1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements policies and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes.Hon Simon Bridges: Is she aware that the terms of trade have been higher in the last 12 months than any time in the previous nine years and why does she think the terms of trade have been so strong under her Government?Rt Hon JACINDA ARDERN: Obviously the member will know that there are multiple factors that contribute to that including of course the exchange rate. But also more broadly though when it comes to our trading environment of course exporters are doing particularly well and the dairy sector has seen some of those numbers go up. That of course accounts for a significant proportion. But also our horticultural sector is doing particularly well as is lamb at present. But that doesn't reduce the need for us to diversify our trading partners particularly when we see what's happening in China and the slow-down globally which is why the EU agreement is so important to us. Hon Simon Bridges: Why in her view in light of the strong terms of trade and rising exports has GDP per person been flat for the last six months?Rt Hon JACINDA ARDERN: Again I am going to bring it back to the relative status of GDP in New Zealand. When you look at what other countries are experiencing particularly Australia China the EU and the UK are in a particularly bad state. Of course the member can talk individual price points but there's no doubt that the international trading environment is causing a change in investment confidence and that impacts on us—undeniably that impacts on us.Hon Simon Bridges: Why does she claim that it's global conditions causing New Zealand's economic slow-down when our terms of trade is at historical highs our exports have been rising and there can therefore be no other explanation than domestic factors for the slowing economy?Rt Hon JACINDA ARDERN: Because the member's talking about export prices. Of course though as the member will well know I'm not the only one reflecting the impact on growth; the IMF is the one forecasting the downturn globally. And because the member also knows that impacts on investment decisions and the uncertainty in the international environment are changing confidence levels and are changing investment decisions.Hon Grant Robertson: Supplementary Mr Speaker.Hon Simon Bridges: Oh!SPEAKER: Oh dear. The Hon Grant Robertson. Hon Grant Robertson: Ha! Thank you Mr Speaker. Is the Prime Minister aware of the New Zealand Institute of Economic Research consensus forecasts released on 17 June which indicate that the export growth outlook has been revised lower reflecting uncertainty over the effects of the trade war between the US and China but However the domestic growth outlook remains positive with upward revisions to forecasts for household spending and residential investment."?Rt Hon JACINDA ARDERN: Yes—a direct reflection of Budget decisions that have been made by this Government in 2018 and 2019 in particular those that focus on stimulating the economy investing in infrastructure and making sure that our population has more money in their back pocket through higher minimum wages and also through the Families Package. Hon Simon Bridges: Given she's very keen to tell us about other countries slowing down is she aware that the only reason our total growth is higher than those other countries she mentions is because of population growth and on a per person basis we are the sixth-lowest in the OECD over the last year?Rt Hon JACINDA ARDERN: No I reject the premise of that question.Hon Simon Bridges: Does she deny that on a per person or per capita basis we are the sixth-lowest in the OECD for growth in the last year?Rt Hon JACINDA ARDERN: No I was rejecting the assertion that population growth is the only contributing factor to our GDP growth.Hon Simon Bridges: What was net migration in the last 12 months and what proportion of total GDP growth does she think was driven by migration?Rt Hon JACINDA ARDERN: I have a recollection of the raw numbers being higher by several thousand from memory from when I last looked at the statistics. But this is a Government that very openly has declared that it is not going to base its economic strategy on selling houses to one another and population growth. Yes we need to make sure that our labour market—that people who need labour are able to find it but our strategy is on lifting the value of the products that we export broadening our export base and making sure that we lift our investment in research and development.Rt Hon Winston Peters: Supplementary question.Hon Members: Oh!SPEAKER: Sorry can I just make it clear that all members have a right to ask a supplementary question in this House without derision.Hon Gerry Brownlee: It was admiration.Rt Hon Winston Peters: Thank you Mr Speaker—SPEAKER: Sorry—Mr Brownlee would you like to repeat that?Hon Gerry Brownlee: I said it was admiration.SPEAKER: Well I'll take the member at his word. Some might think that he's trying to mislead the House.Rt Hon Winston Peters: Thank you very much; it was a very kind comment. Is New Zealand's GDP growth now and forecast into 2020 greater than the eurozone the UK Japan and Australia?Rt Hon JACINDA ARDERN: Yes.Hon Simon Bridges: Is that true on a per-person basis?Rt Hon JACINDA ARDERN: I don't have the breakdown on a per-person basis for all of those economies but again it saddens me that in 18 months this has gone from a member who was trumpeting the New Zealand economy to one who has become very negative on behalf of our exporters and our economy.Hon Grant Robertson: Can the Prime Minister confirm that Budget 2019 shows that annual GDP per capita growth averages 1.3 percent over the forecast period which is slightly above the 10-year average of 1 percent and just one percentage point below the five-year average of 1.4 percent?Rt Hon JACINDA ARDERN: Yes.Hon Simon Bridges: What was GDP per capita for the last 12 months?Rt Hon JACINDA ARDERN: I don't have the GDP per capita figure in front of me. I'm happy to provide it but toe to toe relative to other nations I am absolutely confident that we outperform major OECD nations.Hon Simon Bridges: Shouldn't she be able to say what our per-person growth was and isn't the answer not much if anything?Rt Hon JACINDA ARDERN: No and again 2.6 percent is our—SPEAKER: Order! Order! Sorry there's now been too much noise from both sides of the House. I have had especially after yesterday significant complaints that people in the gallery and in the wider television world are having trouble hearing the Government because of noise from the Opposition. Can I say that the sorts of interjections that we had from behind the Prime Minister on that occasion were loud and not helpful.Rt Hon JACINDA ARDERN: Again 2.6 percent is where our GDP growth sits at. Wage growth is over 3 percent. We have the second-lowest unemployment that we have had in over 10 years second only to of course the last quarter. I am confident with the economic indicators of this Government because the proof is in the pudding.Hon Simon Bridges: Is she satisfied that under her Government per capita growth has more than halved despite a record high terms of trade and rising exports?Rt Hon JACINDA ARDERN: I am confident that yes we do have rising exports that the prices for our exporters although down in the last overnight figures for dairy of course will continue to improve. But our economic plan is not the same as the last Government's. It is particularly focused on increasing wages something that last Government did lose sight of.Rt Hon Winston Peters: Have exporters written to her thanking her for the dollar—around about US65c and stable as opposed to the 70s sometimes 80s under the previous administration?Rt Hon JACINDA ARDERN: Certainly the feedback I've had particularly from primary producers at the Fieldays was that yes they do see the conditions being particularly favourable to them at present. No one wants to rest on their laurels though and of course the investment we're putting into research and development and moving from volume to value is incredibly important.Hon Simon Bridges: In light of her mention just then of her economic plan can she confirm it's more tax more cost and more debt and won't that actually just make our economy worse?Rt Hon JACINDA ARDERN: That is not our plan."