1. Question No. 1—Prime MinisterCHRISTOPHER LUXON (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. 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 particularly the Government's efforts to increase the supply of new homes. In the year ending July 2022 there were 50614 new homes consented up 12 percent from the year ended July 2021. Auckland has seen a 13 percent increase over the previous year Canterbury 26 percent and Wellington and Otago 20 percent. There's been a particular rise in apartments and townhouses highlighting the benefits of the National Policy Statement on Urban Development and medium-density housing reforms. The effect we're having is clear. Just last week Kiwibank Chief Economist Jarrod Kerr stated The housing shortage has shrunk from 57000 homes to 23000 homes" and that we will "start … [to accumulate] a surplus of housing over the coming years".Christopher Luxon: Why did the Government introduce a bill yesterday to increase the tax on KiwiSaver when the Government's own advice clearly stated that it would have wiped $103 billion off KiwiSaver balances?Rt Hon JACINDA ARDERN: Acknowledging that the member's assertion in the first half of the question was incorrect the proposal was around standardising the applications of GST fees and services for managed funds providers. The goal of those changes which were instigated through a review that began in 2017 under the last Government was to even out the playing field. When we hear clearly from the sector that their view is that the status quo is preferred—we've heard that because what is most important to us is confidence in KiwiSaver.Chris Bishop: Point of order. I seek leave to table the taxation (annual rates for 2022/23 platform economy and remedial matters) departmental disclosure statement given the Prime Minister clearly hasn't read it.SPEAKER: Can I ask the member: is that publicly available?Chris Bishop: Well that's actually an interesting question because the bill has been introduced to the House but I understand the— SPEAKER: Yeah that's not—it's either publicly available or it's not.Chris Bishop: It's actually removed from the public domain because the Government policy seems to be in disarray on this issue.SPEAKER: That's not the question I asked.Chris Bishop: Well I don't know if it's publicly available any more sir.Hon Chris Hipkins: Point of order Mr Speaker.SPEAKER: Are you speaking to this? I haven't ruled on this.Hon Chris Hipkins: Yes.SPEAKER: You can speak to this one.Hon Chris Hipkins: Members well know that when a bill is tabled the disclosure statements are tabled at the same time. Raising this issue in the way the member has is clearly designed to be deliberately disorderly.SPEAKER: Yeah I have to agree but responding that way is equally disorderly as well. Can we call that one-all and move on?Christopher Luxon: Did the legislation to increase tax on KiwiSaver fees go through the proper Cabinet process and why was it introduced given a day later the Government has signalled it will not be proceeding?Rt Hon JACINDA ARDERN: The member will be aware that it did go through a process. The member will also be aware by the release of that documentation alongside it that it went through a consultation process. In the regulatory impact statement you can see that there were some of course who viewed that this would be an advantageous change. There are others who viewed it would not be. We have seen a fairly clear response to an attempt by us to even up the playing field on KiwiSaver. Our view is that if this does anything to undermine KiwiSaver it is something that we will not support.David Seymour: Does the Prime Minister accept that dropping the KiwiSaver GST changes will reduce Government revenue by an estimated $225 million per year and if so will her Government spend less or borrow more to make up the shortfall?Rt Hon JACINDA ARDERN: Ultimately the second half of that question is irrelevant because it was from 2026 onward. The other point that I would make is that there are a number of caveats around whether or not this would indeed increase to that level. That was not the driver of the change. Evening out the playing field for boutique providers versus large fund managers was the goal. But if we hear clearly back from fund providers that they do not believe it will improve the system then we've heard that.David Seymour: Why does the Prime Minister think that balancing the Budget will be irrelevant from 2026 onwards?Rt Hon JACINDA ARDERN: Because it is not the basis on which Budget decisions have been made.Hon Chris Hipkins: Does she take it as a vote of confidence in her Government that the leader of the ACT Party is confidently predicting that her Government will still be in office in 2026?Rt Hon JACINDA ARDERN: Ah Mr Speaker—SPEAKER: That's out of order.Christopher Luxon: Is she embarrassed that just a day after introducing a bill to increase taxes on KiwiSaver the Government has performed a humiliating U-turn and dropped it?Rt Hon JACINDA ARDERN: What I would be embarrassed about is leading a party who once called KiwiSaver a glorified Christmas club; who opposed its introduction; who for instance reduced the Government contribution; who have over a period of time stopped contributions to the Superannuation Fund and did everything in their power to undermine KiwiSaver. That is hardly a credible position from a member whose party's history has been opposed to KiwiSaver in its totality. Christopher Luxon: Why did her Government introduce a bill to Parliament that would have wiped $103 billion off the value of hard-working Kiwis' KiwiSaver balances?Rt Hon JACINDA ARDERN: I also would have accepted that the member may have read a little further down in the regulatory impact statement that also says that stakeholders have also advised that for some managers that would incur no material transition costs; others may incur significant transitional costs. Of course if this was about ensuring an evening up of the playing field in some cases GST was already being applied; in others it was not. Of course making assumptions therefore of how