Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeOral Questions — Questions to Ministers[Sitting date: 11 February 2016. Volume:711;Page:8917. Text is incorporated into the Bound Volume.]Questions to MinistersMental Health Services Canterbury—Funding1.Hon ANNETTE KING (Deputy Leader—Labour) to the Minister of Health: Does he stand by his statement that “we’ve slowed the growth of public spending” given growth in health spending has slowed from over 9 percent under Labour to just 2.6 percent over the last five years and what impact has this had on district health boards?Hon Dr JONATHAN COLEMAN (Minister of Health): Yes. If we had maintained the rates of growth in public spending that we inherited from Labour New Zealand would have owed $100 billion more in debt by 2021 and the debt to GDP ratio would have grown to 60 percent rather than the 30 percent that we have reduced it to. Although health expenditure has grown by $4 billion we have focused on the quality of spending with district health boards delivering more services to Kiwis than ever before.Hon Annette King: If an increase of 2.6 percent is OK by him how does he explain the insufficient funding being given to the Canterbury District Health Board for mental health services to cope with an increasing number of cases of people suffering mental trauma arising from the earthquakes?Hon Dr JONATHAN COLEMAN: There is not insufficient funding. I was down in Canterbury at the start of November. I announced an injection of an extra $13 million to that district health board part of which would be used for mental health services at the discretion of the chief executive officer. So that member might run her political argument but it is not the truth.Hon Annette King: Is he denying that he has been told that Canterbury District Health Board mental health figures show that child and youth cases are up 67 percent rural adult cases are up 80 percent and adult psychiatric assessments at emergency departments are up 102 percent since 2012 increases that are way out of line with other district health boards?Hon Dr JONATHAN COLEMAN: I would have to check those figures but I can tell the member that I was meeting with the Mayor of Christchurch this morning and I was down in Canterbury last week making an announcement. The fact is obviously that there have been unusual pressures in Canterbury over the last 5 years. The Government has supported the people of Canterbury with an extra $70 million on top of the extra $254 million that has gone in over the last 7 years and it is up to the chief executive to make sure that he provides within that budget the services that the people of Canterbury need.Hon Annette King: In light of some people recognising demand and circumstances in Canterbury why is mental health funding at the Canterbury District Health Board significantly below the national average for mental health services as highlighted by the chief executive at the select committee yesterday?Hon Dr JONATHAN COLEMAN: I would absolutely dispute that. I mean the fact is that mental health funding is ring-fenced. There have been extra injections of funding into Canterbury—an extra $70 million. Also we have had special programmes to actually promote awareness around mental health issues down there. More and more money has gone into Canterbury—an extra $254 million over 7 years. It is a huge budget and the chief executive has to make decisions at his discretion in order to provide the services that people down there need. It is a far cry from when Annette King injected another $3 billion and delivered less.Hon Annette King: I raise a point of order Mr Speaker. I just wonder whether you could give a ruling later as to whether this year we are going to have the Ministerbringing up at the end of his answers in all his answers the fact that I was a Minister 11 years ago in order to justify his own inadequacy.Mr SPEAKER: The member makes a good point and the last part of the answer from the Minister was not going to help the order of the House. On this occasion I was possibly more lenient than normal in that in the very primary question the member asking the question has actually taken the opportunity to bring into the question the previous Government’s record. So I think that gives a little more leeway to the Minister but I would also be grateful if the Minister could refrain from normally putting in a flick at a previous health Ministertowards the end of his answer. [Interruption] Order! I am not going to put up with that amount of interjection coming from my right-hand side. Supplementary question to be asked by the member. Otherwise we will move on.Hon Annette King: Why did the Government turn a blind eye to the request for an additional $4.1 million for mental health services in Canterbury 2 years ago and even as recently as 2 months ago the director-general was told by the district health board: “There is an increased demand particularly for women children youth and new entrants to school who are demonstrating developmental delay and parental distress.”?Hon Dr JONATHAN COLEMAN: Well that is absolutely incorrect. I mean I was down there in November announcing the extra $13 million and that is more than ample to cover the $4 million that Canterbury said was necessary to cover mental health demands. So you have got to get your facts straight.Hon Annette King: Why is the Minister not aware that the $16 million he gave to the district health board was not in fact for mental health services but was in fact for deficit support; not for additional mental health services? I would have thought he would know that—Mr SPEAKER: Order! The question has been asked.Hon Dr JONATHAN COLEMAN: No that is totally incorrect. That is money that the chief executive can use at his discretion to fund the services that the people of Canterbury need. Those are the facts.Hon Annette King: Why is the Ministry of Health not passing on information to the district health board about detainees arriving from Australia with mental health problems who are adding to the burden for under-funded mental health services in that region?Hon Dr JONATHAN COLEMAN: Look all that bluster sounds like a great conspiracy but in actual fact there are very clear lines of communication between the ministry and the Canterbury District Health Board and to suggest otherwise is totally mischievous. You know that.Hon Annette King: I seek leave to table from 26 January this year a hospital advisory committee meeting report saying—Mr SPEAKER: Order! [Interruption] Order! In tabling documents a member is required [Interruption]—hold on—to nominate what the document is and give us the date both of which were done but it is not an