Shearer David: Questions for Oral Answer — Questions to Ministers Questions to Members 
Text is incorporated into the Bound Volume 
Shearer David: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Sitting date: 28 August 2012. Volume:683;Page:4765. Text is incorporated into the Bound Volume.] 
2. 
DAVID SHEARER (Leader of the Opposition) 
 to the  
Prime Minister 
: Was he correct when he said the gap between the rich and poor “has been reducing”; if not why not? 
Rt Hon JOHN KEY (Prime Minister) 
: 
 Yes it was. I made that comment in August last year based on the household incomes in New Zealand report that showed that income inequality had slightly reduced between 2008-09 and 2009-10. This year’s report shows that between 2009-10 and 2010-11 it came back up again. According to the report this pattern reflects the impact and timing of the recession and the global financial crisis on various forms of income and on different groups of people. It also says that the increase over the last years does not necessarily indicate an upward trend; it could come down again next year. 
David Shearer 
: Did the household incomes in New Zealand report confirm that the gap is the widest it has ever been that inequality has risen significantly over the last year and that the number of children living in hardship has increased to 21 percent? 
Rt Hon JOHN KEY 
: There were a number of things noted in the report and they were quite wide ranging. What it does show and as the report says is that the global financial crisis is hardest felt— 
David Shearer 
: I raise a point of order Mr Speaker. That was a pretty straight question that asked whether that household incomes in New Zealand report actually did say those things. 
Mr SPEAKER 
: The member is correct. His question was pretty straight to those points. 
Rt Hon JOHN KEY 
: From memory yes but what the report shows is a number of things and the most important point it actually showed was that the global financial crisis as it is everywhere in the world is hardest felt by lower-income people and it also showed that there has been a bounce back in investment income. 
David Shearer 
: Does he agree with the figures produced by the Expert Advisory Group on Solutions to Child Poverty that showed that the number of children living in poverty declined from 2004 to 2007 as a result of Working for Families and that it began to rise again after he became the Prime Minister; if so does he still think that Working for Families is “communism by stealth”? 
Rt Hon JOHN KEY 
: Yes I do think it is communism by stealth— 
Hon Members 
: Oh! 
Rt Hon JOHN KEY 
: Well when it has an abatement rate that sees over 100 percent taken away from someone I call that communism by stealth. Secondly the member is being quite selective about that report because he happens to be quoting from 2004 to 2007. If he does not want to embarrass himself why does he not get up and talk about the period from 1999 to 2004? 
David Shearer 
: Given that he does consider— 
Mr SPEAKER 
: Order! I want to hear the question. 
David Shearer 
: —it to be communism by stealth is he planning to amend or change Working for Families? 
Rt Hon JOHN KEY 
: That is not necessary because this Government has done that. This Government has done that by lowering tax rates and therefore essentially increasing the amount that people get to spend. But if that member thinks someone going out there and getting to keep about 5c in the dollar is an incentive it is no wonder he does not want the unions in the lobbying bill. 
Mr SPEAKER 
: Order! I think that is sufficient. 
David Shearer 
: Given that two in five children in poverty are in households with working parents will he agree to lift the minimum wage? 
Rt Hon JOHN KEY 
: Every year this Government has been in office we have lifted the minimum wage so that is a 100 percent record. Yes it is highly likely that the minimum wage will go up again but of course that has to be balanced against people’s capacity to get jobs. If the member wants to continue to quote that report let me also quote this from the report: “Parents should be assisted to increase their hours of work by up to 30 hours per week where practical by the time their child starts school.” That is in line with the Welfare Working Group’s recommendation and it is a harder approach than the one taken by this Government. 
David Shearer 
: Will the Prime Minister agree to lift the minimum wage to $15 an hour rather than the paltry amount that he was talking about before—this year that is? 
Rt Hon JOHN KEY 
: Eventually but if the— 
Hon Members 
: Ha ha! 
Rt Hon JOHN KEY 
: Well the interesting thing about David Shearer is that he has just indicated why he is under so much pressure these days from not only David Cunliffe but also Phil Goff I might add. 
David Shearer 
: I raise a point of order Mr Speaker. That was a pretty straight question that asked whether he was going to lift the minimum wage to $15 an hour. 
Mr SPEAKER 
: The member is correct but of course the Prime Minister in his answer said eventually he would. Then there were a range of interjections from the Opposition that the Prime Minister then latched on to. That is my difficulty. When a Minister is responding to interjections it is a bit hard for me to intervene. The question was answered. I think the Prime Minister has had sufficient answer.