1. Question No. 1—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterSITTINGS OF THE HOUSEDEBBIE NGAREWA-PACKER (Co-Leader—Te Paati Māori): Point of order. Tēnā koe e te Māngai. I seek leave for Te Paati Māori to participate remotely in sittings of the House until midnight on Saturday 26 November 2022.SPEAKER: Leave has been sought for that purpose. Is there any objection? There is none; it shall be done.ORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. CHRISTOPHER LUXON (Leader of the Opposition) to the Prime Minister: Does she stand by all of her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes particularly this Government's decision not to prioritise $11 billion on tax cuts targeted to the wealthiest New Zealanders and instead focus on targeted support for New Zealand families to soften the blow from this global crisis. This has enabled us to provide additional support to New Zealand households through the family tax credit increasing childcare subsidies higher minimum wage support for winter energy bills longer parental leave the Best Start payment higher benefit payments lower fuel costs through the fuel tax reductions supporting the supply of a record number of new homes and encouraging more people into work than ever before all while reducing Government spending back to the historic average as COVID-19 stimulus and support concludes. These are turbulent times but I stand by this Government's response.Christopher Luxon: Does she agree that her Government's decision to unleash a tsunami of cash on the economy means the Reserve Bank has to smash families for the sixth time this year with even higher interest rates just to keep up?Rt Hon JACINDA ARDERN: I think we need to push through the rhetoric that is coming from the Leader of the Opposition which quite frankly is inaccurate. I would refer back to the percentage of GDP that represents Crown spending right now: one of the largest drops that we've seen from 35 percent to 31 percent. Compare that to the National Government under the global financial crisis whose spending in 2009 was 34 percent of GDP.Christopher Luxon: Why when the Reserve Bank is putting their foot on the brakes with rising interest rates is her Minister of Finance keeping his foot pushed down on the accelerator with unprecedented spending and isn't that just a recipe for economic burnout?Rt Hon JACINDA ARDERN: I again refer to the facts which seem to be absent in the member's question. Again as a percentage of GDP Government spending Crown spending sits at 31 percent. That is of course because the COVID spending and supports have come away as planned by this Government whilst at the same time we have put in place targeted support. Again contrast that with the National Party's plan of $11 billion of spending targeting the wealthiest New Zealanders which we know would make inflation worse.Christopher Luxon: What does she say to the homeowner with a $700000 mortgage who after re-fixing their mortgage rate is now paying almost $600 more each and every week in interest because her Government is spending a billion dollars more every week to feed its addiction to spending?Rt Hon JACINDA ARDERN: Again I believe that most New Zealanders would be looking around the world right now and seeing the circumstances that all economies find themselves in—the IMF just over the weekend predicting that in terms of global growth there's a 25 percent chance it will slow to 2 percent or less and that we will see in emerging financial markets 30 percent of banks in distress. These are tough times; New Zealand is not alone in that. That is why in this country our Government is focused on supporting those New Zealanders through those difficult times.Christopher Luxon: Does she agree with the IMF who came out yesterday saying that fiscal restraint can lower inflation while reducing debt." and if so why won't her Minister of Finance rein in his addiction to spending?Rt Hon JACINDA ARDERN: Actually I met with the director-general of the IMF and what we are doing is very much in line with their policy prescription: targeted support for New Zealanders. In fact one of the specific things that they have suggested is for instance childcare subsidies which is exactly what this Government has done. One of the things they advise against: broad-based tax cuts which would add stimulus and make inflation worse.Christopher Luxon: Why can't she just concede that her Government has wasted billions of dollars on failed programmes like the cost of living payment the RNZ-TVNZ merger and report after report on failed transport projects like light rail?Rt Hon JACINDA ARDERN: The gall of being told that the cost of living payment is a waste of money for those on $70000 or less but $11 billion on a tax cut for those on under $180000 is not—I totally reject that. I stand by our response; now he needs to stand by his.Christopher Luxon: Is it seriously her view that widespread job shortages and record Government spending have had no impact on inflation and if so why does she think Westpac is saying "the economy has become increasingly overheated with inflation pressures boiling over in every corner of the country."?Rt Hon JACINDA ARDERN: You could also add every corner of the world. New Zealand is in the lower half of the pack of 38 nations in the OECD. In fact relative to others we appear to have peaked when others continue to climb. I know the member would like to think that New Zealand is not affected by the global volatility we are seeing but we are. But what protects us is making sure that we have low unemployment support for for instance our targeted sectors that provide employment record-low unemployment and support for our exporters. We stand proudly on our record there.Christopher Luxon: Does she take any responsibility for record-high domestic inflation or will her record reflect that when Kiwis were suffering it was always just someone else's fault?Rt Hon JACINDA ARDERN: Again I refer back to my earlier answer. The idea that somehow we are the only ones experiencing high rates of inflation—we are not. It just demonstrates to me the way that this member has insulated himself from what is occurring. What we take absolute responsibility for is our support for New Zealanders. That is why we've reduced the cost of fuel it is why we've increased the family tax credit and it's why we're increasing childcare subsidies. The member proposes to give those same families $2 a week and make inflation worse.David Seymour: Can the Prime Minister see the problem with every world leader saying inflation is worse than some other country and none of them doing anything effective to actually tame it?Rt Hon JACINDA ARDERN: Again I come back to my response. The idea that we are doing nothing in the face of inflation is patently wrong. But of course it's not just about fiscal policy; monetary policy plays a role too.David Seymour: Point of Order! Mr Speaker my question was very clear. It was "nothing effective". Now the Prime Minister said she wasn't doing nothing but she didn't address if she was doing anything effective.SPEAKER: I think you're wrong. She did address it."