Oral Questions

1. to the Prime Minister: Does he stand by his statement on the housing crisis that “I wouldn’t call it a crisis. We have strong demand, we have an uplift in prices—these are good problems to have actually.”?

First of all, can I congratulate the member on her new role as Leader of the Opposition. I stand by my full statement on emergency housing special-needs grants, which went on to say: “This is trying to deal with the real need that may have been hidden before, … more houses on the ground is what’s going to matter and more emergency housing.” I also stand by my statement that this is the first Government to ever invest directly in emergency housing—around $300 million—creating 8,000 places in transitional housing. [Interruption]

💬 Mr SPEAKER: Order! Before I call the member for a supplementary question—I can appreciate that there may be cause for a little bit of excitement, but there still has to be a process by which questions are asked and answers are heard. I will accept a reasonable amount of interjection, but if it gets to the stage where it is unruly and causing problems, I will not hesitate to be asking some members to leave the Chamber.

💬 Jacinda Ardern: How long has this issue been “hidden” for, as he claims, when we now have the worst homelessness in the OECD?

💬 Rt Hon BILL ENGLISH: I simply disagree with the member’s assertion around international comparisons. What is relevant for New Zealand is that in the face of what was a sharply rising housing market, which has now calmed down a bit, we have provided extensive emergency housing, of which there are today 1,500 places tenanted and available, as well as expanded the Housing First programme, which deals with people who are actually sleeping rough because there is nowhere that they have shelter.

💬 Jacinda Ardern: If it is not a crisis, how did his Government get into a situation where it needs to spend $139,000 a day putting homeless people up in motels?

💬 Rt Hon BILL ENGLISH: The Opposition cannot have it both ways: that the Government is not doing enough but is spending too much. The fact is that a fast-rising housing market, driven mainly by big problems with our planning system, means that low and middle income families are most affected. The Government has responded with extensive investment in transitional housing and housing for those who are actually sleeping rough.

💬 Jacinda Ardern: If the Government has responded as he claims, why for every family he expected to request an emergency housing grant did 20 turn up? Does that mean the homelessness problem is far bigger than he accepts?

💬 Rt Hon BILL ENGLISH: That is all old news; that all happened last winter, when the grants were put in place, and it turned out there was strong demand for the grants. The next step in dealing with rising housing costs was announced in the Budget with the Family Incomes Package, where families with the highest housing costs will, at 1 April next year, be receiving in many cases over $100 a week more accommodation assistance to help them with their housing costs.

💬 Jacinda Ardern: If this issue is so last winter, why are we paying $139,000 a day to pick up a problem that he has still not addressed?

💬 Rt Hon BILL ENGLISH: The problem is being addressed in a wide number of ways, because it needs to be. We need more houses on the ground, faster. That is why we work with counsellors and put up a billion dollars for housing infrastructure, more emergency housing, and more social housing. I want to acknowledge the support of the Greens and New Zealand First for the increases in accommodation supplement, which on 1 April will help thousands of families with their very high housing costs.

💬 Jacinda Ardern: Does part of his plan to address this issue in a “wide number of ways” include selling State houses so that we now have 3,000 fewer social houses today than when he came into office?

💬 Rt Hon BILL ENGLISH: I want to thank the other parties for their support for the reforms of State housing. The pressures in the market have shown that we have too many of the wrong sorts of houses, in poor condition, in the wrong places. This Government has grappled with the complex task of ensuring there is more appropriate social housing and growing numbers of social houses available to those who need them.

💬 Jacinda Ardern: Will he work with me to ensure that everyone has an a affordable, safe, secure place to live, by building starter homes, by banning overseas speculators, and by requiring all rentals to be warm and dry, because that is what all New Zealanders want this Parliament to do?

💬 Rt Hon BILL ENGLISH: Overseas purchasers of houses in New Zealand now have to pay a withholding capital gains tax when they sell them. That may have been part of the dampening effect on the market, as it is now. The other measures that the member has mentioned are under way, including the regulation that all houses by 2019 need to be insulated.

