1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterWEDNESDAY 11 DECEMBER 2019The Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes particularly the Government's decision to deliver record investment in infrastructure. Today's package includes $6.8 billion of new transport projects with a significant portion for roads and rail; $400 million of upgrades and maintenance for schools; $300 million of regional investment opportunities; $300 million of investment in our hospitals and health infrastructure; and $200 million of projects to reduce emissions. With New Zealand's low debt and borrowing costs this is the right time to invest to futureproof New Zealand after nine years of neglected infrastructure under the National Government.Hon Simon Bridges: How has she let the economy move into deficit in just two years?Rt Hon JACINDA ARDERN: I would point out that the last Government was more often in deficit than it was not. I'd also like to point out of course that a substantial amount of the short-term temporary deficit that we will experience and then move swiftly out of does relate to forecasts around ACC. Of course as the member will know they are feeling the effects of the global downturn as most economies are experiencing at present. I'd also point out that we've already had $13 billion worth of forecast surplus and we are forecast to run another $12 billion worth of surpluses which is noteworthy indeed.SPEAKER: I just want to say to the House that I received some very favourable comments yesterday about the tone of the House and the fact that people were—Hon Member: Oh yeah.SPEAKER: Who interjected then? Who made that comment? Who made the comment? Someone on my left made a loud comment then. Who was it? That will have a universal punishment as a result. I'm going to ask the Prime Minister to continue. I'm going to reiterate the comment that I was making. I got positive feedback yesterday from the fact that people could hear answers and people were not shouted down. Can I encourage people to continue that—and right from the first question there's been an attempt to shout down the Minister giving a reply.Hon Gerry Brownlee: I raise a point of order Mr Speaker. Perhaps the public reaction that you've been made aware of to yesterday's question time session was largely due to the sombre nature of the day but also the fact that in recognising the sombre nature there were very clear and specific answers from Ministers and there was a notable absence of the sort of political flick that we just saw from the Prime Minister. When those occur as you've observed yourself then naturally there will be some kind of reaction and that is not unreasonable.SPEAKER: I totally agree with the member but the reaction should not be unreasonable.Hon Simon Bridges: Does the Prime Minister accept that on becoming Prime Minister Treasury forecast surpluses as far as they make projections to 2032?Rt Hon JACINDA ARDERN: Of course the member will be well aware that in the intervening period we have entered into a process where the International Monetary Fund OECD—we are seeing a downgrading of forecasts across the board almost. Global growth is declining and that is a result obviously of trade wars and other significant events that have led us to have the same experience as many other economies that we would compare ourselves to.Hon Simon Bridges: Isn't the reality that prices in terms of meat horticulture and dairy have simply never been better and the only thing that's changed is her Government?Rt Hon JACINDA ARDERN: No.Hon Simon Bridges: Why do Treasury forecasts today show 14 of the next 15 years to be in cash deficit?Rt Hon JACINDA ARDERN: First I'd point out the different measures that the member is using there. The second point that I would make is that actually on every measure that is commonly used—GDP growth: we're sitting on average at rates of 2.5; under the last Government it was more like 2.1. Employment: 4.2 percent; under the last Government we inherited it at 4.7. Wage growth: on average 3.5 percent; in the last Government's first term 2.1. Debt: at our highest point in the forecast we're looking at 21.5 percent relative to GDP; we inherited it at 22.9. So the point I would make to the member is that if on the forecasts he's seen and on the reality that we have presented as a Government he considers that inadequate I would ask him to reflect on his own Government's last record because relative to them we are doing very very well.Hon Simon Bridges: Will she confirm that her Government is breaching its pledge on Budget responsibility rules by borrowing more?Rt Hon JACINDA ARDERN: Two points. No. Of course