opportunity to then detail the contents. I will now put the leave and the House will decide.Hon Annette King: I raise a point of order Mr Speaker. You must surely want a little bit of an idea about what it is about. It could be about any old thing.Mr SPEAKER: I have got enough of an idea and it is actually more for my information as to whether I put the leave. The House will decide whether it wants the information. But as we had yesterday on one occasion the tabling of documents is not an opportunity to make political points; it is about informing members. Members have enough information I am sure for what is being given. It does not need to be described further. I will put the leave. The House will decide. Leave is sought to table that particular medical information dated 26 January. Is there any objection to it being tabled? There is not. It can be tabled.Document by leave laid on the Table of the House.Hon Annette King: I raise a point of order Mr Speaker. Once again I would like you to consider this because the reason why I wanted to table it—if you listen the Minister disputed that I was telling the truth.Mr SPEAKER: Order! I have put the leave the document will be tabled and that is the end of the matter. Does the member have further supplementary questions?Hon Annette King: No I think I have used them all.Economic Outlook—Growth and Risks2.Dr PARMJEET PARMAR (National) to the Minister of Finance: What is the outlook for the New Zealand economy and how does this compare with other developed countries?Hon BILL ENGLISH (Minister of Finance): There is quite a lot of international uncertainty at the moment ranging from concerns about the European banking system emerging market capital flows and continued lower commodity prices. However the New Zealand economy remains on track for further solid growth in 2016. It is now in its 7th consecutive year of expansion and Treasury is forecasting growth to average over 2.5 percent per year through to 2020. The Reserve Bank is forecasting 2.8 percent growth over the next 3 years and 173000 more jobs. New Zealand compares well with other developed countries with forecast growth expected to be in line with Australia and to exceed most other developed countries.Dr Parmjeet Parmar: In view of recent international developments what are some of the risks to the domestic economic outlook?Hon BILL ENGLISH: Global economic uncertainty could certainly have some flow-on consequences to the New Zealand economy although they are not all negative. For instance weak commodity prices have made it considerably cheaper for families to fill up the car at the same time as reducing dairy sector returns. The Chinese economy is expected to continue slowing; however its transition to consumption-based growth continues and that is positive for our tourism and agriculture. Uncertainty around the impact of US interest rates beginning to rise may also reflect on our economy. However domestic data remains fairly positive and suggests that further solid growth will occur in 2016.Dr Parmjeet Parmar: How well placed is the New Zealand economy to manage downside risks to the economic outlook?Hon BILL ENGLISH: I suspect we are going to continue to get a fairly solid flow of news about the downside risks to the global economy but it was noted by the IMF yesterday that New Zealand is well placed to manage through global and domestic uncertainty. It points out the Government’s balance sheet is fairly strong and its accounts near balanced our credit rating remains strong the financial sector is sound and although house prices have risen further than we would like they have not led to a credit boom. As a result of this average wages are rising faster than inflation lower interest rates are helping first-home buyers and there is steady if not rising consumer business confidence.Dr Parmjeet Parmar: What steps is the Government taking to support growth and improve resilience in the economy?Hon BILL ENGLISH: One of the more recent higher-profile steps was agreement to the Trans-Pacific Partnership (TPP) and it is good to note finally the support of the Labour Party for the TPP deal—as of yesterday; it could be different now. But the Government intends to stick to its position. Having agreed to the deal we will see it through. The other step the Government is taking is investing in infrastructure with clear plans laid out publicly for $50 billion of investment over the next 10 years.Housing New Zealand—Warrant of Fitness Scheme Report Response3.MARAMA FOX (Co-Leader—Māori Party) to the Minister responsible for HNZC: What assurances can he give that the remediation work needed on the estimated 57500 non-compliant houses as identified in the 2014 Trial of Rental Housing Warrant of Fitness Scheme report will be carried out as a matter of priority?Hon BILL ENGLISH (Minister responsible for HNZC): I can give the member that assurance. I just want to point out though that the warrant of fitness trial covered 400 houses and included 49 criteria that set a very high threshold for quality. So for instance a house could be one of the projected 60000 non-compliant houses if it has one weak security latch on a window or if one light switch is not actually working. I am pleased to report that on each criterion the criterion was met in 95 percent of cases. With regard to any urgent risks Housing New Zealand properties are responded to within 4 hours. There is a 95 percent success rate on meeting the 4-hour criterion where there is an urgent need. From 1 July this year all Housing New Zealand properties receiving an income-related rent subsidy must have ceiling and underfloor insulation and all residential rental properties in the country must have smoke alarms. All State homes where practicable have already been insulated.Marama Fox: Given the answer that the Minister has provided with 60000 of those homes needing urgent repair will the upcoming Budget reflect the Government’s assurance that the remainder of those repairs will be completed?Hon BILL ENGLISH: That process is under way. The Government does not specifically budget the housing maintenance programme; that is done by Housing New Zealand in its capacity as an independent entity. So it is certainly dealing with the urgent cases within 4 hours. It will be making some trade-offs. It has put a high priority on warm healthy homes so it tends to be dealing as a highest priority not with the home with the broken window latch but with the home with the family in it where children are showing signs of ill health and where it can act urgently to upgrade that home. It is spending in excess of $100 billion this year on that project.Marama Fox: Given that we are still