1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterWEDNESDAY 26 JUNE 2019The Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister 1. 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: Is she satisfied with annual GDP per capita growth at 0.7 percent in the last 12 months when it averaged 1.6 percent during the five years before she took office?Rt Hon JACINDA ARDERN: Again as I pointed out yesterday over the term of the last Government's term in office they averaged at 0.9 percent and that's obviously the quarterly growth that we've experienced. I also think it's worth pointing out again as I said yesterday that the 10-year long-term average is 1 percent and is actually over the next 4 years forecast to be 1.2 percent. But overall even despite those figures I acknowledged yesterday in the House and continue to do so that there are improvements to be made particularly in the area of productivity.Hon Simon Bridges: Does she accept that growth per person was stronger in the five years before she took office than under her Government; if not is she not aware that growth per person has halved under her Government?Rt Hon JACINDA ARDERN: Indeed I have the figures in front of me. When it comes to the quarterly change in GDP per capita we've consistently had rates of 0.1 0.2. There are numbers that the member opposite will well know given it generated under his office 0.9 percent on average that have never been numbers particularly to crow about. Work needs to be done. Again I'd also like to point out that the member mentioned yesterday New Zealand's ranking in GDP per capita relative to the OECD in 2018—that we were seventh worst. I think it is worth pointing out that New Zealand was rated third worst GDP per capita in the OECD when he was in Government in 2017.Hon Simon Bridges: Is she concerned given the services sector represents 70 percent of the New Zealand economy but it grew only 0.2 percent last quarter which is a decline when you take out the population growth?Rt Hon JACINDA ARDERN: Of course if we take the current account deficit generally then we see actually a quite different picture. If he only wants to focus in on what's happening around net flows with services tourist spending fell yes but at the same time we saw exports perform particularly well. It is about what's happening with both our service sector and also our exports. Overall relative to other OECD nations we are performing relatively strongly.Hon Simon Bridges: What's the current account deficit got to do with the State services sector—70 percent of our economy that grew only 0.2 percent last quarter a decline when you account for population growth? Rt Hon JACINDA ARDERN: Because taking into account when we look at the weekly economic update that comes through from Treasury they have made in particular references to services' balance deterioration being related to tourists' spending having fallen. Hon Simon Bridges: Why is our GDP growth slowing when the terms of trade and exports are rising? Rt Hon JACINDA ARDERN: Again as I have said in this House before if the member wants to fixate solely on for instance the prices that our exporters are receiving then that is perfectly his prerogative to do so. But of course it is also about the investment decisions that are being made and as every economist is pointing out and as the Reserve Bank themselves are pointing out the international environment does have an impact on confidence and investment decisions. That is what's causing other economies to slow but again alongside those other economies we are performing well. Hon Simon Bridges: What does she say then to the Westpac economist this week who stated New Zealand's economic growth has slowed in the last year which we put down largely to domestic factors."? Rt Hon JACINDA ARDERN: Even the Minister of Finance himself and in fact most members in this House bar him I believe have reflected on the fact that there is a slow-down. But what I continue to be frustrated by is the fact that the member seems to think the experience is unique to New Zealand when we see that even of course the projections that are coming out of the IMF and the acknowledgment by the OECD are that we are in the middle of a global slow-down. Hon Simon Bridges: Does she think one of the reasons the services sector went backwards last quarter on a per capita basis was because of the decline in consumer confidence and does she think that her Government's higher petrol taxes are partly responsible for that weakening consumer confidence? Rt Hon JACINDA ARDERN: I've actually been interested in the trajectory of consumer confidence and the Westpac McDermott Miller consumer confidence survey actually showed some really interesting numbers recently in the June quarter demonstrating that actually confidence in the under-30-year-old age group reached a five-year high. I'd say that particularly may potentially be a reflection of what's happening in the housing market—a softening in Auckland—and of course wages and wage growth are looking to outstrip now what we've seen in housing cost increases. So I think the member would do well to keep a fuller picture of what we're seeing in some of those consumer confidence numbers. Hon Simon Bridges: Is she aware that the Westpac regional economic confidence survey last week showed that eight of New Zealand's 11 regions had a deterioration in economic confidence last quarter and why does she think that is? Rt Hon JACINDA ARDERN: I imagine: because they read the news in the same way we do and see the issues around potential oil price increases coming out of Iran China's economy softening and issues in the UK affecting trade as well. We do not operate in isolation. We are an exporting trading nation that of course looks to attract investment in New Zealand and of course when we have a global slow-down it affects us. Hon Ron Mark: It's pretty simple Simon. Hon Simon Bridges: Is she—SPEAKER: Order! Order! No the member will resume his seat. That's not an appropriate interjection. The Deputy Prime Minister will withdraw and apologise. Hon Members: No it wasn't—SPEAKER: Oh sorry was it Ron Mark? Hon Ron Mark: I withdraw and apologise. SPEAKER: That was a good imitation. Hon Simon Bridges: Is the Prime Minister's position that it's uncertainty in Iran that's led to eight of New Zealand's 11 regions showing deteriorating economic confidence? Rt Hon JACINDA ARDERN: That is not what I said."