1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterWEDNESDAY 3 APRIL 2019The Speaker took the Chair at 2 p.m.Prayers.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 policies and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes.Hon Simon Bridges: Does the Prime Minister accept that since her Government formed the New Zealand economy has weakened?Rt Hon JACINDA ARDERN: I think a broad generalised statement like that no actually I wouldn't accept. I keep in mind as well that the markers of success in an economy are things like unemployment levels—and we've had strong employment—and of course also the kinds of gains that every day New Zealanders experience in terms of wage growth and also particularly what we're seeing in the Families Package. So I wouldn't agree with that member's statement.Hon Simon Bridges: Well does she accept that from a Treasury forecast at the election of 3.7 percent growth in 2018 that growth slowed to 2.3 percent last year and was 0 percent per person in the last six months?Rt Hon JACINDA ARDERN: The member isn't reflecting of course what's going on in the global economic environment. I have to say that actually relative to what's going on with some of our counterparts in the last quarter the economy grew 0.6 percent—faster than Australia faster than Canada faster than the UK the euro area and Japan and faster than the OECD average rate.Hon Simon Bridges: Does she accept the Reserve Bank's assessment last week that the balance of risk to our economy and its outlook has now shifted to the downside." and Westpac ANZ Business New Zealand and the New Zealand Institute of Economic Research have all put out significant surveys and forecasts which are all clearly negative and all clearly showing an economy—SPEAKER: Order! Order! The member had far too many legs to that question. The Prime Minister can answer any one of them.Rt Hon JACINDA ARDERN: I also note that there was reference also to the global economic environment that we are operating in. Again I actually reference what the Minister of Finance has said which was that we have strong economic fundamentals and sustainable economic growth that remains fundamental to New Zealand's success. But of course we do not operate in isolation. Relative to what's going on for other developed economies we are performing well.Hon Simon Bridges: In light of all the data all the surveys all the indicators and what the Reserve Bank is saying will she accept that the New Zealand economy is weakening at the moment?SPEAKER: Order! I'm going to ask the member to ask the question again in order.Hon Simon Bridges: Does she accept given the various facts I've put to her that the economy in New Zealand today is weakening from where it was at the election?Rt Hon JACINDA ARDERN: That is happening with every developed OECD nation and that's my point—that is my point. So yes there is a slow-down happening everywhere but relative to what other economies are experiencing ours is not at the degree that others are. Rt Hon Winston Peters: Could I ask the Prime Minister as to whether it's a fact that the growth rate in New Zealand for the last quarter was 0.6 percent whereas in Australia one of our biggest trading partners and right next door it was 0.2 percent?Rt Hon JACINDA ARDERN: Yes.Hon Simon Bridges: Does she and her Government take any responsibility for the New Zealand economy weakening?Rt Hon JACINDA ARDERN: We of course take responsibility for economic management within New Zealand. However we do not take responsibility for the fact that the IMF and the OECD have both downgraded their growth outlooks for 2019 and 2020. We do not operate in isolation and I know the member knows that.Hon Simon Bridges: Does she accept that in addition to international factors which are clearly there there are clearly also domestic factors that are part of the downward trajectory of our economy at this moment?Rt Hon JACINDA ARDERN: I would actually say that some of the domestic factors mean that perhaps that's some of the reasons we can differentiate ourselves from the likes of Australia from the likes of Canada and from the likes of the UK and Japan.Hon Simon Bridges: Does she accept and agree that the Reserve Bank last week said that part of the reason for the more negative outlook were factors including softness in the housing market weak business investment and sentiment and a decline in domestic spending?Rt Hon JACINDA ARDERN: Imagine therefore what would happen if we didn't have the stimulus of the Provincial Growth Fund; if we didn't have the stimulus of the Families Package which has put on average $75 a week into those household incomes; and if we didn't have that increase in the accommodation supplement. Imagine where we would be without that.Hon Simon Bridges: Can I get this right—is it the eight jobs created by the Provincial Growth Fund that's saving our economy at this time?Rt Hon JACINDA ARDERN: I reject the premise of the question.Hon Simon Bridges: Isn't it clear that domestic factors are at play in weakening our economy including declining business confidence?Rt Hon JACINDA ARDERN: I do not accept the member's argument. This is as good as the Government of the day claiming that the global financial crisis didn't have an impact on New Zealand's economy.Hon Simon Bridges: Does she think her Government's policies have had any effect on declining business confidence?Rt Hon JACINDA ARDERN: I think our policies have had an impact—that's why we've got some of the lowest unemployment we've had in a decade.Hon Simon Bridges: Does she think the Cullen Tax Working Group's report on a capital gains tax is good for business confidence?Rt Hon JACINDA ARDERN: This is a Government that is willing to address issues like for instance whether or not we have fairness in our tax system. I would ask the member to be patient for the final decisions that will be made by this Government. I know the business community given that I've been in audiences speaking with them over the past couple of months and have had very few questions on this issue—I know they know that the decisions are still to be made.Hon Simon Bridges: Does she think that her so-called fair-pay policies or indeed any of her Government's industrial law changes—SPEAKER: Order! The member will ask a straight question.Hon Simon Bridges: I raise a point of order Mr Speaker. The policy by the Government is called fair pay. I simply don't accept that's accurate and I think it's fair that I say "so-called fair-pay policies".SPEAKER: Well the member might think that; I don't. Ask the question. Hon Simon Bridges: Does she think her fair-pay policies or indeed any of her Government's industrial law changes are helping with business confidence?Rt Hon JACINDA ARDERN: I'd remind the member that business representatives were part of the Fair Pay Agreement Working Group—in fact a past National Party Prime Minister was as well—and with only one exception they agreed with the recommendations that were made. This is a Government who's not afraid to look at the facts that we have not had the wage growth that New Zealanders would expect and that we're willing to address that unlike the last Government. David Seymour: When the Prime Minister said a moment ago that she gets very few questions from the business community about the capital gains tax did she mean to say that the New Zealand business community is not interested in or concerned about the introduction of a capital gains tax?Rt Hon JACINDA ARDERN: Quite to the contrary. The point I was trying to make is that the business community understands the Government is yet to make decisions on the recommendations of the Tax Working Group and are obviously waiting for those final decisions to be made. David Seymour: Why wouldn't they ask questions and be interested in the decision that the Government's about to make?Rt Hon JACINDA ARDERN: Because the—SPEAKER: Order! Order! The Prime Minister will resume her seat. That question's clearly not the responsibility of the Prime Minister.Hon Simon Bridges: Are her Government's petrol taxes oil and gas ban and foreign investment ban helping business confidence?Rt Hon JACINDA ARDERN: Certainly when it comes to the decision around whether or not oil and gas in 30 years' time needs to transition that is certainly helping the decisions around climate change and that might well be an issue that the member on the other side of the House might like to think about what his transition plan is for the New Zealand economy.Hon Simon Bridges: But isn't it quite clear that in addition to international factors there are many policies of this Government that are seeing our growth go from nearly 4 percent to nearly 2 percent?Rt Hon JACINDA ARDERN: Again one of the things that we've made sure that I have certainly done since being in this position is for instance to increase the engagement I'm having at the level with groups like the Business Advisory Council and I can tell you that it is not petrol prices and it is not oil and gas that that group raises. It is what we're doing around skills training. It's what we're doing around making sure that we increase productivity. It's what we're doing to make sure small businesses have access to capital. Those are all things that have not been adequately addressed. They are long-term challenges and they're things that this Government is working on."