1. Question No. 1—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. CHRISTOPHER LUXON (Leader of the Opposition) to the Prime Minister: Does she stand by all of her Government's statements and actions? Rt Hon JACINDA ARDERN (Prime Minister): Yes particularly recent milestones in the Government's economic recovery plan. Yesterday international tourism and business travellers from around 60 visa waiver countries were welcomed back as part of the Government's reconnecting plan. Our tourism destinations are amongst the world's best and as thousands of passengers touched down yesterday on around 25 flights at Auckland Wellington and Christchurch international airports it is clear New Zealand is open for business. Our reconnecting plan is about even more than reuniting family and friends; it is a crucial part of strengthening our economic recovery and I know we are all pleased to welcome our visitors back. Christopher Luxon: Why with inflation at its highest level in 30 years—raising an extra $12 billion in revenue annually—is the Government now expecting to delay the return to surplus by another year? Rt Hon JACINDA ARDERN: I would point out to the member that even with a return to surplus in the year 2024-25 that brings us back into surplus within a shorter time frame than we saw under the National Government in the recovery from the global financial crisis (GFC). I stand by our economic response to COVID-19. It means that our economy is one of the strongest performers in the OECD. We have some of the lowest unemployment on record at 3.2 percent. We have an economy that has a higher rate of activity than what we saw pre-COVID and yes while we do see households going through the impacts of high inflation that is being experienced around the world this is a Government who is focused on doing what we can to support New Zealand households. We got New Zealanders through COVID and we will get them through the economic recovery of COVID. Christopher Luxon: Why has she opted for another year of deficits instead of reconsidering plans for the biggest-spending Budget in New Zealand's history which would help lower inflation? Rt Hon JACINDA ARDERN: Well firstly I would question the member's rationale on that last point. But I would also then ask the member the question: what was it of the support that we put into New Zealand families and businesses that he would choose to cut because even with a return to surplus sooner than what we saw under National in the GFC—and yet the economic crisis we've experienced has been worse—the member seems to suggest that instead we should not have invested in businesses to keep them afloat with the business support scheme that we should not have ensured that people's incomes were covered through those income supports and that we should not have had the extra support through the winter energy payment or benefit increases all of which have contributed to the lowest unemployment we have seen in New Zealand at 3.2 percent. So instead my question to the member is: what would he have cut? Because it would have left our recovery far worse. SPEAKER: Order! I just do want to remind the Prime Minister that she can't ask the Leader of the Opposition questions. David Seymour: Can the Prime Minister name or is she aware of any country at any time in history that borrowed and spent its way out of high inflation? Rt Hon JACINDA ARDERN: Again if I want to reflect on the periods where we've had inflation that has for instance outstripped wage growth it was actually under National's Government. If I also reflect on a time where we had a period where Government took on more debt because of economic crisis it was during the GFC and again I would reflect at that time that even then as a percentage of GDP we have taken on a similar increase in debt levels. When it comes to the impact that that extra spending has on inflation the member well knows that it depends on the nature of that spending. If the member is arguing that income replacement—income replacement—was inflationary that's a matter for the member. Christopher Luxon: In light of her answer does she agree with her Minister of Finance that The path for returning to surplus also puts downward pressure on inflation." and if so why is she committing to another year of deficits? Rt Hon JACINDA ARDERN: I do agree with the Minister of Finance. I also agree with the proposition he's put around for instance talking about the longer term the commitment we are making as part of the fiscal rules to ensure that over a period—a defined period—we are running surpluses but at the same time ensuring that when we are taking on debt it is for investment in infrastructure that New Zealand desperately needs. We have for too long seen a complete deficit approach to investment and much-needed infrastructure like pipes for our water preparation for houses to be built hospitals and health services and schools that we need. We have paid a price for that as a nation. We are still recovering as a Government with investment in those areas. The rules we've set out today return us to surplus but also ensure long-term investment. Christopher Luxon: Will she rule out introducing any new taxes to pay for her Government's record new spending? Rt Hon JACINDA ARDERN: We've already introduced our tax policy and I note that the member has chosen to promote the idea of reversing it. Our tax policy included putting in a new top tax rate at $180000 or more of an individual's income. The National Party has proposed dropping that. Just at a time when Kiwis are experiencing cost of living issues he wants to ensure tax cuts for those at higher incomes—they're at $180000—and wants to reverse the work that we did to make the playing field more even for first-home buyers. A billion dollars' worth of tax breaks for speculators—that's his policy; it is certainly not ours. Christopher Luxon: Is it still her policy that she will never implement a wealth tax while she is Prime Minister?Rt Hon JACINDA ARDERN: I've said repeatedly I stand by all my statements that I've made and I made the statement in 2020. The question I have is: whether the member stands by all of his? In recent times when we've been talking about the experience of New Zealanders right now in a global crisis we've heard that he wants to remove public holidays no subsidies for public transport raising the retirement age—SPEAKER: Order! Order! The Leader of the Opposition's statements are not part of the Prime Minister's responsibility.David Seymour: Is the Prime Minister seriously arguing in her earlier answers that the Government which gave New Zealand KiwiBuild and the ongoing Auckland light rail fiasco are the right people to deliver quality spending on infrastructure?Rt Hon JACINDA ARDERN: We are the Government that has invested in new school builds; that is investing in hospitals; that is investing in the infrastructure that we need in order to produce housing including water infrastructure. So the proof of course is the fact that we ended up with a housing crisis because the last Government—supported by ACT—did not invest in those things.Christopher Luxon: Does she accept that if her Government was more careful when spending taxpayers' money Kiwis today could have lower inflation lower taxes and better outcomes from their public services?Rt Hon JACINDA ARDERN: By that assertion I would assume therefore that he is claiming every single economy that is currently experiencing inflation therefore is simply down to that question. We know the OECD average right now is 7.7 percent we know in euro its 7.5 in Germany it's 7.3. In Australia they've seen a more rapid increase than New Zealand in the last quarter. This is a global issue caused by the simultaneous recovery from COVID-19 of all of our economies supply chain constraints and now a war. What I can attest to is that on this side of the House we are working through our 1 April changes and our 1 May changes to support New Zealanders. All I've heard from the Opposition is tax cuts for the most wealthy."