1. Question No. 1—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterWEDNESDAY 13 MARCH 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 policies and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes. Hon Simon Bridges: Why does the Tax Working Group report recommend no discount for capital gains and no adjustment for inflation? Rt Hon JACINDA ARDERN: It was the prerogative of the Tax Working Group to make the recommendations that they chose to the Government and as I've said repeatedly in the House it's now for us to consider. Hon Simon Bridges: Does she agree that it is unfair to allow no adjustment for inflation given it means people can go backwards when they work hard save and invest and make a gain? Rt Hon JACINDA ARDERN: Again these are all issues under consideration actively by the Government. Hon Simon Bridges: Isn't the reason the capital gains tax in Australia is around half New Zealand's proposed tax because Australia wanted to effectively allow for an inflation effect and isn't that does she agree the right way to go? Rt Hon JACINDA ARDERN: I acknowledge that the member has now acknowledged that of course this is something that's in place in a range of other nations including the majority of OECD nations bar two. There are different rates in different countries. Those are of course all matters that the Government is now actively considering. Hon Simon Bridges: Does she accept that this proposed capital gains tax would be one of the highest in the world—in fact I think third in the OECD—and will therefore send more Kiwis to Australia where the economy's stronger and there would be a lower capital gains tax? Rt Hon JACINDA ARDERN: For the purpose of context I believe Germany Italy Ireland and Denmark apply roughly the same rates or higher than what the Tax Working Group has recommended. But regardless again these are the Tax Working Group's recommendations. They're now for the Government to consider. We have not endorsed any of the proposed recommendations. We are instead considering them and will of course let the public and the Opposition know when we've resolved our decision. Hon Simon Bridges: Why did her Government do away with the statistics showing how many New Zealanders leave for Australia each year? Rt Hon JACINDA ARDERN: If the member is referring to the departure cards that was an issue that was raised directly as part of the New Zealand - Australia business exchange which his Government before us directly engaged in. It's where the idea of e-invoicing came up; it was all about simplicity at the border and removing some of the friction that our businesses in particular experience. It's the exact reason why we're pursuing e-invoicing—to reduce the compliance burden on business—and it's been widely welcomed. Hon Simon Bridges: Well is it actually because the Government doesn't want New Zealanders to know about the thousands that are leaving and the many more thousands that will leave under a strong capital gains tax that the Tax Working Group's put forward?Rt Hon JACINDA ARDERN: No.Rt Hon Winston Peters: Is it the Government's position that rather than mindless speculative questions in the House we have a full discussion with the public up and down the country the business end of town and the working end of town—SPEAKER: Order! [Interruption] Order! The member will resume his seat. I take the first part of that question as a reflection on me. I would not allow that sort of question.Hon Simon Bridges: Does she accept that inflation is a very real issue for people's real after-tax finances pushing people into higher tax brackets and making them worse off regarding their nest eggs given the proposed capital gains tax on the table?Rt Hon JACINDA ARDERN: If the question is Is this a Government mindful of the issues around the cost of living?" absolutely. One of the very first things we did as a Government was put a $5.5 billion package in place to increase the incomes of low and middle income New Zealanders."