1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterWEDNESDAY 18 DECEMBER 2019The Speaker took the Chair at 2 p.m.Karakia.ORAL 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 and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes particularly the Government's actions this year to address New Zealand's long-term challenges including record capital investment in hospitals and schools; the passing of the zero carbon Act; the announcement of $12 billion to continue to address the infrastructure deficit including another $6.8 billion in transport projects. We've built over 3600 State houses added to that base of housing invested in mental health and cancer treatment. We've recruited more than 1800 new police since we took office created a $229 million sustainable land-use package and supported our regions through the Provincial Growth Fund. We've expanded Mana in Mahi apprentices. We've banned military-style semi-automatic weapons; continued to roll out a three-year transport programme including 3300 kilometres of safety improvements; and the $100 million Green Investment Fund—that is just to name a few. SPEAKER: I will remind the Prime Minister there is opportunity for 10-minute speeches later in the day. Hon Simon Bridges: Is the reason she didn't mention child poverty just then because seven out of the nine indicators are much much worse?Rt Hon JACINDA ARDERN: On child poverty we've introduced the winter energy payment we've extended paid parental leave we've increased the family tax credit we have indexed benefits to wages—all of those policies are projected to bring 50000 to 70000 children out of poverty. If I may the member knows the data that he is referring to is data under his Government. He is deliberately misleading the House and he's misleading New Zealand.Hon Simon Bridges: Why is her Government now in deficit?Rt Hon JACINDA ARDERN: Obviously if you look around the world a number of nations are experiencing issues with global growth rates. Relative to others our performance is solid. The member will well know though that it's had impact on ACC investments and that represents a significant portion of what New Zealand is experiencing right now.Hon Simon Bridges: Does she accept that lower economic growth and wasteful spending are the primary reasons why New Zealand's now back in deficit?Rt Hon JACINDA ARDERN: Absolutely not.Hon Simon Bridges: Is she embarrassed that after inheriting surpluses that were forecast for at least another 15 years by Treasury her Government has turned that into a deficit within just two years?Rt Hon JACINDA ARDERN: That member well knows that his Government was more often in deficit than it was not.Hon Simon Bridges: Can she confirm that growth has decreased from 4.5 percent in 2017 to just 2.1 percent now and that that means less tax revenue and more spending by her Government?Rt Hon JACINDA ARDERN: What I can confirm is that when you compare New Zealand to Australia as the member often does to a range of different countries within the EU and against the UK and against Japan we are outperforming when it comes to our GDP growth. When you look at the global headwinds New Zealand is well positioned. We have low unemployment—some of the lowest we've seen in a decade. We have had wage growth that is amongst the highest in a decade. We have solid growth rates. We are in a good position to invest for our economy.Rt Hon Winston Peters: Can I ask the Prime Minister as to whether she's received reports explaining that if the economy was roaring along in 2017 the Government lost?SPEAKER: Order!Rt Hon Winston Peters: It's a report.SPEAKER: It might well be and it might well be a device on the part of the member to invite the Prime Minister to comment on something which in some ways as the leader of the Labour Party she might have had responsibility for but certainly doesn't as Prime Minister.Rt Hon JACINDA ARDERN: Look what I do know is that—SPEAKER: Order! Order! No I've ruled the question out. [Interruption] The member should be too.Hon Simon Bridges: In light of her last answer to the last supplementary to the effect that things are going well can she explain again then why New Zealand is in deficit?Rt Hon JACINDA ARDERN: As I've already acknowledged the global headwinds that New Zealand is facing are exactly the same as what the rest of the world is facing. If the member thinks that 2.4 percent growth is bad I wonder what he thinks about the 2.1 percent which was the average under his Government.Hon Simon Bridges: Can she confirm that her Government is to spend $23 billion more on day-to-day spending than previously predicted?Rt Hon JACINDA ARDERN: No I cannot confirm that here and now.Hon Simon Bridges: Does she accept that running a deficit breaks the promise she made to New Zealanders to stay in surplus unless New Zealand is in a crisis?Rt Hon JACINDA ARDERN: The member will see from the forecast that we