3. Question No. 3—Prime MinisterDAVID SEYMOUR (Leader—ACT) to the Prime MinisterQuestion No. 3—Prime Minister3. DAVID SEYMOUR (Leader—ACT) to the Prime Minister: 你好 Mr Speaker. Does she stand by all her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes.David Seymour: Does she believe her Government has done enough to curb the cost of living when the Reserve Bank reports that inflation expectations are for inflation to be at 4.86 percent a year from now and ANZ have increased their peak official cash rate forecast to 4.75 percent?Rt Hon JACINDA ARDERN: You will have seen that this Government has taken a number of measures to try and ease the impact of inflation on households. At the same time that we've done that we have been very focused on ensuring that that support is both timely and targeted so as to ensure that we don't exacerbate inflationary pressures.David Seymour: Why aren't these policies working?Rt Hon JACINDA ARDERN: Of course the reasons that inflation has increased in the way that we've seen are many and for the most part tend to be international factors. The fact that we are in amongst the lowest set within the OECD is testament to that. When you look at for instance the impacts in the UK the United States those we compare ourselves to they've seen much higher rates of inflation. That doesn't mean that we shouldn't do what we can to ease the pressure on households.David Seymour: Does the Prime Minister agree that a higher official cash rate (OCR) will mean higher mortgage rates and is she aware that nearly all banks are now offering fixed-term rates over 6 percent floating rates headed for 7 percent—a point and a half more than Australians are paying?Rt Hon JACINDA ARDERN: I am aware of the impacts of the increase in the official cash rate. I'm also aware that many other economies like ours are seeing their central banks increasing their OCRs.David Seymour: Does she stand by her Government's announcement of an income insurance scheme and is she aware it will cost a worker on the median wage of $59000 $1634 per year on top of those other costs they're currently facing?Rt Hon JACINDA ARDERN: To answer both parts of the question firstly as I reiterated in my first answers whilst we've been working on an income insurance scheme the final details have not at this stage been finalised. The second point: the earliest we would see implementation is 2024-25. We are looking to be well beyond some of the impacts we're seeing in inflation right now.David Seymour: Is she aware that such a worker on the median wage with a partner in part-time work children and paying a typical rental or average mortgage would get about $780 a week from the Ministry of Social Development right now and would also get $780 from income insurance meaning that families dependent on the median wage are no better off but pay an extra 2.8 percent tax?Rt Hon JACINDA ARDERN: I come back to my last answer around the final details of a social insurance scheme but a broader point that I would make is that that same family could be amongst the 100000 to 200000 people that lose their jobs in times of economic crisis. At the moment we all acknowledge that we have a system that for those for instance who have been in work the significant economic scarring of job loss the economy and those individuals feel deeply and for long periods. That is why most OECD economies we would compare ourselves to have some form of scheme that is similar. The second point that I would make is that God forbid any family member ever experiences job loss where the main household income earner for instance experiences a prolonged medical illness like cancer. At the moment we do not have levels of protection other than the safety net of our benefits scheme and for many that leads to significant hardship. We are trying to improve that but also the worker insurance we have as well.David Seymour: Which of the things the Prime Minister just said make any difference to the basic fact that under her proposed scheme someone on the median wage will pay $1634 in additional levies and if they lose their job or in the horrible situation of getting cancer as the Prime Minister mentioned they would get the same $780 that they're already entitled to on a benefit?Rt Hon JACINDA ARDERN: Many of those family members wouldn't find themselves eligible for a benefit. Secondly like ACC it would allow them to receive for instance as was currently proposed up to as high as 80 percent of their lost income. That is a significant difference to what's available to them now. But as I've said I'm happy to discuss and debate the finer details once they've been resolved and finalised.David Seymour: Does she stand by Grant Robertson's statement this morning The mood of the boardroom has never exactly been a Labour Party love fest"? And if so why does she think business leaders rate her and her Government so poorly?Rt Hon JACINDA ARDERN: Of course I support the Minister of Finance and the statements that he's made. I also support the decisions that he's taken that have seen us despite having experienced a one-in-100-year economic shock having some of the lowest unemployment we have on record a stronger economy than before we went into COVID a lower percentage of people on benefits than after the global financial crisis more apprentices a reduction in child poverty—the things that we measure ourselves against."