much revenue it will generate would be heavily caveated but nor was it the goal of this provision in the first place.Hon Grant Robertson: Does the Prime Minister believe that the following actions would undermine confidence in KiwiSaver: cutting hundreds of millions of dollars a year from what was going in to KiwiSaver accounts introducing a tax on employer contributions halving the member tax credit—Nicola Willis: Caught red-handed.Hon Grant Robertson: —and ditching—Hon Member: You win.Hon Grant Robertson: —it's in a question; I'll start again Mr Speaker—cutting hundreds of millions of dollars a year from what was going in to KiwiSaver accounts introducing a tax on employer contributions halving the member tax credit and ditching the thousand-dollar kick-start payment all of which were done by the National Party?SPEAKER: Now I'm going to rule on the at least three interjections during that question which were out of order. Yesterday I warned Nicola Willis about the timing of interjections; there was nothing about the timing on that one. I think that was deliberate. Nicola Willis will stand withdraw and apologise. Nicola Willis: I withdraw and apologise.David Seymour: Point of order.SPEAKER: Now further to that point of order the end of the Hon Grant Robertson's question was out of order so I'm ruling it out.David Seymour: Mr Speaker I seek your guidance on the content of the question. I mean it appeared to be about five questions listing a series of different policies and I just wonder if you view that as an acceptable question because if so we'll certainly take advantage of that.SPEAKER: You are absolutely correct. There are two ways I can handle that issue: to interrupt the member while he's doing it remembering that we had three interjections during that question probably provoked by the question itself; or wait until the member has completed the question as I did in this instance to deal with both issues and try to get some fairness in dealing with it. But yeah I do acknowledge I could have done it that way; I chose not to. In the end we have the same result.Christopher Luxon: How does she reconcile her decision to introduce a $225 million a year tax on KiwiSaver yesterday with her statement in May that "We are not doing any work on any additional tax policy"?Rt Hon JACINDA ARDERN: Firstly I'll point out that this work started under the National Government in 2017 and if they were so oppositional to it I don't quite understand why they didn't stop it being instigated in the first place. The second point is even in the asking of the question you can see one of the issues here. This is on the application of GST service fees. The way the member has talked about this will lead people to believe that it is on individual contributions. That is not what it sought to do. Regardless of that we were seeking to even up the playing field because currently GST on services was already being applied to some funds and it was not for others. The sector has spoken and said that they do not believe it will enhance KiwiSaver arrangements and so we will not proceed.Christopher Luxon: What other secret taxes if any is the Government working on; and will she commit again to not introducing any more new taxes on hard-working Kiwis?Rt Hon JACINDA ARDERN: The member well knows the existence of GST is not new. The evening out in the way that it is applied is not a new tax. As I also said this piece of work had been ongoing with IRD for several years. A final point here is the difference between this side of the House and that side of the House is that we consider KiwiSaver so important that we unlike the other party—who not only have tinkered with it and destroyed it every time they have been in Government—we are here to protect it preserve it and grow it. Christopher Luxon: Does she still have confidence in her revenue Minister? Rt Hon JACINDA ARDERN: Absolutely. Christopher Luxon: Will she now do a U-turn on the tenant tax that officials told her would increase rents and put pressure on the State house waiting list?Rt Hon JACINDA ARDERN: I actually believe in ensuring that first-home buyers can buy houses and I refer back to the first answer that I gave in this House and that is under this Government you're starting to see a decrease in the gap for housing supply in this country. That is what New Zealanders wanted their Government to do and that is what we've done. Christopher Luxon: Does the Government have nothing better to do in the middle of a cost of living crisis than to cook up new ways to tax hard-working Kiwis and to fleece them out of their retirement savings? Rt Hon JACINDA ARDERN: Thank you for the opportunity to talk about what we're doing on the cost of living crisis. On Thursday the cost of living payment will go into Kiwis' bank accounts for everyone earning $70000 or less to the tune of $116 a week. We've already halved the cost of public transport. We've decreased fuel at the pump by 25c a litre. We have the winter energy payment continuing to support those on low incomes. And I tell you what we won't do: we won't for instance halve annual KiwiSaver Government contributions like that Government did. We don't stop Super Fund contributions which has reduced our savings for retirement by $32 billion. We will support Kiwis to save and that's what we're demonstrating. Shanan Halbert: E te Māngai o te Whare tēnā koe. Question to the Minister of Finance—Rt Hon Trevor Mallard: Point of order Mr Speaker. I said I wouldn't do this but there's a quiet member behind me who's trying to have a supplementary—SPEAKER: Sorry were you wanting a supplementary on the previous question was it? Dr Gaurav Sharma: Does the Prime Minister stand by her statement regarding the Henry Rongomau Bennett acute mental health centre in Waikato that it's no longer fit for purpose and if so can she give an assurance to the people of Hamilton and greater Waikato that the new $100 million acute mental health unit promised to have groundwork started in 2022 and due to open in 2023 is on track?Rt Hon JACINDA ARDERN: In answer to the first half of the question: yes."