2. Question No. 2—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterQuestion No. 2—Prime Minister2. 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 stand by this Government's economic plan to build a higher wage low-carbon economy that provides economic security in good times and bad. My statement to Parliament set out our work to increase the value of our exports develop new markets and invest in skills new research and technology and modern infrastructure to drive productivity reduce emissions and increase wages. We will do this while continuing our balanced and disciplined approach to managing the Government's accounts. We are forecast to achieve a surplus in 2023-24—three years earlier than was forecast in Budget 2021 and I might add significantly faster than the Opposition achieved post the global financial crisis.Christopher Luxon: Does she accept that when prices grow twice as fast as wages for an entire year real incomes are going backwards meaning average Kiwi families are getting poorer under her Government? Rt Hon JACINDA ARDERN: I reject the premise of that question because if we track back from 2018 the average annual rate of people's wages we were looking more at 3.5 percent relative to inflation which has been sitting on average at 2.2 percent. What we have now is not something New Zealand is experiencing alone: there is an international phenomenon of countries experiencing high rates of inflation. We join the likes of the UK and the United States and we also join them for similar reasons: each are identifying issues around for instance building more housing and particularly the cost increase in fuel prices. This is not something that people are forecasting to endure but we absolutely accept that it is having an impact on consumers. Christopher Luxon: Does she agree that when rents are up $125 per week—or $6500 per year—that we have a cost of living crisis in New Zealand? Rt Hon JACINDA ARDERN: I refer the member back to my answer giving the context from 2018 to now and the period that we're in presently. I also refer the member back to the fact that what we're actually experiencing in New Zealand has been a long-term housing crisis we inherited and are working very hard to turn around and one of the most significant contributions we can make to turning that around is to growing housing supply. Now I listened carefully yesterday to the member's statement in this House and I did not hear one idea on how we are to turn around the housing crisis yet on this side of the House we have extended the brightline test we have dealt with interest deductibility we are growing the number of public and transitional housing places to over 8000 already and another 2000 this year. We have stopped letting fees we have reduced the number of increases a renter experiences to once a year we are reforming the Resource Management Act and in the meantime expediting housing projects that will make a difference to housing supply and as a result we have the highest number of consents on record. This is a Government that is progressing housing solutions. I hear nothing from that side of the House.David Seymour: Was the Prime Minister listening carefully to the Opposition for housing policy ideas because none of hers have worked since house prices went up $387000 or 58 percent on her watch?Rt Hon JACINDA ARDERN: I was listening carefully to see whether or not we had in an Opposition the persistent idea of actually not acknowledging a housing crisis first of all and doing absolutely nothing except selling public housing stock. Christopher Luxon: What does she say to Kiwis who are struggling to put food on the table when food price increases are the highest in a decade—so a block of cheese is $17 and 2 litres of milk is almost $5?Rt Hon JACINDA ARDERN: To our families in New Zealand I'd say that we are the Government that of course has increased things like Working for Families and of course already committed that they will see another increase in Working for Families this year of on average $20 a week that we are a Government that will continue to see the increase in the minimum wage when that leader disputes that the minimum wage should be increasing at all and that we are a Government that are committed for instance to ensure that working people can retire at a certain age when on that side they want to see working people working longer and harder. This is a Government that is focused on ensuring that we support working families and New Zealanders; on that side of the House I see no sign of that. Christopher Luxon: How much of the record 5.9 percent inflation does she believe is a result of Government spending? Rt Hon JACINDA ARDERN: Well I note that on that side of the House the member when asked that question himself pointed to two policies: cameras on boats—a policy I notice the National Party used to support—for fisheries and consultants for three waters. It won't be a surprise to this House that I disagree with that assertion and I disagree that things like the wage subsidy resurgence support and support for small businesses have been the driver of inflation. Instead I point to what is actually on record out of Stats New Zealand and out of Australia and the UK which is pointing to supply constraints and issues like fuel costs.Rawiri Waititi: Does she stand by the statement of her Associate Minister of Education (Māori Education) that I will never agree to a Māori education authority."