Cunliffe David: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeCunliffe David: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 12 February 2014. Volume:696;Page:15829. Text is incorporated into the Bound Volume.]1.Hon DAVID CUNLIFFE (Leader of the Opposition) to thePrime Minister: Does he stand by his statement that “there are more children in poverty than at some point in the past” and if so does he remain concerned about child poverty levels in New Zealand?Rt Hon JOHN KEY (Prime Minister): Yes and I think all New Zealanders would like to see child poverty levels lower. That is why the Government is investing hundreds of millions of dollars in helping people to get off welfare benefits and into work because full-time paid work is the best way of lifting children out of poverty. That is why we have borrowed billions of dollars to maintain income support for lower-income families through a very significant recession. And that is why we are doing concrete things to help families—for example through home insulation free after-hours visits to the general practitioner increased funding for early childhood education increased immunisation rheumatic fever prevention and the Children’s Action Plan. This contrasts with the idea that you can simply legislate to stop child poverty which is the Greens’ policy or give well-off families $60 a week which is Labour’s policy.Hon David Cunliffe: Given all of the above does he agree with the Salvation Army which today said: “little has been achieved in reducing the rates and incidence of child poverty and our housing situation appears to have got worse.”; if so why?Rt Hon JOHN KEY: No and just to quote from the report under the heading “Child poverty” the very first thing it says is “Child poverty rates may be easing”. The second thing it says in the housing area is that a number of the indicators are improving. The third thing is that this is the Government that has actually insulated 320000 homes in New Zealand. This is also the Government I might add that has put in $1.8 billion when it comes to income-related rents and accommodation supplements. By the way the very report that the member is talking about was actually in theNew Zealand Heraldtoday. I myself looked at it and there it was under the headline “Good news on state of our nation”.Hon David Cunliffe: What grade is the Prime Minister used to receiving if he takes the D he got from the Salvation Army for child poverty to be good news or was he talking about the D he got for housing availability the C+ he got for affordability or the C- he got for housing-related debt?Rt Hon JOHN KEY: The first thing is if we look at the report it has 22 indicators. Eleven of those indicators have actually improved and four have been reasonably flat. Seven in the view of the Salvation Army have got worse. The Government is actually very confident in its record that it is doing a great deal. Of course there is always more that can be done.Hon David Cunliffe: Does he agree with the Salvation Army which today said that “the Skycity convention centre deal has blatantly traded off social harm for economic development”; if not why on earth not?Rt Hon JOHN KEY: No and I am a little bit surprised the member has asked that because under its indicators in the report on social hazards gambling per capita hasgone down and it gets the nice big green tick up actually under a National-led Government.Hon David Cunliffe: He is grasping at straws. Does the Salvation Army’s finding that housing availability is rated as “no progress or going backwards” concern him or does he think that is good news too?Rt Hon JOHN KEY: If the author of that report really meant what they said then the author actually needs to get out a bit more because this is a Government that has done in Auckland a housing accord which the Labour Government sat on its hands and did nothing for. This is a Government that has reformed both building practices in New Zealand and planning. This is a Government that has overseen interest rates that are 50 percent of what they were. The Labour Government sat there for year after year after year and did absolutely nothing. By the way the officials who used to advise Helen Clark are some of the same officials who advise me and they spent virtually their entire time in the Department of the Prime Minister and Cabinet giving her advice on housing for which she did absolutely nothing. So if the author does not understand—Mr SPEAKER: Order! That answer is long enough.Hon David Cunliffe: When the Prime Minister gets out more in the leafy suburbs of Parnell and St Stephens Avenue I am sure he will notice that rents have gone up—[Interruption]Mr SPEAKER: Order! Order! The level of interjection is unacceptable but it would be helpful if the Leader of the Opposition could phrase his question slightly differently.Hon David Cunliffe: I am here to help. With rents up 17 percent nationwide 18 percent in Auckland and 37 percent in Christchurch since he took office how does the Prime Minister expect struggling families to afford a roof over their heads?Rt Hon JOHN KEY: Two things. The first is that the Government has put $1.8 billion in the last 12 months alone into subsidising housing through income-related rents and the accommodation supplement. The second thing is yes I live in Parnell and I am proud of it. That member lives in Herne Bay. He just does not want his supporters to know he does. [Interruption]Mr SPEAKER: Would the member just proceed with his supplementary question.Hon David Cunliffe: I think it’s the commute to Helensville that’s getting him down Mr Speaker.Mr SPEAKER: And that is not helpful. Would the member just ask his supplementary question.Hon David Cunliffe: Perhaps he just takes the helicopter view.Mr SPEAKER: Order!Hon David Cunliffe: In all seriousness how does the Prime Minister with all his worldly experience expect young families to buy their own home when his Government is requiring a minimum 20 percent deposit which Quotable Value data shows reduced the number of first-home buyers to its lowest level in 3 years—its lowest level in 3 years?Rt Hon JOHN KEY: Firstly the biggest determining factor for people when buying a house is paying the interest rates on their mortgage. They are at a 50-year low and are half the rate they were under a Labour Government. Labour I might add forced those interest rates up. Let us be honest: its programme of mismanaging the economy drove interest rates up and drove people out of their homes. That is the first thing. The second thing is that to actually get into a home people have to be able to pay the mortgage by having a job. Under this Government 1500 people a week are going off welfare and into work. The Greens and Labour are opposed to jobs and growth. That is the truth.Hon David Cunliffe: What does the Prime Minister say to the struggling middle-income families who a major bank predicts if they are on a $500 a week mortgagenow will be paying another $136 a week within 3 years because of the interest rate rises under his Government?Rt Hon JOHN KEY: I would say this. First they will be grateful that Labour is not in power because it would have been $1000 a week—[Interruption] Well that is what it was. The exact numbers would have been $1000 a week. It is as simple as this. This is an Opposition that will spend as much money—not its own money by the way; other people’s money—to try to get into office. There is only one impact of that: interest rates will go up faster if Labour gets into office. I say to that family: “Do what you’ve always done. Stick with National and you’ll be doing the right thing.”