Economy—Confidence

2. to the Minister of Finance: What reports has he received on confidence in New Zealand’s economy?

Confidence in New Zealand’s economy continues to be strong. ANZ has released its business outlook yesterday, showing that business confidence rose on a seasonally adjusted basis from 26 to 28 percent. ANZ notes in its commentary the diverse range of sectors driving this higher level of confidence—in fact, confidence ratings at this level point to strong economic momentum and growth of around 3 percent over the next 12 months or so, and that is important for growing more jobs for Kiwis.

💬 Matt Doocey: What effect will this confidence have on exporters and job seekers?

💬 Hon STEVEN JOYCE: Our export sector is particularly confident, with export intentions increasing from plus 27 to plus 33, which is its highest level since April 2014. In addition, employment intentions rose from plus 24 to plus 26, which is the highest level since May 2014, and that is good news for graduates and job seekers. This result reinforces the challenges some forums are having finding the staff they need, confirming this Government’s position that now is not a time for a breather or even to have a reset.

💬 Matt Doocey: What is driving higher levels of confidence in our growth and economy?

💬 Hon STEVEN JOYCE: This Government’s strong and consistent economic plan and political stability are giving companies the confidence they need to make long-term investment decisions, whether it is Fonterra investing $150 million in its new cream cheese factory in Darfield, Air New Zealand adding another 180,000 extra seats over the summer tourist season this year, or a mum and dad business taking on its first employees with a 90-day trial period, the Government’s policy programme is allowing companies to add more jobs for Kiwis and increase their wages, and that is what is important for New Zealand families.

💬 Matt Doocey: What is the Government doing to boost confidence and support companies that are expanding or exporting?

💬 Hon STEVEN JOYCE: It is doing many things, including in the Budget in May, which saw New Zealand’s total infrastructure and capital investment rise to $32.5 billion over the next 4 years, which is a 40 percent increase on that for the last 4 years. This is a massive commitment to supporting New Zealand’s growing economy and society. Over the next 4 years we are adding new hospitals, new schools, new roads, and new rail services at very high levels. One of the benefits of a strong economic plan and strong growth is the capability to build the new infrastructure that New Zealanders expect in a modern, successful society.

Todd Barclay—Southland Electorate Office Allegations, Prime Ministerial Conduct

3. to the Prime Minister: Does he stand by all his statements on the Todd Barclay matter; if so, why?

Yes; because I said them.

💬 Rt Hon Winston Peters: When he said “I have no responsibility” for the Todd Barclay matter, why did he send over 450 text messages to Glenys Dickson, many early in the morning and late at night, in the 12 months before she resigned on 7 February 2016?

💬 Rt Hon BILL ENGLISH: That is no matter of ministerial responsibility so I cannot comment on it further.

💬 Mr SPEAKER: Order! I am just waiting for some silence on my left.

💬 Rt Hon Winston Peters: If he had no responsibility, as he says, why did he send Glenys Dickson 31 text messages in the days immediately before her resignation?

💬 Rt Hon BILL ENGLISH: Well, just the same answer—I have no ministerial responsibility for that and so I cannot comment on it any further.

💬 Rt Hon Winston Peters: Why does he say he has nothing further to add, because Glenys Dickson received 22 text messages on 6 February, the day before she resigned, and a further 26 text messages in the 6 days after she resigned? Why did he not add that when the media asked him what he knew about it?

💬 Mr SPEAKER: Again, in so far as there may be prime ministerial responsibility, the right honourable Prime Minister.

💬 Rt Hon BILL ENGLISH: Just the same answer—I have no ministerial responsibility for that. The whole matter is being dealt with by a police investigation.

💬 Richard Prosser: I raise a point of order, Mr Speaker.

💬 Mr SPEAKER: Order! [Interruption] Order! It is a point of order, and I wish to hear it in silence.

💬 Richard Prosser: The Prime Minister did answer the primary question, which was a question on notice asked to him in his capacity as Prime Minister. I am a little puzzled and seek your guidance, Mr Speaker, as to how he can now refuse to answer supplementary questions along the same lines by saying that there is no ministerial responsibility.

