6. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Does he stand by his answer to question 7 yesterday, suggesting that Australia is headed for a double-dip recession?
Hon STEVEN JOYCE (Associate Minister of Finance) Link to this
Despite relatively strong growth in the first part of last year, Australia’s growth slowed to just 0.2 percent in the September quarter. There are high levels of household debt and Australia’s consumer and housing markets are slowing down quite significantly. Of course, what the Minister omitted to say yesterday was that Australia never had an initial recession, unlike New Zealand, which, under the Labour Government, went into a recession almost a year before the global financial crisis even hit.
Hon David Cunliffe Link to this
In light of the Minister’s answer, can he tell the House when did Australia first go into recession, following the onset of the global financial crisis?
I answered that in the previous answer to the question. However, I point out that the reason that Australia did not have the first recession was that it did not have the Labour Government we had in New Zealand for 9 years, and I suggest there is a strong correlation between the two.
Hon David Cunliffe Link to this
l would normally do this at the end of the session, but as it relates directly to the point made by the Minister, I seek leave to table a statement on monetary policy by the Reserve Bank of Australia that was issued just days ago and shows forecasts of strong, positive economic growth for the next 5 years.
Mr SPEAKER
Chris Tremain
Hon Darren Hughes Link to this
I raise a point of order, Mr Speaker. This question set down by David Cunliffe is about an Australian double-dip recession, and the supplementary question is about a recession in New Zealand. I cannot see the connection between the two. This is a very specific primary question.
If the member had listened to the Minister’s answer, he would have noticed that the Minister referred to what had happened in New Zealand at the same time, which does open the question more widely, including opening it for Opposition members. So the question is in order.
New Zealand went into recession months before most other developed countries, due to serious and damaging imbalances that built up in the economy under the previous Government. Among these were a massive blowout in Government spending, rampant inflation, which peaked at 5.1 percent at the end of 2008, a credit binge that will take years to unwind, and decade-high interest rates—all of which strangled our export sector, and all of which the Opposition does not want to know about. It appears Labour has learnt nothing from that recession, as it still seems prepared to pump up spending and pump up debt.
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. Not only is the question marginal but the Minister’s answer is turning into a speech.
It is up to the Speaker to determine whether the Minister is taking too long, and I say that the Minister had taken sufficient time, indeed, to answer the question.
Hon David Cunliffe Link to this
Which aspect of the Australian Government’s comprehensive and well-targeted stimulus package contributed most to Australia’s avoiding going into recession, unlike New Zealand under this National Government?
A number of things prevented Australia from going into recession while New Zealand did. The first is that it did not have the massive blowout in public spending during the 2000s that we had in this country. Secondly, Australia did not have higher marginal tax rates at the lower rates that we had in this country. Thirdly, Australia ran an altogether much more business-friendly policy than was run over the period of the 2000s. Those are just three off the top of my head.
Hon David Cunliffe Link to this
If Australia is headed for a double-dip recession, can the Minister explain why 36,000 New Zealanders emigrated there in the past year, showing John Key’s promise to stop this brain drain to be yet another cruel hoax?
That is pretty rich, coming from somebody who wants to raise the top tax rates to over 50 percent. The reason people went to Australia in record numbers—
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. There are so many things wrong with that answer that it will take a while—
If the member does not want that kind of answer, he should not include in his supplementary question language like “cruel hoax”. That just invites the Minister to have a fair bit of licence in how he answers it. I will allow the Minister to finish his answer.
The key point I was making was that that was pretty rich coming from a party that wants to increase top marginal tax rates to encourage the flight of skilled New Zealanders to Australia, just as it did through the 2000s, creating record emigration to Australia from this country.
Hon David Cunliffe Link to this
I seek leave to table Immigration New Zealand statistics that show that emigration to Australia is now—
No, no. The member will resume his seat. The member knows that statistical releases are available to all members, and we do not seek leave to table that sort of document.
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. I question your ruling, Mr Speaker, which of course you may be able to repeat. But this is a special document that has been compiled by our own research unit, pulling together a number of difference sources of information to undoubtedly prove the point—