1. Economic Programme—Tax Cuts and Tertiary Education Fees-free PolicyRt Hon BILL ENGLISH (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSEconomic Programme—Tax Cuts and Tertiary Education Fees-free Policy1. Rt Hon BILL ENGLISH (Leader of the Opposition) to the Prime Minister: Does she stand by the statement in the Speech from the Throne: Building a truly prosperous country means sharing the wealth generated by our economy"; if so under current law how much less tax will a teacher without children on the full-time average wage pay per year from 1 April 2018 compared to now?Rt Hon JACINDA ARDERN (Prime Minister): Yes. As for the hypothetical question the member has asked the answer is $1060. The reality is of course as the Minister of Finance has said multiple times no one will pay more in income tax in the future under this Government than they do today. In fact a majority of families will be better off as a result of this Government.Rt Hon Bill English: So can the Prime Minister confirm that under the Taxation (Budget Measures: Family Incomes Package) Act 2017 which is currently the law of the land as supported by National the Greens and New Zealand First a teacher on the average wage would from 1 April 2018 pay $1060 less in tax if the current law was to continue in place?Rt Hon JACINDA ARDERN: I have already answered that question but as I continue to point out in this House it is a hypothetical question because that law has not come into effect and it won't come into effect.Rt Hon Bill English: Is the Prime Minister aware of just how many families are in a category similar to a teacher on the average wage who would pay less tax from 1 April 2018 if the current law was allowed to continue?Rt Hon JACINDA ARDERN: I'm glad the member raised the effect on families. As we've said we will not be proceeding with fully bringing into effect the tax-cut package that he introduced because it gives $400 million to the top 10 percent of earners when in fact this Government's priorities which are different will see 70 percent of families with children better off—70 percent.Rt Hon Bill English: Is the Prime Minister aware that there are 1.2 million households who do not have children under the age of 18 and in addition to that that there are 700000 superannuitants who would benefit from the reduction in tax that is currently on the law book in this Parliament?Rt Hon JACINDA ARDERN: Some of the individuals that that member has just referenced were deprived of the independent earner tax credit because that Government intended to cut it; that is not this Government's intention. Equally we have looked at what superannuitants are experiencing in this country particularly in the winter months which is why we plan to introduce a winter energy payment for superannuitants.Rt Hon Bill English: Why did her Government decide that money should be taken from a teacher on the average wage and spent on what is now widely regarded as an ineffective policy of providing the first year of tertiary education free for the overwhelming number of young people who are going to do it anyway?Rt Hon JACINDA ARDERN: First of all I would say that we have taken nothing away from income tax earners because they have not received it. What we have made a decision about is that we simply did not believe that it is fair for you and me to receive a tax cut—[Interruption] I include you Mr Speaker in that reference—Mr SPEAKER: No you don't.Rt Hon JACINDA ARDERN: —when instead we can prioritise 70 percent of families in New Zealand including the children that those teachers teach. And that I believe is what those teachers would want us to do as well.Rt Hon Bill English: Why does the member believe then that it is fair to remove the tax reduction payable to a worker on the average wage in order to pay for my children to get a free year of tertiary education?Rt Hon JACINDA ARDERN: That member continues to take a very narrow view. Mr English's children—[Interruption]Mr SPEAKER: Order! I ask the Prime Minister to resume her seat. I've tried to let this run but I do even with my good ear want to hear what the Prime Minister says and I'm having trouble doing that because of the noise that has just become excessive on my left.Rt Hon JACINDA ARDERN: As I've continued to point out the majority of people who are likely to access one year's free education will go into polytech wānanga vocational education and training and apprenticeships. That will lift the labour productivity in this country—something his Government never managed to budge.Rt Hon Bill English: Will the Prime Minister answer the question this time and that is: if it's unfair for a tax cut that might benefit members of Parliament why is it fair to remove a tax cut for a teacher on the average wage so that my children can have a much larger subsidy to attend their first year of tertiary education?Rt Hon JACINDA ARDERN: First of all we have removed nothing from those taxpayers. Second of all I would wager that a number of those teachers would welcome the idea of not having been burdened with student debt by making education more accessible. Thirdly this is a Government that believes in universally available education and lifelong learning. That is something we are proud of.Rt Hon Winston Peters: Could the Prime Minister assure the country that it's her programme and the Government's programme to continue with economic and social justice in this country rather than to go on stringently flogging a dead horse?Hon Gerry Brownlee: I raise a point of order Mr Speaker. With the best will in the world you couldn't possibly have that question coming off either the comments made by the Prime Minister in answer nor the question in a primary sense.Mr SPEAKER: I think the first part of it could very easily have come off a number of the answers that occurred. The practice of flogging dead horses—I think later on in questions we do have some things that are maybe not the Prime Minister's responsibility. I'll let her have a go at this one.Rt Hon JACINDA ARDERN: Yes.Rt Hon Bill English: Has the Deputy Prime Minister explained to her why he voted for the tax cut package in the July 2017 Budget and is now going to vote against it in the next few days?Mr SPEAKER: The Deputy Prime Minister has no responsibility for his actions in a previous Parliament.Rt Hon Bill English: I raise a point of order Mr Speaker. If you had listened to the question—Mr SPEAKER: I did; I listened very carefully.Rt Hon Bill English: —it was "has he explained to her". Now that's up to him of course what he actually said but the question was "has he explained to her" and that's a question that deserves an answer.Mr SPEAKER: If the Deputy Prime Minister's explaining something for which he has responsibility or for which the Prime Minister has asked him about as Prime Minister that might be the case but there's been no evidence of either of those.Rt Hon Bill English: If nothing is being taken away from superannuitants then why is the Government proposing a winter heating payment that corresponds almost exactly to the benefit of the tax cuts those superannuitants would get?Rt Hon JACINDA ARDERN: Because we want them to be warm."