2. Question No. 2—Prime MinisterRt Hon CHRIS HIPKINS (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. Rt Hon CHRIS HIPKINS (Leader of the Opposition) to the Prime Minister: Does he stand by all of his Government's statements and actions?Rt Hon CHRISTOPHER LUXON (Prime Minister): Yes and especially this Government's decision to fund an additional $604 million in medicines for Pharmac. Every New Zealander knows someone a friend or a family who has been affected by cancer and is fighting it and we made a promise at the election we would support them in their fight and we are keeping that promise. This Government is funding 26 treatments for cancer as part of a package of 54 more medicines supporting around 175000 New Zealanders in the first year of the policy and we are very proud of that.Rt Hon Chris Hipkins: How many Kiwi families will be disadvantaged over the next three years as a result of his Government's decision to abolish the First Home Grant?Rt Hon CHRISTOPHER LUXON: Again—we've spoken about this before. We have decided to make sure that we can access 1500 more community housing provider spaces rather than continuing with a programme that actually was not as effective as other options for that money.Rt Hon Chris Hipkins: Point of order Mr Speaker.SPEAKER: No it was a very specific question. I think an answer to the question would be helpful.Rt Hon CHRISTOPHER LUXON: If the member would like to put that question in writing I will give him a proper answer.Rt Hon Chris Hipkins: Does he not know how many people will be disadvantaged by the First Home Grant being abolished or does he not care?Rt Hon CHRISTOPHER LUXON: There was about 7000 people from memory but I want to be able to give you a proper answer.Rt Hon Chris Hipkins: Has the contract for the purchase of two new inter-island ferries been formally terminated; if so what penalties did KiwiRail have to pay to terminate the contract?Rt Hon CHRISTOPHER LUXON: Again they're ongoing commercial conversations between KiwiRail and the provider but what I'd say to that member is we are not going to do what that previous Government did which is basically say to the New Zealand people we'll build you a house for $750000 and it costs $3.2 million.Rt Hon Chris Hipkins: Point of order. Mr Speaker there were two parts to the question. One was whether the contract had been terminated and the other was whether there were any penalties. The Prime Minister hasn't addressed either of those. You could argue he's addressed the second one by saying that it's commercially sensitive—or couldn't release that commercially—but whether or not there's still a contract in place cannot be commercially sensitive.SPEAKER: Well that would be for the Prime Minister to determine but the Prime Minister may wish to expand or to re-answer the question.Rt Hon CHRISTOPHER LUXON: KiwiRail have repudiated the contract but there's ongoing commercial conversations.Rt Hon Winston Peters: Supplementary question.SPEAKER: Supplementary Rt Hon Chris Hipkins.Rt Hon Winston Peters: He's had three.SPEAKER: I know that I know that—but look sorry we've been through this before.Rt Hon Winston Peters: Yeah I know but you were wrong then and you're wrong now.SPEAKER: Tell you what it's not a good idea to start the conversation from your seat like that. This is how its operated for quite a number of years and we're going to continue. The Rt Hon Chris Hipkins.Rt Hon Chris Hipkins: Has the contract been formally terminated?Rt Hon CHRISTOPHER LUXON: They are subject to commercial conversations.Rt Hon Winston Peters: Could you Prime Minister let us know as to whether or not the person asking these questions the Rt Hon Chris Hipkins right now saw the contract about which he is demanding now to know more information?SPEAKER: No that's not a question that the Prime Minister can answer.Rt Hon Winston Peters: Well I'm asking him to confirm whether he knows that or not. That's not difficult is it?SPEAKER: Oh I see. OK.Rt Hon Winston Peters: It's axiomatic. If we're talking details we need to know what we're talking about and I want to know whether this Prime Minister here has been told that the previous Prime Minister saw that contract.SPEAKER: Very good. Ask the question again so we're all clear what it is. Rt Hon Winston Peters: Right very slowly: Prime Minister has the previous Prime Minister advised you or anyone in your Cabinet that he saw the contract about which he is now complaining?Rt Hon CHRISTOPHER LUXON: Well you'd have to assume he has but the bottom line is he didn't manage the contract and we saw a massive cost blowout from $750 million to $3.2 billion and rising—another piece of the Labour Government's economic mismanagement.Rt Hon Chris Hipkins: Is the Prime Minister aware of which Minister announced the deal to buy two new mega-ferries; if so who was it?Rt Hon CHRISTOPHER LUXON: I have no recall on that.Rt Hon Winston Peters: Has the Prime Minister been told—SPEAKER: Just a minute. We'll wait till you get a fair go from the whole House. Rt Hon WINSTON PETERS: I quite agree. Has the Prime Minister been advised as to the Minister who made the announcement that two ferries were to be purchased but what was the prescription that was put around at the time not as being described erroneously to the media by the Rt Hon Chris Hipkins?Rt Hon CHRISTOPHER LUXON: I'm sure—knowing that Minister how financially responsible he is and how well bounded he is—it would have been very well framed. But subsequent what I'd say is that Government let it get out of control.Rt Hon Chris Hipkins: Point of order Mr Speaker. That answer from the Prime Minister simply cannot be compatible with the answer he gave immediately previous to that where he said he didn't know who the Minister was when he's now subsequently answered a question defending Winston Peters who of course was the Minister who set up that deal.SPEAKER: Well I think you made your point. You get another supplementary.Rt Hon Chris Hipkins: Will he guarantee that any new inter-island ferries purchased will cost less than the contracted purchase price of the two ferries the Government has cancelled the order for?Rt Hon CHRISTOPHER LUXON: Look what I can guarantee and reassure that member about is that this Government knows how to run economics. We know how to manage projects right? Unlike that Government who somehow thought it was perfectly reasonable to go spend $750 million which turns into $3.2 billion and rising. You have no economic credentials no economic record; you haven't been able to deliver a pizza let alone ferries.Rt Hon Chris Hipkins: Point of order Mr Speaker. If the Prime Minister is so great on economics I'm sure he can answer the question which is whether the new ferries are going to be more expensive than the ferries that he cancelled the contract for.Rt Hon Christopher Luxon: I can tell you it's going to be a lot less than $3.2 billion.Hon Nicola Willis: Can the Prime Minister confirm that by the time Project iReX was repudiated the cost of the ferries themselves was only 21 percent of the total project cost; that is the garage was going to cost four times as much as the ship that was going in it?Rt Hon CHRISTOPHER LUXON: I can; 80 percent of the cost were now associated with port redevelopments in Wellington and Picton for big ships that actually didn't work.