receiving reports of families who are living in substandard quality housing experiencing rats mould and other such issues can the Government assure those families that it will act with urgency as it has in upgrading the latest Ministry of Education building to the tune of $20 million?Hon BILL ENGLISH: As has been pointed out the upgrade to the Ministry of Education building is part of making very substantial savings in the costs of housing the Public Service. In fact I think the Ministry of Education as a result has reduced its footprint by 30 percent. That allows us then to take money that was wasted on excessive accommodation for public servants and turn it into real services for the families that the member mentions. Housing New Zealand is not doing a perfect job of meeting the needs of every single family but as I said it has allocated a large proportion of its budget to dealing with those families who have question marks over the health of the housing they are in.Roading Auckland—East-West Connection4.JAMI-LEE ROSS (National—Botany) to the Minister of Transport: What announcements has the Government made recently on the East-West Connection roading project in Auckland?Hon SIMON BRIDGES (Minister of Transport): The Onehunga-Penrose area is the engine room of New Zealand’s industrial and manufacturing economy and along with East Tāmaki and Auckland Airport employs over 130000 people and generates $10 billion in GDP a year. It is for those reasons that the Prime Minister recently announced the East-West roading connection estimated to cost somewhere between $1.25 billion and $1.85 billion as a project of national significance. This means that the project will go through a streamlined consenting process later this year to bring forward its construction so work can start as early as 2018.Hon Peseta Sam Lotu-Iiga: How will the nationally significant East-West connection project benefit Auckland?Hon SIMON BRIDGES: Well the projected growth rates of Auckland particularly at Auckland Airport Manukau City and East Tāmaki - Botany will generate greater demand for cross-city east-west traffic. The East-West roading connection which will link the south-western motorway and the southern motorway will tackle congestion and provide more reliable travel and freight times in and out of the Onehunga-Penrose industrial area. It will also provide much better access between the eastern suburbs and the airport. That is why the planned connection is a real priority for Auckland and the Government is committed to completing this nationally significant project as quickly as possible.Hon Peseta Sam Lotu-Iiga: What other priority roading projects is the Government delivering in Auckland to support the city’s growth?Hon SIMON BRIDGES: Well as the member will well know there are many. The Government is committed to Auckland’s transport system to ensure that the city remains a great place to live and do business. Over the next 3 years $4.2 billion will be invested in transport in and around Auckland. This includes completing the western ring route opening the $1.4 billion Waterview Connection ongoing construction of the $1.3 billion Auckland-Manukau Eastern Transport Initiative $268 million to upgrade parts of the southern motorway and starting construction of upgrades on the northern motorway in 2018. All of these projects I think underscore the Government’s strong backing of Auckland to succeed.Julie Anne Genter: Is he confident that spending $1.25 billion to $1.85 billion on a stand-alone highway is the most cost-effective way to address freight mobility in that part of Auckland; if so why?Hon SIMON BRIDGES: Without question because unlike the member we actually think there is still a role in the future for cars and trucks.Julie Anne Genter: How can he be confident that it is the best solution when the indicative business case undertaken by his Government shows that there are other road improvement solutions that achieve the same or better time-travel savings at a fraction of the price—$500 million?Hon SIMON BRIDGES: I simply do not accept that but there are many reasons why I am highly confident that this is the right and the best solution. They range from the technical data through to the wide and varied press releases and support from every conceivable business outfit that Auckland has to offer.Julie Anne Genter: So is he saying that his Government judges the cost-effectiveness of a solution based on the press releases of supportive businesses rather than the objective analysis undertaken by his Government where it shows that there is a solution that will achieve these same time-travel saving benefits for freight and cars at a fraction of the price $500 million?Hon SIMON BRIDGES: The member did not listen to my answer and all of what I said. I think what is true is that the member and her party are blinded by ideology when it comes to transport. This Government takes a balanced approach and is investing in rail roads and cycleways because we are the Government of infrastructure that is making a difference in this country.Julie Anne Genter: Does the Minister acknowledge that if his Government shows the more cost-effective roading upgrade option we would get exactly the same or better time-travel savings for freight in the area the same environmental benefits and we would have an additional billion dollars that could be spent on other transport improvements in Auckland like—Mr SPEAKER: Order! Bring the question to a conclusion.Julie Anne Genter:—like extending rail to Mount Roskill electrifying rail between Papakura and Pukekohe extending the Auckland-Manukau Eastern Transport Initiative busway into Ellerslie and Manukau and have change left over?Hon SIMON BRIDGES: There is so much there but can I just say that we take cost-effectiveness incredibly seriously as we do matters of the environment and the like. That is why this road—it may surprise the member to know—will take much better public transport in terms of the bussing and so on and will be cycleway-enabled. And I think it is going to make an incredible difference to productivity as well as environmental outcomes in Auckland and actually for New Zealand given its very significant national significance.Julie Anne Genter: I seek leave to table this analysis by the New Zealand Transport Agency and Auckland Transport—Mr SPEAKER: Order! Just assure me that it is not available on a website.Julie Anne Genter: Well it does not seem the Minister has read it.Mr SPEAKER: Order! That in itself brings this House into disorder.Government Financial Position—Crown Debt5.