1. Climate Change—Economic ImpactJAMES SHAW (Leader—Green) to the Prime MinisterWEDNESDAY 16 AUGUST 2017Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSClimate Change—Economic Impact1. JAMES SHAW (Leader—Green) to the Prime Minister: Does he stand by all his policies?Rt Hon BILL ENGLISH (Prime Minister): Yes; in particular we maintain our policy that we would not introduce a series of new taxes—a water tax a capital gains tax and higher income taxes. We also stand by our policy that if we are going to talk about tax we would not hide the details or pretend we are going to use working groups to do the dirty work for us.James Shaw: Is it responsible economic management to leave the country with a bill of a billion dollars a year for the next 10 years to pay other countries to reduce their greenhouse gas emissions so that we do not have to?Rt Hon BILL ENGLISH: The costs of the emissions trading system are something that I thought the member would understand because the Greens helped to invent the emissions trading system and I compliment them on it because it is the most comprehensive emissions trading system in the world. The beauty of it is that it does recognise the fact that global warming is a global problem and it is therefore set up in a way that allows it to link to international markets. He describes that as paying other people to reduce their emissions. Well that is exactly what the Greens intended by setting it up.James Shaw: Can he confirm that the cost of big floods in Wellington Whanganui Dunedin Northland and Edgecumbe the Port Hills fires and the 2013 nationwide drought all add up to at least $1.45 billion?Rt Hon BILL ENGLISH: They certainly do add up. The Government has assisted in paying the bills and so have others. Of course in New Zealand we have the benefit of pretty intensive coverage of insurance which enables many people to manage their own costs of the impact of those disasters.James Shaw: Given that the National Institute of Water and Atmospheric Research has said that these floods and fires and droughts are now twice as likely to happen as a result of climate change how has he factored that into his Government's economic programme?Rt Hon BILL ENGLISH: In the first case there is a climate change policy where we are signed up to the Paris Agreement. Secondly as a result of a number of those natural disasters back in 2010-11 and 2012 there has been intensive work on how we can make sure that local government and central government understand where the risks fall that they can get the right kind of insurance for them and that the risks are understood and managed particularly through the resource management and planning processes. In fact we have got a strong focus on resilience—probably better than most developed countries.James Shaw: Speaking of the resilience of other countries how many of the 179000 people living in Kiribati the Marshall Islands Nauru and Tuvalu will he take in when sea-level rise renders those countries uninhabitable?Rt Hon BILL ENGLISH: All that has yet to be seen. I mean if there was a genuine humanitarian crisis then of course we would perform our role as a country in the Pacific. I have to say that in the discussions I have had with people connected to the challenges in those countries what they want is (1) to be able to stay where they live where they come from and (2) sensible aid from other countries to assist them with issues like access to high-quality clean water and protection from rising sea levels.James Shaw: Does he accept the 19 percent rise in net greenhouse gas emissions on his watch is a sign of his failure to shift our economy towards a carbon-neutral future?Rt Hon BILL ENGLISH: We would certainly contest the numbers. I mean the rate of increase in greenhouse gases was strongest through the period from 2000 to 2008 when the Labour Party was in there with the support of the Green Party. Since then of course we have had a growing economy and a growing population. These are signs of success and we believe that with a stronger economy we can have growth and we can have higher environmental standards unlike the member's party which just simply wants to stop the economy going anywhere so that it can slow it down to the standards he wants.James Shaw: Is he concerned that some of the smartest long-term investors in the country yesterday pulled the plug on investing in fossil fuels while at the same time his Government continues to subsidise deep-sea oil exploration and to promote coalmines in national parks on conservation land?Rt Hon BILL ENGLISH: Given that the Government announced its target for electric vehicles last week to have 25 percent of the fleet as electric vehicles any investor I would have thought would see that as a signal that across the world the internal combustion engine is going to come under pressure and that investing in the production of it or its fuel represents a commercial risk. So I am pleased to see investment funds taking account of those risks because the New Zealand Government is part of the risk to the fossil fuel and car industry.