🧪 EXPERIMENTAL / ALPHA — this is an independent prototype, not an official record. Data may be incomplete or wrong - always check the linked Hansard source before relying on it.
Hot Air

Tuesday, 18 February 2020

Oral Questions

HansardID: 97b8ef88-2d6c-4c52-9cfe-d46297e4a1e5
Back to debates
❓ Question Tamati Coffey (New Zealand Labour Party — Member for Waiariki)
Time unknown

1. to the Minister of Finance: He aha ngā rīpoata hou kua kitea e ia mō te ōhanga o Aotearoa?

[What recent reports has he seen on the New Zealand economy?]

🗣️ Speech Hon Grant Robertson (New Zealand Labour Party — Member for Wellington Central)
Time unknown

Tēnā koe, Mr Speaker. Tēnā koutou e Te Whare. Statistics New Zealand’s latest labour market statistics show good news for Kiwi workers. According to data for the December 2019 quarter, average hourly earnings growth remains strong. Total average hourly earnings across the economy were up 3.6 percent over 2019. There are other measures too. The Labour Cost Index rose 2.6 percent over 2019—its strongest annual increase in over a decade. By comparison, Stats New Zealand Consumers Price Index inflation data for the December quarter showed annual inflation at 1.9 percent in 2019. For this Government, it’s increasing wages that’s the key to supporting New Zealanders to meet their cost of living.

💬 Tamati Coffey: How is the Government supporting wage growth in New Zealand?

💬 Hon GRANT ROBERTSON: This Government is committed to a productive, sustainable, and inclusive economy where all New Zealanders get their fair share. We have a range of policies and measures in place, which I’ll just run through a few of. These include increases to the minimum wage; backing business productivity through our R & D tax incentive; negotiating pay equity agreements; more money going into Mana in Mahi, He Poutama Rangatahi, and other initiatives to boost the productivity of workers; and significantly boosting pay for teachers, nurses, and the police.

💬 Rt Hon Jacinda Ardern: Has the Minister seen the reports from Statistics New Zealand’s household income and housing-cost survey, which surveyed the period June 2018 to June 2019, which show that more than 46,000 people have been lifted out of poverty?

💬 Hon GRANT ROBERTSON: I’m working my way through that survey that’s come out today, and I believe that the Prime Minister is correct. What we are seeing is the impact of a Government that actually cares about ensuring all New Zealanders get a fair share.

💬 Tamati Coffey: What reports has he seen on other approaches to growing wages in New Zealand?

💬 Hon GRANT ROBERTSON: I’ve seen reports from some commentators who appear to be against higher wages. For example, one commentator this morning suggested that cancelling the Government’s minimum wage increase to $20 per hour is something that they are thinking about. That would cost a full-time worker on the minimum wage—

💬 SPEAKER: Order! [Interruption] Order!

💬 David Seymour: Has the Minister seen any reports of growth in activity in the photography sector?

💬 Hon GRANT ROBERTSON: I don’t analyse it down to that level, and, since the member stopped his dancing career, I think people are less interested in taking photos of politicians.

💬 David Seymour: Who might be employing these photographers if there were any?

💬 SPEAKER: Order! It’s not something that member has responsibility for.

💬 Hon Damien O’Connor: What reports has the Minister seen on economic growth in the Buller region?

💬 Hon GRANT ROBERTSON: The Buller region, on the West Coast of New Zealand, has shown this year a 2.3 percent economic growth rate. This stands in contrast to three years ago, when the economy in the Buller region shrank 18.3 percent. The local mayor Jamie Cleine labelled the growth as a major turn-around, and I just want to quote him briefly: “The figures show we have turned a corner and reflect the feeling on the street that is … positive. Town is really busy and people are talking about the parking problems on Palmerston Street.”

💬 SPEAKER: That might be stretching it.

Question No. 2—Prime Minister

❓ Question Hon Simon Bridges (New Zealand National Party — Member for Tauranga)
Time unknown

2. to the Prime Minister: Does she stand by her statement when asked yesterday if there are standards of behaviour she believes minor parties in her Government should adhere to, “of course”?

🗣️ Speech Dame Rt Hon Jacinda Ardern (New Zealand Labour Party — Member for Mount Albert)
Time unknown

The only amendment I would make is that I believe all political parties should adhere to a high standard of behaviour.

💬 Hon Simon Bridges: Has she seen any recent reporting of behaviour by minor parties in her Government that might, if she were to seek more information, breach her minimum standards?

