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. In particular I stand by this Government's record of reducing child poverty. According to the data released by Statistics New Zealand last week child poverty has continued to trend downwards across all nine measures under this Government. Despite the impact of the COVID-19 global pandemic the Government has achieved two out of the three targets it has set itself and has made significant reductions in the third. Our health and economic response as well as income support initiatives like increasing benefits and Working for Families has cushioned the impact for families and provided the support they need. It is now estimated that there is 66500 fewer children in low-income households on the after-housing-costs poverty measure and 21900 fewer children experiencing material hardship since we came into Government. Now our job is to keep going.Christopher Luxon: How many more children are living in benefit-dependent homes?Rt Hon JACINDA ARDERN: As a percentage of the population on main benefits my recollection is we're sitting at about 11 percent which is a lower percentage than what we were during the global financial crisis (GFC). I'd be happy to provide the member with a specific number although I don't have it with me currently. But the point that I would make is that in times of economic crisis you would expect the call on our Government support to increase. But relative to the GFC the call on main benefit rates has been lower.Christopher Luxon: Does she agree that we have a cost of living crisis given interest costs on a $700000 mortgage are up more than $8000 in the last 12 months?Rt Hon JACINDA ARDERN: Of course we have seen the Reserve Bank make adjustments to the official cash rate in recent times but I would point out that it is off the back of historically low rates including lower rates than obviously when that member's party was last in Government.Christopher Luxon: Does she accept that removing tax deductibility for mortgage interest has contributed to the more than $7000 increase in annual rent since she came into office?Rt Hon JACINDA ARDERN: The member seems to ignore the fact that we have been very focused on trying to even up the playing field for first-home buyers in the housing market. And what we have seen is a reported reduction in the percentage of mortgages going to investors and according to CoreLogic an increase in the percentage of first-home buyers in the market. We wanted to see first-home buyers accessing the market. At the same time we have taken steps to try and ease the pressure on renters ensuring that there is only able to be one rent increase per year dealing with the fact that there had previously been a situation where they were bidding wars for rents and introducing requirements to ensure that homes are healthy warm and dry. The last Government took none of these steps and left us with a housing crisis.Christopher Luxon: Can she confirm that motorists have paid an extra $515 million in tax at the pump since she introduced the Auckland regional fuel tax; and with petrol hitting $3 a litre does she agree motorists need some relief?Rt Hon JACINDA ARDERN: One of the things that I would point out if the member wishes to pursue the idea that we shouldn't have any kind of excise is the fact that when his party was last in Government they continued to increase excise because that is of course how we pay for our roading projects. And I note that a number of his members had been at the very roading projects that that excise has funded. So if the member wants to no longer fund roads he will have a significant problem because that was almost entirely the National Party's infrastructure plan when they were last in Government.Hon Michael Wood: Does she stand by the Government's investment in the Eastern Busway to the Botany electorate that is part funded by the regional fuel tax?Rt Hon JACINDA ARDERN: Obviously yes. But interestingly the member who services that community does not.Christopher Luxon: Does she think it's fair that someone on the average income is paying $1300 more in tax today compared to a year ago despite real wages going backwards as a result of record high inflation?Rt Hon JACINDA ARDERN: This is an interesting conundrum for the member because he now seems to be promoting the idea of tax decreases or tax reductions which of course would have an inflationary impact which he's also arguing against.Christopher Luxon: Can she confirm Kiwi workers will pay over $12 billion more in income tax this year than in 2017 and does she think that's fair when wages are no longer keeping up with the cost of living?Rt Hon JACINDA ARDERN: Again the member contradicts himself. On the one hand he seems to be arguing for tax cuts which of course would have an impact on inflation. On the other hand the increase in tax take of course is linked to the fact that we do have people on higher wages and we've been working very hard to ensure that's the case: more people in work more people earning more. And of course as a Government some of those people are people who are teachers who are nurses who all deserve those pay increases that they received.David Seymour: Can the Prime Minister's Government control the cost of living and if it can why is the price of so much going up so fast for everyday Kiwis?Rt Hon JACINDA ARDERN: You will see that the Reserve Bank itself has pointed to the fact that many of the causes of the increases in inflation that we've seen are caused by the likes of higher prices for imported goods and in particular oil. Those are their words themselves. And I would reflect on statements made by members of this House: There's not a lot that you can do about fuel prices because they are dictated globally." That was the honourable leader of the National Party Chris Luxon.Christopher Luxon: Is it her position that a record increase in new spending at a time of record increases to prices is not going to make the cost of living worse?Rt Hon JACINDA ARDERN: If the member wishes to criticise the level of spending that this Government has made then he may wish to question the time that National was in office when as a percentage of GDP they were relatively similar. We spent in 2020 as a percentage of GDP 34.3 percent; National in 2009 34.7. You'll see the same again for 2021. So if the member is now departing from what has been an established principle around the Crown spending relative to GDP then he may wish to tell voters what services what investments he will cut. Will it be education? Will it be health? Will it be infrastructure?Christopher Luxon: Does she accept that with the cost of living going up at the fastest rate in over 30 years she actually has plenty of tools available to help struggling Kiwis but she is choosing not to use them so she can increase her Government's own spending?Rt Hon JACINDA ARDERN: The tool that the member is talking about is cutting the very services that New Zealanders rely on. It's cutting healthcare spending it's cutting education spending and if that is not the tool the member is referring to then he owes it to New Zealanders to explain what tool exactly it is."