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: When the Prime Minister said in his statement to Parliament this week that there is now a $17 billion shortfall from Budget 2015 leading to “slightly higher debt” exactly how much higher net and gross debt is now forecast and when will that debt peak?Hon BILL ENGLISH (Minister of Finance): I am glad the member has caught up on this. If he had done his own work he would have found that that was announced publicly in the Half Year Economic and Fiscal Update. Lower than expected economic growth in 2015 combined with weaker inflation means that tax revenue is expected to be slightly lower than was forecast in the 2015 Budget. This means that net debt is now expected to peak at 27.7 percent of GDP in 2016-17. The previous peak was forecast back in 2015 as 26.3 percent. Net debt is still expected to fall to around 20 percent of GDP by 2020.Grant Robertson: I raise a point of order Mr Speaker. I appreciate that the Minister has interpreted that question in a particular way but it did ask about net and gross debt. I did not actually hear the gross debt numbers.Mr SPEAKER: I will ask the Minister to complete just that phase of the answer.Hon BILL ENGLISH: I just thought the member was losing concentration.Mr SPEAKER: I will just have the answer.Hon BILL ENGLISH: Gross debt is forecast to peak at 37.5 percent of GDP in 2016-17. The Budget 2015 forecast showed a peak at 35.6 percent of GDP. But I might say to the member as I often say to the media when they ask about these numbers that it is just another Treasury forecast. It is about to start on reforecasting for Budget 2016 and it is possible that those numbers will change.Grant Robertson: Is it correct that the Half Year Economic and Fiscal Update issued after the House rose last year actually shows that nominal net debt will be $6 billion greater when it peaks in 2017 than was forecast in the Budget?Hon BILL ENGLISH: It could be something like that. That number will be generated by a combination of lower tax revenue and higher capital investment levels as the Government also indicated in the Half Year Economic and Fiscal Update. It increased its capital allowance for this next year by around a billion dollars. So on the current Treasury forecast debt will be up compared with where we thought it would be; on the next Treasury forecast debt could be down again. But generally it is headed towards a peak and then coming down.Grant Robertson: Can he in fact confirm that he has overseen New Zealand’s net debt rising by more than $50 billion and that on these forecasts he is set to break the $60 billion increase level some 5 years after he declared that the financial crisis would have been over?Hon BILL ENGLISH: There is absolutely no doubt net debt has risen and that is because on Planet Earth as opposed to “Planet Labour” we had a major recession and a $17 billion contribution to rebuilding Christchurch. The way we are getting debt to stop rising and to drop is to do all the things the member opposes—that is control spending; shrink the footprint of the Public Service by rationalising their accommodation which the Labour Party has opposed vigorously in the last few days; and otherwise dig into the long-term driver of Government costs which is social dysfunction.Chris Bishop: How do Treasury’s latest forecasts on Government debt compare with its forecast just after the National-led Government was elected?Hon BILL ENGLISH: The latest Treasury forecasts for net debt show that it is expected to fall to around 20 percent of GDP by 2020—that is 20 percent of GDP by 2020. This is in stark contrast to the forecast prepared before this Government’s first Budget Budget 2009 where Treasury projected never-ending deficits and net debt at 60 percent of GDP. That is three times the level that we are now headed to. That of course is what happens when you increase spending by 50 percent in 5 years as the previous Labour Government did.Grant Robertson: What level of net debt did the National Government inherit on coming into office in 2008?Hon BILL ENGLISH: What it inherited were Treasury forecasts—[Interruption]Mr SPEAKER: Order! The question has been asked. I want to hear the answer but I cannot possibly hear it—[Interruption] Well if the members also want to hear the answer that is good news so they can be quiet and we can all hear the answer.Hon BILL ENGLISH: OK well the member should listen very carefully. I think that in around Budget 2008 the Labour Government forecast net debt of around I think 8 percent. By early 2009 the combination of the global financial crisis and the re-estimate of the huge spending blow-outs of the Labour Government meant we were headed to net debt of 60 percent of GDP. That is when we got to work.Grant Robertson: I raise a point of order Mr Speaker. I asked a very specific question and the Minister of Finance did not answer it.Mr SPEAKER: I cannot be sure on this occasion. I was listening carefully but I had a barrage of interjection continuing on my left and whether it was answered accurately or not I cannot tell. If the member had assisted me to get silence when I asked for it—by less interjection from his own members—I would on this occasion possibly have been able to help him.Grant Robertson: It was close to zero by the way Bill. What price per tonne of whole-milk powder has been factored into the calculation that there is now a $17 billion shortfall from Budget 2015?Hon BILL ENGLISH: I cannot give the member that figure off the top of my head but I can characterise the forecasts. When they were done back in November Fonterra had forecast a significant uplift reasonably quickly in that price. Both Treasury and the Reserve Bank took a more conservative view and they do not forecast the price as rising much above where they are until later on in 2016. It is possible that the most recent decreases the price level it decreased to in the last couple of weeks is a bit lower than what is in the forecast.Grant Robertson: In light of that answer is it correct that in Budget 2015 a whole-milk price of US$3900 per metric tonne was given and that it is now on the latest auction price US$1952 per metric tonne and how much of that drop has been factored into the forecast?Hon BILL ENGLISH: I would say most of it if the member is looking for an answer but I would have to go back to inquire of Treasury about the detail. But the member would simply be giving the wrong impression if he is suggesting that the forecasts prior to Christmas that underpinned the $17 billion reduction in GDP are way above current milk prices because they will not be way above it.Grant Robertson: Can he in fact confirm that the price per tonne of whole-milk powder that has been used to calculate the $17 billion shortfall is in fact a