💬 Mr SPEAKER: I am very happy to give the member my guidance, and this will be the third time that I have given him my guidance on this matter. There have been a number of statements made by the Prime Minister, and I am not now able to judge whether he has made them as Prime Minister, as the former electorate member for that particular electorate, as the leader of the National caucus, or in what other capacity. The only person who knows on what basis he has made any of those comments is the Prime Minister himself. He is the only one who can answer that question, and that is the third time I have risen to my feet to give exactly the same answer to Mr Prosser, so please take note of it on this occasion.

💬 Rt Hon Winston Peters: Could the Prime Minister inform us, when he says “I have nothing further to add,” that this document has hundreds and hundreds of text message records, from himself to Glenys Dickson—someone with whom he has claimed in this House to have had no peripheral interest when it came to her occupation or her employment, or her sacking or removal from office? Why could he not just tell the public the truth on the matter?

💬 Mr SPEAKER: Order! The last part of that question is completely unnecessary. The Prime Minister can answer the first part, in so far as there is—

💬 Rt Hon Winston Peters: I raise a point of order, Mr Speaker. Whether it is unnecessary is not for you to decide. I am asking him whether he will tell the public exactly what went on with the taxpayers’ money.

💬 Mr SPEAKER: Order! The member will resume his seat. I refer him to Standing Order 380. It is very lucky for the member that I am allowing the first part of his question to stand, and for the Prime Minister to have the opportunity to respond, in so far as there is prime ministerial responsibility.

💬 Rt Hon BILL ENGLISH: That is right. I do not have any ministerial responsibility for that.

Wage Rates—Wage Increases Compared With Living Cost Increases

My question is to the Minister of Finance and asks: what was the annual average ordinary-time hourly earnings increase over the last year—

💬 Hon Paula Bennett: You should have stepped up, Grant.

💬 GRANT ROBERTSON: What about you, Paula? It is probably time for you to do that right now, actually.

💬 Mr SPEAKER: Order! Let us call that one-all. We will now get on to the question without interjection. The member can start his question again.

4. to the Minister of Finance: What was the annual average ordinary-time hourly earnings increase over the last year, and what percentage of workers received pay rises of less than 2 percent last year, according to Statistics New Zealand?

For the member’s benefit, the questioner is probably a day ahead of himself, as there is some current data coming out tomorrow: the household labour force survey for the June year. But according to the March data, which is the last data we have, average total hourly earnings rose 1.6 percent for the year. However, average weekly earnings rose 2.2 percent over the same period, which shows that in a growing economy people work more hours and take home more pay. A break down of the labour cost index showed 33 percent of New Zealanders received an increase of over 2 percent, while 67 percent received an increase of less than 2 percent in the period.

💬 Grant Robertson: Can he confirm that his Government has delivered, according to the Ministry of Business, Innovation and Employment rental bond data, an increase of 4.9 percent in rents, on average, across New Zealand over the last year compared with that wage increase of 1.6 percent?

💬 Hon STEVEN JOYCE: No, I cannot. I do not have that information to hand. But I would say to the member that, actually, concern for people’s living costs is something that this Government is really focused on, and that is why we put together the Family Incomes Package in Budget 2017, which increases after-tax incomes on 1 April next year by around $26 a week for about 1.34 million working New Zealand families. Our compatriots in the Greens and New Zealand First voted for it, and I note that the member’s party did not.

💬 Grant Robertson: I raise a point of order, Mr Speaker. I know you do not normally allow the tabling of publicly available information, but I am just concerned the Minister is a bit behind on his—

💬 Mr SPEAKER: Order! The member will resume his seat. With that sort of behaviour, he will be very lucky to continue his line of supplementary questions.

💬 Grant Robertson: Can he confirm that his Government has delivered, according to the Statistics New Zealand food price index, an increase in costs of 3 percent on average across New Zealand over the last year compared with wages growing by 1.6 percent?

