2. Prime Minister—Business Confidence GDP Industrial Action Unemployment and Universities' Academic FreedomHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterPrime Minister—Business Confidence GDP Industrial Action Unemployment and Universities' Academic Freedom2. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: My question's to the Prime Minister and we warmly welcome her back. Does she stand by all her Government's policies and actions?Rt Hon JACINDA ARDERN (Prime Minister): I'm nothing if not consistent—yes.Hon Simon Bridges: Some things don't change.SPEAKER: Order! I think that's sort of now 2-1 in the out-of-order comments. We'll just get back to the questions.Hon Simon Bridges: When she dismissed business confidence yesterday as perceptions" and said "I'm interested in the reality of what our economy is doing and how it is performing." had she then seen yesterday's report from Treasury that stated "weaker confidence in conjunction with other data highlight the risk that growth over the coming fiscal year may be weaker-than-forecast in the Budget"?Rt Hon JACINDA ARDERN: I would not characterise that as dismissal at all. I hear what business is saying in the same way I hear what nurses have said what teachers have said what anyone who works in the well-being space has said around the need to rebuild confidence in New Zealand's social well-being outcomes as much as our economic outcomes. What I will say is that I also have to acknowledge the international environment which is having an effect here in New Zealand which is why we need to diversify our economy and make sure that we are not vulnerable which is exactly the place that last Government left us in. [Interruption]SPEAKER: Before I call the member I am going to ask David Bennett to go the rest of this question and the series of supplementaries and answers without interjecting.Hon Simon Bridges: On the international environment why is it then that New Zealand's the only country to have gone from near the top of the OECD in business confidence to right near the bottom?Rt Hon JACINDA ARDERN: We're actually a fraction away from the long-term average and I have to say when you look at the OECD comparisons around our growth forecast actually we stand up pretty well.Hon Simon Bridges: Does she accept the weaker growth talked of now by Treasury is the reality as is a decline in GDP per capita in just the last quarter?Rt Hon JACINDA ARDERN: If we're going to quote what Treasury have said let's share the entire picture. They've said that the housing market was cooling faster than expected. And actually the housing market was overheated under that last Government and we need to stand up and fully confront that and the harm that it was doing New Zealand's people. Secondly we need to acknowledge the international environment which Treasury has as well. At the same time they've said that labour income—wages—are growing strongly that employment growth is solid and that we have issued things like more building consents. If you're going to talk about the economy let's talk about all of the indicators not just some of them. Hon Simon Bridges: On her discussion once again of the international environment and Treasury's view on it does she not accept that they've said "The international environment remains broadly stable."—nothing's changed?Rt Hon JACINDA ARDERN: If the member is reading the voice of business—like for instance I would imagine he would look at the KPMG survey which has highlighted that that is in fact having an impact. So if the member thinks the KPMG survey is babble does he think that what John Key has said was babble as well? Because he's raised it too.David Seymour: Does the Prime Minister stand by education Minister Chris Hipkins' statement that the Tertiary Education Commission will have new powers under the Act to monitor the tertiary sector and hold providers to account for their use of public funding?Rt Hon JACINDA ARDERN: If he's asserting that the Minister of Education is saying that we should strive for high-quality tertiary education then that is no bad thing.David Seymour: Would it be a bad thing if a university failed to use its public funding in alignment with section 161 of the Education Act 1989 to uphold academic freedom such as by refusing to allow speakers to speak on university campuses because of their political views?Rt Hon JACINDA ARDERN: Ultimately institutions have their own freedom on a day-to-day basis but if he's asking me for a personal opinion the example I think that he is pointing to I would characterise as an overreaction on the part of the institution.Hon Chris Hipkins: Does the Prime Minister think it is tenable for the Government to threaten to cut funding for universities when they make decisions that the Government disagrees with?Rt Hon JACINDA ARDERN: Absolutely not. We continue to hold a personal view and as I say there are a number of examples where politicians and ex-politicians have caused a stir on university campuses. I think the reaction we've seen has been an overreaction. Will we retaliate? Of course not. Hon Dr David Clark: Ha ha!Hon Simon Bridges: Does she accept—SPEAKER: Order! Who made that noise?Hon Dr David Clark: Mr Speaker if you're referring to the laugh that was me.SPEAKER: Right OK. Thank you.Hon Simon Bridges: Does she accept the weaker growth foreshadowed by Treasury and the decline in GDP per capita in just the last quarter to be a reality?Rt Hon JACINDA ARDERN: Of course Treasury has put out its forecasts and I acknowledge that yes the housing market has cooled. International tensions have had an effect. But on the flip side if I'm going to accept that I'm also going to accept the wage growth which is benefiting New Zealanders; high employment which is also benefiting New Zealanders; and the fact that we have seen for instance a decrease in the number of young people in unemployment. I accept that we have challenges in front of us. That's why we're investing in boosting productivity it's why we're investing in diversifying our trade and it's why we're investing in R & D. I'm not shying away from those challenges.Rt Hon Winston Peters: Regarding the international influence upon New Zealand's economy is the Prime Minister encouraged by all of a sudden the number of highly placed European Union officials and representations with respect to a free-trade deal with the European Union?Rt Hon JACINDA ARDERN: Absolutely. We have a visit today which only helps us further our relationships and New Zealand's interests. I also applaud the work