substantially higher amount than the current price?Hon BILL ENGLISH: I can go and check exactly the numbers against the price this week but the member is in the habit of picking in any week or any day the most negative number he can find and then comparing that with a forecast that was actually made 2 or 3 months ago. In this case the whole-milk powder price has fallen in recent weeks. Some other dairy product prices have gone up. It could go up again next week. Treasury is about to redo its forecasts and it will use the most up-to-date information. The most up-to-date information will include the boom in tourist numbers—Hon Nathan Guy: Manufacturing.Hon BILL ENGLISH: The record growth in manufacturing now I think is in its 40th month since the member declared a crisis. So although dairy prices—Mr SPEAKER: Order! The question was answered right at the start.Grant Robertson: Will the Minister of Finance commit today that the figure of a $17 billion shortfall from Budget 2015 includes a price for whole-milk powder that reflects the current price?Hon BILL ENGLISH: Almost by definition it could not because the forecasts were done in November last year and as part of his extensive work the member may have noticed that a lot of things have happened since then. That is why Treasury is about to redo the forecasts and it will take into account the best current information. In the face of global uncertainty New Zealand is fortunate that dairy is not as big a proportion of the economy as the member seems to think it is. It is not going well. Other parts of the economy are going well and that is why real wages are rising and more new jobs are being created.Tourism—Growth6.TIM MACINDOE (National—Hamilton West) to the Minister of Tourism: What reports has he seen about the number of tourists that visited New Zealand over the summer season?Hon PAULA BENNETT (Associate Minister of Tourism) on behalf of theMinister of Tourism: The tourism sector continued its very impressive growth last year with a record 3.13 million visitors coming to New Zealand—up 10 percent from 2014. Summer was particularly busy with 445000 visitors—the highest-ever monthly figure visiting in December alone. It was also of course the month that Taylor Swift visited took a fantastic selfie said that the players are “gonna play play play” the haters “hate hate hate” but she was “love love loving New Zealand”.Tim Macindoe: What kind of contribution are international visitors making to the economy?Hon PAULA BENNETT: Not only are more people visiting but they are spending more as well. Last year international tourists are estimated to have spent $11.8 billion in New Zealand. There is the cruise sector where currently P and O have got a cruise ship in Auckland that is staying for the next 5 months and doing trips around New Zealand dropping in to ports like of course Napier Picton Akaroa Tauranga and Wellington. Here you can see a cruise ship most days—Hon Member: Timaru.Hon PAULA BENNETT: Timaru I can hear my colleague saying. It is just another example of a great industry that is growing and great for New Zealand.Tim Macindoe: What is the Government doing to ensure tourists visit regional New Zealand?Hon PAULA BENNETT: I tell you what: supporting regional tourism is absolutely a priority and it is one of those industries where we can ensure that we have got visitors going throughout New Zealand and that more can be done. Just last week the Minister for Economic Development Mr Joyce here announced $4 million in funding for the construction of the Hundertwasser Art Centre and the gallery in Whangarei. What a great attraction that has the potential to be—bringing people into that region and giving them another experience. I do not even need to talk about the cycleways but why would I not? On top of the more than $50 million invested so far we are seeing more of those visitors here going into greater regions in New Zealand spending their money and of course having a fantastic time.Student Achievement—Socio-economic Factors7.METIRIA TUREI (Co-Leader—Green) to the Minister of Education: Does she agree with the findings of the OECD Programme for International Student Assessment Report that “the socio-economic status of students is probably the most important risk factor associated with low academic performance”?Hon NIKKI KAYE (Associate Minister of Education) on behalf of theMinister of Education: The Government is pleased with this report as it reinforces the general approach that there is a range of risk factors involved with student achievement to help our most vulnerable students. However I do not agree with the member that the statement that she references is an exact finding of the report. If she looks at the executive summary she will see that the report says analyses show that “Poor performance at age 15 is not the result of any single factor but rather of a combination and accumulation of various barriers and disadvantages”.Metiria Turei: Does the Minister dispute the findings from the report and the quote that “the socio-economic status of students is probably the most important risk for children in their academic achievement”? That is what the report said.Hon NIKKI KAYE: As I said in my first answer I do not agree that it is a specific finding of the report. There are recommendations in the report which I am happy to take the member through and further supplementaries on what the Government is doing in terms of those recommendations but I think that if you read the report—the 212 pages of it—it looks at all of the risk factors working together. Minister Parata has just been in Gisborne today announcing a new programme called Year 9 Plus which takes into account the range of risk factors and we believe that is the best approach.Metiria Turei: Why did the percentage of New Zealand kids in the poorest households who were performing at the lowest levels increase from 28 percent to 42 percent between 2009 and 2012 under this Government?Hon NIKKI KAYE: I would have to look at the specific—Metiria Turei: You said you had the specific report.Hon NIKKI KAYE: Well I would have to look at the specific figures that she is quoting but what I can say to the member is that when you look at the report and the cohort of children that is being considered in the data a lot of these children actually started school in 2003. Since that time our Government has been very focused on supporting our most vulnerable kids from the fact that we have been investing in obviously breakfast in schools—6 million breakfasts for children. We have been focused on Māori and Pacific achievement. We have more children more Māori and Pacific young people than ever before in early childhood