💬 Hon STEVEN JOYCE: The member seems to be labouring under some sort of delusion that the Government controls all prices in New Zealand, and, of course, unlike what the member would like, everything is not run centrally from the Minister of Finance’s office. But I bring good news to the member: in terms of the period that the Government has been in office, which is a good period to take these things, real after-tax wages have increased 19 percent under this Government, which is much higher than the cost of living and compared with just 5 percent under the previous Government. But I invite him to continue his questions.

💬 Grant Robertson: Can he confirm that his Government has delivered, according to the latest Statistics New Zealand Consumers Price Index data, an increase in the costs of medical and dental services of 2.7 percent and 3.6 percent over the last year compared with wages growing by 1.6 percent?

💬 Hon STEVEN JOYCE: Again, I am sorry but the member is labouring under an illusion about what control the Government has. But the good news for the member is that after-tax wages, under this Government, have been increasing and also faster than the rate of inflation. He can pick apart elements of inflation, and he is welcome to do so, but the other thing we are doing is making sure that people do get a benefit from a growing economy, in addition to their wages, and that is the Family Incomes Package, which delivers 1.34 million families an average of $26 a week.

💬 Grant Robertson: Can he further confirm that the cost of living is going to get worse when, according to page 6 of the “Additional Information” section of his own Budget, the expected annual increase in real wages over the next 4 years is, in order, 0.0 percent, 0.6 percent, 0.7 percent, and then 0.0 percent?

💬 Hon STEVEN JOYCE: Again, for the member’s benefit of my experience, those numbers often do not pan out in terms of the increase in wages, because, actually, our increases in wages have exceeded those predictions in the past. But, again, the member is right to raise the concern. The good news for the member is that we have one of the strongest-performing real-wage increases in the OECD. He had the opportunity a short time ago to encourage his colleagues to vote for the Government’s Family Incomes Package, which delivers more money into people’s hands—$26 a week to 1.34 million families from 1 April next year. So he says he cares, but then they vote against it.

Schools—Risk Index

5. to the Minister of Education: What recent announcements has she made on funding for children at risk of educational under-achievement due to disadvantage?

Yesterday I was pleased to announce that this Government has agreed to replace the decile system with a risk index that allows us to better target funding to schools with children and young people most at risk of not achieving due to disadvantage. We will also be replacing the equity index used to allocate disadvantage funding in early childhood education (ECE) with the risk index. This means that rather than allocating funding on the basis of neighbourhood characteristics, as the current decile system does, the risk index will instead provide fairer funding that better reflects the needs of children in schools and ECE. This will mean extra resources are better targeted to support schools to lift achievement.

💬 Todd Muller: What are the next steps on this announcement?

💬 Hon NIKKI KAYE: This decision is the first decision made in terms of the funding review looking at funding across our education system. As part of the review, the Government has been working with education leaders such as those in the ministerial advisory group for the funding review and the technical reference group, which have advocated for change in further funding for disadvantage. We will be working to engage with these groups on key decisions like the implementation date and the factors in the risk index. We are working on a number of initiatives to make it easier for parents to find and assess information about the quality of schools. This includes a project with the Education Review Office that improves its reports and key information as well as making it more accessible to parents. This will involve some investment in greater online tools.

Conservation, Department—Funding, Mining on Conservation Land, DOC Rangers, and Threatened Species

6. to the Prime Minister: Ka tū ia i runga i te mana o āna kaupapa here katoa?

[Does he stand by all his Government’s policies?]

Yes. I particularly stand by our family incomes policy, which will benefit 1.3 million New Zealand families by over $26 per week and which will include higher payments per child, lower taxes paid by everyone on a low and middle income, and also significant increases in accommodation assistance for those with the highest housing costs.

💬 Metiria Turei: Does the Prime Minister agree that the Department of Conservation (DOC) plays a critical role as nature’s primary defender on behalf of all New Zealanders?

💬 Rt Hon BILL ENGLISH: Yes, it plays a critical role, but not the only role. Increasingly, communities are involved in, for instance, Predator Free New Zealand, and I certainly regard all those who own land in New Zealand or use it as part of the process of protecting our environment for all New Zealanders. Actually, most of our natural environment is not controlled or owned by DOC; it is controlled or owned by landowners and operators who do care about our environment.

