2. Question No. 2—Prime MinisterHon JUDITH COLLINS (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. Hon JUDITH COLLINS (Leader of the Opposition) to the Prime Minister: Does she stand by her statement regarding the Provincial Growth Fund that this programme in one way or another plays a fundamental role in every element of our economic strategy"?Rt Hon JACINDA ARDERN (Prime Minister): Yes I stand by the speech I made on 23 February 2018 launching the Provincial Growth Fund (PGF). The Provincial Growth Fund has provided crucial investment in our regions after a decade of under-investment under the previous Government. I note that since that time the Government has also announced a number of other initiatives that have also played a significant role in our economic strategy including delivering our first Wellbeing Budget; a 15 percent R & D tax credit; reform of vocational education; the launching of the EU free-trade agreement and the release of our Trade for All agenda; our investment in infrastructure including the $12 billion New Zealand Upgrade Programme; a number of employment strategies; and the lifting of the minimum wage. That does not touch on the range of initiatives that I note the Minister of Finance mentioned in his last question.Hon Judith Collins: Does she accept all of the findings of the Controller and Auditor-General's report on managing the Provincial Growth Fund; if not which findings does she not accept?Rt Hon JACINDA ARDERN: The Auditor-General has made three substantive recommendations one of which I note is for a review of the PGF itself which is something that we were actually undertaking before COVID struck and do intend to complete. So all of those recommendations—all three—we will be taking forward.Hon Judith Collins: Did she agree with Shane Jones' 2018 description of the fund as a "bloody big risk" and if so what specific measures did her Government take to ensure that the $3 billion fund is well managed and fully accountable in light of the Controller and Auditor-General's finding that it was difficult—SPEAKER: Order! [Interruption] Order! The member's had at least three questions there—she's allowed two.Hon Judith Collins: Well do what you want me to start again?SPEAKER: No I don't because the member's finished.Rt Hon JACINDA ARDERN: What Minister Jones was referencing is that no Government had attempted before to make such significant direct investments into regional economies in this way and therefore that did mean that there was no model for what we were establishing. That has meant that actually the work that the Auditor-General has consistently done alongside the Provincial Development Unit and the Ministry of Business Innovation and Employment and on the PGF has actually proven useful for us. They have produced a number of recommendations over the course of their reviews which were in 2017 and 2018 which the Auditor-General themselves have noted departments responded positively to. There have been things that we've learnt along the way; that is why we will implement the recommendations that were made but we stand by the overall principle of this programme of investments which was to stimulate growth in our regional economies.Hon Judith Collins: Does she agree with the Auditor-General's finding that it was difficult to find evidence of how projects had fully met the normal criteria for the fund?Rt Hon JACINDA ARDERN: I believe what the member is quoting from is a specific part of the report which relates to manifesto commitments not the entire fund itself. If the member is actually referring to another section of the report I'd welcome the reference but from that element what the Auditor-General was pointing out was there was a specific part of the fund that went to things like Tuia 250 the Rotorua Museum and a sports facility in Northland which were commitments made by us before coming into Government that were facilitated through the PGF. What the Auditor-General pointed to was whether or not those projects went through a specific PGF process or not. Our view is that all of them were still worthy investments.Hon Judith Collins: So was the Auditor-General wrong?Rt Hon JACINDA ARDERN: If the Auditor-General was then indeed Todd McClay would be because he supported the investment in the Rotorua Museum as well.Hon Judith Collins: What is her response to the Controller and Auditor-General's finding that "The public is entitled to know how well the Fund has met its objectives and what benefits have been achieved for the public money spent."?Rt Hon JACINDA ARDERN: I absolutely believe that the public are entitled to know the huge benefit that comes from making investments directly in community infrastructure that are aimed at creating local jobs. One of the ways of course we can do that is by making sure that we have reporting and public information that allows for that. The Auditor-General themselves did say that that reporting is being undertaken that there has been significant additional public information that we've met the requirements of the Public Finance Act and completed select committee hearings but they have asked that we do more. We've accepted the recommendations they've made and we'll be taking them up. Ultimately though I do think the response from local communities does point to the fact that they know what those projects are they know the impact for their communities and they support them.Hon Judith Collins: Well then is she concerned at the finding of the Auditor-General that "given the different way these projects were considered 'manifesto commitments to the regions' were in effect operating as a 'fund within a fund' " and if not why not?Rt Hon JACINDA ARDERN: Again the member is actually referring from within a $3 billion fund actually closer to a $40 million aspect of the Provincial Growth Fund. So I just want to be clear that the Auditor-General's comments are applying there not specifically and the member's questions are slightly misleading in that regard. Coming back to that issue though as I have already set out those were commitments that we made prior to the election. We happened to fund them through the PGF. I note that one of them was the Te Hiku sports centre of which Matt King said "Very happy to hear that the Te Hiku Sports Hub received government support to get it off the ground. This is great news for the Kaitāia community." Similar was said by Todd McClay who was in support of the Rotorua Museum which also was supported through that fund. And I would note that you could say roads of national significance also could have been considered a fund within a fund by the way the last Government treated them within the National Land Transport Fund as well.Rt Hon Winston Peters: Could I ask the Prime Minister as to whether she considers it a rather parlous state of political affairs when people are being accused for keeping their manifesto commitments?Rt Hon JACINDA ARDERN: It is a fair point to make—Hon Gerry Brownlee: I raise a point of order Mr Speaker. Can we have that question again? Because it was very hard to hear what the Deputy Prime Minister was actually saying?SPEAKER: And the bits that I heard I hadn't quite got to the point of working out the Prime Minister's responsibility for but let's go. Try again.Rt Hon Winston Peters: Can I ask the Prime Minister as to whether or not she thinks that things have reached a rather parlous state when people are being accused in politics for keeping their manifesto commitments?Rt Hon JACINDA ARDERN: I do think it is a reasonable point to make that simply because they were things that we'd committed to that somehow they had less value or worth. That is simply not the case. In fact they have moved towards being also emerging priorities. Northland drought relief for instance was one of the elements that was funded and so was Tuia 250 because unfortunately not all the funding required to deliver that programme that was started by the last Government was left and so we had to make sure it was fully funded and properly rolled out.Hon Judith Collins: Why has the evaluation of the fund originally timed for 2020 now been delayed until mid-2021 when the Auditor-General has said the evaluation is "critical given the Fund's ambition size and profile"?Rt Hon JACINDA ARDERN: The Auditor-General if I recall the section correctly also noted however that that work was due to be under way. The member will recall that of course those officials who would be involved in that work were also being redeployed and utilised in our COVID response and recovery so there was a delay but we still intend to do that work. The member should also do well to remember the Auditor-General has looked at the PGF several times before as well and we've implemented those findings too."