Oral Questions

1. to the Minister of Foreign Affairs: How is the Government working with other countries in its response to COVID-19?

Among a raft of measures, New Zealand is jointly funding the World Health Organization Pacific-wide regional coronavirus response with Australia. Due to the nature of the virus, when we help the Pacific, we help ourselves in New Zealand. Only by ensuring public health and establishing economic security across our Pacific region can New Zealand overcome its effects. This is because Pacific countries’ health systems and economies are expected to be more severely impacted by COVID-19 outbreaks than in our countries. In times like these, it’s essential to work with our partners. New Zealand has taken the appropriate measures to protect the health of its own people while maintaining close working relationships with our neighbours.

💬 Jenny Marcroft: What has the international response been to New Zealand’s measures to combat COVID-19?

💬 Rt Hon WINSTON PETERS: The response from our partners upon hearing of our global travel restrictions announced by the Prime Minister on Saturday has been understanding and positive. This is a testament to the hard work we have put in from the first day that COVID-19 came on to our horizon to keep our friends around the world abreast of our intentions. This was not an easy decision to make, but we are a Government which is not afraid to make those difficult choices. The health and safety of New Zealanders will always be our paramount concern, and that is why we are advising New Zealanders to avoid non-essential overseas travel.

💬 Jenny Marcroft: How does the Government’s work with other countries build on its wider efforts to combat the impact of COVID-19?

💬 Rt Hon WINSTON PETERS: The Government’s response, both at home and abroad, focuses squarely on those most vulnerable to COVID-19. Older people are disproportionately affected by COVID-19, and that will guide this Government’s response to the virus. Naturally, many older people will be concerned about the ramifications of COVID-19 both as a health and economic risk. Rest assured the Government is helping: included in our $12.1 billion economic package announced today is a doubling of the winter energy payments, and this will now equal $1,400 for couples and $900 for single people. We live in unprecedented times, but just as our forefathers triumphed in their own battles, we expect New Zealanders will work together to defeat this virus and move forward to build a better New Zealand.

Question No. 2—Prime Minister

2. to the Prime Minister: Does she stand by all her Government’s statements and actions?

Yes, especially the announcement made by finance Minister Grant Robertson earlier today that we are introducing a $12.1 billion package to cushion the impact of COVID-19 to support Kiwis’ jobs and, of course, the domestic economy. Relative to other countries, this is a far greater package, but we also know that the impact, as we have been advised by Treasury, is likely to be greater than the experience New Zealand had through the global financial crisis and therefore our focus must be on getting in front of those impacts: supporting businesses, jobs, and employees against the worst impacts of this pandemic.

💬 Hon Simon Bridges: Why are people being denied coronavirus tests when they are displaying symptoms?

💬 Rt Hon JACINDA ARDERN: I reject the assertion they are. I want to read—

💬 Hon Simon Bridges: Well, they are.

💬 Rt Hon JACINDA ARDERN: I would like to read from the case notes provided to doctors. Under the case definition, it says, “Note”—this is for clinicians—“that due to the ongoing changing global and domestic situation, clinical judgement should apply as to whether someone who doesn’t quite meet the current case definition should be tested or not.” Any person who a clinician thinks needs a test should get a test.

💬 Hon Simon Bridges: So does she deny the email to me from a Wellingtonian and his partner who had all the symptoms and were denied the tests yesterday?

💬 Rt Hon JACINDA ARDERN: Again, as I’ve just said, that decision sits with doctors. I will read, again: “due to the ongoing changing [environment], clinical judgement should apply as to whether someone who doesn’t … meet the … case definition should be tested or not.” I cannot be clearer. Any person a doctor believes should be tested can and should be tested. We have the capacity to do up to 1,500 tests a day. My understanding is that we have hundreds of tests currently being processed for which we will have the results tomorrow.

💬 Hon Simon Bridges: Why doesn’t she just guarantee that those who show the clear symptoms will get the testing, as Prime Minister of our country?

💬 Rt Hon JACINDA ARDERN: I’ve just given you the exact advice that is for doctors. Doctors make those decisions, not politicians, but what they have been told is that anyone who they believe should be tested should be tested. I cannot be clearer than that. I cannot make those judgments, but they can, and they should.

💬 Hon Simon Bridges: Why is she only suggesting ramping up tests now after the World Health Organization has called for countries to test, test, test?

💬 Rt Hon JACINDA ARDERN: The member is utterly incorrect. We’ve had the capacity to test up to a thousand a day for a very long time.