💬 Rt Hon JACINDA ARDERN: No. I’ve seen statements from a minor party recently demonstrating that those Ministers, MPs, have not been involved in the behaviour that the member alludes to.

💬 Hon Simon Bridges: Does she accept the Cabinet Manual states that “Ultimately, Ministers are accountable to the Prime Minister for their behaviour.”?

💬 Rt Hon JACINDA ARDERN: Yes.

💬 Hon Simon Bridges: Does she believe all of her Ministers have acted lawfully and behaved “in a way that upholds, and is seen to uphold, the highest ethical standards”, as required by the Cabinet Manual?

💬 Rt Hon JACINDA ARDERN: Yes.

💬 Hon Simon Bridges: Does she think her Deputy Prime Minister upholds, and is seen to uphold, the highest ethical standards?

💬 Rt Hon JACINDA ARDERN: Yes.

💬 Rt Hon Winston Peters: If the Prime Minister knew that a certain political leader was going to be swept into a court case involving $200,000 of illegal donations to a party, would she act on that matter?

💬 SPEAKER: Order! On occasions we do, these days, allow hypothetical questions, but if that question was taken seriously, it would be referring to a matter that is currently before the court, which would be ruled out both on that basis and also a lack of prime ministerial responsibility for it.

💬 Hon Simon Bridges: What ethical standards has her Deputy Prime Minister upheld in the last two weeks?

💬 Rt Hon JACINDA ARDERN: If the member wishes to ask a direct question about an issue around ministerial conduct, he is most welcome to, but I imagine the public right now sees the deep irony of this line of questioning from the leader of the National Party.

💬 Hon Simon Bridges: Does she trust her Deputy Prime Minister?

💬 Rt Hon JACINDA ARDERN: Yes. This is how we’ve managed to deliver an economy together, and our relationship—an economy that has unemployment at 4 percent, that has wage growth at 3.6 percent, that today has delivered 46,000 New Zealanders out of poverty. If that member might look for a moment at what New Zealanders actually care about, it’s their wages, it’s their housing costs, it’s what we’re doing on child poverty, and with the New Zealand First Party and the Greens I am proud of what we have delivered through our trusting relationships and a strong Government.

💬 SPEAKER: Before the Leader of the Opposition calls, I just want to say that during that answer there were two inappropriate interjections made. I’ve been asked to be a bit more liberal and soft by people on both sides, and I will, but there is a limit.

💬 Hon Gerry Brownlee: I don’t mean to correct you in any way, but just would point out that you’ve also said in the past that once a Minister gives an answer, “yes”, that’s all that needs to be given. I can think of Mr Twyford being put in that position, Mr Hipkins being put in that position.

💬 SPEAKER: Yes. The member is absolutely correct, but it does depend on the question. When there is a question of that sort, which goes to a question of trust and why, there will be a full opportunity to respond.

💬 Hon Simon Bridges: Does she think her Deputy Prime Minister justifying taking photos of journalists by saying it’s just doing “to them what they do to others all the time” meets the standards set out in the Cabinet Manual?

💬 Rt Hon JACINDA ARDERN: Again, the Deputy Prime Minister has put out the clarity around that situation today and, again, I don’t see how this relates to ministerial conduct.

💬 Hon Simon Bridges: Has she spoken to her Deputy Prime Minister about the photographs taken of journalists?

💬 Rt Hon JACINDA ARDERN: The Deputy Prime Minister has made it clear that he has had no involvement in that situation.

Question No. 3—Finance

❓ Question Hon Paul Goldsmith (New Zealand National Party — List Member)
Time unknown

3. to the Minister of Finance: Does he stand by all his statements and policies?

🗣️ Speech Hon Grant Robertson (New Zealand Labour Party — Member for Wellington Central)
Time unknown

Yes, in the context in which they were given—in particular, my statement that the economic speech given yesterday by the Leader of the Opposition was over-hyped, under-delivered, relentlessly negative, and full of tired ideas.

💬 Hon Paul Goldsmith: Does he think Kiwis on the average wage pay too much tax?

💬 Hon GRANT ROBERTSON: I think that, when you look at the global situation, New Zealanders pay tax at a much lower level than most other countries.

💬 Hon Paul Goldsmith: Does he think Kiwis on the average wage pay too much tax?

💬 Hon GRANT ROBERTSON: New Zealand has the second-lowest tax on labour income in the OECD for the average single worker with no children, and for a one-earner married couple with two children, New Zealand has the lowest tax on labour income in the OECD.

