Cunliffe David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeCunliffe David: Questions for Oral Answer — Questions to Ministers[Sitting date: 11 March 2014. Volume:697;Page:16461. Text is incorporated into the Bound Volume.]1.Hon DAVID CUNLIFFE (Leader of the Opposition)to the Prime Minister: Does he stand by his statement that “for most New Zealanders an indicator of how well the economy is doing is whether or not they can keep up with the cost of living”?Rt Hon JOHN KEY (Prime Minister):I think the word was “indicator” but yes and we have official statistics that regularly measure those things. Last year average weekly wages went up by 2.8 percent compared with inflation of 1.6 percent. The year before that average weekly wages went up by 2.9 percent compared with inflation of 0.9 percent. The New Zealand income survey shows that the median personal income from all sources went up by 2.7 percent in the last year and median household income went up by 4.1 percent. So although people’s circumstances are all different it is very clear that on average cost of living increases have been quite modest and New Zealanders and their families have been getting ahead.Hon David Cunliffe: What does he say to the West Coast family who say that their power bills are bleeding them dry to the point where they have had to switch off their hot water or the elderly couple who say that they like hundreds of others are dreading the winter months to come and the power bills that go with them? Is this how we want New Zealanders to live?Rt Hon JOHN KEY: I say to those families that they should follow David Cunliffe on Twitter when he managed to deliver an own goal that showed how electricity prices skyrocketed under Labour actually but have not been going up nearly as quickly under National.Hon David Cunliffe: How does the Prime Minister expect everyday New Zealanders to keep up with the cost of living when many of them will be paying 7 or 8 percent more for their power and some face increases of up to 24 percent in this year alone?Rt Hon JOHN KEY: One of the hallmarks of this National-led Government that is in contrast to the previous Labour Government is that in fact wages have been going up faster than the price of inflation. It is worth remembering that in terms of electricity prices they make up less than 4 percent of the CPI. So in overall terms when one looks at the CPI some things go up and some things go down. For example car prices went down clothing and footwear prices went down and household contents went down. So in many categories lots of things went down; the odd things went up. Overall most consumers have not actually faced power increases of that level.Hon David Cunliffe: If that is all so rosy why did the Prime Minister try to blame Transpower when Transpower’s charges make up less than 10 percent of electricity prices and Transpower stated that its increases are likely to be less than $1 a month on average; and is not the truth of it that the power price increases are going to the privatised companies and enriching the foreign buyers that he is in league with?Hon Bill English: What a load of nonsense.Rt Hon JOHN KEY: To quote the Deputy Prime Minister what a load of nonsense. If you look at what has been driving up power prices insomuch as there have been rises at all for consumers it has been a combination of Transpower increases and lines companies if one looks at those two together. Interestingly enough though if we look at say the last 5 years of power price increases—Dr David Clark: Out of touch—5 long years.Rt Hon JOHN KEY: Well 5 long years with half the power increases because they have been 19.7 percent as opposed to 39.1 percent for the 5 years under Labour.Louise Upston: Do official measures of the cost of living include electricity prices and what does this tell us?Rt Hon JOHN KEY: Yes a very good question. The electricity prices in the CPI differ slightly from those that the Ministry of Business Innovation and Employment produces but they tell the same story. Over the last 5 years going back to December 2008 electricity prices in the CPI rose 19.7 percent and in the 5 years before that they rose 39.1 percent. So it is no wonder people think that power prices are high—in 5 years under Labour electricity prices went up by 40 percent. That is why you cannot trust Labour when it comes to power prices.Hon David Cunliffe: When will the Prime Minister listen to New Zealanders who are facing median house prices that are up by 8.6 percent on last year when first-home buyers are now being shut out of the market which he has made safe for speculators?Rt Hon JOHN KEY: One of the things that the Government has been doing is working hard to ensure actually that first-home buyers can get into the market. There are a few ways of doing that. Firstly the release of land will have a substantial impact. But let us just ask any first-home buyer we like what they would prefer to pay for their floating mortgage rate. Would they prefer to pay around 5 percent at the moment under a National-led Government or 11 percent under Labour which is what it was when we came into office?Hon David Cunliffe: Speaking of interest rate rises given that wholesale rates appear to be on their way from 5.75 percent to 8 percent can he confirm that a household currently paying $500 a week in mortgage costs will face another $136 a week by the time that mortgage hits 8 percent?Rt Hon JOHN KEY: For a start off it is likely—I think the interest rates will make a gradual return towards a slightly more normalised level but it is worth understanding that we have interest rates that are on a 50-year low. Secondly if we want to talk about individual consumers I am surprised that the Leader of the Opposition is worried about them at the moment because he showed absolutely no worry about them when interest rates were at 11 percent. When the Government was putting so much pressure on spending it was forcing up inflation and forcing the Reserve Bank to raise rates. In fact let us just take that household that has a $200000 mortgage. That household in comparison is paying $200 a week less today than when Labour left office. You see when we go to the polls on 20 September and the voters ask themselves who they can trust with the economy it certainly will not be Labour that will be the answer coming from their TV sets.Hon David Cunliffe: When the Prime Minister said in 2008 that New Zealanders should “not be fearful of their next bill” why are so many people now fearful of their housing power and other bills under this uncaring National Government?Rt Hon JOHN KEY: For a start off the member is wrong. I did not make that statement and he will never actually be able to demonstrate that I did. I was asked about the definition of poverty and I said that the definition at least of being well off is that you are not fearful of a bill. But if it comes to bills then I say this to New Zealanders. What would they rather have: a 19.7 percent increase in power prices under National or a 40 percent increase under Labour over 5 years and 72 percent? Would they rather have interest rates at about 5 and a bit percent or would they rather have them at 11 percent? Would they rather have an economy under a National-led Government that is growing in excess of 3.5 to 4 percent with 1500 people a week coming off welfare and going to work? Would they rather have an economy that most people around the world have envied? And would they rather have an economy that is actually going to be back into surplus?Mr SPEAKER: Order!Hon David Cunliffe: I seek leave on this occasion to table media reports from 2008 that quote the Prime Minister—Mr SPEAKER: Order! Media reports are freely available to members who want them.Hon David Cunliffe: I raise a point of order Mr Speaker. I accept your general ruling and am ordinarily respectful of it but on this particular occasion the Prime Minister disputed the quote which came directly from a media report. I therefore seek leave to table the report—Mr SPEAKER: Order!Rt Hon JOHN KEY: That is not what I said. I made it quite clear that the Leader of the Opposition applied the quote—[Interruption]Mr SPEAKER: Order! This is a point of order. I have given the Prime Minister the floor to speak to the point of order.Rt Hon JOHN KEY: The Leader of the Opposition if he wants to go and check his Hansard applied a quote to something I did not say.Mr SPEAKER: Order! I now accept we are moving into the area of debate. I am going to let the House make a decision on this. Leave is sought to table this particular document. Is there any objection? There is objection.