💬 Metiria Turei: Why, then, has he cut hundreds of millions of dollars from DOC’s budget, forcing lay-offs of front-line rangers and closing field bases?

💬 Rt Hon BILL ENGLISH: Certainly, my advice is that the member is not correct about that. What is much more exciting about the work that DOC is doing is that for the first time ever it is taking a long-term view about the management of the DOC estate, the management of functions like threatened species, and the management over all its assets, laying out a 10- to 20-year view so that we can better see what impact our investment in conservation is going to have.

💬 Metiria Turei: Does the Prime Minister agree that DOC’s two-page submission that “neither supported nor opposed” the Te Kaha mining application on entirely precious conservation land is evidence that his Government has, effectively, silenced nature’s primary defender?

💬 Rt Hon BILL ENGLISH: No. I mean, DOC has the obligation to follow its statutory processes. As I have said, it is not the only guardian of the natural environment in New Zealand. Increasingly, the way it works is to cooperate with community groups, which is turning out to be quite successful in the case of Predator Free New Zealand, and also, increasingly, to work with landowners, who do control more of our land mass and more of our environment than DOC does.

💬 Metiria Turei: Why is his Government’s conservation plan to protect only one in five of our most threatened species by 2030, when we can protect them all?

💬 Rt Hon BILL ENGLISH: I would dispute the member’s description of where that work is headed, but, certainly, the preservation and the improvement of our threatened species is a high priority. We are keen to see more innovation, a better organisational structure, and a longer-term view taken to ensure that we can, for instance, turn around the long-term decline in kiwi, and that work is well under way.

💬 Metiria Turei: Does the Prime Minister agree with Jan Wright, Parliamentary Commissioner for the Environment, who recently said the situation for our birds is desperate; if he does agree, why are there around 200 less front-line DOC rangers today—

💬 Hon Members: Fewer.

💬 Metiria Turei: —than there were in 2009? Thank you!

💬 Rt Hon BILL ENGLISH: Of course, the future of our birds matters in the way that the Parliamentary Commissioner for the Environment said. That is why we have the Battle for our Birds, for which, I have to say, it is sometimes a challenge to deal with those who, for instance, oppose the use of 1080, but we are determined to give our bird species the best opportunity. It is the inspiration behind Predator Free 2050, which is going to engage, as it already is, a much wider number of New Zealanders than the possible numbers of DOC rangers in the very constructive process of reducing the burden of predators so that our birds can thrive.

💬 Metiria Turei: If he is so reluctant to increase core funding for conservation, why will he not raise a small $20 tourism levy, which will provide tens of millions of dollars of new funding for pest control to help exactly those native birds to thrive again?

💬 Rt Hon BILL ENGLISH: We are quite happy to budget more for the Department of Conservation where we can see that there are going to be real conservation benefits. However, we do not believe in just slapping a levy or a new tax on everything—all the suggestions the Opposition has made. We would rather focus on what result we are going to get and fund that adequately.

Schools—Risk Index

7. to the Minister of Education: What criteria will be used to calculate the Risk Index that will “better target funding to schools with children and young people most at risk of not achieving due to disadvantage”?

The criteria that will be used to calculate the risk index are based on research and evidence and involve factors that are linked to students not achieving NCEA level 2. However, as I have already stated yesterday, we will be working with the Chief Science Advisor, the Social Investment Agency, and the sector to test out the draft risk factors and how they may work within the overall system.

💬 Chris Hipkins: Why does the National Government believe that being from a larger family, having a younger or older mother, having a male caregiver who is not a biological father, or having parents who are migrants indicate that a child is disadvantaged?

💬 Hon NIKKI KAYE: That is because we have worked with a range of organisations and the sector to look at what the potential risk is of not achieving. So it is not about just the individual factor; it is about how the factors may work together, to potentially look at what the prediction is in terms of those who are at risk of not achieving.