we met the debt to GDP ratio that we set ourselves in our first two Budgets. The member well knows we then took the advice of Treasury and the advice and belief of many others that we should move to a range. That is what we've adopted. Not only are we within that range with the forecasts the member's seen today; we're well within it. Again I would point out that at its highest point we're looking at a debt to GDP ratio of 21.5. When we inherited the economy from the last Government it was at 22.9.Hon Simon Bridges: Was the Budget responsibility pledge only for the first two Budgets of this Government?Rt Hon JACINDA ARDERN: Again the member well knows it was across a forecast period. Not only as I've said did we meet that for those first two Budgets; we moved to a range which of course has been well publicised well documented and well endorsed by commentators.Hon Simon Bridges: Isn't it the case that no significant transport infrastructural projects will be started by this Government before the next election?Rt Hon JACINDA ARDERN: No.Hon Simon Bridges: What projects will be started in transport before the next election?Rt Hon JACINDA ARDERN: As I've previously discussed in this House in July 2018 funding was approved for the Awakino Tunnel bypass. Construction starts July—[Interruption] Mr Speaker?SPEAKER: Order!Rt Hon JACINDA ARDERN: Construction starts in July 2019. We've funded Loop Road; construction starts in February 2019. Ōpōnoni—again I point out funding and beginning: funding approved May 2018 construction starts March 2019. State Highway 1 Waipapa State Highway 10 Ladies Mile Corridor Edendale—I could go on but the point stands that we've not only approved funding but started construction on a number of projects. As the member also knows under the last Government their transport spending was $3.7 billion. Under us it's $4.5 billion and we've just added another $6.8 billion. Again our investment has been significant.Clayton Mitchell: I raise a point of order Mr Speaker. I was wondering if the Prime Minister could table this document. It might help out the Leader of the Opposition for further questions moving forward.SPEAKER: Well I'm going to ask first of all is it an official document that the Prime Minister is quoting from?Rt Hon JACINDA ARDERN: My understanding is that this is information that's available freely from the New Zealand Transport Agency and I have shared in the House before. The member just continues to ask the question. I'm happy to keep providing it.SPEAKER: It's a matter for the Minister to table it if she wants to. It's not an official document. If the Minister wants to table it she can. There is no requirement to table it.Rt Hon JACINDA ARDERN: I raise a point of order Mr Speaker. I'd just confirm that it's publicly available so I'll stick with convention. [Interruption] SPEAKER: Order! Members especially experienced members and those who have been in these buildings for a period of time know that it is often the habit of Ministers to do notes on top of briefing notes that they have and those are never tabled.Hon Simon Bridges: Is the reason why no specific infrastructure projects have been announced today is because the Government has no plan and doesn't know how to deliver?Rt Hon JACINDA ARDERN: No.Hon Simon Bridges: Are we wasting a term as the economy runs down and no significant infrastructure starts?Rt Hon JACINDA ARDERN: No.Rt Hon Winston Peters: I raise a point of order Mr Speaker. Could I point out the ambiguity of that last question. It would more appropriately apply to the person asking the question than against the Government when the Prime Minister has already laid out and so has the Minister of Finance today categorically the level of expenditure that's going in.SPEAKER: Yes. While I and I'm sure most members of the House would always like questions to logically flow from answers that have been there beforehand we've never managed to achieve that standard in the House and I'm certainly not going to try and enforce it.SPEAKER: Question number two Dr Deborah Russell.Hon Gerry Brownlee: I raise a point of order Mr Speaker. SPEAKER: Oh sorry. Supplementary question the Hon Gerry Brownlee.Hon Gerry Brownlee: No it's not a supplementary question. I said a point of order.SPEAKER: A point of order the Hon Gerry Brownlee.Hon Gerry Brownlee: Your response to the Rt Hon Winston Peters was appropriate but it didn't deal with the fact that he was suggesting that the Opposition should actually swallow hook line and sinker everything the Prime Minister says.SPEAKER: Now the Rt Hon Winston Peters' point of order was marginal. The Hon Gerry Brownlee's wasn't even close.