6. Question No. 6—Prime MinisterDAVID SEYMOUR (Leader—ACT) to the Prime MinisterQuestion No. 6—Prime Minister6. DAVID SEYMOUR (Leader—ACT) to the Prime Minister: Does she stand by the statement she made in her pre-Budget speech last year We need to be aspirational and have a plan"?Rt Hon JACINDA ARDERN (Prime Minister) (remote): Yes I stand by my full statement which I will shorten for the benefit of the House and this remote viewing but which included "We need to be aspirational and have a plan but we also need to be disciplined and prioritise."David Seymour: Why has productivity grown by just 2.6 percent since 2017 while some former Soviet socialist republics have overtaken us and was her aspiration and plan always to be more like them?Rt Hon JACINDA ARDERN: The member casts aspersions on this entire House with that statement given productivity has been an issue that successive Governments have worked to tackle. The member will have seen that over time of course we've seen improvements—over a number of years gradual as they may be. But again the very issues that we need to address if we're to improve our productivity as a nation include for instance investing in skills and training. I note the member wishes to get rid of the first year free of post-secondary education. We'd also include investment in research and development. I note the member would like to get rid of the R & D tax credit and Callaghan Innovation. It seems we have very different views on what will improve our productivity.David Seymour: What sort of aspersions would she cast on the Australian Parliament since the median Australian workers' hourly rate has grown by $3.20 an hour or $6600 a year more than the average Kiwi worker since she's been in Government?Rt Hon JACINDA ARDERN: And again an issue that successive Governments have seen and one in which we've been very clear that part of driving productivity includes driving innovation within industry. Higher wages prompt that investment in innovation. It's one of the reasons that we have promoted the fair pay agreements as a way of instead of driving towards low wages and poor terms and conditions for workers encouraging investment that enables greater productivity. I note again for the member that fair pay agreements are something that Australia have indeed adopted and implemented.David Seymour: When the Prime Minister just tried to argue that unionisation is one of those things that will help raise wages in New Zealand was she aware that only 14 percent of Australians choose to join unions compared with 18 percent in New Zealand?Rt Hon JACINDA ARDERN: What I was arguing was that decent wages help drive productivity and that in New Zealand you need to have a role to play in driving decent wages. Regardless of the member's view in that regard it should not stop him from recognising the role of for instance fair pay agreements which can assist in driving fair terms and conditions for workers. And again I reflect the fact that they are used in Australia.Hon Michael Wood: Can the Prime Minister confirm that since 1991 when New Zealand removed sector-based bargaining from its industrial relations framework Australia's rate of labour productivity has been 46 percent higher on average per year than New Zealand's?Rt Hon JACINDA ARDERN: Yes and again I reflect that the tools that Australia has used to ensure that we don't have a race to the bottom when it comes to wages are for instance fair pay agreements.David Seymour: Does she believe it's sustainable to keep our superannuation entitlement age at 65 when Australia America Britain Germany Ireland Italy Spain to name a few are raising their ages of entitlement; and if so how does she explain that to young taxpayers thinking of leaving New Zealand for more welcoming economic climes?Rt Hon JACINDA ARDERN: My message would be that if you wish to retire at an older age than your parents then the fastest track towards that is to have a party in Government via the ACT and National parties who refuse to invest in the Superannuation Fund. We've made a commitment to that Superannuation Fund and I see that ACT again has announced that they wish to cut their contribution. It's those kinds of policies which mean that we will not have consistency in our retirement policy.David Seymour: Can the Prime Minister explain to those young people how investing in the New Zealand Superannuation Fund while also borrowing money to run Government each year is sensible economics; and would she advise young people to invest in Sharesies using their credit card because that's what she just advocated?SPEAKER: Order! The member's going to rephrase the question—especially the last part of it.David Seymour: I'll try my best Mr Speaker. Does the Prime Minister believe that it is helpful to borrow money on the global debt markets and put that same money into the New Zealand Superannuation Fund which is what she is currently doing by investing as she calls it in the Superannuation Fund and if that is good economic sense would she advise the same young people to borrow money on their credit card to invest in Sharesies?SPEAKER: The Prime Minister can answer the first part of the question for which she has responsibility.Rt Hon JACINDA ARDERN: I would actually refer the member to the Minister of Finance's recent reflections around our fiscal strategy which demonstrate our focus on ensuring that when we are making future investments that require or draw down debt that it is focused for instance on those long-term challenges that we have and for instance infrastructure as part of that and ensuring of course that our ongoing revenue as a country day to day fuels the spending decisions we make day to day. That is why we have also alongside our debt ceilings promoted that we would be working towards surpluses over a period of time of between zero and 2 percent of GDP.David Seymour: Are our productivity and wages low because according to the OECD it's easier for foreigners to invest in China Saudi Arabia and Myanmar than New Zealand leaving Kiwi workers with less capital and technology to work with?Hon Damien O'Connor: Oh God what a Neanderthal!SPEAKER: Order!Rt Hon JACINDA ARDERN: What I can speak to is—SPEAKER: Order! No no sorry. I apologise to the Prime Minister. The member who made that comment will stand withdraw and apologise.Hon Damien O'Connor: I withdraw and apologise. SPEAKER: Prime Minister start again.Rt Hon JACINDA ARDERN: What I can reference is the frequent reference by the OECD and the IMF towards the under-investment historically that New Zealand has had in skills and training that would cover off the skills gap that we have in New Zealand. That has been one of the contributing factors. I note that this is an area where the member is proposing that instead of investing we see cuts. As a Government we've been proud of the investment that we've made in this area. We've made apprenticeships free; we've got of course the Apprenticeship Boost which has supported employers to continue to keep apprentices on and we've extended that as of yesterday; and the first year of fees-free we know has also encouraged a number of young people to continue with their training and education. These are all areas where it's been noted by other financial institutions that it will make a significant difference to our productivity if we continue that investment."