1. Prime Minister—Minimum Wage Increase Business Confidence Job Creation and Wage GrowthHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterTUESDAY 15 MAY 2018The Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSPrime Minister—Minimum Wage Increase Business Confidence Job Creation and Wage Growth1. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's policies and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes. Hon Simon Bridges: Was Iain Lees-Galloway reflecting Government policy when he said If a small change to the minimum wage is going to be detrimental to them they don't sound resilient. … a lot of businesses come and go … That's the nature of doing business."? Rt Hon JACINDA ARDERN: I think he was reflecting the fact that we have an expectation that people be able to enter into the workplace and receive a decent wage. We increased the minimum wage to $16.50 an hour in April we have flagged our intention for it to be $20 by April 2021 and the member clearly is articulating that he's not as ambitious for New Zealanders who are in low-paid work. Hon Simon Bridges: What does she say to those workers of the businesses who would lose their jobs under the minimum wage policy? Rt Hon JACINDA ARDERN: I would rather speak to the actual examples the member has of a business closing because of an increase to $16.50 an hour. Hon Simon Bridges: Well does she accept her officials' advice that the increases will result in job losses? Rt Hon JACINDA ARDERN: Even that last Government probably got that same advice. In fact when Labour was last in office and increased the minimum wage nine times we had the opposite problem and had some of the lowest unemployment in the OECD—a record that on this side of the House we're quite proud of. Hon Simon Bridges: In light of Iain Lees-Galloway's statement that changes to the minimum wage need to be signalled what other increases to the minimum wage will there be this term? Rt Hon JACINDA ARDERN: As we've said we've already signalled in the coalition agreement with New Zealand First that it's our expectation the minimum wage will be increased to $20 by April 2021. Rt Hon Winston Peters: Since the coalition Government announced its aspiration and target of $20 an hour has unemployment gone up or down? Rt Hon JACINDA ARDERN: I've very pleased to say it has gone down and is projected to continue to go down.Hon Simon Bridges: Has the Prime Minister any advice on what the effect of that $20 minimum wage would be on jobs?Rt Hon JACINDA ARDERN: As I've said we routinely receive advice on the projected impact but in the past we've received that same advice and in fact what we have seen is unemployment going in the other direction.Hon Simon Bridges: Does she believe her Government's industrial relations reform contributed to today's Staples Rodway Business Confidence Survey's finding that only 15 percent of 500 business leaders thought job security would increase with 45 percent thinking it would decrease?Rt Hon JACINDA ARDERN: I am of course interested yes both in the feedback that we get from those business surveys and also the reality and I know the reality is that in fact a firm's own outlook is something incredibly important to us as a measure. It's still a net positive and that includes for the long-run average. We of course also have projected growth of around 3 percent and declining unemployment. The reality is looking very very positive and come Thursday will look even better.Hon Simon Bridges: Why does the Prime Minister believe more than half of the respondents to the survey believe this week's Budget will have a negative impact on the economy and that the Government's performance around the economy to date has been poor?Rt Hon JACINDA ARDERN: Again I would ask for the member's evidence points given of course again I'm speaking to the evidence—the reality of what exists out there—and that is projected growth of 3 percent unemployment declining down to levels around 4 percent and the fact that when you look at some of the stimulus that'll be coming on track like for instance the increase via the Families Package both taxpayers and business have plenty of reasons to feel very very positive.Hon Simon Bridges: Is the Prime Minister saying that business confidence doesn't matter and isn't that an incredibly high-handed arrogant approach to take?Rt Hon JACINDA ARDERN: No. I have in fact myself said that I'm very keen to make sure that a survey of perception matches reality.Hon Simon Bridges: Can she then just tell me why it is that the survey makes clear that businesses around this country think that the Budget will lead to a declining economy and that the Government so far is doing a poor job on the economy?Rt Hon JACINDA ARDERN: Mr Speaker you'll forgive me for not wanting to allow anyone to get ahead of themselves before the Budget actually comes out. Two more sleeps.Hon Simon Bridges: Is the Prime Minister aware that in the two years before the election 10000 jobs were created every month and will she commit to a similar target over the next two years?Rt Hon JACINDA ARDERN: And again I would point out that actually minimum wage increases therefore—case in point—do not necessarily lead to job losses. We're not going to apologise for wanting to make this a productive high-wage economy. That's exactly the kind of leadership that New Zealand needs.Hon Simon Bridges: Does that mean the Prime Minister will commit to a similar target to 10000 new jobs a month over the next couple of years?Rt Hon JACINDA ARDERN: Of course what's important is what happens to your overall employment rate and that's why we've set ourselves a goal of 4 percent unemployment because of course what matters is whether people are coming and going and staying in the job market not just new job creation.Rt Hon Winston Peters: Does the Prime Minister accept though that there may be a cause for downwards wage adjustment for poor professional performance such as is coming from the Opposition at this present time?Rt Hon JACINDA ARDERN: Mr Speaker—SPEAKER: Oh no no. It's a very good question but it's not within the Prime Minister's responsibility.Hon Simon Bridges: Well it's not actually a good question. Given how important wage growth and productivity are to the Prime Minister is she aware that between 2008 and 2017 the average wage increased by $13000 twice the rate of inflation and will she commit to a target of wages growing at twice the rate of inflation for her Government?Rt Hon JACINDA ARDERN: What I would like is some consistency from the Opposition. On the one hand increasing wages are going to lead to businesses closing and job loss and on the other we're apparently not being ambitious enough. What I can tell you is that we are focused on making sure this is an economy with high wages with decent wages and with a growing economy and you'll see that the proof will be in the pudding.Hon Simon Bridges: Given that need for decent wages as she says will she hold her Government to account and commit to a target of wages growing at twice the rate of inflation for her Government like they did when we were in Government?Rt Hon JACINDA ARDERN: Of course we're setting a high bar for ourselves including making sure that we have the minimum wage continually moving and not sacrificing the fact that we believe that those individuals deserve a decent wage decent conditions and low unemployment."