💬 Chris Hipkins: Which does she think creates a greater stigma for schools: decile rankings based on socio-economics, or the creation of league tables showing the number of children in a school with parents on a benefit; a parent in prison; Child, Youth and Family (CYF) notifications; or male caregivers who are not the biological father of the child?

💬 Hon NIKKI KAYE: Well, firstly, I would like to make a couple of points. The first is that publicly labelling schools via the decile system is widely seen as discriminatory. We have been very clear that this risk index will involve anonymised data—that is the first point. Secondly, we have said we are going to work with the Auditor-General and the Ombudsman to see what we can do to make sure that this does not become a discriminatory system.

💬 Chris Hipkins: How will she prevent the release of that information, given that once it has been compiled and used to inform funding decisions when using public money, the Government will be legally obliged under the Official Information Act to release it to the public?

💬 Hon NIKKI KAYE: Well, the first point that I would make, again, is that this is different to the decile system in that this is, overall, a more sophisticated system in terms of determining what the weighting of funding may be in terms of those students who are at risk of not achieving. The second thing, which answers his question, is that we have said we will be working with both the Auditor-General and the Ombudsman, but separately from that there is the possibility that we are—it is how we present the funding information, and it could be presented with other funding, so you may not be able to determine exactly which funding is for those at risk of disadvantage.

💬 Chris Hipkins: Which does she think is going to create the greatest stigma for schools: decile rankings, as we have now, or the release of information—which would not be able to be withheld under the Official Information Act—on the number of children in a school with a parent on a benefit or a parent in prison, or on whether a child is subject to CYF notifications or has a male caregiver who is not their biological father?

💬 Hon NIKKI KAYE: As I said in answer to the previous question, the decile system is discriminatory, and it is that system that we are getting rid of and it is that system that is more discriminatory. The second point that I would make is the member does not understand how it works. He does not understand how it works in that it is not just about the individual factors; it is about how the factors work together. We are working with the sector in terms of the presentation of that information to make sure that we do not create a discriminatory system.

💬 Chris Hipkins: Which does she think is the biggest influence on a child’s chances of success in education: their natural talents and abilities coupled with their willingness to work hard, or the National Government’s Big Brother algorithm, which is going to miraculously decide their future before they even set foot inside a classroom?

💬 Hon NIKKI KAYE: Well, I completely disagree with the last statement in the question, and I want to make this point. We have received widespread support for this announcement because not only are we scrapping the decile system, which is discriminatory, we are providing more funding for disadvantaged, and it is supported by a lot of parents and the sector.

Immigration—Visa Requirements

8. to the Minister of Immigration: Does he stand by all his statements; if so, how?

Yes, I do. I particularly stand by my statement that any political party promising to reduce net migration to 10,000 would decimate industries and regions, and that this Government is not prepared to throw those regions under a bus at a time when they are growing so strongly.

💬 Rt Hon Winston Peters: If, as he claimed, he has “toughened [the] English language rules” in October 2016, can he confirm that serious, widespread fraud with regard to the English language requirement was a major reason for him doing so?

💬 Hon MICHAEL WOODHOUSE: Yes, I do confirm that there were concerns about the way in which the English language tests were being conducted, and also about the fact that the resident application for skilled migrants included 12 months of work in a New Zealand workplace. That did not in and of itself constitute competent English, so we changed it.

💬 Rt Hon Winston Peters: Is he concerned that when Nigel Bickle, Deputy Chief Executive of the Ministry of Business, Innovation and Employment (MBIE) and head of Immigration New Zealand, had investigators look into this back in November 2015, they found, for example, 95 out of 98 applicants were not asked for any evidence that they had met minimum English proficiency standards?

💬 Hon MICHAEL WOODHOUSE: I would need more details about the specific example the member is asking about. I presume it is in the international education space. At that point there were certain categories of tertiary education provider that were exempted from requirements. That was changed after November 2015.

💬 Rt Hon Winston Peters: When is he going to take some responsibility, for example, about rules, whatever they are, being openly and routinely flouted, when another MBIE manager, Paul Arram in this case, found out in June 2016 that out of 105 applications, only one applicant was required—that is one—to provide an international English language test certificate; one out of 105, under you?