💬 Hon Paul Goldsmith: Why has his Government not offered a single cent in tax relief for Kiwis who work?

💬 Hon GRANT ROBERTSON: The tax rates that we inherited—if we’re talking about income tax here—have enabled us to be able to rectify some of the problems that we were left with: our run-down hospitals, our run-down schools, the need to rebuild our police force. All of these things take time to do. We’re making good progress on them, but the amount of money that’s required to do that is the amount of money that we’re getting in. We continue to try and build on our programmes of the last two years.

💬 Hon Paul Goldsmith: Does he accept many New Zealanders are struggling with the cost of living?

💬 Hon GRANT ROBERTSON: I accept that it has been, since time immemorial, an issue that the costs of living go up. As I said in the answer to question No. 1, the very best way to deal with that is to see wages lift. That’s how we’ll make New Zealanders more wealthy, and we’re making good progress on that, with average earnings going up by 3.6 percent in the last year.

💬 Hon Paul Goldsmith: So when he increased core Crown spending by $6.5 billion last year, did he give any consideration to putting some of that money back in the hands of taxpayers?

💬 Hon GRANT ROBERTSON: I would have loved to have done that, but the problem was we had hospitals that had been run down, $2 billion not put into the health system that needed to be, kids being taught in school halls and libraries instead of classrooms, not enough teachers, not enough police officers. So that additional spending is required to rebuild the public services that New Zealanders deserve.

💬 Rt Hon Jacinda Ardern: Can the Minister confirm reports from Statistics New Zealand today on the household income survey, which shows that the median household equivalised disposable income has risen 10 percent in recent times, under this Government?

💬 Hon GRANT ROBERTSON: I can confirm that that is the Statistics New Zealand release today. I can also confirm that the average household equivalised disposable income rose 4.9 percent just in 2019 alone.

Question No. 4—Public Housing

❓ Question Hon Marama Davidson (Green Party of Aotearoa / New Zealand — List Member)
Time unknown

4. to the Associate Minister of Housing (Public Housing): Does he believe the Residential Tenancies Amendment Bill will create a fairer deal for people who rent; if so, how?

💬 SPEAKER: The Hon Kris Faafoi—with a slight adjustment on the wording.

🗣️ Speech Hon Kris Faafoi (New Zealand Labour Party — Member for Mana)
Time unknown

Yes. The Government is delivering a fairer and more secure rental market for renters and landlords with the introduction of the Residential Tenancies Amendment Bill. We’re doing this by limiting rent increases to once every 12 months and banning the solicitation of rental bids by landlords. We’re also improving tenants’ security by removing a landlord’s ability to evict people out of their homes without giving them a valid reason. We’re also giving landlords new tools to deal with antisocial behaviour and also rent arrears. Making rental properties safer and more livable is also the aspiration for the bill, by letting tenants add minor fittings, such as brackets to secure furniture against earthquake risk, making their homes safer for their young children.

💬 Marama Davidson: Will these reforms improve housing security so that renters can put down roots in their communities?

💬 Hon KRIS FAAFOI: Yes. The Government considers that every New Zealander should have a safe, warm, dry, and secure home to call their own, even if they’re renting. One of the building blocks of this reform is improving the security of tenure, and this means that tenants who are meeting their obligations will feel confident that they can remain in their rental homes. We have already improved housing security in State houses by exempting retirees, children, and people with disabilities from tenancy reviews.

💬 Marama Davidson: Will people who rent be able to make their house a home, through minor changes such as putting up pictures, securing furniture against earthquake risk, and making the property safe for children?

💬 Hon KRIS FAAFOI: Yes. As I mentioned earlier, the Residential Tenancies Act changes as proposed will allow minor fittings, including securing furniture, protecting against earthquake risks, or making properties child safe much easier for tenants. Working with their landlords, the bill will allow tenants to install these minor fittings. This is limited to low-risk fittings that meet certain criteria, and tenants will be required to install and remove the fittings at their own cost and return the property to a reasonable standard.

💬 Marama Davidson: How will these reforms limit rent increases?

💬 Hon KRIS FAAFOI: Frequent rent increases have been found to leave tenants vulnerable to rental stress, particularly low-income tenants or tenants who experience changes in their financial circumstances. This bill will limit increases to once every 12 months to give tenants more certainty over their costs but continue to allow landlords to make reasonable adjustments to rent. This reflects the balanced approach we have taken to improve the tenants’ security in their own homes while recognising that there are business needs of landlords.

