7. JACINDA ARDERN (Labour) Link to this
to the Prime Minister
Does he stand by his statement that “the Government’s been doing what it can practically to stimulate the economy and to create jobs”?
Rt Hon JOHN KEY (Prime Minister) Link to this
Yes. The Government has been doing what it can to promote a low-inflation environment, make sure the New Zealand economy is internationally competitive, and make sure that there is an efficient use of resources.
Is he concerned that Australia’s lower unemployment rate of 4.9 percent and forecast growth of 500,000 new jobs over the next 2 years will see the record number of Kiwis who left for Australia, set in May this year, increase in the future?
I think that if one was to raise the top personal tax rate, whack on a capital gains tax, and discourage investment, then that would definitely be the case.
Yes. That is because Australia’s top personal rate is set at 45 percent and the company rate is set at 30 percent, and it has had to buttress a capital gains tax in there to stop people from otherwise organising what are their hideously complex affairs.
Does he agree with Australian Prime Minister Julia Gillard’s analysis that investment in skills training is vital to growing an economy and creating jobs; if so, why has his Government cut skills funding by $140 million in the last 12 months?
The reason funding was cut in certain areas was that there was a very low completion rate of some courses, and this Government, unlike the previous Labour Government, is not the sort of Government that is prepared to throw money at things that are completely, hopelessly failing and are not working.
Does he stand by his statement in February 2008 that “New Zealand is already struggling under a skills shortage and this exodus”—to Australia—“will add to those worries.”; if so, how deep are his concerns now that this exodus is almost 7 percent higher than when he made that comment?
Mr SPEAKER