education so my point is that since 2003 we have had huge initiatives focusing on our most vulnerable.Metiria Turei: Given that the report shows that most other OECD countries have managed to break the link between socio-economic background and educational achievement why has the Minister and this Government failed to do so for New Zealand kids?Hon NIKKI KAYE: I do not agree with the statement that the member has just made. In fact there is a statement in the report—I will get her the quote after I leave the House if she likes—where it says it is very important to acknowledge that there is real diversity in each of the different nations that are being compared. And actually I think a key aspect of this report is saying: “Let’s look at the specific risk factors rather than have a simplistic debate.” Let us look at the fact that it does matter in terms of language it does matter in terms of access to food and it does matter in terms of good teachers. We have to take a much more complex approach. These are complex issues and our children deserve that we do that.David Seymour: Is it not also true that the same report says and recommends that countries’ education systems “identify low performance”; and what is this Government doing about that?Hon NIKKI KAYE: I do note that one of the recommendations of the report is that we actually need to know where these children who are specifically low performingare. One of the key initiatives that we have implemented which has been opposed by Opposition parties is national standards. We know where these children are we are now resourcing more than ever before where we need to in numeracy and literacy and we are putting more resource into them. We would not be able to do that if we did not have national standards.Metiria Turei: Does the Minister dispute the OECD finding that in New Zealand the very poorest kids are more than six times as likely to do badly in maths as the very richest kids in this country?Hon NIKKI KAYE: I will make three points. The first is that we welcome this report because we actually believe all of the recommendations. We are doing a whole lot of things to address those recommendations. The second thing I would say is that we do not agree with the member that the statement that she quotes is a key finding of the report. And the third point that I would make is that my understanding is it is not six times; it is three times. Finally we want to work together to make sure that we continue to invest in order to help our most vulnerable students.Metiria Turei: Why is this yet another Minister—[Interruption]Mr SPEAKER: Order! Can we just have the question please.Metiria Turei: —thank you—who is choosing to override the very clear evidence that poverty-related effects on children mean that they are failing to perform as expected? Those poverty-related effects are things like cold damp homes and not having enough food and insecure housing—Mr SPEAKER: Order! Now the question is going on for too long. Bring the question to a conclusion.Metiria Turei: —in the policies that this Government is making and the failure to address the needs of those children. Why are you refusing to—Mr SPEAKER: Order!Hon NIKKI KAYE: I just do not agree with the statements that the member has made. We said we welcome the report. Actually there is a lot more that we need to continue to do to help our most vulnerable students and we have done more than any other Government actually. Whether it is insulating homes for some of our most disadvantaged New Zealanders whether it is raising benefits which will kick in in April whether it is targeting Māori and Pacific students or whether it is breakfast in schools—6 million of them—we are doing that. And I think that this report actually confirms when you look at all the recommendations that it is a complex area and you need to address all of the risk factors—not quote things like “it’s about poverty” but look at the real detail and address that specifically.Radio New Zealand—Board Appointments8.CLARE CURRAN (Labour—Dunedin South) to the Minister of Broadcasting: Is she satisfied there is no conflict of interest in recent appointments to the board of Radio New Zealand?Hon AMY ADAMS (Minister of Broadcasting): Yes.Clare Curran: Did she provide certification to Cabinet regarding conflicts of interest for Bill Francis in accordance with Cabinet guidelines when appointing him to the board of Radio New Zealand?Hon AMY ADAMS: Yes.Clare Curran: Why did she ask Cabinet to approve Bill Francis’ appointment to the board of Radio New Zealand when he had a clear conflict of interest as chief executive of the Radio Broadcasters Association which represents commercial broadcasters and is in competition with Radio New Zealand for listeners?Hon AMY ADAMS: Because he finishes that role before taking up the appointment.Clare Curran: Why was Mr Francis’ position as chief executive of the Radio Broadcasters Association not flagged as a conflict of interest during the appointment process and how can she realistically expect someone who represents commercial broadcasting in one role to manage a conflict of interest in another role governing a competing State broadcaster?Hon AMY ADAMS: Because he does not and it was flagged.Regional Economic Development—Northland9.MARK MITCHELL (National—Rodney) to the Minister for Economic Development: What recent announcements has he made about economic development in Northland?Hon STEVEN JOYCE (Minister for Economic Development): Last week alongside a number of other ministerial colleagues I launched the Tai Tokerau Northland Economic Action Plan at a function of around 150 community and business leaders in the Bay of Islands. The plan identifies 58 actions that will help increase growth in the region prioritising infrastructure improvements relating to transport digital skills and capability and water. Nothing generates sustainable higher-paying jobs and boosts the standard of living better than business confidence and business investment. The plan which was generated by local government business and community leaders working with central government will build confidence amongst potential investors and will lead to more and higher-paying jobs for the people of Northland.Mark Mitchell: Why has the Government made Northland the focus of an economic action plan?Hon STEVEN JOYCE: New Zealand will not be able to realise its full economic potential until all our regions are thriving. Although Northland has shown good progress recently with nearly 4000 more people in employment now than 2 years ago and an unemployment rate down to 6.2 percent which is the lowest it has been since the previous Government led the country into