💬 Marama Davidson: Does he agree that there’s more work to do before every New Zealander has a warm, dry, safe, affordable home to call their own, whether they rent or own?

💬 Hon KRIS FAAFOI: Yes. We’re doing this because over a million New Zealanders are now renting. When the Residential Tenancies Amendment Act was first introduced, 26 percent of New Zealand children were in rental accommodation. The latest figures have that at 43 percent. We need to make sure that there are fundamental changes in our residential tenancies legislation to make sure that children grow up in a home that is warm, dry, and stable.

Question No. 5—Housing

❓ Question Hon Judith Collins (New Zealand National Party — Member for Papakura)
Time unknown

5. to the Minister of Housing: Does she support a housing market where private citizens can be outbid by the Government when buying their first home?

🗣️ Speech Hon Dr Megan Woods (New Zealand Labour Party — Member for Wigram)
Time unknown

It’s never ideal when New Zealanders miss out on opportunities to get into their first home, and, if the member is referring to the Onehunga development that’s been reported in the media recently, obviously it’s an incredibly hard situation for the buyers, and I’ve sought assurances from officials that this is the only case as we deliver a thousand transitional housing places this year. Nor do I support a housing market where people are homeless, where families are sleeping in cars and garages, where people are dumped in motels, where we have a chronic shortage of houses, and where desperately needed State houses are sold off. That’s the legacy we inherited from the previous Government, and we are putting it right.

💬 Hon Judith Collins: Then why are more people living in motels, living in cars, and going homeless under her watch?

💬 Hon Dr MEGAN WOODS: I’m very glad the member asked. What we can see, if we do the calculations, is the fact that we ended up—the previous Government’s term of Government—with 1,500 fewer public housing spots. They failed to build. If they’d built at our rate, that we are over-delivering on, of 1,600 houses a year, that would mean 15,000 more public housing spaces. We would have no public housing wait-lists, we would not have people in motels, and we would not have homeless. That member should feel some shame about that.

💬 Hon Judith Collins: So if the Government is in the market to buy houses, then why don’t they buy the 323 unsold KiwiBuild houses that are languishing there?

💬 Hon Dr MEGAN WOODS: Because they are all available for first-home buyers to buy, and, if the member cares to look, what she can see, actually, is that we have had uplift in first-home sales. But I would also point out to the member that buying in homes for public housing is nothing new. If I look at the 2012-13 financial year, 261 public housing spots were delivered by the then Government and 164 were buy-ins—or 62 percent. If I look at the 2018-19 financial year, 1,805 public housing spots were delivered by our Government and only 22 percent of them were buy-ins.

💬 Rt Hon Winston Peters: Going from the original question, does she support a housing market where Kiwi private citizens can be outbid by foreigners when buying their first home?

💬 Hon Dr MEGAN WOODS: In answer to the member, no, and that’s why we made the changes to ensure that New Zealanders could achieve first-home ownership.

💬 Hon Judith Collins: Is the Government competing in the first-home buyer market in a bid to increase the number of houses it is now claiming to have built?

💬 Hon Dr MEGAN WOODS: Absolutely not. I’ll refer the member to the previous question that she asked and the answer that I gave to that: that we are building far more houses and a lower proportion of them are buy-ins. The member cannot escape the fact that we are building more public houses than any Government has in generations. It is something we are rightly proud of. We are building houses to make up for a previous Government that sold them off.

💬 Hon Judith Collins: So does she agree with her chief executive Andrew Crisp, who told the Social Services and Community Committee on 20 November last year, “So Kāinga Ora and the community housing sector are, as I said, being very careful not to displace people from the market—that’s the intention.”, and, if she does, then why is he doing it?

💬 Hon Dr MEGAN WOODS: Yes, I do agree with him, and what we can see, actually, is the record of Kāinga Ora: 22 percent in the 2018-19 year were buy-ins, down from the record 60-something percent that the previous Government achieved, and, actually, to date this year at 15 percent. But, for the record, I don’t agree with that member’s leader, who described our homelessness package as a knee-jerk way without a plan that was wasteful expenditure, either.

Question No. 6—Transport

❓ Question Jamie Strange (New Zealand Labour Party — List Member)
Time unknown

6. to the Minister of Transport: What recent announcements has he made about State highway projects?

