2. Question No. 2—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. 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 she accept that one side effect of the weakening economy is lower tax revenue to pay for essential public services?Rt Hon JACINDA ARDERN: Of course there can be obviously effects in that regard around Government revenue. Of course we have maintained a fiscal strategy that is still around responsible spending whilst of course also seeking to stimulate growth and that is an agenda we continue to pursue.Hon Simon Bridges: Is she aware that her Government has taken in $600 million less in tax revenue than forecast in the year to March?Rt Hon JACINDA ARDERN: Yes I acknowledge there have been softer GST revenues which do account though for about two-thirds of the forecast variance but some of this has been said at least by the ANZ to be timing related so there is an expectation that that should reverse in coming months. There's also I think a view of course that the Families Package and other investments made by this Government are continuing to encourage consumption which of course we know also has a positive effect on the economy.Hon Simon Bridges: In light of that does she believe the numbers will be better or worse at Budget 2019?Rt Hon JACINDA ARDERN: Obviously I'm not going to speculate with the member in that regard.Hon Simon Bridges: Is the reason why her Government can't fully fund St John Ambulance service because of the slowing economy and $600 million lower tax revenue?Rt Hon JACINDA ARDERN: I find it curious that the member is brazen enough to raise an issue that of course he did not seek to resolve. Obviously St John has continued to be part funded by successive Governments including his own at a rate of roughly give or take 70 to 75 percent or so. We recognised that that was an issue. We want to ensure the sustainability of their funding. We have put in additional funding for St John while we work with them on a sustainable funding plan which I have to say is more than his Government did.Hon Grant Robertson: To follow up from that can the Prime Minister confirm that in fact it was the previous Government who set a funding track of 75 percent not this full funding we're now hearing about?Rt Hon JACINDA ARDERN: I can and I can also confirm that that is obviously one of the things that have caused St John to come back to the Government of the day obviously seeking resolution that they didn't find with the last one.Hon Simon Bridges: Did the last Government fund double crewing of St John Ambulance services and also mental health resources on each ambulance which her Government cancelled?SPEAKER: Marginal responsibility apart from the last bit.Rt Hon JACINDA ARDERN: My view would be that if everything was fine and dandy St John would not have come to us.Hon Simon Bridges: Is the reason why there are 10000 fewer elective surgeries being performed under her Government because of the slowing economy and $600 million lower tax revenue?Rt Hon JACINDA ARDERN: No. The elective numbers do not have anything to do with the economy because of course we fund district health boards to fulfil a certain number of elective surgeries. However whilst they've reached I'm advised around 98 percent of the expectation around electives we have seen them be about I'm advised 2 percent shy. One of the reasons I'm told for that has unfortunately been that there has been industrial action with the junior doctors. Whilst there's been maintenance of life-preserving services which we have of course appreciated it has led to some cancellation unfortunately of electives. It has nothing to do with the economy.Hon Simon Bridges: Why were elective surgeries—some 6500 procedures—down even prior to the strikes does she believe?Rt Hon JACINDA ARDERN: I've actually been advised that the numbers the member is using to compare expectations on electives and deliverables is actually not the correct comparison and so I've given the explanation that I've been provided. I acknowledge that we're about 2 percent shy but when we're talking about I believe 140000 or so procedures that's still a significant number of people who will have received the surgery they need.Rt Hon Winston Peters: Can the Prime Minister confirm that whilst being economic provident and frugal there is going to be more money in the economy in the ensuing year than ever before to pay for infrastructure to ensure that businesses thrive as does the working force of this country?Rt Hon JACINDA ARDERN: I can actually go beyond that though and confirm that despite the headwinds that are being experienced globally New Zealand is in relatively good shape. We of course see the OECD outlook today demonstrating again that in spite of some of those expectations globally we are outdoing most of those who we tend to be compared to. But alongside that—because of course we're worried about domestic outlook—I'm very proud that we're a