1. Work Visas—Youth UnemploymentANDREW LITTLE (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSWork Visas—Youth Unemployment1. ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that we are on the cusp of something special" given P is cheaper and easier to get youth unemployment has risen nearly 30 percent on his watch and the average home in Auckland now costs over $1 million?Rt Hon JOHN KEY (Prime Minister): Yes I do stand by that statement and I am proud of the progress New Zealand is making. For example the economy grew by 3.6 percent in the year to June putting us in the four top-performing OECD countries. The average annual wage is now $58000 an increase of 25 percent since National first came into office. More than 300000 jobs have been created since the depths of the global financial crisis and a further 170000 people are forecast to be in work by 2020. Cost of living increases are low: annual inflation is just 0.2 percent well below average weekly wage increases of 2 percent in the year to June. So backed by the Government's successful economic plan and New Zealanders' hard work our country is making good progress.Andrew Little: Why did the Government approve 27000 work visas in the last year for entry-level jobs that could have been filled by young Kiwis?Rt Hon JOHN KEY: There can be a range of different reasons. They include that there may be a mismatch of where the skills are required vis-à-vis where the people live. It is not always easy to move people to locations and encourage them to go and work there even if there are jobs that are available.Andrew Little: Why did his Government issue work visas in the last year to over 2000 retail workers and over 600 cleaners while 70000 young New Zealanders are not in employment education or training?Rt Hon JOHN KEY: Again there can be a variety of reasons but I think it is worth remembering the significant changes that this Government has made to the way things work when someone goes to a Work and Income office—that is we have changed by moving from the unemployment benefit to the jobseeker support. There is a high expectation that people will work. What in fact Work and Income officers do is spend a lot of time making sure that somebody transitions into a job. Ultimately there are massive incentives for them to get employment but sometimes the jobs are in different locations—for instance like Queenstown—to places where they might live like Gisborne and Northland.Jacqui Dean: Can the Prime Minister provide further examples of how New Zealand is making good progress in dealing with social and economic challenges under this Government's stewardship?Rt Hon JOHN KEY: I can. There are a number of other indicators confirming that New Zealand is making good progress. For example the manufacturing and services sector including tourism and ICT is growing strongly and is succeeding on the world stage. The Government has fulfilled its promise of returning to Budget surplus which gives us choices into the future. More Kiwis are voting with their feet and coming home as opposed to leaving for Australia by the tens of thousands as they were when we took office and the Government is addressing some of New Zealand's most difficult challenges such as improving educational achievement supporting vulnerable families and boosting skills and employment.Andrew Little: Is the Salvation Army wrong when it says "the balance between training and recruiting young New Zealanders and simply importing skilled and unskilled labour needs to change in favour of young New Zealanders."?Rt Hon JOHN KEY: In my opinion yes actually the Salvation Army is wrong. If one looks at the number of people who are here on youth migration the vast bulk of them are actually on working holidays or are international students. Yes they work sometimes 20 hours a week or the like which is I think a welcome change and it allows New Zealand to be an attractive destination for instance for international students. But when one goes and has a look for instance in Christchurch—which is where I saw the Salvation Army saying there could have been more done to put people in apprenticeships as a result of the Christchurch earthquakes—I think the Salvation Army should go and visit Christchurch Polytechnic Institute of Technology. I certainly did and it has been training an enormous number of young people into apprenticeships.Sarah Dowie: What were some of the biggest challenges facing New Zealand when the Government took office and how has the Government gone about addressing them?Rt Hon JOHN KEY: The biggest challenge facing New Zealand when the Government took office was neatly summed up in the Salvation Army's state of the nation report in 2008. It said: "More of our children appear to be at risk of harm more of our young people are engaged in petty crime there is … violent crime and more people [are] in our jails. None of these trends can be seen as progress." The Salvation Army went on to say that despite a huge increase in social spending up to 2008 it had contributed little to our social progress. Outcomes were mixed and disappointing. The Government has addressed that by measuring success by the results achieved not by how much we spend.Andrew Little: Moving to the year 2016 are the Reserve Bank ANZ the Auckland chamber of commerce the Ministry of Business Innovation and Employment and now the Salvation Army all wrong in saying it is time for him to rethink his immigration strategy?Rt Hon JOHN KEY: As the member will see last week the Government went through its 2-yearly review process and made at the margins some small changes. But for the most part I think that migration set at the sorts of levels that we have had has served New Zealand well. It has encouraged international students to come to New Zealand. We have free-trade agreements that support working holidays. We have fast-growing sectors in industries that are doing amazingly well and they do actually need from time to time to import talent. You have had plenty of people come to New Zealand who are significant investors in this country and who as a result of their migration to New Zealand and their investment in New Zealand have created tremendous jobs. That is one of the reasons why we have got one of the top performing economies in the OECD and if—Mr SPEAKER: Order! The question has definitely been answered.Andrew Little: What is more important to him: providing cheap imported labour or providing a better future for young New Zealanders?Rt Hon JOHN KEY: Absolutely a better future for young New Zealanders. But I was not the one who got up at Diwali on Saturday and said "I'm with the international students."; that was Andrew Little who was there trying to make out he is the friend of the migrant—when he is not bagging them for having a Chinese name and he is not out there telling them that Indian chefs are not welcome in this country.Andrew Little: Is it not true that his Government has just shut the door on 70000 young New Zealanders not in employment education or training ("neets") given that he and his Minister of Finance believe that they are either "pretty damned hopeless" or drugged and lazy and they prefer low-skilled immigration?Rt Hon JOHN KEY: No. In fact the "neets" rate for 15- to 19-year-olds is almost the lowest since records began in 2004. A huge number of young New Zealanders are in apprenticeships. The economy is creating a huge number of jobs and opportunities. I think migration of people to New Zealand is a positive and good thing but if the member wants to come into this House and say the opposite please stop going to the events I am at with you and saying the opposite because it has got a word. It starts with "h" and you know what it is.Mr SPEAKER: Order!"