💬 Hon Simon Bridges: Is she concerned that a comparable country like Norway has tested 8,000 people and we’ve tested less than 600?

💬 Rt Hon JACINDA ARDERN: Again, the member seems to be upset about where our global standing currently is in terms of case profile. We have, currently, a small number of cases, that have been confirmed through testing. But I expect that we will have many hundreds more tests conducted. In fact, I understand we have hundreds currently being processed this very day.

💬 Hon Simon Bridges: Isn’t the reason we only have a dozen confirmed cases and not dozens and dozens and dozens because under her Government, since the start of the year, we just haven’t done many tests?

💬 Rt Hon JACINDA ARDERN: That is an appalling, appalling statement to make. The implication that tests are being determined by politics is appalling. Doctors are making the call, and they are being told that if they believe they should test, they should. I cannot be clearer about the advice that has been provided by the Ministry of Health; it is in black and white—in fact, it is in bold.

💬 Hon Dr David Clark: Is the Prime Minister aware that Norway currently has 1,200 confirmed cases of the virus, and is in Europe, which has been described as the epicentre of the outbreak?

💬 Rt Hon JACINDA ARDERN: Yes. In those cases, you would expect, therefore, that the contact tracing and symptoms would therefore lead to the other testing outcomes that they have. It seems extraordinary to me that the suggestion seems to be that there is disappointment about where we are. Hundreds of tests are being processed today. Very unfortunately, we will see—[Interruption] We will see more—

💬 SPEAKER: Order! Order! Can I just ask members on both sides—this is a very serious issue, and petty calling back and forth from both sides ill behoves the House.

💬 Hon Simon Bridges: Does she accept that the reason, say, Norway has many more confirmed cases is because they have done many, many thousands more tests, and that’s where we needed to be weeks ago.

💬 Rt Hon JACINDA ARDERN: No, I reject that, and I again confirm I have just been advised there are 500 tests currently being processed. That capacity has always existed, but we have allowed doctors to make that decision, not politicians.

💬 Hon Simon Bridges: Will she apologise to New Zealanders who have been previously denied a test under her Government last month, the month before, and as little ago as yesterday?

💬 Rt Hon JACINDA ARDERN: No one who a doctor believes should be tested should have been denied a test.

Question No. 3—Finance

3. to the Minister of Finance: What recent announcements has he made about the Government’s economic response to the impacts of the global COVID-19 pandemic?

Today, I announced the Government’s $12.1 billion economic response package aimed at supporting cash flow and confidence in the economy. This represents around 4 percent of New Zealand’s GDP and is larger on a GDP basis than Australia, the UK, Singapore, or Ireland. It also comes on top of the $12 billion New Zealand Upgrade Programme announced earlier in the year. The intent of the package announced today is to fight the virus and smooth the curve, cushion the blow on businesses and workers, and position the economy for recovery. It represents the first stage of Government support to New Zealand businesses and workers, and Budget 2020 will be re-orientated to be a recovery Budget. We are taking bold and decisive actions to respond to uncertain and unprecedented times. There are tough days ahead, but we will get through this together.

💬 Kiritapu Allan: What measures has he announced today to support businesses and workers in the near term?

💬 Hon GRANT ROBERTSON: Under our $8.7 billion business and worker support package, we are introducing a wage subsidy scheme to help people stay attached to their workplace so that both workers and businesses are in a better position to adjust to the difficult prevailing economic conditions. We’re also introducing a COVID-19 leave payment scheme to incentivise people to undertake self-isolation if they are required to do so, and this applies to employees, the self-employed, and contractors. In addition, we’re implementing a significant number of tax changes to increase business cash flow and stimulate investment.

💬 Kiritapu Allan: What measures has he announced today to help New Zealanders’ recovery from the economic impacts of the COVID-19 pandemic?

💬 Hon GRANT ROBERTSON: We recognise that the Government must provide further support to the economy to ensure that a recovery will take hold. The measures we announced today are aimed at boosting demand and supporting households through the first phase of the recovery. The package comprises a $25 across the board increase to main benefits, scheduled for implementation on 1 April 2020; a doubling of the amount paid through the winter energy payment for 2020; and removing the hours test from the in-work tax credit to assist those who may face variable hours as a result of the virus. Ultimately, the recovery package will go well beyond these measures. These measures represent the first phase of an ongoing commitment from the Government to New Zealanders to support us through this time.

Question No. 4—Prime Minister

4. to the Prime Minister: Does she stand by all her Government’s statements and actions?

