1. Question No. 1—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. CHRISTOPHER LUXON (Leader of the Opposition) to the Prime Minister: Does she stand by all of her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): 谢谢 Mr Speaker. Yes on World Tourism Day it is worth noting the Government's work to reconnect New Zealand with the world. Overseas visitor arrivals exceeded 100000 in July. There's been a 20 percent month-on-month increase in capacity from key US destinations with a total of five airlines flying to and from North America offering up to 60 flights per week. By summer that will be eight destinations and we'll see the return of United Airlines and American Airlines. We know Aotearoa New Zealand remains a top global visitor destination and it's pleasing to see our hospitality restaurants hotels ski fields and tourist attractions filling back up.Christopher Luxon: Why is the Government introducing a 2.8 percent tax on all salaries and wages to fund an income insurance scheme during a cost of living crisis?Rt Hon JACINDA ARDERN: Firstly to correct the member he'll well know that this work that we're doing—alongside the Council of Trade Unions and BusinessNZ—would not be due to come into place until 2024 or 2025 at the earliest. I think also the really important point to make is that every year approximately 100000 New Zealanders will lose their jobs. But we know in times of crisis like for instance the global financial crisis (GFC) that number was 200000. Each occasion where we have seen economic crises rightly you've seen Governments of different persuasions—the National Party included—stepping in to make sure we don't see significant economic scarring. Either way taxpayers pay this is a way of ensuring there's that certainty for New Zealanders around their future should we see such economic crises or indeed health issues.Christopher Luxon: Does she accept that the 2.8 percent levy her Government is proposing is a tax on every Kiwi with a job and why is she introducing a jobs tax during a cost of living crisis?Rt Hon JACINDA ARDERN: I'd be interested to know whether or not the member considers the ACC levy in the same way. And the second point that I would make is that when it comes to quantums final decisions have not yet been made. But given 100000 New Zealanders lose their job everywhere—and everyone in this room would know someone who has been affected through significant health conditions such as for instance an experience with cancer—giving them surety around their future is something that many New Zealanders would welcome.Christopher Luxon: Why is the Government planning to rake in $3.5 billion more in tax from workers and employers every year when Kiwis are already struggling with the cost of living crisis?Rt Hon JACINDA ARDERN: When it comes to the cost of living issues that New Zealanders are facing as are many other citizens around the world we've worked very hard to make sure that we are through targeted spending working hard to decrease those impacts. We've done that through the cost of living payment of which there is a final payment to be made; a 25c reduction in fuel costs at the pump through to January next year; half-price public transport; increasing the family tax credit. The difference between us and the National Party on these issues where they've opposed those moves is they would prefer decreases to the top tax rate. We do not believe now is the time for such measures; it would also be inflationary and would not benefit those who need it most.Christopher Luxon: How is it fair that a Kiwi worker earning $60000 will end up paying an extra $830 a year in tax under this scheme?Rt Hon JACINDA ARDERN: Again as I've already said around the social employment insurance of course we had not finalised some of the final measures around that and nor would they be set to come into play in 2024 and 2025. But this country has now experienced the economic shocks of the GFC the Christchurch earthquake the pandemic. On each occasion the Government's stepped in with taxpayers' money in order to lessen the impact of those and lessen economic scarring. We are one of the few OECD nations that does not have a comparable scheme. This is looking to ensure that we fill that gap.Hon James Shaw: What year did the Future of Work Tripartite Forum first float the idea of this scheme and are there any members of this House who were members of that at the time?Rt Hon JACINDA ARDERN: The member makes a good point. It was several years ago that social insurance was first raised and of course some members in this House were part of things like business advisory councils that if I recall at that time did have a focus on training and support for workers. But now that Business New Zealand is involved there seems to be some distancing from that piece of work. Christopher Luxon: How much of the cost of the 1.4 percent tax on employers is expected to be passed on to workers through lower wages and how much will be passed on to consumers through higher prices?Rt Hon JACINDA ARDERN: I don't believe that most OECD nations who have a scheme such as this would draw that same comparison that the member is making. The second point I would make is that I know the member has launched a petition today and what I would again point out is that ongoing work is still being undertaken on the final details. I would also again just reiterate that most New Zealanders will know someone who in their lifetimes will either lose their job because of issues within their workplace or because they have a significant health event. Most New Zealanders do not have things like income insurance and so we should be thinking about what we can do to lessen the economic scarring that our economy feels through those events but also that a worker experiences. Christopher Luxon: Isn't it the case that this Government's spending is just so out of control it's running out of new things to tax and with the jobs tax Kiwi workers are just the latest victim of her finance Minister's inability to make tough decisions?Rt Hon JACINDA ARDERN: No. But if you want to start talking about the facts how about debt at half the rate of Australia's record low unemployment at just over 3 percent more than 215000 New Zealanders have taken up free apprenticeships a 61 percent increase in apprentices since the pandemic 3800 young people in He Poutama Rangatahi 5200 in Mana in Mahi and 66000 children lifted out of poverty? We are focused on how we can support New Zealanders and workers through hard times; that member is not.Christopher Luxon: Is she committed to pushing through this jobs tax or do hard-working Kiwis have a chance to stop it like they did with her KiwiSaver tax her wealth tax and her capital gains tax?Rt Hon JACINDA ARDERN: Again I really question the proposition the member is putting forward and again what I would also point out is that whilst that side of the House went through the global financial crisis and the Christchurch earthquakes and still chose to do nothing to fix the system we've gone through a pandemic and we are determined that New Zealand will be better prepared to look after its workers in the future. That member is happy to pay out in times of crisis but not to fix the foundations of our country; that is why National is not good for New Zealand.Hon Chris Hipkins: Has the Prime Minister seen reports that the last time New Zealanders faced a cost of living crisis the Government of the day increased GST hiked up ACC levies increased fuel tax and started taxing KiwiSaver contributions?Rt Hon JACINDA ARDERN: Yes that's right. In fact they increased quite a few taxes and never ever told the electorate about it. When it comes to the work that we're doing we've quite openly said this is going to take time it won't likely be in place until 2024/25 and we are quite happy to have the debate with New Zealanders about how we can best prepare to support them in the future.