected for Australia in yesterday’s Australian Budget. As I said to the Opposition before, whatever Australia says it is doing, we seem to be doing it better, because our unemployment is lower.
Hon David Cunliffe Link to this
Will the Minister confirm that he intends to follow the lead set by the Australian Budget, and deliver bold steps to increase investment in clean energy initiatives, research and development, and infrastructure; and does he agree that now is the time to be investing in New Zealand and in New Zealand’s future?