5. JOHN BOSCAWEN (ACT) Link to this
to the Minister of Finance
Does he consider borrowing $40 billion to be “no trouble”?
Hon STEVEN JOYCE (Associate Minister of Finance) Link to this
In the past month overseas investors have told the Minister that they agree with the Government’s responsible management of the New Zealand economy. Therefore, yes, the Minister is confident that the Government will be able to borrow the extra $40 billion required over the next 4 years. That is a significant undertaking. We are, in effect, doubling Crown debt in the next 4 years to maintain entitlements and keep the economy running, while simultaneously working to repair the damage inflicted by the previous approximately 9 years of economic mismanagement.
Does the Minister accept that massive losses in the accident compensation scheme and KiwiRail and the write-down in the student loan book are all a consequence of the poor economic policy that the Government inherited from Labour, and why does he not reverse the structural problems that are causing it?
Hon Darren Hughes Link to this
I raise a point of order, Mr Speaker. I wonder how this Minister can be responsible for the policies of the previous Government.
Mr SPEAKERThere is no need for further assistance on that. The member asked the Minister whether the problem that the Government is coping with at the moment by borrowing $40 billion has something to do with the economic policies that were in place when this Government came to power. That is a perfectly legitimate question.
Yes; the Government is focusing on working very hard to control the debt by taking responsible control of Crown expenditure while maintaining entitlements, and by instituting policies that improve productivity and growth for this country.
Can the Minister explain to the House exactly how hard-working New Zealanders are better off having the Minister of Finance borrow $40 billion to manage Michael Cullen’s economic policies compared with having Michael Cullen do the job himself?
Yes, the country will be better off, because this Government is about sensible, balanced, and responsible economic management. We have rejected the idea of slashing and burning public spending during a recession. We have pledged to maintain entitlements, but in all ways to act responsibly, to control Crown expenditure, and to ensure that it is being spent properly and well.
Hon David Cunliffe Link to this
Can the Minister confirm that Cabinet papers released this week to Radio New Zealand signalled more savage cuts to come that will impact on the life of every working New Zealander?