4. Question No. 4—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterQuestion No. 4—Prime Minister4. 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. In particular I stand by this Government's plan to accelerate our economic recovery and lift the incomes of New Zealanders with a number of changes that will come into effect this week on April 1. Compared to 2017 these changes will see over 100000 beneficiaries with children better off by an average $175 per week increasing to $207 per week during the 2022 winter period; nearly 350000 beneficiaries better off by an average of $109 per week increasing to $133 per week during the 2022 winter period; adjusting the income thresholds for childcare assistance annually in line with average wage growth benefiting 1000 families or around 1500 children after being frozen by the previous National Government. We're also increasing minimum wage student allowances and superannuation. Our economic recovery plan is all about making sure we focus on supporting New Zealanders through this economic recovery. There's no silver bullet that will fix the cost of living but we have a plan and are implementing a range of measures that together will make a difference.Christopher Luxon: What is her plan if any to help the average Kiwi household—the squeezed middle—who don't qualify for Working for Families payments when ASB expects their cost of living to increase by another $150 a week this year on top of the near $100 a year increase they saw last year?Rt Hon JACINDA ARDERN: Given the member has referenced the ASB report I would again just acknowledge that in that same report it pointed out that since the end of 2017 when Labour came into office disposable incomes have been and will remain higher than consumer spending in 20 out of 21 quarters through to the end of 2022—a point that of course we've continually made in this House. We of course acknowledge though that we are in a period where the contributing factors of the global economic recovery from COVID-19 and of course the war in Ukraine are causing an impact on the cost of living. We've already seen the response: the universal application of that lift in fuel excise of 25c per litre and the road-user charge (RUC) is aimed at helping every consumer who of course relies on those petrol prices to be as reasonable as possible. The second point is that actually 60 percent of families will be reached by the changes that we're making to the family tax credit. That is a large portion. Working for Families does reach into middle-income earners and that's where we've increased the family tax credit.Christopher Luxon: What does she say to the average Kiwi household—the squeezed middle—who are facing—SPEAKER: Order! Order! I've let the member go but time for a bit of developmental feedback and that is that unnecessary phrases like the one that he's used twice should not be part of questions. They're not required for the sense.David Seymour: Point of order. I think I know where that term comes from I've heard it many times from members of the public who self-describe that way. Now surely it's in order for a member—SPEAKER: Order! Order! The member will resume his seat. I have ruled; the member will not argue.Christopher Luxon: What does she say to the average Kiwi household who is facing a total increase to their cost of living of almost $13000 in just two years?Rt Hon JACINDA ARDERN: What I'd come back to is that you'll see of course the response that we as a Government have made in response to what we see in this present period where inflation is high. We know it's having an impact. It's why we moved quickly on fuel. It's why at the end of last year we moved on the family tax credit. It's why you see that raft of changes which I'll spare the House from repeating again on 1 April. But what I would also say is that the kinds of proposals we're seeing from the Opposition which for them would mean about $2.15 in their pocket would also mean about $8000 in the Leader of the Opposition's pocket. That is not a focus on them. A focus on them is bringing down the cost of healthcare and making it free for their kids to go to the doctor; getting rid of school donations so they're not having to face that every year when our education system is meant to be free; putting free lunches in schools; and lifting the wages of teachers nurses police. Those are the things that make a difference in the long term; not $2 for them and $8000 for you.SPEAKER: Order! Order!Hon Member: That's out of order.SPEAKER: Thank you. I've told Mr Goldsmith off about that twice today.Christopher Luxon: What's her explanation to a family on an average household income for why she has refused to at the very least provide them with an inflation adjustment to their tax bill when their cost of living is set to increase by almost $13000 in just two years?Rt Hon JACINDA ARDERN: As I have already said the comparison there is clear. The difference that we can make for 346000 families is greater through the family tax credit than for instance broad-brush changes which will come at the cost of investment in services like health and education and would also benefit the wealthiest the most. We have made a decision that we want to make sure that we're doing more for those who are feeling the cost