1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements policies and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes.Hon Simon Bridges: What is a better reflection of New Zealanders' living standards: GDP or GDP per capita?Rt Hon JACINDA ARDERN: GDP per capita obviously is something that has sat around the 0.9 percent to 1 percent mark for some time and is a reflection actually of poor productivity. That is something that has been persistent. He would know it well because it sat about the same rate under his Government as well. It's an area where unlike his Government we have a plan: investment in R & D making sure that we are investing in the skills of New Zealanders including things like fees-free and apprenticeships. All will make a difference ultimately to our productivity.Hon Simon Bridges: What was annual GDP per person growth for the previous 12 months and how does that compare to other countries in the OECD?Rt Hon JACINDA ARDERN: While I don't have the comparison for other countries with me in the House now the increase in the last quarter of course—we are sitting at about 0.9 percent. When you compare that to the 10-year rolling average that sits at about 1.2 percent from memory. And again actually the member may do well to reflect on the fact that we've actually had an issue with our productivity for some time over the last 10 years. Unlike the last Government our view is that we do need to address that by investing in our people. That's something that's been raised continually by the likes of the OECD.David Seymour: How does the fees-free policy increase productivity? Rt Hon JACINDA ARDERN: Ultimately our goal has to be to lift the skills and education level of all New Zealanders. If there is a barrier to that then that needs to be addressed. I reflect for instance that the last time I was up North I had someone a teacher explicitly tell me the difference it was making to the number of students who were entering into post-secondary education because of a removal of that barrier—the cost of study. If we can encourage that for more and more New Zealanders hopefully we can of course make a difference to things like our NEET numbers. David Seymour: How can the Prime Minister say that the fees-free policy has increased the skills of New Zealanders when participation in tertiary education under the policy has gone down nationwide? Rt Hon JACINDA ARDERN: The member is incorrect to assume that this is solely about those who enter into tertiary education. Our focus of course is lifting those who engage in industry-based training; those who enter into for instance apprenticeships in construction; vocational pathways—an area that we encourage with fees-free. In fact an apprenticeship is free for two years not just one year and that's the exact reason why. Hon Simon Bridges: In light of her previous answer isn't the reality that GDP per capita in the last year has been a paltry 0.7 percent and given her reference to the previous Government wasn't it much higher at an average of 1.6 percent in the last five years? Rt Hon JACINDA ARDERN: It was 0.9 percent in the year to March. Again the member though is raising an issue that—again I think he'd be hard-pressed to refute—has been something that we've been dealing with since successive Governments; the difference is that we have a plan to deal with it. Hon Simon Bridges: Is she aware that New Zealand's GDP per capita growth in the last year was the seventh worst in the OECD? Rt Hon JACINDA ARDERN: Again as I say the member would do well to remember that average GDP per capita growth under his Government was 0.9 percent. GDP per capita grew at 0.9 percent over the last year; that's the same as the year through to December 2018. Unlike the member I'm actually recognising an issue that we have and we are seeking to resolve it. There was no plan however when the last Government was in office. Hon Simon Bridges: Why in the last three quarters has GDP per capita grown at only 0 percent 0.2 percent and 0.1 percent when the terms of trade are at historical highs and exports are rising? Rt Hon JACINDA ARDERN: Again if the member wants to talk solely about individual quarters that is his prerogative. I noted that when his Government was in office that was the reason it was us that tended to talk about quarterly GDP per capita numbers rather than GDP numbers as a whole because of course on that measure the member wouldn't want to discuss it because the OECD has pointed out as it well should that our GDP numbers our growth numbers our inflation numbers our employment numbers our surplus demonstrate that our economy is in good shape. You don't need to listen to me; just ask the OECD. Rt Hon Winston Peters: Could the Prime Minister tell us how many GDP per capita growth policies her Government inherited? Rt Hon JACINDA ARDERN: As far as I can tell there was no plan to address that issue. The last Government's economic policy as far as I can tell was based on immigration and an inflated housing market. Hon Simon Bridges: Why is GDP growth slowing when the terms of trade and exports are rising? Rt Hon JACINDA ARDERN: We had this discussion the last time the House sat. Again I have pointed out that when you look at our GDP growth within the international environment we compare pretty well. If the member wants to talk about though our issue with trade the growth we have actually seen—relative though however to services—he'll see that the issue we have raised continually about the international environment is playing out in that number as well. Tourism numbers declining while our export growth continues—that points to the international environment we are operating in. SPEAKER: Before I go to question No. 2 I'm going to ask the Hon Jenny Salesa to move the box that she has to her left. Thank you.