💬 Hon MICHAEL WOODHOUSE: I am not quite sure what the question is, but what I would say is that when you have more than 3.5 million people crossing the borders, nearly 800,000 visas being approved every year, and a set of rules, some people try to bend them. We fixed that, we improved that, and we have far fewer problems than we have had in the past.

💬 Rt Hon Winston Peters: If he has got two investigations by senior people within his department and they are finding that there are thousands of people who have committed fraud, what has he done about it, when another MBIE investigator, Theodore Ashton, has concluded that thousands did break the law?

💬 Hon MICHAEL WOODHOUSE: We do what the public would expect us to do: we investigate and we prosecute.

ICT Sector—Contribution to Economy

9. to the Minister for Economic Development: What recent reports has he received on the contribution of the IT services sector to the economy?

I have recently seen a 2017 ICT sector report that demonstrates the strength of New Zealand’s technology sector to the economy. The report paints a very positive picture of a strong and growing sector, and finds that it is rapidly maturing. There are more firms in the sector than ever before, both large and in start-up phase, and there are more local and international investors. Through the Government’s continued commitment to the sector, including our nationwide roll-out of ultra-fast broadband, we are seeing New Zealand firms developing and commercialising cutting-edge technologies, competing with the best and brightest globally.

💬 Brett Hudson: What were the key findings of the 2017 ICT sector report?

💬 Hon SIMON BRIDGES: The Government has backed the ICT sector by investing in enabling technology and innovation, and this support is paying dividends. The report finds that the IT services sector makes a significant contribution to our economy. In 2016 more than 11,000 IT firms employed 29,700 people and contributed $3.6 billion to New Zealand’s GDP. In addition, these firms invested $436 million in R & D in the last year alone, more than any other sector in the economy. The report finds that the Government’s strong emphasis on innovation and growth, diversification of the economy, and providing an economic environment in which entrepreneurs and investors feel confident about starting to grow new smart businesses is clearly paying off.

Health, Director-General—Performance

10. to the Minister of Health: Does he have confidence in the Director-General of Health?

Yes, and that is because he has overseen a lift in performance across hundreds of health services, including delivery of 50,000 more elective surgeries, 150,000 more first specialist assessments per year, free GP visits for under 13s, and nearly 7,000 more doctors and nurses across the system. He is now focused on implementing the historic $2 billion pay settlement for 55,000 of the hardest-working, most deserving people in New Zealand: care and support workers. But, of course, there is always more to do.

💬 Dr David Clark: Now that he has had a copy of Paula Rebstock’s draft performance report in his office for more than a month, as canvassed in questions in this House on 21 June, can he tell the House what he expects its main findings to be?

💬 Hon Dr JONATHAN COLEMAN: As I have told the member before, that report is far from finished—parts of it were blank in the version I was given—but, most importantly, it is the State Services Commissioner’s report, and it is up to the State Services Commissioner to finish the report and then to release it. He controls it; it is not a ministerial report.

💬 Dr David Clark: Has he met with Paula Rebstock since the performance review of his ministry began?

💬 Hon Dr JONATHAN COLEMAN: I would have to go back through my diary, and I can tell you the dates I did meet with her. Put it in writing, and I am happy to answer it.

💬 Dr David Clark: What action has he taken in response to the fact that Chai Chuah contacted district health boards (DHBs) on 31 May and 1 June to tell them that they could keep money where there was no specific legal appropriation from the Parliament?

💬 Hon Dr JONATHAN COLEMAN: Chai Chuah has been doing an excellent job overall. With that particular situation, which involved a fraction of less than 1 percent of the total budget, Mr Chuah felt that he could solve it. In actual fact, he probably overreached a bit, but the bigger picture is that DHBs have received $439 million, Vote Health is at record levels, and, actually, we are focusing on continuing to deliver more of the services that really make a difference to New Zealanders’ health.

💬 Dr David Clark: So does “overreaching a bit” mean that he had no specific legal appropriation?

💬 Hon Dr JONATHAN COLEMAN: Could you say that again?

