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. I especially stand by my statement in January that 2021 would be the year of vaccines. When I made that statement vaccinations around the world had barely begun and New Zealand was just days away from administering first doses—and how far we've come. I'm happy to report that since then 7916149 doses of the Pfizer vaccine and 2610 doses of the AstraZeneca vaccine have been delivered to New Zealanders. Most importantly 89.82 percent of eligible New Zealanders are now fully vaccinated against COVID-19. Mr Speaker if you'll indulge me I think we can round that up to 90 percent. The success of the programme rests with those on the front line: the nurses the vaccinators the healthcare workers and assistants the Hauora providers our Pasifika providers and the security and site managers. I want to give a particular acknowledgment to rangatahi and young people who have been such a strong part of the campaign—every single person who helped to get one of the thousands to vaccination sites. And my final thanks goes to the 3.9 million New Zealanders who have chosen to protect their whānau and protect themselves by getting vaccinated. We are all the safer because of it.Christopher Luxon: Is she concerned that increasing Government spending by a massive 68 percent in just five years is contributing to the cost of living rising faster than wages?Rt Hon JACINDA ARDERN: Of course as the member will have heard me say in this House until the phenomena of COVID-19 we here in New Zealand did have wage growth on average outstripping inflation from 2018. What you'll see Treasury reflect today is of course that we are not an outlier; we are like many other countries that are experiencing inflation as a result of supply constraints shipping issues high consumer demand and all of that is occurring at the same time around the world and that is why many countries are experiencing inflation increases as we are.Christopher Luxon: If inflation is all important as she seems to be suggesting does that mean that she believes the New Zealand Government has no influence at all on the cost of living in this country?Rt Hon JACINDA ARDERN: Look I acknowledge that there will be times when Government policies will have an impact on inflation because you only need to look at the last time we saw inflation at a rate of 5 percent under the National Government and over then successive quarters when they chose to increase GST. However what we are looking at the moment is a situation where actually it is predominantly international factors that are impacting on inflation. However if the member is suggesting that we should cut Government spending particularly given today the Minister of Finance has pointed to the importance of spending on healthcare—if the member is proposing to cut spending on healthcare that is his prerogative; it is not ours.Christopher Luxon: What is her understanding of the relationship between Government spending and inflation?Rt Hon JACINDA ARDERN: I just acknowledged in my last question that there are examples of Government policy that have had an impact on inflation. Of course the most important factor often in New Zealand is monetary policy in what we see in inflation rates in New Zealand. But if the member is saying that we should use fiscal policy and cut Government spending or increase taxes or price controls then that is for the member. We disagree with those initiatives and again you'll see in the forecast suggestion from Treasury today that we'll see a peak in early 2022 and then their forecast is that it will begin to fall away and again we'll see real wage growth in New Zealand.David Seymour: Is the Prime Minister saying that there is not one example of wasteful Government spending that could be cut to reduce pressure on the cost of living faced by New Zealanders and if she is does that include the $51 million spent designing a bike bridge that was rightly never even built?Rt Hon JACINDA ARDERN: The member believes in flat taxes and does not believe in investing in Government services so that member's view of waste may not be the same as our view of investment in critical Government services. So that's a matter for the member. We are of the view that particularly in an economic crisis in a health crisis we invest in our people and our core Government services.Hon Grant Robertson: In light of that last supplementary can the Prime Minister confirm that the $51 million spent on investigating the SkyPath represented 0.047 percent or 5/100th of 1 percent of Government spending; and does she think that will have a major inflationary effect? [Interruption]SPEAKER: Before the Prime Minister—well I'm not quite sure that there was a question there; it was certainly rhetorical. But I am going to remind Erica Stanford that when—if it was Erica Stanford. Which member was it who was calling out? [Member raises hand] Hang on. I'm just going to deal with Nicola Willis first. Nicola Willis will stand withdraw and apologise.Nicola Willis: I withdraw and apologise.SPEAKER: No the member will take her mask off to do it.Nicola Willis: I withdraw and apologise.SPEAKER: Does the Prime Minister want to—was there enough of a question in that rather than a statement for the Prime Minister to answer?Rt Hon JACINDA ARDERN: I think anything around SkyPath—David Seymour: Point of order Mr Speaker. Amongst all the fracas and disturbance it was quite a fine question with some very specific numbers. I didn't hear it. I wonder: would it be OK for the Minister of Finance to repeat it?Rt Hon JACINDA ARDERN: I heard the question Mr Speaker.SPEAKER: No I think the Prime Minister heard it. She's capable of answering it if she so wishes.Chris Bishop: Point of order.SPEAKER: No hang on. I'm now getting to the point where I have the feeling that possibly accidentally to start with but deliberately since there's been an interference in the process of the House. If this is not a valid point of order the member will not stay in the House. Chris Bishop—Chris Bishop: I just wanted to say I didn't hear.SPEAKER: No he doesn't have one.Rt Hon JACINDA ARDERN: Of course I think for the purposes of the member's point what was invested in SkyPath would pale in comparison to the cuts that would be proposed in services and investment in New Zealanders were the ACT Party given the chance.Christopher Luxon: What is the Government doing to constrain inflation now forecast at 5.6 percent next year?Rt Hon JACINDA ARDERN: At the same time as we have seen Treasury forecast inflation to hit those rates in early 2022 they are also forecasting that it will fall away and back within the midpoint range for the Reserve Bank beyond that across 2022. In fact that's in line with much of the forecasting that we're seeing at present. So that again points to the international factors that are affecting us as they are affecting the US as they are affecting the UK and as they are affecting Canada.Chris Bishop: Point of order. That was actually a very specific question that was not addressed which was: what is the Government doing to constrain inflation?SPEAKER: The member will resume his seat. The member might want to take a lesson from a few of his colleagues: if the members require an answer to a specific question—a specific answer to a specific question—they don't ask a general first question.Chris Bishop: It's got to be addressed though.SPEAKER: No no sorry—the member does not interject when I'm on my feet. I mean he's the shadow Leader of the House. It might take him a little time to remember what the role is again but he will obey the rules. Chris Luxon—Christopher Luxon I apologise.Christopher Luxon: Is it Government policy to return inflation to within the 1 to 3 percent Consumers Price Index band as stated in the remit and if so what is she doing to achieve that policy? Rt Hon JACINDA ARDERN: That is the domain of the Reserve Bank. Christopher Luxon: Why after four years of a Labour Government are prices now growing twice as fast as wages and does she have any plan to stop Kiwis on the average wage getting poorer? Rt Hon JACINDA ARDERN: In answer to the first part of the question this Government is not responsible for the arrival of COVID-19 and yet that is the primary driver of what we are seeing in terms of inflation. Of course in terms of that period pre - the pandemic you'll actually see the impact of Government policy where wages were growing faster than inflation. Christopher Luxon: Why is she continuing to spend at record levels despite inflation running at a 30-year high with prices growing faster than wages making everyday hard-working Kiwis poorer? Rt Hon JACINDA ARDERN: And Treasury has forecast that we will start to see inflation peak in 2022 and then fall back away to the midpoint range again. The investment that we have signalled for the Budget we have also signalled will have a focus particularly on two significant challenges for New Zealand: healthcare and climate change. If the member is proposing to invest in neither then he is answerable to the New Zealand electorate on that.