3. PESETA SAM LOTU-IIGA (National—Maungakiekie) Link to this
to the Minister of Finance
What recent reports has he received about how New Zealand is emerging from the recession?
Hon BILL ENGLISH (Minister of Finance) Link to this
The Reserve Bank this morning issued its Monetary Policy Statement for September. The governor noted evidence that the decline in economic activity is coming to an end and a patchy recovery is under way. He attributed this to a recovery in our trading-partner economies, and he noted that domestic retail spending appears to have stopped falling, following a rise in net immigration and a pick-up in the housing market over recent months.
Peseta Sam Lotu-Iiga Link to this
What medium-term economic challenges did the Reserve Bank identify?
The Reserve Bank identified the same economic challenges as the Government does, but unlike the Government it is too polite to blame them on the previous Government, which really caused those problems.
Peseta Sam Lotu-Iiga Link to this
What steps is the Government taking to address these medium-term economic challenges?
The Government has set out a programme, firstly, to protect people from the sharp edges of recession. That process is not yet over, because unemployment is likely to continue rising through until next year. Secondly, we have set up a range of programmes to undo the damage caused by the previous Government, particularly in the area of business regulation, lack of public sector productivity, and lack of enthusiasm and energy in respect of infrastructure investment.
Hon David ParkerGiven the recent World Bank assessment that concluded New Zealand is already the second-best country in the world for doing business in, why does the Minister consider it desirable to further deregulate foreign investment protections so as to facilitate the sale of New Zealand assets overseas to fund our increasing current account deficit, rather than introducing effective policies to reduce our current account deficit?