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GDP Per Capita—Percentage Change Between June 2008 and June 2011

Wednesday 28 September 2011 Hansard source (external site)

Cunliffe3. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance

By what percentage did GDP per capita fall between the June 2008 year and the June 2011 year?

EnglishHon BILL ENGLISH (Minister of Finance) Link to this

If the member will bear with me on just a bit of detail, I have interpreted this question to mean a real production-based measure of GDP, which is the one most commonly quoted. On this basis, the 2011 year was 3.6 percent below that of 2008, but the story does have some nuances. Per capita GDP actually peaked back in 2007 and then started sliding before the global recession, because under the previous Government New Zealand went into recession well ahead of the rest of the world. The big decline in per capita GDP happened in the year to June 2009, when real per capita GDP fell by 3.3 percent—that is, before the current Government had delivered its first Budget. Since our first Budget, in 2009, the growth has stabilised. It is pleasing to see that the economy has expanded in eight of the past nine quarters and that GDP has grown by 3.5 percent over the past 2 years.

CunliffeHon David Cunliffe Link to this

I seek leave to table this representation of Statistics New Zealand figures, which show that GDP has decreased—

SmithMr SPEAKER Link to this

What is the source of the document please?

CunliffeHon David Cunliffe Link to this

Statistics New Zealand.

SmithMr SPEAKER Link to this

Is it a photocopy of something?

CunliffeHon David Cunliffe Link to this

It is a graph. [ Interruption]

SmithMr SPEAKER Link to this

I am trying to sort out who has compiled this document.

CunliffeHon David Cunliffe Link to this

It is Statistics New Zealand’s data, which is represented in a graph.

SmithMr SPEAKER Link to this

I asked who has compiled the document, not the source of the data.

CunliffeHon David Cunliffe Link to this

The research unit has used Microsoft

SmithMr SPEAKER Link to this

Leave is sought to table that document from the party research unit. Is there any objection? There is objection.

CunliffeHon David Cunliffe Link to this

How much money has the Government borrowed over the last 3 years?

EnglishHon BILL ENGLISH Link to this

I could not give the total figure off the top of my head, but it certainly would be well in excess of $20 billion. That has been driven by two things. One is the recession, which began under that member’s party, and it was then compounded by the need to borrow for the Christchurch earthquake. Of course, the important thing is to have a plan for the path back to surplus, and we have a plan in place.

CunliffeHon David Cunliffe Link to this

I seek leave to table these Statistics New Zealand numbers, which show that the actual amount of debt—[ Interruption]

SmithMr SPEAKER Link to this

Members will be silent. When I get to my feet the member will resume his seat and other members will be silent. I have developed a procedure whereby members identify the source of a document before citing the information in it, so that we can quickly determine whether leave should be sought to table the document. Seeking leave is not an opportunity to convey information while members are on their feet; seeking leave is about whether a document should be tabled. First, the House needs to know the source of the document.

CunliffeHon David Cunliffe Link to this

The source of the estimate of $37 billion—

SmithMr SPEAKER Link to this

The member will resume his seat, and he may ask a supplementary question if he wishes to.

CunliffeHon David Cunliffe Link to this

How many fewer jobs are there in New Zealand than when his Government came to office, according to the latest National Employment Indicator?

EnglishHon BILL ENGLISH Link to this

According to the standard for measuring jobs, which is the household labour force survey, there are more jobs now. One reason is that we have been able to stabilise the drop in per capita GDP. If I can point out to the member, per capita GDP fell during Labour’s final term—

SmithMr SPEAKER Link to this

I have just dealt fairly severely with the Hon David Cunliffe, and although the Minister may not have liked the question, and may have criticism about the statistics upon which the question is based, the answer should at least start at the question asked, not ignore it totally. The question asked about employment figures as indicated by an employment indicator survey. The Minister is perfectly at liberty to indicate his concerns about that data, but to ignore it totally is not on. The Hon Bill English, to answer the question asked. I am happy to have the Hon David Cunliffe repeat it if it has been forgotten.

EnglishHon BILL ENGLISH Link to this

Mr Speaker, I answered the question and I will repeat it in case you did not hear it. According to the standard for measuring the total—

SmithMr SPEAKER Link to this

Members may wish questions were different from what they are, but I will invite the Hon David Cunliffe to repeat his question. The Minister may certainly have views of the particular statistics, but the answer should at least start from the point of the question being asked, not ignore it totally and cite other data, without any reference whatsoever to the question asked.

CunliffeHon David Cunliffe Link to this

How many fewer jobs are there in New Zealand than when his Government came to office, according to the latest National Employment Indicator?

EnglishHon BILL ENGLISH Link to this

I do not know the answer to that question, because the National Employment Indicator is a partial measure of jobs in the economy. According to the standard measure there are more jobs than ever.

CunliffeHon David Cunliffe Link to this

I seek leave to table data from the National Employment Indicator, indicating—

SmithMr SPEAKER Link to this

I am on my feet; is there something wrong with the member’s eyes? The House will come to order and just settle a little. The member knows that we do not table statistics that are released by Statistics New Zealand, because members have those available to them. Seeking leave to table documents to try to score political points is not the purpose of the Standing Order. I invite the member to read the Standing Order if he is going to seek leave to table documents.

CunliffeHon David Cunliffe Link to this

I raise a point of order, Mr Speaker.

SmithMr SPEAKER Link to this

Is this a point of order?

CunliffeHon David Cunliffe Link to this

Mr Speaker, I seek your guidance; I am not trifling with your ruling in any way. You have held that the information is freely available to members, but we are in the situation where the Minister of Finance has just told the House that he does not know the answer to this important—

SmithMr SPEAKER Link to this

I am on my feet. That does not mean that the information is not readily available to members, and we are simply not going to go back to tabling statistics releases and press statements, or press releases and newspaper clippings. It just wastes too much time in this House. Question time gives members the chance to question Ministers. If the member does not like the way the answers refer to statistics, he can ask questions about why the statistics are inferior, if he believes that his statistics are superior. The question can be expanded in that area because that field has already been covered. Rather than trying to table documents, question time is about asking questions—why Ministers may hold certain views of things. It is not about trying to table documents.

CunliffeHon David Cunliffe Link to this

I raise a point of order, Mr Speaker. I am reluctant to drag this out, and this will be the last comment I make on this matter. But it is, of course, possible for Ministers of the Crown to either genuinely or conveniently say they do not know the answer to any number that does not support their case—

SmithMr SPEAKER Link to this

No, no. We will not have any more of that. Does the member have a further supplementary question? If he does not, we will go on to question—

CunliffeHon David Cunliffe Link to this

I have a supplementary question. Given that before the last election his leader was claiming that New Zealand had a growth problem and not a debt problem, and given that he has now saddled the country with $37 billion of extra Government debt with no growth to show for it, has not New Zealand developed now both a growth problem and a debt problem, through 3 years of his Government muddling through?

EnglishHon BILL ENGLISH Link to this

Of course, we are dealing with both growth and debt in somewhat challenging circumstances. If we had followed that member’s advice for the last 3 years, we would have probably about twice as much debt as we have now.