🗣️ Speech Hon Phil Twyford (New Zealand Labour Party — Member for Te Atatū)
Time unknown

As part of the New Zealand Upgrade Programme, we’ve announced a fully funded programme of State highway projects—more than $5 billion worth—to help futureproof the economy, get our cities moving, and make our roads safer. These include the four-laning of the Tauranga Northern Link and Te Puna to Ōmokoroa on State Highway 2, which will improve safety on a dangerous stretch of highway where, under the former Government, suburban development was allowed to take place without the necessary roading upgrades. It also includes the Melling interchange, which will reduce the risk of flooding and help ease congestion at peak times, and upgrading State Highway 1 from Whangārei to Port Marsden to four lanes, which will improve safety and freight connectivity in the north.

💬 Jamie Strange: What State highway projects are there in Auckland as part of the New Zealand Upgrade Programme?

💬 Hon PHIL TWYFORD: I’m glad the member asked that. Not only are we widening State Highway 1 from Papakura to Drury to help make commutes quicker, we’re also making Penlink and Mill Road State highways so we can speed up their implementation. Upgrading Mill Road to four lanes and connecting Manukau to Drury will not only ease traffic on State Highway 1 but connect fast-growing and job-rich parts of Auckland. Penlink, of course, will open up growth north of Auckland and connect Whangaparāoa residents to the very successful Northern Busway.

💬 Jamie Strange: Will these projects simply be extra lanes of motorway?

💬 Hon PHIL TWYFORD: No. Our Government knows we must look to the future as we design this very important infrastructure. These projects have been futureproofed to include provision for public transport, for freight, and for high-occupancy vehicles, and, of course, each of them will have separated walking and cycling pathways, to give people real transport choices, because we are the Government of infrastructure and the Government of the future.

Question No. 7—Health

❓ Question Hon Michael Woodhouse (New Zealand National Party — List Member)
Time unknown

7. to the Minister of Health: Does he stand by his statement in respect of the COVID-19 outbreak, “At every point, we have made sure that our decisions have been informed by science”?

🗣️ Speech Hon Dr David Clark (New Zealand Labour Party — Member for Dunedin North)
Time unknown

Yes. The New Zealand Government has taken a precautionary approach based on expert scientific and medical advice. So far, we have not had a confirmed case of COVID-19.

💬 Hon Michael Woodhouse: What changes to advice and processes have been made in the wake of scientific evidence that the incubation period of COVID-19 is up to 24 days, not 14 days?

💬 Hon Dr DAVID CLARK: The scientific advice changes as the facts change. The evidence currently suggests that the incubation period is less than that. However, I am aware that there are reports suggesting some more. We take the advice of the health officials, from the scientists with the most up-to-date science, and make our decisions accordingly.

💬 Hon Michael Woodhouse: What support, if any, has the Government provided to individuals wanting to self-isolate but having difficulty doing so due to their being in dwellings with several other individuals?

💬 Hon Dr DAVID CLARK: The steps that the New Zealand Government has taken in setting up a Healthline response, as best I’m aware, are unprecedented in other countries. We have gone much further than other countries. Certainly, I’m not aware of other countries taking the extensive steps that we’re taking to contact people who are in the self-isolation situation. So I do acknowledge the member bringing that up. It’s good to acknowledge that, in New Zealand, we are taking perhaps a more cautious approach than other countries, but that support for people is through telephone conversations, predominantly, where we have Mandarin speakers as well as English speakers available to answer any questions for people about the challenges they may face in self-isolation and to provide any necessary support.

💬 Hon Michael Woodhouse: So what is his estimate of the number of people who have come back from China and not contacted Healthline, and is it possible that these people could not be following self-isolation advice?

💬 Hon Dr DAVID CLARK: Self-isolation is a very effective public health measure, and that’s why we have adopted it here, as other countries have. We have already had over 4,000 contacts at Healthline, and beyond that, we know there are likely to be around a couple of thousand more that have come into the country. I’m awaiting updated numbers currently.

💬 Hon Michael Woodhouse: Does he believe that the need for individuals to sleep in cars as a form of self-isolation is acceptable and informed by science?

💬 Hon Dr DAVID CLARK: That is not my expectation. My expectation is that anybody with any challenges should be ringing Healthline and seeking help in their situation.

Question No. 8—Transport

❓ Question Chris Bishop (New Zealand National Party — Member for Hutt South)
Time unknown

8. to the Minister of Transport: Does he stand by his reported comment in relation to Auckland light rail, “The light rail connection I think will probably be another two years in the planning, the funding, the land acquisitions … Then you’ve got another several years to build it – so it’s not going to happen tomorrow”, and when will the completed light rail project in Auckland be open to passengers?

