2. Question No. 2—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes particularly the Government's decision to move to level 2 as soon as possible. This will mean on Thursday this week retail malls cafes restaurants cinemas and other public spaces including playgrounds can reopen. On Monday 18 May all children and young people will be able to return to school and early learning and on Thursday 21 May bars—under the provisions that already exist around Easter Sunday and Anzac trading for the week prior—will then after that be able to open under normal legislative provisions. This will mean that in 10 days' time we will have reopened most businesses in New Zealand and sooner than many other countries around the world. This has only been possible because of the strong measures we have put in place and the hard work of New Zealanders who have all joined together and united against COVID-19.Hon Simon Bridges: Is Westpac correct that Government debt is likely to increase by more than 50 percent of GDP in the next few years?Rt Hon JACINDA ARDERN: For any future forecasting and speculation I ask the member to wait as others are until Budget day.Hon Simon Bridges: When was the last time net core Crown debt in New Zealand was over 50 percent of GDP?Rt Hon JACINDA ARDERN: What I can tell you is that it currently sits around the 20 percent mark under this Government which is lower than what we inherited.Hon Simon Bridges: Does she accept that every single dollar of debt her Government borrows will need to be repaid with interest by future generations?Rt Hon JACINDA ARDERN: Absolutely which is why we worked so hard as a Government to reduce the debt that we inherited after the last Government. I also want to point out that relative to other countries we have come into what is a global economic shock in a much better position with debt relative to GDP around the 20 percent mark. That is better than the UK than the United States than Australia. We came in better and we hope of course to come out stronger as well.Hon Simon Bridges: Is Westpac also correct that the fiscal deficit in each of the next two years could equal around $30 billion?Rt Hon JACINDA ARDERN: Again I don't want to get into speculation around the Budget but what I think it is important to point out is this is a global pandemic. The impact internationally is being widely felt. New Zealand was never going to get out of this scot-free but what we could do is take us into it in the strongest position possible. We always said that what we wanted to do was prepare ourselves for any potential shock that we might feel. In fact I recall it was not so long ago that many pointed out that we were running surpluses and questioned whether that was the right thing to do. We always argued that New Zealand is a country that needs to be prepared. We have been and the rainy day has come.Hon Simon Bridges: Will this week's Budget show Government deficits for the entire 15-year forecast period?Rt Hon JACINDA ARDERN: Again the member does not need to wait long to see some answers for some of his questions. But again what I also think it's important to point out is some of the forecasting that's been done or assumptions that have been made from international institutions—which I think gives us helpful context because New Zealand is not going through its own pandemic; we're going through a global one—does demonstrate that the likes of the International Monetary Fund and the World Trade Organization (WTO) have pointed out that New Zealand's relative position will be stronger than most. In terms of recovery if my recollection is correct around growth roughly about 1 percent better than on average other advanced economies and for the WTO they are predicting that some of our trade is looking more heartening than for instance even Australia.Hon Simon Bridges: To limit the debt burden on New Zealand taxpayers will her Government reprioritise existing spending that currently delivers low value for money such as fees-free?Rt Hon JACINDA ARDERN: Again I think what we have always taken into account is that we have to be prudent in our spending and we have always said that. That's demonstrated in the fact that we did get debt down from what we inherited. We're also very mindful that when you're in a period such as this that what we need to invest in is people and skills. We will not be a Government that takes on a challenge and confronts it through austerity and cuts and by hurting people; instead we will invest in people. That equally is the best way to stimulate the economy get growth going and get us into a better position to recover.Rt Hon Winston Peters: Could the Prime Minister assure us that there is no intention—and that she's had discussions with the Minister of Finance as well—to multiply New Zealand's Government debt over eight times such as the last Government taking Government debt from $10 billion to $82 billion from 2009?Rt Hon JACINDA ARDERN: I think what the member demonstrates is that of course that side of the House should have a good understanding of what significant global economic shocks can do to an economy that can do to unemployment that can do to debt and the suggestion from the member that somehow New Zealand now having been through a global financial crisis will isolate itself completely and feel no impact from this global pandemic is just incorrect.Hon Simon Bridges: Can she rule out extending the fees-free policy this Budget?Rt Hon JACINDA ARDERN: I will answer the same now as I have for every question: the member only need wait till Thursday to see what announcements the Government will make and I just simply won't get into any speculation he chooses to get into on announcements.Hon Simon Bridges: Can she rule out announcing a significant slush fund in the Budget that her Government can use in election year for anything she chooses?Rt Hon JACINDA ARDERN: Again I'm not going to get into speculation around the Budget but I think the member would do well to remember that we will be in the next year having to rebuild the economy and rebuild New Zealand. The election for many people is going to be at the back of their minds; instead we have to focus on what's best for New Zealand.Question time interrupted.