2. Question No. 2—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. CHRISTOPHER LUXON (Leader of the Opposition) to the Prime Minister: Does he stand by all of his Government's statements and actions?Rt Hon CHRIS HIPKINS (Prime Minister): Yes particularly the Government's action in securing a gold-standard free-trade agreement with the United Kingdom unlocking unprecedented access to the UK market. This is expected to boost New Zealand's goods exports to the UK by over 50 percent and add up to $1 billion to New Zealand's annual GDP. The UK is New Zealand's seventh-largest trading partner and a crucial market for some of our key exports such as wine honey red meat and dairy. So this agreement will benefit our economic recovery and help to tackle the rising cost of living for New Zealand families.Christopher Luxon: Does he take any responsibility for the fact that according to Treasury the economy is tracking weaker than forecast."?Rt Hon CHRIS HIPKINS: The New Zealand economy is not immune from the broader economic pressure that is being seen around the globe. I note a number of countries are experiencing a lot of economic pressure at the moment as the member will be well aware from his recent travels to the UK although I think he was too busy running down the New Zealand economy perhaps to pay any attention to that.Christopher Luxon: What impact will the weakening economy have on Kiwis—Hon Dr Megan Woods: More campaigning on the taxpayer's dime.Christopher Luxon: —already struggling with mortgage food and childcare costs and why has he ruled out giving them tax relief at the Budget?SPEAKER: Order! Sorry. Is that the Hon Dr Megan Woods interjecting during a question?Hon Dr Megan Woods: It was.SPEAKER: It was. This is becoming quite common. Yeah I'm just wondering if I should escalate it up the ladder a bit. Well you've been warned so stand withdraw and apologise.Hon Dr Megan Woods: I withdraw and apologise.Christopher Luxon: Can I ask my question again?SPEAKER: Yes please.Christopher Luxon: What impact will the weakening economy have on Kiwis already struggling with mortgage food and childcare costs and why has he ruled out giving them tax relief at the Budget?Rt Hon CHRIS HIPKINS: One of the challenges with tax relief at this point is that it has the potential to be inflationary thus ensuring that interest rates stay higher for longer and therefore potentially meaning families would be worse off.Hon Meka Whaitiri: Will he guarantee that cultural competency is a prerequisite for all senior public appointments in light of his statement on the snubbing of King Tūheitia in London that "Clearly there's a reminder here that we can think more carefully about how we do that in the future."?Rt Hon CHRIS HIPKINS: I absolutely stand by the statement that the member just quoted.Hon Meka Whaitiri: Will he recall the High Commissioner for New Zealand to the United Kingdom who demonstrated a clear lack of cultural understanding in welcoming Kīngi Tūheitia and the New Zealand delegation to London last week?Rt Hon CHRIS HIPKINS: No.Christopher Luxon: Does he consider adjusting income tax brackets to be "a major tax change" or can Kiwis actually finally expect a reduction in their income tax bill at the Budget now that it's an election year?Rt Hon CHRIS HIPKINS: I just addressed that in my last question. Significant tax reductions at this point would likely result in higher inflation for longer.Christopher Luxon: Why has the deficit blown out by $2.5 billion in just the last five months and why is the Government continuing to spend so much more than it takes in despite record inflation?Rt Hon CHRIS HIPKINS: I'd encourage the member to wait and see what the Budget forecasts are saying. It's not too long to go now to when the most updated Government finances will be released but it is fair to say that the Government finances have been affected by the broader economic situation.Christopher Luxon: Is the only reason he's flirting with a capital gains tax because he needs more of New Zealanders' money to fuel his Government's addiction to spending?Rt Hon CHRIS HIPKINS: I note that the member himself consistently in the first part of his leadership was arguing for the Government to spend more money even after the Reserve Bank started hiking the official cash rate. In fact in between each of the first hikes that the Reserve Bank made to the official cash rate he made policy announcements indicating the Government should be spending more money.David Seymour: Does the Prime Minister accept that in five years Government expenditure has increased by 61 percent 34 percent ahead of inflation and can he give a measurable example of any Government service that is 34 percent better today than it was five years ago?Rt Hon CHRIS HIPKINS: Well I'll give the member one policy initiative: there are 220000 children who go to school every day and receive a free and healthy lunch because of the policies introduced by this Government.Christopher Luxon: Will he rule out introducing a capital gains tax a wealth tax or an inheritance tax while he is Prime Minister?Rt Hon CHRIS HIPKINS: I've made very clear commitments that they won't be in this year's Budget. Of course the Labour Party will set out its manifesto around tax for the next election and ultimately New Zealanders will decide.Christopher Luxon: Why is it that Jacinda Ardern could rule out a capital gains tax as Prime Minister yet he can't?Rt Hon CHRIS HIPKINS: I note that she did that in the context of a general election campaign.Christopher Luxon: Why can't you just stop playing politics and come clean about your plans to tax Kiwis more for his Government's wasteful addiction to spending?Rt Hon CHRIS HIPKINS: I completely reject the notion that the Speaker is playing politics."