?Rt Hon JACINDA ARDERN: I acknowledge first of all all the work that our Minister has done in the area of ensuring that we improve the education outcomes for Māori students whether they're in kura or whether they're in mainstream education that we more broadly see the teaching of te reo that we more broadly see the teaching of history in schools and that we lift educational attainment for all our students and I support his work on that.Rawiri Waititi: How is it appropriate for a Minister of the Crown to rule out a Māori education authority when Te Rūnanga nui o Ngā Kura Kaupapa Māori have a claim before the Waitangi Tribunal?Rt Hon JACINDA ARDERN: I think the Minister—what he has not ruled out is his aspiration that all of our students all of our Māori students have the very best education possible and that is his focus.Hon Kelvin Davis: Does she agree that a Māori education authority should actually apply to 100 percent of Māori tamariki not 5 percent of Māori tamariki as is proposed by Te Rūnanga nui o Ngā Kura Kaupapa?Rt Hon JACINDA ARDERN: The member will well know that I support the work that the Associate Minister is doing because he is the one that has direct experience within our education system and more importantly teaching our tamariki. So I back him 100 percent.Chlöe Swarbrick: How does the Prime Minister reconcile her comments that the Government is "pulling all the levers on housing affordability" with her statements yesterday: "We are not considering rent controls we are not introducing rent controls we are not planning to use rent controls."?Rt Hon JACINDA ARDERN: Because we are pulling those levers and the member will have heard me list in this House. Everything for instance around reforming interest deductibility which we have seen the extension of that brightline test which we're already seeing in the mortgage data is contributing to the fact that there are more first-home buyers now in the market. And investors now in terms of their take-up of mortgages are down at around 16 percent. At the same time we have to make sure that rental properties are available. We are doing all we can though to make sure that we have a rental sector that is affordable and where we have more long-term stable tenancy for our renters.Christopher Luxon: Does she accept any responsibility for the skyrocketing cost of living in New Zealand?Rt Hon JACINDA ARDERN: Here I refer again to the international evidence. So again when the member was asked the question of the examples where he thought the Government was responsible I can only again reflect that he replied: cameras on boats and consultants for three waters were the Government's contribution to inflation. I disagree. The Australian Bureau of Statistics noted that there it was high levels of building construction activity and higher global oil prices. The UK Office for National Statistics: it came from housing and motor fuels. The US Bureau of Statistics—again pointing to inflation being caused by gasoline prices which were up 49.6 percent. I reflect on what we are seeing globally: we're seeing the same trends overseas that we are seeing here in New Zealand.Christopher Luxon: Does she accept that under this Labour Government people are working harder but they are not getting ahead; they're going backwards because of a cost of living crisis driven by her Government's economic mismanagement?Rt Hon JACINDA ARDERN: I reject the premise of the member's question and again no one is denying that internationally we are seeing increases in inflation due to all of the reasons that I've outlined. But I again refer back that since 2018 wages have outstripped inflation in this country and I also point to the fact that if we had that party in office we would have a Government that did not believe in for instance lifting the wages of our lowest-income New Zealanders and supporting families to get ahead—quite the opposite to what you've seen on this side.Rawiri Waititi: Why is it that the Government rightfully accepted the need for a Māori Health Authority to deal with persistent inequalities inequities in a racist system and why can't it do the same for an education system with a Māori education authority?Rt Hon JACINDA ARDERN: You know our view is that we'll do what works. We know that there is a need to make progress in both those areas but our view is that in order to make the gains we need in Māori healthcare we do need to make sure that we're working much more in partnership to determine the way that services are delivered and the Māori Health Authority takes a real leadership role there. But at the same time we're also strengthening the role and availability of kura and so it's not that you necessarily need to have these two independent authorities in order to drive those outcomes; it is though about doing things differently and we're doing that in both areas.Hon Chris Hipkins: Does the Government intend to increase the rate of GST as the Government of the day did last time there was a spike in the cost of living in New Zealand?Rt Hon JACINDA ARDERN: I would note that that was a period in which we saw a significant increase in the cost of living but I again would add that alongside the credibility gap of being lectured by a Leader of the Opposition on the cost of living when he does not believe in increases to the minimum wage."