recession over many decades and several Governments the region has not reached its full economic potential. The Government is therefore working with the local iwi central government local government agencies and Northland businesses. They are all working together to put together a plan that we are all confident will lead to a step change in economic activity in the region over the next decade.Dr Shane Reti: What economic development opportunities does the economic action plan set out?Hon STEVEN JOYCE: There are 58 projects a number of which are getting under way. For example critical infrastructure like ultra-fast broadband airport improvements—Hon Member: What about the election promise of sealing roads?Hon STEVEN JOYCE: Yes new bridges and roading upgrades; the Hundertwasser Art Centre and the Wairau Māori Art Gallery in Whangarei to which the Government has committed $4 million to help construct; new tertiary providers working in the region like the Queenstown Resort College to get more young people into training and employment in the tourism sector; better use of Māori land to encourage more farming horticulture and forestry and high-value products like mānuka honey; and of course other projects like trading more with the world which is why trade deals like the Trans-Pacific Partnership and the Korean free-trade agreement are so important to regions such as Northland.Tracey Martin: Kia ora. How does the Minister reconcile his Government’s promise to Northlanders to upgrade 10 single-lane bridges when only three of those bridges are funded and the Northland economic action plan does not even mention a bridge?Hon STEVEN JOYCE: The member is mistaken with the second part of her question. Actually the upgrading of the Twin Coast Discovery Highway including bridges is very clearly in the economic action plan. It is a reasonably short booklet but if she would like to read it again I am happy to show her where it is. With regard to the other part of the question that commitment is over a 6-year period. We have already stepped up with three bridges. The fourth is coming. There are three to be investigated. I will tell you what. This Government will deliver those bridges in Northland. Northlanders will know it and they will be very positive about that achievement.Tracey Martin: How can Northlanders trust a word he says when the Wellsford to Warkworth motorway has no indicative route and yet the Northland economic action plan on page 12—for the Minister—says it will be delivered within 5 years?Hon STEVEN JOYCE: Again I think the member needs to have another look at the report because the report refers to the Pūhoi to Warkworth section being delivered within 5 years and that is the construction that is taking place. The Warkworth to Wellsford section is the second part of that. The report also refers to four-laning the highway to Whangarei which is being investigated now by the New Zealand Transport Agency and the Government. That would be a very big commitment to the region. Can I say to the member that picking on a Government is fine on a number of things but on roading in Northland we will be shown to have done more for Northland than any other Government.Tracey Martin: I raise a point of order Mr Speaker. Can I offer the Minister page 12—Mr SPEAKER: No. Order! No you cannot.Border Control—Illegal Drug Interception10.RINO TIRIKATENE (Labour—Te Tai Tonga) to the Minister of Customs: Does she stand by all her answers to Oral Question No. 11 in the House yesterday?Hon NICKY WAGNER (Minister of Customs): Yes.Rino Tirikatene: Why did she say that quantifying the proportion of drugs intercepted at the border is “impossible to answer” when the National Drug Intelligence Bureau said in 2009 that 16 to 20 percent of drugs were being seized at the border?Hon NICKY WAGNER: It is always a speculation on what percentage of drugs are seized at the border. It is impossible for anyone including the member’s anonymous source to measure exactly what is brought in. Contrary to all other importers drug smugglers do not tell us what they are bringing in.Rino Tirikatene: Does she have any updated figures that disprove the fact that the drug interception rate has deteriorated to one in 10 under her Government’s watch?Hon NICKY WAGNER: I have as much information as your sources to make that statement. As I have said the facts that underpin are the facts that we have got interceptions at record levels the number of P users is going down from 2.2 percent to less than 1 percent and the price of P has remained stable and high.Rino Tirikatene: How is the Customs Service meant to catch drug traffickers when as few as seven officers operate at Auckland International Airport on a night shift seeing up to 2000 passengers an hour?Hon NICKY WAGNER: Eighty percent of customs officers work at the border. Our customs officers are very skilled and with our recent investment of $6.6 million into SmartGate the vast majority of routine customers can go through that process and so our customs officers are there to manage high-risk passengers and goods.Rino Tirikatene: How can she say that the Customs Service is doing a good job stopping drug trafficking when the Department of the Prime Minister and Cabinet says the price of methamphetamine in 2015 was lower than it was in 2014 and its availability and purity has increased?Hon NICKY WAGNER: That is not correct. The price fluctuates but it has maintained very stably since 2008 and it has remained very high. And it is very interesting that we with Australia are very high in the world and that in Australia which has just given its latest information it is less than ours.Road Safety—Overseas Drivers and Rental Vehicle Companies11.DENIS O’ROURKE (NZ First) to the Associate Minister of Transport: Is he satisfied with the rate and seriousness of accidents involving overseas drivers in light of the work the Government is doing to target overseas drivers?Hon CRAIG FOSS (Associate Minister of Transport): I am never satisfied with the rate and seriousness of accidents that occur on our roads involving any driver whether they are from New Zealand or afar. We want everyone to be safe on our roads and that is why we are investing more in road safety measures increasing the numbers of signage in tourist areas and providing more information to visiting drivers to better educate them on New Zealand driving conditions. This complements the work that is being done by industry organisations such as the Rental Vehicle Association of New Zealand and the Tourism Industry Association. We will continue to invest in making our drivers more informed better prepared and able to drive safely on our roads.Denis O’Rourke: Does