🗣️ Speech Hon Phil Twyford (New Zealand Labour Party — Member for Te Atatū)
Time unknown

The answer is yes, and while more detailed time lines will be announced with the delivery partner, I can confirm that the project will be open well before 2047, the date promised by the previous transport Minister, Simon Bridges.

💬 Chris Bishop: Why is the Government choosing a delivery partner and delivery model for the Auckland light rail project in advance of actually deciding what they want them to build, and isn’t this a strange way to go about procuring a multibillion-dollar intergenerational investment?

💬 Hon PHIL TWYFORD: No, it’s not at all. In fact, in the process of actually determining the delivering partner and the funding and governance of the project, a great deal of work is being done on design, route alignment, and all those matters. The fact is that the New Zealand super fund and their Canadian partners made an unsolicited bid that Cabinet decided was compelling and interesting, to the extent that it deserved proper consideration. When the private sector constantly says to us that we should be open to creative and efficient ways of financing—

💬 Hon Chris Hipkins: Simon Bridges says that too.

💬 Hon PHIL TWYFORD: —and procuring major infrastructure projects—

💬 Hon Simon Bridges: But I know how to do it.

💬 Hon PHIL TWYFORD: —this Government listens to them.

💬 Hon Chris Hipkins: How many bridges?

💬 Chris Bishop: Why, once the Government received the—

💬 SPEAKER: Order! Both of you. Can the member start again. I remind both Mr Hipkins and the Leader of the Opposition not to interject while this member’s on his feet.

💬 Chris Bishop: Why, once the Government had received the unsolicited bid from the super fund, did the Government then not go to the wider international market and seek expressions of interest or bids from other international partners who may want to participate in the Auckland light rail project?

💬 Hon PHIL TWYFORD: Simply because the proposal that was put to us, the unsolicited proposal from NZ Infra, is unique. Nothing like that has ever been tackled before in New Zealand, and the Government took the view that it was best to assess that financing and governance model and consider whether we wanted to do that before then going out to the market and inviting other bids.

💬 Chris Bishop: Just in relation to that last comment, is he indicating to the House that if the Government, at the end of this current process, decides that there is merit in proceeding with a bid similar to the New Zealand super fund proposal, the Crown will then go back to the market and seek wider interest from international partners?

💬 Hon PHIL TWYFORD: No.

💬 Chris Bishop: Is he concerned by the comments in Greater Auckland in relation to the light rail process, notably “This seems an incredibly strange process. I can’t think of anything else where you work out who will deliver something before you work out what you’re going to deliver.”, and why is he following this process?

💬 Hon PHIL TWYFORD: No, I don’t accept those comments at all.

💬 Chris Bishop: Why has the Government not published the specific requirements the Government is seeking from the Auckland light rail project given the enormous public interest and the lack of commercial confidentiality?

💬 Hon PHIL TWYFORD: We released the outcomes framework, which was the core criteria that were at the heart of the twin track process, but the detail of the process is subject to strict commercial probity, and it’s not possible or advisable to release that information during that competitive commercial process.

Question No. 9—Revenue

❓ Question Dr Deborah Russell (New Zealand Labour Party — Member for New Lynn)
Time unknown

9. to the Minister of Revenue: What is the marginal tax rate for someone on the median wage?

🗣️ Speech Hon Stuart Nash (New Zealand Labour Party — Member for Napier)
Time unknown

The marginal tax rate for someone on the median wage in 2019 was 30 percent. However, this does not mean they paid 30 percent of their total income in tax. New Zealand has a progressive tax scale; so the average tax rate paid on the median annual wage in 2019 was 16.79 percent. Someone on the average wage of $65,000 pays an average rate of 19 percent. It is certainly not 33 cents in the dollar, and if members on the other side of the House would like a link to the IRD tax calculator, I’m happy to send it to them.

💬 Hon Chris Hipkins: Buy that man an abacus.

💬 SPEAKER: Order! I think it was Mr Hipkins on this occasion—or maybe I should blame Mr Lees-Galloway.

💬 Dr Deborah Russell: What would be the effect on tax paid by a median income earner if they split their income into eight equal parts and funnelled it through the IRD that way?

💬 Hon STUART NASH: Well, first of all, I’m sure the IRD would be alert to that, and if any irregularities were involved, they would take further steps. Thankfully, very few New Zealanders contemplate let alone try to rip off the tax system.

💬 Dr Deborah Russell: What amount would a person need to be earning to be taxed at almost 33 percent in the dollar?