move quickly out of that position and again I would point out that the situation that New Zealand finds itself in is not dissimilar to Australia the United Kingdom Japan the EU—other nations within the OECD we compare ourselves to—with some significant differences those being that our growth rates outperform many of those that our unemployment levels are low and that our wage growth far outstrips that under that Government. On almost every marker we are outperforming including projected deficits which that member experienced far more of under his Government than under ours.Hon James Shaw: Can the Prime Minister confirm that the promise that she made to the country was actually that the Government will deliver a sustainable operating surplus across an economic cycle?Rt Hon JACINDA ARDERN: Yes I can.Hon Simon Bridges: Was in fact the pledge that she made that she would deliver surpluses unless there was a natural disaster an economic shock or a crisis in New Zealand?Rt Hon JACINDA ARDERN: It is as the member Mr Shaw outlined: a sustainable surplus. I point out again that we have delivered surpluses over $10 billion to date and forecast to be over $10 billion in the future.Hon Simon Bridges: Did she make a statement that she would deliver surpluses under a Labour Government unless New Zealand had a disaster an economic shock or a crisis?Rt Hon JACINDA ARDERN: We assured New Zealand that we would deliver sustainable surpluses over an economic forecast cycle. We have delivered surpluses over $10 billion to date and projected to be over $10 billion in the future. I have to say I am proud of what this Government has managed to do in the face of significant headwinds. What we've done on the cost of living what we've done on unemployment and what we've done on wage growth is fundamentally making a difference to New Zealanders. If the member read Treasury reports he would see that Treasury has advised the Government not to make changes in the short term around austerity just to achieve that short-term surplus because it would not be the right thing to do.Marama Davidson: Are the deficits and surpluses the only way to measure the economic wellbeing of a nation?Rt Hon JACINDA ARDERN: I'm glad the member has asked. She of course is acknowledging that around the world the move of course is to take into account the wellbeing of a people's nation its people its environment and of course its infrastructure. On those measures it is fair to say that we have been left with a lot to do. Whilst those opposite have not yet had the data to demonstrate what we've done—for instance on child poverty—we've made more than $5 billion worth of investment to low and middle income New Zealanders because they are the very people who needed this Government to start investing in them beyond a three-year cycle and that is exactly what we've done.Hon Simon Bridges: So is she borrowing $35 billion additional over the next five years because as she says austerity wouldn't be the right thing at this time?Rt Hon JACINDA ARDERN: We're borrowing because infrastructure deficits exist in this country interest rates are low our debt rates are low—lower than what we inherited under that Government—and now is the time to invest. In fact his finance spokesperson himself some three months ago endorsed that very position. That is exactly why we've made the $12 billion worth of announcements into infrastructure. And I would point out that as a percentage of GDP New Zealand's debt will still be lower than what we inherited from that member under the last National Government.Hon Simon Bridges: If she's borrowing for infrastructure" why is only $12 billion of the $35 billion she's borrowing in the next five years going on infrastructure?Rt Hon JACINDA ARDERN: Again I refute what the member has outlined but again point out that the member's own finance spokesperson has endorsed the idea of this kind of investment in infrastructure. Interest rates are low Government borrowing is low—lower than it was when we started in office under the last member's Government—and even at its highest point will reach 2.5 percent over this cycle which is lower than you left it.Hon Simon Bridges: Why is she breaking her pledge to keep debt at under 20 percent of GDP by 2022?Rt Hon JACINDA ARDERN: The member well knows that we've delivered that on two occasions. We also though listen to Treasury advice to move to a range. It was advice that we agreed with we did so recently and we are falling well within that. Again I do want to point out that if the member thinks that our debt levels are high now he must think very poorly of the last Government because they were higher then.Hon Simon Bridges: What is the point of making promises to New Zealanders like running a surplus and paying down debt if she just chooses to ignore them?Rt Hon JACINDA ARDERN: While I refute what the member is claiming I just have one thing to say: GST."