Hayes John: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeHayes John: Questions for Oral Answer — Questions to Ministers[Sitting date: 05 November 2013. Volume:694;Page:14305. Text is incorporated into the Bound Volume.]1.JOHN HAYES (National—Wairarapa) to theMinister of Finance: How is the Government’s economic programme supporting New Zealand families particularly those on low incomes and with dependent children?Hon BILL ENGLISH (Minister of Finance): The most important thing the Government is doing is building a competitive economy that creates more jobs and supports higher incomes. Since the tax changes of 2010 households earning less than $60000 which is around 50 percent of all households receive more in income and accommodation support paid parental leave Working for Families and welfare support than they pay in income tax—that is they receive more income from the Government than they pay to the Government in tax. We have also provided extra support for the most vulnerable families. This includes for instance $190 million for the next stage of welfare changes to help more New Zealanders out of welfare dependency and into work and $100 million to extend the home insulation programme along with many other versions of support for our most vulnerable families.John Hayes: According to the latest economic data how are families benefiting from the improving economic outlook and the Government’s economic programme?Hon BILL ENGLISH: Every family’s situation is different and times remain challenging for many families but there are encouraging indicators. Cost of living increases remain low at just over 1 percent and interest rates remain low. In fact today first mortgage interest rates were about half what they were 5 years ago. In the past 2 years average wages have increased faster than inflation and there are 65000 more jobs in the economy than 2 years ago. But most important businesses are indicating that they are feeling more confident and more likely to hire and to provide wage increases which will benefit families.John Hayes: What reports has he received on how a so-called living wage would impact on a two-adult two-child family?Hon BILL ENGLISH: The Government supports higher wages and incomes for all New Zealanders including families. I have received a report from Treasury that shows that families with two adults and two children represent only 6 percent of the families who earn below $18.40 an hour. The vast majority almost 80 percent of families earning below the so-called living wage are either single adults or couples with no children. That makes the living wage an extremely poorly targeted intervention to support low-income families.John Hayes: What other conclusions does Treasury’s analysis reach on the so-called living wage?Hon BILL ENGLISH: Treasury I am sure believes that people being paid more is better for families and better for economies. It is just that everyone else in the country except for the Labour Party knows that if you could legislate for income levels then why would you not pick a wage of $25 an hour? Why is it being mean in picking $18.40? A Ministry of Social Development study also deals with the slogan that the rich are getting richer and the poor are getting poorer. Ministry of Social Development reports show that income inequality has been declining since the mid-2000s. Household incomes have been rising for all deciles except the top 10 percent of earners.