💬 Hon STUART NASH: A person would need to be paid a salary of over $3 million to be taxed at nearly 33 percent in the dollar. Therefore, reports I’ve seen that claim the average earner would be taxed at almost 33 percent in the dollar are clearly wrong and overhyped by a few million dollars. It’s a—

💬 SPEAKER: No, no, the member has answered the question.

💬 Andrew Bayly: Thank you, Mr Speaker. Does the Minister believe that the thresholds at which higher rates of tax are paid are fair for middle-income tax earners, and, if so, why?

💬 Hon STUART NASH: I believe the Minister of Finance has answered this question about five questions ago.

💬 Andrew Bayly: Does the Minister believe that middle-income earners are paying too much or too little tax, and, if so, why?

💬 Hon STUART NASH: Well, they’re paying a lot less than Mr Bridges said they were.

Question No. 10—Education

❓ Question Dr Shane Reti (New Zealand National Party — Member for Whangārei)
Time unknown

10. to the Minister of Education: Does he stand by all his statements and actions around the reform of vocational education?

🗣️ Speech Hon Chris Hipkins (New Zealand Labour Party — Member for Rimutaka)
Time unknown

Yes, in the context in which they were made.

💬 Dr Shane Reti: How many people not taken up by the New Zealand Institute of Skills and Technology (NZIST) will be made redundant, as he stated in the House on 29 August last year?

💬 Hon CHRIS HIPKINS: None, because if the member reads the bill, he’ll find that for all of those currently employed by one of the existing polytechs or institutes of technology, their employment automatically continues to the subsidiary that will replace them.

💬 Dr Shane Reti: Is that also the case where the subsidiaries then become the NZIST?

💬 Hon CHRIS HIPKINS: The subsidiaries will become part of the NZIST on 1 April if the Parliament decides to pass that legislation, which I am confident that it will.

💬 Dr Shane Reti: What were the concerns raised by the Tertiary Education Commission (TEC) when they first advised him not to proceed with the reforms, as they stated to the select committee last week?

💬 Hon CHRIS HIPKINS: I have never been advised by the TEC not to proceed with the reforms.

💬 Jan Tinetti: What progress has been made with the Reform of Vocational Education, or RoVE, over the six months since his announcement on 1 August?

💬 Hon CHRIS HIPKINS: A lot of progress has been made. Preparations are now well under way for the 16 existing Institutes of Technology and Polytechnics of New Zealand (ITPs) to become subsidiaries of the new New Zealand Institute of Skills and Technology on 1 April. Work is well under way on the establishment of Workforce Development Councils that will give industry a much greater voice and a much greater say over the training that is provided in their areas. The early steps of establishing the first two Centres of Vocational Excellence have already been taken, and there is a high degree of interest in that, and, of course, the Government is complementing all of that with a significant programme of work to encourage young New Zealanders to consider entering into trades and vocational education.

💬 Dr Shane Reti: Did the Tertiary Education Commission initially not advise him against the reforms, as they presented to select committee last week?

💬 Hon CHRIS HIPKINS: The officials who prepared the initial advice on the reforms of vocational education and training—as it was back then known, I think it was called the ITP Roadmap—presented a set of proposals that the Government did not agree with, and we then worked with them to develop an alternative set of proposals, which is what have been passing their way through the House over the last six months.

Question No. 11—Research, Science and Innovation

❓ Question Parmjeet Parmar (New Zealand National Party — List Member)
Time unknown

11. to the Minister of Research, Science and Innovation: Will the Government give consistent funding to Scion to provide certainty to their work to create new fire spread models to investigate new extreme fire prevention methods?

🗣️ Speech Hon Dr Megan Woods (New Zealand Labour Party — Member for Wigram)
Time unknown

The $8.75 million research project to which the member refers is funded from October 2016 to September 2021 through the Endeavour Fund to prepare New Zealand for extreme fire. This research has been funded via contestable allocation continuously since 2004. After the current work has been completed, Scion will be in a position to identify what research is needed next. In addition to this, we also provide Scion stable and long-term funding through the Strategic Science Investment Fund. From this funding, Scion currently invests $120,000 per year into fire research aligned to the Ministry of Business, Innovation and Employment’s extreme fire programme and $130,000 per year for fire weather and fire climate modelling. In addition to Scion’s fire research, $580,000 is invested per year via the nature’s challenges National Science Challenge into high-impact weather and wildfire research, as well as the investment by the Ministry for Primary Industries of $150,000 into the adapting to and mitigating wildfire risk due to climate change programme. Finally, in addition to participating in Scion-led research, the University of Canterbury undertakes related research.