of living impacts the most—our low- and middle-income families—but we also have a duty to make sure that they can still rely on health and education; with that member's tax plan they can't.David Seymour: What does her Government have to offer for families who aspire to make and keep more of their own money in a growing economy instead of hoping that she'll give them some sort of handout? Rt Hon JACINDA ARDERN: I absolutely dispute the way that the member is characterising a tax credit.Christopher Luxon: Does she think that inflation of 5.9 percent almost double the rate in Australia will result in more Kiwis looking overseas for opportunities they can't get here?Rt Hon JACINDA ARDERN: With unemployment at record low levels there are significant opportunities here and that has been a focus of us as a Government: to make sure that as we come through what has been a health and economic crisis we have ensured that people have maintained that contact with their employer and that jobs have been available and training opportunities. For instance our Apprenticeship Boost has meant people have stayed in training and had new training opportunities. That in turn will help with our construction industry which is seeing a boom at the moment and needs a greater workforce. All of that adds up to a place where there are opportunities in New Zealand. We do have to however support New Zealanders through this period that the rest of the world is experiencing as well.Hon Michael Wood: Does she stand by her Government's policy of introducing fair-pay agreements a form of sector-based bargaining similar to Australia?Nicola Grigg: Wait for the polling!SPEAKER: Order! Order! Which member was that? Which was the loudest member? Was it you Ms Grigg?Nicola Grigg: Possibly.SPEAKER: Possibly the loudest. I think we'll go to the Prime Minister. Rt Hon JACINDA ARDERN: We absolutely do and the member is right to point out that this is a mechanism that has been in place in Australia for some time. And it wasn't that long ago that I did hear members on that side of the House talking about the difference in wages between New Zealand and Australia. It is important that we make sure that we have a situation where the wages and conditions of those who are working in often the most precarious work are improved because that equally comes at a cost to all of us.Christopher Luxon: Why does the average Kiwi work for an hour to earn what the average Australian earns in 45 minutes?Rt Hon JACINDA ARDERN: Because of the productivity issues that we have and that is exactly what things like fair-pay agreements are about. Welcome welcome Mr Luxon to the Labour Party.Christopher Luxon: Why has the Minister of Finance stopped talking about productivity?Rt Hon JACINDA ARDERN: He never has. In fact I would welcome the chance for the member to have a meeting perhaps with our Minister for workplace relations because it seems that perhaps he takes a more favourable view of fair-pay agreements than he thinks.Christopher Luxon: Has she been advised whether prices are expected to continue growing faster than wages this year; and if so does she at least accept that two consecutive years of declining real incomes means Kiwis are going backwards fast under Labour?Rt Hon JACINDA ARDERN: I refer to my original answer where in the ASB report there is the acknowledgment of the fact that wage growth has outstripped the growth in the cost of living for 20 out of 21 of the quarters since we came into office in 2017. That is not of course to diminish the period that we are in now and that is exactly why we moved on excise. It's exactly why we've halved the cost of public transport. It's why we've made the raft of 1 April changes. It's why we're increasing Government support for those on welfare and it's why we've seen the increase in support for our superannuitants: $50 per fortnight for a single $80 for a couple. It is why we've increased the family tax credit—all of that whilst maintaining critical services. The member's proposal to give himself a tax cut would not allow any of that.Christopher Luxon: Is she honestly saying that Kiwis who've seen their real incomes fall over the past year shouldn't be concerned because inflation four years ago wasn't as bad?Rt Hon JACINDA ARDERN: No. Obviously that is not what I said. David Seymour: Can the Prime Minister explain to New Zealanders how her policy of putting large groups of workers all on the same contract will make them more productive—that is produce more so they can take home more?Rt Hon JACINDA ARDERN: Well first of all the member is actually neglecting to acknowledge that for many it is a lift to the same rates that some in the sectors are already receiving. The Minister when he launched fair-pay agreements did so alongside employers who support fair-pay agreements because it's an acknowledgment that there are some sectors where there is a race to the bottom in terms of wages and conditions. This creates a fairer playing field. It means that you will see innovation in some sectors where instead of pursuing cheap labour we will see innovation and improvement in productivity.Hon Paul Goldsmith: The employer was probably MBIE!SPEAKER: Mr Goldsmith the last one some of us would consider witty but they certainly haven't been rare and reasonable.