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 she stand by all of her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes; in particular this Government's economic recovery plan which has seen our economic activity increase 5.6 percent from a year ago—higher than it was before COVID-19—our goods exports up by more than 8 percent compared to March 2020 and milk powder and meat exports are up by more than 15 percent and we've received two triple A credit ratings from the two leading agencies something few countries in the world are able to say. We always maintained that a strong health response to COVID-19 was the best economic response and were prepared to step in with more than $20 billion of direct support for businesses and workers through the wage subsidy and resurgence support to protect lives and livelihood and you can see today the impact that has had. Our unemployment rate remains at 3.2 percent one of the lowest recorded since the survey began. The average hourly wage rose 4.8 percent to $36.18 per hour. In the private sector wages increased by 5.3 percent. Our economic policies during COVID mean we're now in a strong position to grow the economy and support New Zealanders through these uncertain times.Christopher Luxon: With wages growing slower than prices and real incomes falling does she agree that Kiwis are going backwards under Labour?Rt Hon JACINDA ARDERN: As I've said in this House many times before since we took office right through until 2022 wage growth outstripped inflation. Yes we are in a period where we have now obviously inflation at high rates in the same way the rest of the world is experiencing but even then there are of course forecasts that predict once again from the latter half of 2022 we will again see wage growth outstrip those increases in the cost of living. I contrast the Government's approach in these times to some other parties in this House. We are investing in supporting New Zealanders through these tough times targeting our support lifting minimum wages increasing the family tax credit and bringing in the winter energy payment when the Opposition wants to take away from New Zealanders investment in services and give tax breaks to the wealthy.Christopher Luxon: Why is she refusing to accept that Kiwis have gone backwards under Labour when total inflation since she became Prime Minister has been more than 13.5 percent during which time total wage growth has been under 9.8 percent?Rt Hon JACINDA ARDERN: My argument would be that the member is refusing to instead actually listen to the answers that I'm giving. We absolutely accept that alongside the rest of the world right now—the rest of the world is experiencing high rates of inflation: the euro 7.5 percent; Germany 7.3 percent; the US 8.5 percent; the OECD average is 7.7 percent. Now the difference is that since 2017 we came into this crisis with wage growth outstripping inflation in successive quarters and we will get back to a place where that happens again because of the actions of this Government and it is the latter part of 2022 when we expect that to happen.Christopher Luxon: Is she aware that quarterly inflation has been higher than quarterly wage growth for 10 of the 17 quarters since she became Prime Minister so Kiwis have gone backwards more than half the time she's been in power?Rt Hon JACINDA ARDERN: I reject what the member has claimed and again revert back to the answers that I have provided. Again let's look at the policies that have been proposed in this House around supporting Kiwis at this present point in time. This Government has increased the minimum wage. This Government is looking at ensuring that we don't see a decline to the bottom through things like fair pay agreements. This Government has increased the family tax credit brought in the winter energy payment brought in the Best Start payment and increased Government support. On the other side we have a party promoting an increase in the age of retirement no increase in the minimum wage and tax cuts for the most wealthy. [Interruption]SPEAKER: Order! I'm going to warn Mr Doocey: if he addresses me in that way again—and while he might in fact be accurate—he is not to bring me into the discussions in that way. David Seymour: Does the Prime Minister stand by her statement that New Zealand is open for business" and if so what does she say to Kiwis of for example Indian Chinese or Sri Lankan origin who hear the country is open for business but can't welcome their non-resident family at Auckland Airport into the country anytime soon let alone defined by her Government?Rt Hon JACINDA ARDERN: Well for many of those families they may already have family members who hold existing visas that have multiple entry. There are hundreds of thousands of those in existence that are able to be utilised right now and as I say they are multiple entry visas that can be used. The issue is the opening time for those from non-visa waiver countries—those who have not sought specific visas for entry into New Zealand from the reopening dates. We are looking at the possibility of bringing that reopening forward but again there are already hundreds of thousands from those countries who can still come now.David Seymour: What is stopping the New Zealand Government from simply treating those Kiwis whose families originate out of non - visa waiver countries the same as those Kiwis whose families do come from visa waiver countries? Why is that so hard?Rt Hon JACINDA ARDERN: If the member is promoting the idea of the complete liberalisation of our immigration system where everyone is treated as if they are from a visa waiver country—because actually the answer was implicit in the question. We do have different visa requirements and by virtue of those and the fact that we are already processing residency visas over 100000 to ensure that we maintain our workers here in New Zealand—we of course are processing our critical workers which we've opened back up to. Working holiday visas: it is simply a matter of sequencing but we are looking to bring forward those as early as we can.Christopher Luxon: How can she say Kiwis aren't going backwards when annual inflation is 6.9 percent but wage growth has just hit 3 percent—the biggest gap between price and wage growth on record?Rt Hon JACINDA ARDERN: As the member would have heard in both the Minister of Finance's response and in my own the average hourly wage rose 4.8 percent in the latest data and private sector wages' hourly earnings increased by 5.3 percent. We are in a period right now where we have got global inflation levels that are impacting on the cost of living but these quarters are relative to the others we've experienced in New Zealand an exception not a rule and we are projected by the latter part of 2022 to once again see wage growth outstrip the cost of living. Finally what I would say is that as a Government we have worked hard to ensure that we have consistently had wage growth outstrip inflation in this country and we have succeeded. But we are in an environment where there is currently a war in Europe. There are supply chain constraints and we are not alone in this experience. The difference is we're a Government who will cushion the blow for New Zealand. That is an Opposition party proposing to give the wealthiest tax cuts.Christopher Luxon: Why does the Government believe yet another working group is the answer for tackling ballooning health wait-lists under Labour?Rt Hon JACINDA ARDERN: If the member is referring to the fact that unlike other countries we have not had the extended extraordinary increases in wait times throughout the pandemic because we managed COVID in a way that allowed people to continue to access healthcare but now we are using our clinicians in an environment where we are no longer hamstrung by the geographical boundaries of DHBs but are going to maximise the efficiencies of our health system—if that member suggests we shouldn't use clinicians to support that work that's a matter for him. But on this side of the House we think that's a good idea.David Seymour: Does the Prime Minister believe her Government has done enough to fix the cost of living crisis and if she does believe that why do 77 percent of New Zealanders disagree with her?Rt Hon JACINDA ARDERN: I am not for a moment going to argue that there is a silver bullet to the global issue of high inflation rates—there just simply isn't—but there are ways that we can make a difference. Reducing the cost of fuel increasing support for those on low incomes with the family tax credit increase the winter energy payment—all of these things make a difference. But ultimately what we do want to get back to is the position we were in prior where wage growth was outstripping the rates of inflation and we're projected to do that later in 2022.Christopher Luxon: What will the new health working group achieve that the 1600 staff at the Ministry of Health can't?Rt Hon JACINDA ARDERN: With the Health New Zealand reforms there is opportunity for us to ensure that we are better utilising our tertiary system to overcome the inefficiencies that we have had. The member may not be aware but individual DHBs operate often using different categorisation and criteria to prioritise planned care. That in itself creates inefficiencies. We don't operate as a combined network of tertiary care; we need to. That is what the Health New Zealand reforms are about that is what these clinicians will support and if the member is not aware of the differences between the way that our DHBs have worked to date then I suggest the member get a briefing."