Yes, particularly our decision to expand our travel measures to prevent the spread of COVID-19, so that every person will be required to self-isolate for 14 days, outside of the Pacific. We have also, of course, announced today additional funding to health. As part of our efforts, we are dedicating $500 million directly into combatting COVID-19, nearly doubling the resources for our public health units, who are, of course, key for our contact tracing as part of our response; an extra $50 million in support for GPs, because at this point in time, they are our front line; and $20 million for capacity at Healthline.

💬 Hon Simon Bridges: How many thousands of jobs are expected to be lost this year because of COVID-19?

💬 Rt Hon JACINDA ARDERN: It is very, very early days in some of the projections that we’re receiving from Treasury. As I said yesterday, one of the early predictions from Treasury was that we will experience a greater shock to our economy than we experienced in the global financial crisis. Of course, at that point, my recollection is unemployment hit 6.7 percent; so that gives an order of magnitude.

💬 Hon Simon Bridges: Of the half a million - plus businesses in New Zealand, how many does the Government expect will be eligible for wage subsidies?

💬 Rt Hon JACINDA ARDERN: All of them who are being affected by COVID-19. The criteria doesn’t set a size limit; it does set, simply, a cap on how much can be claimed. That cap’s at $150,000. The other criteria is that it has to have had an effect of 30 percent or more on turnover. We anticipate, though, there will be some companies who won’t be able to compare from, say, a year ago; so we’ve put flexibility on how they can demonstrate those impacts.

💬 Hon Simon Bridges: What does she say to the tourism business in my electorate with 40 staff that will now start laying off staff because the $150,000 cap announced today doesn’t cover all of his staff?

💬 Rt Hon JACINDA ARDERN: Well, it does, though, cover $150,000 worth. Of course, that gives, we hope, some ability for them to retain staff, work through their plans. We also hope that they are having encouraging conversations with their banks as well, also with IRD, and making sure they work through every avenue. That payment of $150,000 will be paid out in bulk. Perhaps they may not be able to retain all of their staff in this difficult time, but we do hope it makes a difference for them.

💬 Rt Hon Winston Peters: Prime Minister, in confronting this viral invasion, in what sense will economic recovery be best assured: one of confidence and reassurance to the public, or gloom, doom, and naysaying?

💬 Rt Hon JACINDA ARDERN: Obviously, the former. I would reflect that what we have used to build the framework for the wage subsidy scheme was actually what the member’s last Government, the National Government, did for Christchurch and Kaikōura. So those were the frameworks that we used as the starting point—the difference, of course, being that those were region specific; we’ve had to design something for the entire country.

💬 Hon Simon Bridges: What does she say to the hotelier I’ve talked to today who is going to go to the wall because of the sharp downturn in tourism and, with the $150,000 cap, is going to start laying off workers as early as this week?

💬 Rt Hon JACINDA ARDERN: Again, for some large organisations—and I can’t speak to specific cases, but some larger organisations—we are saying that we wish to hear from them, because we are looking at some specific circumstances, depending on the organisation. Obviously, though, as a starting point, that wage subsidy is in place, and there are other elements of the package that do provide some relief from tax provision in particular.

💬 Hon Simon Bridges: Will the wage subsidies be backdated, and if not, why not?

💬 Rt Hon JACINDA ARDERN: From the day that they’re announced. Basically, a business can make an application immediately. We’ve estimated that it will take five to six days before it will be paid out, but it will be paid out in a lump sum, not on a weekly basis. So backdating becomes irrelevant, because they get it in a bulk payment, 12-week equivalent.

💬 Hon Simon Bridges: If the Government downturn lasts another six months, would the Government look to extend the wage subsidies that long?

💬 Rt Hon JACINDA ARDERN: We have said that this is tranche one of our response. We gave a 12-week payment in order to give businesses some certainty. Of course, we will have to continually assess the economic situation for New Zealanders, and including the health situation for New Zealanders. We’ve also said the Budget will be the place where we have to also design New Zealand’s recovery plan.

💬 Hon Simon Bridges: What does she say to businesses who have lost turnover of, say, 25 percent and therefore are ineligible for the job support but nevertheless will struggle in the current environment?

💬 Rt Hon JACINDA ARDERN: Even if they’ve only lost 25 percent in existing turnover, if they can demonstrate that their projected turnover will be greater, then they will be eligible.

Question No. 5—Finance

5. to the Minister of Finance: What is the Government doing to support New Zealand businesses that are struggling with the economic impact of COVID-19?