💬 Dr Parmjeet Parmar: In light of the recent unprecedented Australian bushfires, why won’t the Government ensure sufficient consistent funding to Scion to ensure the continuity of their groundbreaking research that would save New Zealand’s economy at least $67 million per year rather than leaving it—

💬 SPEAKER: Order! Order! There’s at least two legs to that, if not three already.

💬 Hon Dr MEGAN WOODS: I reject the premise of that member’s question that there is somehow not sufficient funding for this research. I just went through a very long list of research that is provided, which I don’t propose to repeat—a very long list of research that is provided—and I point the member to the fact that this is largely the way this research has been funded continuously since 2004.

💬 Dr Parmjeet Parmar: I raise a point of order, Mr Speaker. The list that the Minister provided—some of that funding comes from contestable funds. And that’s my question.

💬 SPEAKER: Well, if that was the member’s question, she should have asked it. She didn’t.

💬 Dr Parmjeet Parmar: I raise a point of order, Mr Speaker. I did, but I was stopped.

💬 SPEAKER: If the member would like a further supplementary, she may have one.

💬 Dr Parmjeet Parmar: Given this Government’s focus on planting more trees, isn’t it reckless not to ensure fire research is considered a priority by the Government rather than leaving it for Scion to juggle this important research with other priorities?

💬 Hon Dr MEGAN WOODS: I once again reject the premise of the member’s question. This is the way in which fire research—wildfire research—in New Zealand has been continuously funded since 2004. There is a range of ways in which it’s funded, and the research the member is pointing to that needs to be done is, in fact, being undertaken.

💬 Dr Parmjeet Parmar: Will she take responsibility for New Zealand not being better prepared to fight any extreme bushfires in the future?

💬 Hon Dr MEGAN WOODS: I again repeat that the research that has been running continuously since 2004 is addressing the very questions that the member is suggesting that we should. The member should be very happy because the research she would like to see being undertaken is indeed being undertaken.

Question No. 12—Customs

❓ Question Ginny Andersen (New Zealand Labour Party — List Member)
Time unknown

12. to the Minister of Customs: What recent announcements has she made about Customs keeping our communities safe?

🗣️ Speech Hon Jenny Salesa (New Zealand Labour Party — Member for Manukau East)
Time unknown

I’m proud to report that, thanks to the tireless efforts of the New Zealand Customs Service and our coalition Government’s decision to invest in a stronger, smarter border, this has led to a record three tonnes of illegal drugs stopped at the border in 2019, before they could hit our streets. Early numbers show that Customs made over 2,600 separate drug seizures of class A, B, and C drugs. This includes 1,180 kilograms of methamphetamine, 329 kilograms of meth precursors, and 739 kilograms of methylene dioxy-methyl amphetamine (MDMA) or ecstasy. This Government made the right call to invest to protect our border and the result is much fewer illegal drugs coming through.

💬 Ginny Andersen: What investments have been made by the Government to help bust drugs?

💬 Hon JENNY SALESA: This Government invested an extra $58 million in Customs to fight meth and the criminal syndicates who attempt to push these drugs on New Zealanders. This record haul with Customs stopping three tonnes of illegal drugs shows that our decision to invest has definitely paid off. Our Government’s record investment enabled Customs to purchase new X-ray surveillance equipment, recruit new additional Customs agents, and upgrade our international intelligence network. In addition, Customs has also been working smarter through offshore collaboration with law enforcement agencies overseas to stop the drug traffickers’ products before they even leave the overseas ports and airports.

💬 Ginny Andersen: What does this mean for our communities?

💬 Hon JENNY SALESA: These drug busts represent over $3 billion worth in social harm, according to the Drug Harm Index by the Ministry of Health, that was stopped from hitting our streets. However, we know that busting the supply of drugs is just one part of this work. We are also investing in reducing the demand for illegal substances. Our Government is putting more resources into addiction, into detoxification, and into residential care services for New Zealanders who are struggling with drug and alcohol issues.

💬 Rt Hon Winston Peters: Can I ask the Minister, what was wrong with the policy of allowing a tonne of drugs to land at Ninety Mile Beach, which is a policy that she inherited—what was wrong with that policy?

💬 Hon JENNY SALESA: Mr Speaker—

💬 SPEAKER: Order! I think suggesting that it was a policy is stretching it a bit. That question is ruled out.

🗣️ Spoke in this debate (21)