that the Minister for Trade and Export Growth is doing on our Trade for All alongside negotiating the Pacific Agreement on Closer Economic Relations the Regional Comprehensive Economic Partnership and the EU free-trade agreement. We are moving at pace because growing exports grows jobs.Hon Simon Bridges: Does she accept a 60 percent decline in job growth since her Government came into office is a reality for the thousands of New Zealanders who didn't get a job as a result?Rt Hon JACINDA ARDERN: We have 94000 more people employed at the end of June 2018 than there were in June 2017. Our unemployment rate has decreased. So the member is picking a figure and interpreting it in the way that he chooses but I am proud of the fact that we are putting people into jobs.Hon Simon Bridges: Does she accept a 4000-person increase in unemployment in just three months to be a reality for those families?Rt Hon JACINDA ARDERN: It's down from 4.8 percent I would first point out. The second point that I would make is that we have seen a rise in participation—more people moving into the job market. I would interpret that to be that they see hope that there are jobs and work available for them. The ANZ Job Ads indicates that that is indeed the case.Hon Simon Bridges: Does she accept more industrial strikes in the last nine months than in the last nine years to be a reality for those businesses and workers?Rt Hon JACINDA ARDERN: I just want to highlight today we've also concluded the nurses' pay agreement which is something that I would like to celebrate—and you're welcome. We concluded that after inheriting it halfway through. We concluded it because we doubled the offer we addressed the safety concerns and just as we have with teachers we've already scrapped national standards. We've brought in more funding for teacher-aides and for those with learning needs and we have increased their operational funding. There is more to do but we've done more in nine months than that Government did in nine years.Hon Simon Bridges: Does she accept the collapse of multiple construction companies to be a reality for those businesses their workers and their customers?Rt Hon JACINDA ARDERN: Look absolutely we've acknowledged that's happened—that's why we sat down with the vertical construction industry yesterday. I acknowledge that it's a very different case for residential and those working in infrastructure because they are seeing a huge boost in investment out of this Government in those sectors. When it comes to vertical construction 18 percent of the work for that industry comes from Government. Even though we represent only 18 percent we are fronting up and saying that if we can play a leadership role to ensure that we do not have a further collapse in this sector we will play it. That's what this Government has done. We hadn't gone far enough with the reforms of the last Government and we are again happy to pick up the pieces.Hon Simon Bridges: Does she think there will be real impacts for New Zealanders from us having the lowest business confidence since the global financial crisis while in Australia it's at a 30-year high?Rt Hon JACINDA ARDERN: Australia's at a 30-year high and yet we're outperforming them on things like the employment rate.Hon Simon Bridges: No we're not—not on anything.Rt Hon JACINDA ARDERN: On things like the employment rate we absolutely are. We have the third-highest rate of employment in the OECD. We have steady economic growth and—according to the OECD—at 3 percent the same as Australia going into 2019. Where we don't sit on the same page as Australia is our low wages and we're doing something about that too.Hon Simon Bridges: Is the Prime Minister seriously denying that in Australia right now they are growing faster than us for the first time in several years that their business confidence is at a 30-year high while ours is at a 10-year low and that there are more New Zealanders leaving for Australia than there have been for some quite considerable time?Rt Hon JACINDA ARDERN: What I am arguing is that if we're going to look at the health of our economy then we should look at a range of indicators. Employee confidence is up. Job ads are up. Consents are up. Unemployment—we have incredibly low unemployment in this country. We have 94000 more people in work and—and—we have on average over $70 going into the back pockets of working New Zealanders and those in need which of course is stimulating our economy. I'm proud of the changes we're making. We need to modernise our economy and we are working hard on doing just that as well.Hon Simon Bridges: Does she accept any responsibility in terms of her Government's policies such as industrial relations reform; shutting down the oil and gas sectors in terms of new exploration; higher taxes; and banning foreign investment and the hurt they're causing business confidence and therefore the direct impact they're having for families all around New Zealand?Rt Hon JACINDA ARDERN: Look as I've said I absolutely acknowledge that businesses have shared with us via the confidence surveys that there are issues they wish us to work on—I've heard that. When you ask business what it is they say to us it is the skills gap so we've invested in training and educating our workforce and business can access that just as much as anyone else. They've told us that it's our productivity challenge. They've told us that it's that we're not investing in R & D. They've told us that we've under-invested in the regions which is why we have the Provincial Growth Fund. They've told us it's because we need to modernise our economy and because of the challenges of climate change which is why we have the Green Investment Fund. I acknowledge that as with any Labour-led Government in the past this coalition Government needs to challenge the perception that exists. I'm not shying away from that challenge and that's why I'm fronting it head-on.Hon Simon Bridges: Isn't the Prime Minister in complete denial about our economy's reality and any number that any of us could pick in her Government policies' impact and doesn't she need to start listening to businesses small and large around New Zealand and make some serious changes?Rt Hon JACINDA ARDERN: As I've said I've acknowledged every single economic indicator that tells us we have a lot to be proud of and I also acknowledge 94000 more New Zealanders in work—something to be proud of. If that member wants to go around dissing our economy and the potential that exists in this country that I have to say is a damned shame."