3. Question No. 3—TransportHon AMY ADAMS (National—Selwyn) to the Minister of TransportQuestion No. 3—Transport3. Hon AMY ADAMS (National—Selwyn) to the Minister of Transport: Has he seen reports that 41 percent of households with incomes below the average level are now spending less on essential items like food and power because of higher petrol prices and if so will he reconsider the two further petrol tax increases planned this term?Hon PHIL TWYFORD (Minister of Transport): Yes and no.Hon Amy Adams: Why is he going to continue to increase petrol taxes when 40 percent of low-income families are having to go without essentials like food and power because of those high petrol prices?Hon PHIL TWYFORD: This Government is taking action on petrol prices and forcing the petrol companies to expose their margins. We're getting the evidence that we need to sort this out because no one wants to see Kiwis paying more at the pump than they need to. But despite the member's consistent scaremongering it's still true that most of the increase by a country mile in petrol prices has come from increases in international crude prices a falling dollar and importer margins rather than taxes.Hon Amy Adams: Does he think it's scaremongering to suggest that petrol taxes are regressive and disproportionately hurt lower-income households the most?Hon PHIL TWYFORD: Well the lack of a decent transport system and the crippling infrastructure deficit that we inherited after nine years of that Government is highly regressive and punishes poor people. This Government's committed to reversing that deficit and investing in the infrastructure that our towns and cities need to be liveable and to support the economic growth that that party allowed to wither on the vine for nine years.Hon Amy Adams: Does he agree with Treasury who advised him clearly that increasing petrol taxes has and I quote a negative impact … on the welfare of low income households."?Hon PHIL TWYFORD: Yes and I also agree with Treasury's analysis of the effects of the Families Package which put $75 a week on average into the household budgets of 384000 low and middle income families. Alongside that we're investing in modern transport systems to give people real choice particularly in our cities.Hon Amy Adams: Well is he aware that that survey that showed 40 percent of low-income households now having to go without essentials because of higher petrol prices and taxes came after the Family Incomes Package which hasn't stopped them having to give up on food and energy and other essentials because of the taxes imposed by that Government?Hon Phil Twyford: Well the Colmar Brunton report had some excellent information in it. It also included information that the Labour Party had overtaken the National Party in terms of the party vote that New Zealand First and the Greens are doing exceptionally well and that the Government's on 57 percent.Hon Amy Adams: I raise a point of order Mr Speaker.SPEAKER: Yes I think I missed the relevance of the reply. Is that—Hon Amy Adams: Well if you're asking me whether I think the Minister addressed the question I don't think he came anywhere near to it.SPEAKER: Nor do I. Ask it again and we'll have a sensible reply.Hon Amy Adams: Mr Speaker thank you. I will. Is he aware then that the survey quoted in the primary question that showed 40 percent of low-income households are now going without essentials like food and power because of higher petrol taxes was taken after the full impact of the Family Incomes Package and that despite that package those low-income households are still going without essentials because of higher petrol prices and taxes?Hon PHIL TWYFORD: Well I don't know why the member says "despite that package". That package delivered $75 a week into the pockets of 384000 low and middle income families. She can't just wave that away by saying "despite that". The best analysis on the effects of fuel tax increases was done by the Ministry of Business Innovation and Employment (MBIE) and MBIE calculated that on average those fuel taxes increases would by no more than an average of $5 a week increase in fuel prices. Most of the increase in the cost of fuel consumption has been caused by a falling dollar oil prices and importer margins. This Government's doing something about fuel importer margins. That Government talked about it but did nothing.Hon James Shaw: What would have been the impact on low-income households of international oil prices and the exchange rate if the Government had kept the previous Government's tax cut policies in place and not put in place the family support package?Hon PHIL TWYFORD: Well I think it's pretty clear that that combination of circumstances—if we had lived to see—Hon Gerry Brownlee: I raise a point of order Mr Speaker. How on earth can this Minister make a comment on that given that it is a totally hypothetical question and has been pointed out as such every time we've raised that issue on this side of the House?SPEAKER: Hypothetical questions can be asked. They don't have to be answered.Hon PHIL TWYFORD: I think it would have been a disaster for low and middle income families to have had the former National Government's tax cuts that went disproportionately to well-off households instead of the Families Package and then an array of fuel tax increases that Simon Bridges was considering as transport Minister at the time of the last election."