💬 Mr SPEAKER: I will ask the member to repeat the question.

💬 Dr David Clark: Does “overreaching a bit” mean that he had no specific legal appropriation for that action?

💬 Hon Dr JONATHAN COLEMAN: I do not think he did anything illegal.

💬 Dr David Clark: Has he asked Chai Chuah why he appeared to go rogue—given that journalists put that question to him last week—and whether he had been directed to take that course of action; if so, what was his response?

💬 Hon Dr JONATHAN COLEMAN: I do not know whether the member has met Chai Chuah, but he is not a “go rogue” sort of guy.

💬 Dr David Clark: I raise a point of order, Mr Speaker. In response to journalists last week, the Minister accepted that premise and suggested that the question be put to Chai Chuah himself—

💬 Mr SPEAKER: Order! This is not a point of order. This is now very much a debating matter. Unless the member can raise a point of order quickly, I am moving on.

💬 Dr David Clark: He accepted that proposition previously, and now I am afraid he is misleading the House by saying—

💬 Mr SPEAKER: Order! The member needs to go back and carefully look at the question that was asked and the answer that was given. My job is to adjudicate as to whether that answer addressed the question. There is no doubt in my mind that it did—I agree, not to the member’s satisfaction, but that is not my role.

Schools—Risk Index

11. to the Minister of Education: How will the Government collect risk index data for education funding and how will the ministry ensure that data is up to date, given families needing to move often because of the housing crisis?

The Government collects the information for the risk index through the integrated data infrastructure. This is a large research database containing microdata that is collected from a range of Government agencies, Statistics New Zealand, and non-governmental organisations. In terms of up-to-date information, funding for educational underachievement due to disadvantage will be calculated annually. The member may wish to note that while I do not agree with her characterisation of the housing situation, and while the risk index is not finalised, one of the factors being considered is school transience, which could be linked to housing.

💬 Catherine Delahunty: How will schools, which can have a 50 percent school rollover, have any budget certainty, year to year, under this individualised funding model?

💬 Hon NIKKI KAYE: The member is making an assumption, because we have not finalised the risk index.

💬 Catherine Delahunty: Why are disability, mental health, and learning support not included in the risk factors in the risk index?

💬 Hon NIKKI KAYE: As I have already mentioned, this is a draft risk index, and this has been developed—just in terms of the process so far—via research and international literature. It has been worked on with the ministerial advisory group, but we will be testing it out with the chief science advisers and the Social Investment Agency.

💬 Catherine Delahunty: Why is the Minister not just increasing funding to all schools, rather than stigmatising children within schools using an unproven, deficit-based risk index?

💬 Hon NIKKI KAYE: I disagree with a number of things said in that question, but the first point is that under this Government, on average, we have increased Vote Education by half a billion dollars. As I have already stated, in terms of this announcement, there will be additional funding. Thirdly, the largest point that I have been making out there is that this is about a cultural shift for New Zealand in respect of not discriminating against children, and I am confident that we can manage that through, in terms of the way the information is presented.

ANZ Business Micro Scope Survey—Small Business Confidence, Employment, and Investment Expectations

12. to the Minister for Small Business: What recent reports has she received regarding small business confidence in their future?

I have received the ANZ Business Micro Scope survey for the June quarter, which shows small business activity expectations are at a 2-year high. A net 17 percent of small businesses are more confident about general business conditions for the year ahead. The report also highlights that a net 28 percent of small businesses are eyeing bigger profits on the horizon. This is at a 3-year high, and showcases that the benefits of our growing economy are being felt throughout the country.

💬 Sarah Dowie: What does the report show, in terms of employment and investment expectations?

💬 Hon JACQUI DEAN: Small business employs 29 percent of the work force. The ANZ report highlights that the demand for labour is strong, at a net 17 percent. This shows that small businesses have confidence in their future and are looking to expand and grow. The report also highlights that small businesses are looking to invest, with a net 18 percent looking to invest more in their business in the next year. This is another good sign of the growing economy and the fact that small businesses remain confident about their future.