2. Question No. 2—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. 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 and apparently so does the member.Hon Simon Bridges: How many dollars a week has the median rent increased under her Government?Rt Hon JACINDA ARDERN: I've actually seen some of the statements from the member on rental increases and what I wanted to point out was that the numbers that he's used have been quite selectively chosen. When you look across the country at the—and I can give a percentage rather than a numerical figure to the member but if he puts it on notice I'll bring a dollar figure for him—geometric mean growth that's remained relatively steady. So in September 2018 that was 4.8 percent; September 2017 it was also 4.8 percent; September 2016 it was 4.5 percent; September 2015 5 percent—you get the picture. So it is fair to say rents have consistently increased over the years. Obviously the member will know the most significant driver of that is supply and this Government is focused on fixing that issue.Hon Simon Bridges: Well is she aware that the median figure is some $30—2½ times higher than the year prior and that even using the mean rents have gone up $26 a week under this Government compared to just $13 under the previous?Rt Hon JACINDA ARDERN: I know that that member chose one month and used figures which aren't an accurate way of capturing what's happening in our rental market. I absolutely accept that rents have increased—I accept that. What I do not accept is that somehow the last Government had nothing to do with the issue that we are now facing. There is a supply issue. That was a Government who got rid of State houses and that did not address the lack of supply. Unlike that Government we are turning the ship around; it just takes a bit of time to build houses.Hon Simon Bridges: Is she seriously disputing the Ministry of Business Innovation and Employment figures that show on a median basis rent has gone up 2½ times and on a mean basis it's doubled?Rt Hon JACINDA ARDERN: No. What I am referring to though is the geometric mean growth which is the most accurate average because the arithmetic means are too sensitive to changes in the higher value. Again I'm not arguing with the member over whether rents have gone up; what I am arguing over is whether or not we've got a solution that the last Government didn't even try.Hon Simon Bridges: How do we calculate geometric mean growth?Rt Hon JACINDA ARDERN: What I've argued here is that when taking into account spreading over that period of time spreading over the increase is a much more accurate way of taking one month out of the year when we know that a lot of people experience an annual increase say at the end of a calendar year. That is the most accurate way to reference the increase that people have experienced.Hon Simon Bridges: Does she think that higher taxes such as extending the brightline test to five years ring-fencing losses on rental properties and the prospect of a capital gains tax will have no effect on rents?Rt Hon JACINDA ARDERN: Again I saw the member being asked which exact precise tax he thought had made an in increase rent and he couldn't name one. That's because most of what this Government has done already has been focused on tenants: looking at getting rid of letting fees for instance and making sure that there are healthy homes that our renters are in. We're focused on not only building houses but making sure that those who are in the rental market are getting a better deal. And another thing that we've done is made sure that they will only experience annual increases in the future. That Government did almost nothing for tenants.Hon Simon Bridges: Is she saying that more taxes and higher costs will not reduce the supply of rental properties or be passed on to consumers in terms of higher costs?Rt Hon JACINDA ARDERN: Some would argue the biggest change that those in the rental market have seen in recent years has been the brightline test and that was brought in by the last Government.Hon Simon Bridges: Is she seriously saying in terms of her thesis about supply that more taxes and higher costs won't reduce the supply of rental properties or be passed on to consumers in terms of higher costs—straight question?Rt Hon JACINDA ARDERN: What I'm saying will make the biggest difference to supply is building houses.