6. Economic Growth—Household Incomes and Impact of Rising Housing CostsGRANT ROBERTSON (Labour—Wellington Central) to the Minister of FinanceEconomic Growth—Household Incomes and Impact of Rising Housing Costs6. GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Finance: Are working people getting a fair share of economic growth when real median household incomes increased by 1 percent between 2008 and 2015?Hon BILL ENGLISH (Minister of Finance): It was always going to raise questions about that calculation when real wages have risen by around 12 percent over that time. It appears that the member's calculation is probably wrong. Following the right procedure gives a 2.8 percent real increase on that measure according to that Statistics New Zealand database. However when you use a more complete and realistic definition of household income officials advise that median—Grant Robertson: Oh a more complete one!Hon BILL ENGLISH: The member should listen. Median household incomes rose by 9 percent in real terms between 2010 and 2015. The member's calculation simply is not credible in light of the fact that real wages rose 12 percent and a comprehensive definition of household income rose by 9 percent in real terms.Grant Robertson: Is it correct that the New Zealand Income Survey shows that in contrast to the 1 percent growth in real median household incomes under his watch there was a 27 percent increase from 1999 to 2008; or using his calculation that would have been the difference between a 2.8 percent increase and a 25 percent increase?Hon BILL ENGLISH: We have not looked in detail at those figures. I would simply reiterate what I can tell him today and that is that his calculation of 1 percent simply misrepresents what has actually happened. Under a comprehensive definition of household income the median household income rose by 9 percent in real terms between 2010 and 2015.Grant Robertson: Did 44 percent of New Zealanders get no pay rise at all last year?Hon BILL ENGLISH: Probably because that is what normally happens. It is pretty standard that somewhere between 45 to 50 percent of the workforce gets a pay increase in any given year and that can be simply because as with many public servants their pay round comes up only every second or third year.Grant Robertson: Is lifting real median household incomes by a higher percentage than 2.8 percent or even 1 percent a priority for his Government?Hon BILL ENGLISH: Lifting income certainly is a priority and by any reasonable measure incomes have increased. As I said earlier to the member his 1 percent figure wherever he got it from simply is not credible when it is put alongside the measures using comprehensive household income which even using the median has risen by 9 percent in real terms between 2010 and 2015. In any case this Parliament has chosen the ordinary after-tax weekly wage as the benchmark for national superannuation and that has gone up by something like 25 percent in the last 7 or 8 years.Grant Robertson: Does he think that with some of the highest increases in housing costs in the world in the last year that that is actually contributing to working people feeling that they are working harder than ever but that they are not getting a decent share in prosperity?Hon BILL ENGLISH: I think that rising housing costs as a proportion of household income is a significant issue. That is why this Government has devoted 5 or 6 years to undoing the damage of 30 years of misguided planning which has had the effect that the member has said. That is why the Auckland Unitary Plan is such a big step forward because for the first time in 30 years our biggest city has decided to allow growth at a level that in the future may be affordable.Grant Robertson: Is he really saying to working New Zealanders who have got only a small share of the growth in the economy that after 8 years the best he can do is blame somebody else for planning decisions instead of the fact that he has done very little to lift household incomes and control the housing crisis?Hon BILL ENGLISH: No what we are saying to them is that this Government at least has gone to the trouble of understanding what it is that is putting pressure on household budgets. Those households have benefited on the one hand from low interest rates across the board which is to some extent a global phenomenon and to some extent to do with New Zealand policy but at the same time the capital value of houses has gone up faster than it should have. That is why we have gone to all the trouble of trying to change the planning system that has restricted the supply of houses driven up the price of them and therefore put pressure on low and middle income households. Actually I think the Labour Party knows that that is correct. Question No. 4 to MinisterRICHARD PROSSER (NZ First): I raise a point of order Mr Speaker. I would like to draw your attention to Speaker's ruling 47/4 with regard to the interchange between Minister Coleman and Annette King which Mr Parker drew your attention to and your ruling on that alluding to the fact that that sort of interchange would lead to disorder in the House. I actually believe it goes further than that. Speaker's ruling 47/4 says that a member must not accuse another member of making a statement that member knew to be incorrect." and for the Minister to say that Mrs King was making stuff up I believe is covered by this ruling. It is akin to saying that the member lied and I wonder whether you might give some consideration to the possibility of asking the Minister to withdraw that comment and apologise for it.Mr SPEAKER: The member is talking about Speaker's ruling 47/4. The member is right: if any Minister in responding went so far as Mr Prosser says could have happened and had suggested a member is lying that is completely out of order and would be dealt with severely. Quite often Ministers in answering questions say that they disagree with the member who has asked a question. That would happen very very frequently. It is not helpful to the order of the House when any Minister says that another member is making it up and I accept that point. [Interruption] Order! I do not need assistance from the Hon Annette King although she is very keen to give it. I will look carefully at the Hansard at the end of the day."