3. PESETA SAM LOTU-IIGA (National—Maungakiekie) Link to this
to the Minister of Finance
What reports has he received on the economy in National’s first year in Government?
Hon BILL ENGLISH (Minister of Finance) Link to this
The reports on economic management have been overwhelmingly positive when people contrast the current Government’s management with that of the previous Government. Some people have said that through the recession we should slash and burn services and Government spending, while others have said that we should go on a massive debt-fuelled spend-up. In the end, the Government has opted for a balanced policy that protects people in the short term from the sharp edges of recession and lays the foundation for increased economic growth and more jobs on the road to recovery.
Peseta Sam Lotu-Iiga Link to this
What measures did the Government take to support the economy through the recession?
There has been a wide range of initiatives, but the main ones were the 1 April tax cuts, which kept shop doors open by putting an extra $1 billion a year into the pockets of 1.5 million workers; billions of dollars of extra investment in productive infrastructure; a $500 million tax assistance package for small businesses; a $320 million campaign to insulate 180,000 houses; and 17,000 extra job and training opportunities for young people as part of the Youth Opportunities package.
Peseta Sam Lotu-Iiga Link to this
What other measures has the Government taken in its first year to strengthen the economy?
The thing that will make the most difference to New Zealand and New Zealanders is the creation of new jobs. The Government is focusing very strongly on creating an environment that gives business the confidence to invest and create new jobs, in contrast to the previous Government, which focused very much on the Government providing all the new jobs.
Peseta Sam Lotu-Iiga Link to this
What alternative approaches to managing the economy has the Minister seen?
I have seen a particularly bizarre statement from the Leader of the Opposition today. He said that he wants to pull out of 20 years of consensus on the Reserve Bank of New Zealand Act, but he has no idea what he wants to put in its place.