Government that's ensured the average wage is up $65 per week that 70000 new jobs have been created and that we have some of the lowest unemployment we've seen in a decade and that's something to be very proud of.Hon Simon Bridges: Can she confirm that that $65 is entirely gone if you're renting in both the rent increase on average and also the petrol tax increases her Government's piled on?Rt Hon JACINDA ARDERN: No because we have seen rental increases but on average in the last year they've been about half that. Of course the $65 per week—of course on top of that we've also had the Families Package which on average will deliver about an additional $75 per week. Of course we know the impact of things like the minimum wage. The last increase benefited 200000 people and of course their families. Those do outstrip those cost of living issues which we are constantly mindful of and constantly working to address.SPEAKER: The right honourable—sorry the Hon Grant Robertson.Hon Grant Robertson: Possibly.SPEAKER: No we're not swapping.Hon Grant Robertson: Can the Prime Minister confirm that an increase in petrol tax of 24c a litre over six or seven years would represent a reasonable increase even if it was done by the previous Government?Rt Hon JACINDA ARDERN: The member is absolutely correct that the last Government did pursue excise increases but actually just speaking to the local member's question he'll well know that one of the biggest decreases that's been seen in the region in recent times was actually brought about when Waitomo came into the market. I think that again further reaffirms why it's so important that the Commerce Commission is undertaking the work they are undertaking to ensure that New Zealanders get a fair deal.Hon Simon Bridges: Has this Government increased the petrol taxes some 16c a litre if you're in Auckland and wouldn't the petrol prices if it wasn't for that be around $2 possibly less?Rt Hon JACINDA ARDERN: We openly campaigned on the fact that of course we would have a regional fuel tax but none of that explains why for instance Aucklanders consistently are paying lower prices than say someone in Wellington or someone in the South Island. I watch those prices very closely. The regional variation is enormous. That is why it is so important that the Commerce Commission looks into these issues.Hon Simon Bridges: Is the reason why teachers will go on strike the day before the Budget and create huge disruption for parents and families across New Zealand because of the slowing economy and $600 million lower tax revenue?Rt Hon JACINDA ARDERN: No. I think if you ask any teacher why they are striking they will not say it's because of the economy. We know that the issues that they are raising are around things like non-contact time. One of the issues we have—of course non-contact time means needing extra teacher supply and yet that member will well know I hope that enrolments in initial teacher education plummeted by 40 percent under his Government. We do not have enough teachers in New Zealand. And yes I hope the on-average additional $10000 we are offering teachers will hopefully make that difference to attract people into the profession. We cannot solve overnight the supply problem they left us.Rt Hon Winston Peters: Could the Prime Minister tell us why she is adamantly opposed to putting up the goods and services tax like the previous Government did?Rt Hon JACINDA ARDERN: I think the member makes the point that there was of course an increase in GST under the last Government—something that was not flagged with the public before they did it.Hon Gerry Brownlee: Through Government's actions in politics—unbelievable. SPEAKER: Order! Sorry did the member have a question?Hon Gerry Brownlee: No I had a comment meant for my colleagues. I'm sorry you had to listen.SPEAKER: So am I.Hon Simon Bridges: Does the $600 million in lower tax revenue from a weakening economy mean her Government will deliver less real wellbeing in Budget 2019 than she thought?Rt Hon JACINDA ARDERN: The member will have already seen that this is a Government that of course has operated with a fiscally responsible approach as we've already done with the Budget responsibility rules whilst doing something that that member didn't manage which is investing in people at the same time. You will already have seen our intent through the pre-Budget announcements—things like the $320 million investment in family and sexual violence the biggest single investment ever made into that area. The priorities we've set as a Government have been about both transitioning our economy but also acknowledging we are nothing without our people and that's why we have a wellbeing Budget.Hon Simon Bridges: Is the weakening economy and lower tax revenue in fact her biggest policy fail in her year of delivery?Rt Hon JACINDA ARDERN: No and I can see the member is very enthusiastic to see what the Budget will bring as am I.