Cunliffe David: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeCunliffe David: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 24 June 2014. Volume:699;Page:18768. Text is incorporated into the Bound Volume.]2.Hon DAVID CUNLIFFE (Leader of the Opposition)to the Prime Minister: Does he stand by his statement that: for most New Zealanders an indicator of how well the economy is doing is whether or not they can keep up with the cost of living”; if so is he satisfied that they currently can?Rt Hon JOHN KEY (Prime Minister):Yes and we have official statistics that regularly measure those things. Last year average weekly wages went up 3.2 percent while the cost of living measured by the CPI went up only 1.5 percent. The year before that it was 2.5 percent for wages and only 0.9 percent for inflation. In the year before that it was 3.4 percent for wages and only 1.6 percent for inflation. It is very clear that on average wages have been rising considerably faster than inflation. It is no wonder most New Zealanders think the economy is doing well.Hon David Cunliffe: In light of that answer is it therefore acceptable to him that most figures show chief executive officer pay was 26.4 times that of an average employee last year and that 46 percent of workers did not receive a pay rate increase in the last year at all?Rt Hon JOHN KEY: In relation to the last point the member is quite wrong and that is the labour cost index. The much better measure is the quarterly employment survey.Hon David Cunliffe: As the Prime Minister likes to pick and choose his measures in light of the Robert Walters survey showing that 49 percent of all New Zealand employers are intending to offer no pay increase to staff this year what plans does he have to ensure workers get a fair share of the economy and is he going to speak to Steven Joyce about his limit of 1 percent for Ministry of Business Innovation and Employment staff?Rt Hon JOHN KEY: As I said last year average weekly wages went up 3.2 percent against costs up 1.5 percent. I must point out that if the member wants to look at the labour cost index as the measure—and I would strongly suggest he does not because it actually excludes so many things—the number of 45 percent of people is exactly the same as it was over Labour’s average last term.Hon David Cunliffe: Would the Prime Minister like to explain to the House and to New Zealanders the difference between average incomes and median incomes and can he confirm that for median income earners—that is one in the middle—the median income has gone down $19 a week since he took office?Rt Hon JOHN KEY: Seeing the member was so kind to answer his own question I probably will not need to bother.Hon David Cunliffe: I am very pleased that he has confirmed that wages have gone backwards under his Government—wages have gone backwards under National—so therefore is it acceptable to him that 2½ years after the recession has ended there are still 42000 more people unemployed than in December 2008 and will he now support Labour’s target to reduce unemployment to 4 percent?Rt Hon JOHN KEY: For a start off the country has generated 84000 jobs approximately over the last year and 1500 people a week are going off welfare and into work. A target does not make a policy. I remember when the Leader of the Opposition said his target was to get Labour to 40 percent not 23 percent.Hon David Cunliffe: Since the Prime Minister is so fond of polls would he like to comment on the one that says 81 percent of New Zealanders do not like coat-tailing and why he is still considering doing a shady deal with Colin Craig?Rt Hon JOHN KEY: Notwithstanding I do not have ministerial responsibility for that I am happy to say this: if the member wants to rule out dealing with the Internet Mana Party which would be coming in under the coat-tailing and say that to the House and to New Zealand today I will take him seriously. But guess what? When you are 23 percent you do not rule anybody out.Hon David Cunliffe: If Labour is prepared to rule out a pre-election coalition deal with the Internet Mana Party will the National Party rule out one with the Conservatives ACT and United Future?Mr SPEAKER: The right honourable Prime Minister in so far as there is responsibility.Rt Hon JOHN KEY: What the National Government is going to do notwithstanding that I do not have ministerial responsibility for it is make sure that we are honest open and transparent with the New Zealand public—something that David Cunliffe struggles quite a lot with these days.Metiria Turei: Tēnā koe Mr Speaker. Tēnā koutou e te Whare. Does the Prime Minister agree with the research from Otago University that shows that 40 percent of New Zealand’s children in the most deprived communities do not have a raincoat among other essentials?Rt Hon JOHN KEY: No I cannot support that research but what I can say is that the National-led Government through KidsCan has given considerable resources to make sure that there are things like raincoats and shoes for the most vulnerable children.Metiria Turei: Does the Prime Minister agree with the research from Otago University that shows that 65 percent of children in the most deprived communities in New Zealand often go without fruit and vegetables because their families cannot afford to eat well?Rt Hon JOHN KEY: Again I cannot back up the research. What I can say is that the National-led Government has continued the Fruit in Schools programme. It has also introduced with the support of Fonterra and Sanitarium KickStart Breakfast and in the worst of economic times the Government borrowed billions and billions of dollars to support the most vulnerable New Zealanders.Metiria Turei: Does the Prime Minister agree with Jonathan Boston that the fact that huge proportions of New Zealand’s children living in the most deprived communities in this country go without the basics of life—such as raincoats fresh food and even play dates—showing that “Public help for many families is simply inadequate …”?Rt Hon JOHN KEY: I cannot support the research from Jonathan Boston. But what I can say is that the Government borrowed in excess of $5 billion a year to support the most vulnerable New Zealanders. I think one of the reasons why the Government actually does have widespread support is that New Zealanders recognise that the Government through the worst of economic times has been fair. The second thing the Government has been doing is working hard with New Zealanders to create jobs and the fastest way to move those children out of vulnerable circumstances is to make sure their parents can work. The truth is that under a Greens administration those families would be in the dole queue.