the Minister accept that some rental car operators are not making a genuine effort to ensure the competence of drivers whom they hire vehicles to; if so what will he do about it?Hon CRAIG FOSS: I do note that the Rental Vehicle Association of New Zealand has about 70 or 80 percent of the rental fleet as its members. There are some rental companies out there that are currently not members of the association and therefore are not part of the code of conduct it is trying to bring in to assist visiting drivers. So what am I doing about it? I am continually working with the Rental Vehicle Association of New Zealand so that it will enforce it amongst its members and continue to increase the numbers of those who are participating in the positive code of conduct. By and large it is working.Denis O’Rourke: What has he got to say about the recently observed practice of some rental car operators instructing overseas drivers to falsely complete questionnaires to confirm familiarity with New Zealand roads and traffic laws even after the driver has stated that they are not familiar with them?Hon CRAIG FOSS: Yes I saw that comment in the member’s press release and I suggest that that member with that information talk to the Rental Vehicle Association of New Zealand confront that rental vehicle company and tell it about the safety issues that the member is rightly concerned about.Denis O’Rourke: Will the Minister adopt my member’s bill to make rental car operators vicariously liable for accidents caused by drivers if it can be proved that they have not taken reasonable and practical steps to ensure the competence of the drivers and their familiarity with New Zealand traffic laws and roads; if not why not?Hon CRAIG FOSS: As recent court cases would have shown I expect and continue to expect that the drivers of vehicles who cause accidents are held responsible and accountable and are punished where necessary for their actions. I am not transferring that liability to some other organisation.Denis O’Rourke: Will the Minister adopt my member’s bill to also require rental car operators to hire only vehicles complying with the Australasian New Car Assessment Program’s 5-star safety rating including autonomous emergency braking a blind-spot monitoring system and a lane-support system to warn drivers if they stray from a lane; if not why not?Hon CRAIG FOSS: I am glad the member asked that question. The member’s bill and the member’s press release do not actually line up. The member’s press release says all drivers including New Zealanders would be subject to that; the member’s bill promotes something else. But what the member’s bill proposes would result in actually only the latest-model BMWs and European cars over $100000—whatever they are—to be allowed to be rented out in New Zealand and quite possibly would raise costs for renting vehicles for all New Zealanders and all tourists. So if the member wants to raise costs for all rentals in New Zealand—over a million rentals a year—and create a fleet of only the flashest latest BMWs that have the things that he prescribes then he can go for it.Denis O’Rourke: Is the Minister aware that some overseas driver’s licences can be purchased without a robust driving test? What will he do to invalidate those licences for use in New Zealand?Hon CRAIG FOSS: If a driver’s licence that is presented to an operator or an authority in New Zealand is found to be fraudulent or not valid then the rental company can take that—Denis O’Rourke: I raise a point of order Mr Speaker. The Minister must have misunderstood the question—Mr SPEAKER: I think that is a fair call. I will invite the member to ask the question again.Denis O’Rourke: Is the Minister aware that some overseas driver’s licences can be purchased without a robust driving test? What will he do to invalidate those licences for use in New Zealand?Hon CRAIG FOSS: I have heard reports along those lines particularly last year. I note the visiting drivers issue is ongoing at this time of the season. In respect of issues around accusations of driver’s licences being purchased and used potentially fraudulently in New Zealand first of all the rental companies have a code of conduct where they compare and check licences that are approved in New Zealand. There must be an English version of those licences. So there is not one silver bullet in this space; there are a whole lot of initiatives in this visiting drivers’ space. I appreciate and acknowledge the good intent of the member’s bill but events have by and large bypassed that bill.Wine Industry—Growth12.STUART SMITH (National—Kaikōura) to the Minister for Primary Industries: What recent reports has he received on the growth in wine exports?Hon NATHAN GUY (Minister for Primary Industries): Recent reports show that New Zealand wine exports have reached a new record high of $1.54 billion for the 2015 year. This is up 14 percent on the previous year. New Zealand wine is exported to more than 90 countries and it is our sixth largest export sector. In the last year we have seen significant growth in the US up around 26 percent; Canada up 18 percent; and the UK up 12 percent—very impressive growth indeed.Stuart Smith: How is the Government supporting the growth in the wine industry?Hon NATHAN GUY: The Government has partnered with industry in a $17 million Primary Growth Partnership programme Lifestyle Wines. This is developing low-alcohol low-calorie wines and it is the largest ever research and development project in our wine industry. Of course the Trans-Pacific Partnership (TPP) will have massive benefits for the wine industry. TPP countries account for around 60 percent of our overall wine exports. The TPP ensures that tariffs on wine exports to these countries will be eliminated. This will generate savings of around $10 million per year for our local wine growers.Stuart Smith: What reports has he received on the importance of the TPP agreement to the wine industry?Hon NATHAN GUY: Good question. The local wine industry is hugely buoyed by the Trans-Pacific Partnership. Wine Marlborough’s general manager Marcus Pickens states that “If you give consumers a New Zealand wine over the rest of the world I’d like to think that they’d choose us.” New Zealand Winegrowers’ chief executive Philip Gregan said: “This is an excellent outcome for the New Zealand wine industry. Finalising the TPP is strategically very important for our export future”. He goes on to add that the “TPP will undoubtedly help the wine industry reach our goal of $2 billion of exports by 2020”. He went on to say: “We congratulate the Government and the negotiators for their hard work and the very positive outcome they have achieved.”