3. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Does he stand by his statement that “it will probably be some time before individuals and families feel better off again”?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes, I stand by that statement. Under the mismanagement of the previous Government the New Zealand economy went into recession early in 2008. Families were then hit by the global recession. It will take us some time to undo the damage done by a Government that forgot that a country must earn before it spends.
Hon David Cunliffe Link to this
Will New Zealand families be better off paying 7 percent more for petrol and 2 percent more for food, as confirmed today by Statistics New Zealand?
That was one of the lower annual CPI increases, quite a bit lower than when the member was in Government. I did not see him crying crocodile tears about it then. If we had left Labour’s emissions trading scheme in place, families would be facing very big rises in petrol prices.
Carol BeaumontDoes he agree with Ministry of Consumer Affairs advice that to lower their grocery bill consumers should shop around, and how will New Zealand consumers be able to shop around an increase in GST, which will further raise food prices?
I think it is pretty much common sense that New Zealanders shop around to find the lowest price, whatever is happening in terms of prices going up. I wonder what the member does. Does she go to the same supermarket every week, regardless? That would be a bit odd, I would have thought.
Amy AdamsHow much better off would New Zealanders be if our underperforming economy had grown at similar rates to other countries between 2005 and 2008?
In the 3 years from September 2005 to 2008 this economy grew by less than 1 percent. However, that figure was outstripped by annual population growth of 1.1 percent, meaning that over the last 3 years of the previous Labour Government, per capita income growth was negative, when the rest of the world was booming. Had the economy grown at roughly the average rate of recent years, the average household would now be $5,000 better off after tax.
Hon David Cunliffe Link to this
Which of the following does he think will have the biggest impact on Kiwi families: breaking his promise that he would not raise GST, or standing by while they face higher food and petrol prices?
What will have the biggest impact on Kiwi families is a Government that is focused on turning this economy round, so that it becomes one where earning matters as much as spending. That is what all our policy is focused on. The previous Government thought it could spend money when it had not earned it, and now we are paying the price.
Hon David Cunliffe Link to this
Why does the Minister not just admit that his Government has no credible plan for growth and that he cannot get over his personal resentment that the previous Minister managed to cut debt in half and have the world’s lowest unemployment rate and the longest post-war expansion, and why does he not take responsibility for his own policies, instead of Labour’s?
I know the previous Minister of Finance was not a patch on what the member would have been if he had the job, but I wish Dr Cullen had been as good as Mr Cunliffe thinks he was. We are dealing with the legacy of a Labour Government that squandered the good times. We do not want New Zealand families to have to pay the price for that for any longer than is absolutely necessary.
I seek leave to table the March newsletter of the Auckland City Mission, which tells the story of families unable to afford food.
Mr SPEAKER