1. Economy—GDP Growth Wage Gap with Australia and Prison Public-private PartnershipsHon AMY ADAMS (National—Selwyn) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSEconomy—GDP Growth Wage Gap with Australia and Prison Public-private Partnerships1. Hon AMY ADAMS (National—Selwyn) to the Minister of Finance: Does he stand by all his statements and policies?Hon Dr DAVID CLARK (Associate Minister of Finance) on behalf of the Minister of Finance: Yes in the context in which they were given and undertaken. However I would like to correct a statement the Minister made yesterday regarding the household living cost price indexes. Due to a transcription error he referred to the increase in living costs since June 2008 when in fact the numbers used were for September 2008.Hon Amy Adams: Does he stand by his statement that he plans to grow New Zealand's prosperity when forecast average GDP growth over the next two years has been revised downward from 3.5 percent in Pre-election Economic and Fiscal Update 2017 to just 3 percent in Budget 2018 and ANZ Bank today is saying that growth momentum has clearly slowed?Hon Dr DAVID CLARK: As with any growth forecast there are a range of views out there. Treasury is historically one of the best forecasters and I am confident in their Budget Economic and Fiscal Update projections of continued solid growth. The Government does not believe that buying and selling houses to each other until we can't afford them any more is a sustainable economic strategy. For too many New Zealanders we've seen that this kind of growth has not actually translated into improved living standards. We've got a plan—SPEAKER: Order! Order!Hon Amy Adams: How can he be so dismissive of these significant growth revisions when a 0.5 percent decline in average GDP growth over the next 2 years is equivalent to around $2.3 billion in lost income for the economy at approximately $500 per New Zealander?Hon Dr DAVID CLARK: I repeat that Treasury projections are for solid economic growth. We enjoy good forecasts and we have good times ahead. I think the Minister should stop trying to talk the economy down.Hon Amy Adams: Has he now given up all hope of continuing to close New Zealand's after-tax wage gap with Australia that reduced by a third over the past decade with the removal of National's tax bracket adjustments imminent further tax reductions in Australia and the slowing domestic real and per capita GDP growth trajectory under this Government?Hon Dr DAVID CLARK: We are planning to transition to an economy that's more productive more sustainable and more inclusive. We want to see New Zealanders prosper socially and economically. This Government has a plan and we're sticking with it.Hon Amy Adams: I raise a point of order Mr Speaker. The question was very much around closing the wage gap—the after-tax wage gap with Australia. He didn't even reference that in his answer.SPEAKER: Well I think the member's problem is that she had a list of other things added on to it. There was certainly an attempt to answer at least one of those.Hon Amy Adams: Does the Minister agree with Jacinda Ardern when she said that public-private partnerships (PPPs) in corrections just don't work and on that we've been very clear" and Phil Twyford who said that PPPs for prisons would be "a no-go for this Government"?Hon Dr DAVID CLARK: There is clear evidence around the Government's prior experimentation with PPPs that they did not work. There are a number of perverse outcomes and this Government has steered clear thus far of any such foolishness.Hon Amy Adams: So why is a PPP now being used to fund Waikeria Prison when the use of PPPs for prisons has been clearly and repeatedly ruled out?Hon Dr DAVID CLARK: Well I don't have the detail on that in front of me. But I understand they sold the contract—Hon Andrew Little: They signed it and it cost $34 million.Hon Dr DAVID CLARK: They signed the contract and it cost $34 million.Hon Chris Hipkins: Can the Minister of Finance confirm that there's a difference between honouring a PPP agreement entered by the previous Government to build a new prison versus having a PPP for the operation of a new prison?Hon Dr DAVID CLARK: I'm absolutely delighted to confirm that. There's a huge difference between honouring contracts and creating a stable environment for the country and entering into agreements which have a whole lot of fish-hooks attached which that prior Government was prone to doing."