At the risk of some repetition: the Government today announced our $12.1 billion package. It includes an initial $500 million boost for health; $5.1 billion set aside for wage subsidies for affected businesses in all sectors and regions, available from today; $126 million for the COVID-19 leave and self-isolation support; $2.8 billion for an income support package for our most vulnerable and to promote spending, including a permanent $25 per week benefit increase and a doubling of the winter energy payment for 2020; a $100 million redeployment package; $2.8 billion in business tax changes to free up cash flow, including a provisional tax threshold lift, the reinstatement of building depreciation, and the writing off of interest on the late payment of tax. All of this and more is on top of the $12 billion New Zealand Upgrade Programme that was announced in January.

💬 Hon Paul Goldsmith: How much of today’s package will reach businesses in the next four weeks?

💬 Hon GRANT ROBERTSON: At a conservative estimate, the $5.1 billion is available and will be paid out in that time.

💬 Hon Paul Goldsmith: Will businesses have to keep employing people to get the wage subsidy?

💬 Hon GRANT ROBERTSON: It’s a wage subsidy, so yes.

💬 Hon Paul Goldsmith: Well, what’s in place to ensure that recipients of the subsidy keep employing?

💬 Hon GRANT ROBERTSON: I think it’s incredibly sad that the member thinks so ill of the small-business people of New Zealand, that they would rort the system like this. As it happens, they have to sign a declaration.

💬 Hon Paul Goldsmith: Why hasn’t working capital support for small to medium sized enterprises been a priority today?

💬 Hon GRANT ROBERTSON: In the first instance, for all businesses, their relationship is with their bank. Earlier this week, the Reserve Bank Governor made an important series of decisions, including lowering the official cash rate but also relieving banks of the burden of the bank capital changes that he had put in place. That opens up $47 billion worth of capital for those banks. They’re also—the Reserve Bank—putting more liquidity into the market. Banks are the first port of call in terms of working capital. At the same time, Government officials met yesterday with the banks, and had met last week with the banks, to discuss what future potential partnerships there might be for working capital.

💬 Hon Paul Goldsmith: Does the decline in revenue of 30 percent have to relate to coronavirus?

💬 Hon GRANT ROBERTSON: Businesses need to be able to show that they have lost 30 percent of turnover. It will be clear to everybody that coronavirus will be the cause of that in most cases.

💬 Hon Paul Goldsmith: How is it clear? How does it work? If a revenue drop is due to a conscious decision of a business owner totally unrelated to coronavirus, are they eligible?

💬 Hon GRANT ROBERTSON: Businesses will need to sign a declaration that indicates that 30 percent drop. Again I repeat: most businesses in New Zealand today are not focused on rorting the system; they’re focused on keeping their employees in work, and we’re trying to help them.

Question No. 6—Health

6. to the Minister of Health: How is the Government supporting public health services in New Zealand to respond to COVID-19?

COVID-19 is a global challenge. Thanks to early and decisive Government action, we have had comparatively few cases in New Zealand, but we know we will see more and we are prepared. Today, the Government announced an initial $500 million fund to strengthen our health services to fight and contain COVID-19. This package makes sure that health services are there for those who need them the most. This is an initial investment. From the outset, it has been made clear to me by the Prime Minister and the Minister of Finance that financial resources will not be a constraint. The Government will ensure the health sector has the support and resources it needs to fight and contain COVID-19.

💬 Angie Warren-Clark: What services will be boosted as a result of this new $500 million fund?

💬 Hon Dr DAVID CLARK: The COVID-19 health package will boost health services across 11 priorities, but let me draw attention to three of those. Firstly, Healthline will receive an additional $20 million to deal with the more than 5,000 calls they’re receiving every day. Secondly, $40 million will be going to public health units. These are the crucial people who are contact tracing every single person who has come into contact with a confirmed case of COVID-19. And, thirdly, $32 million will be set aside for intensive care capacity and equipment.

💬 Angie Warren-Clark: How will primary care clinics, like general practices, be supported by the $500 million fund?

💬 Hon Dr DAVID CLARK: Alongside our contact tracers, our general practitioners, nurse practitioners, nurses, iwi and Pacific providers, and all other primary care workers are on the front line of the fight against COVID-19. That’s why we’re investing an additional $50 million in primary care, including funding for community-based assessment centres, equipment, and logistics. We’re also investing a further $20 million to improve the capacity of general practice and community health providers to use technologies such as video conferencing and Telehealth to conduct consultations.

Question No. 7—Finance

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

In the context in which they were made and given.

💬 Hon Paul Goldsmith: Why is it the policy today to limit support to businesses, effectively, to 21 full-time staff?

💬 Hon GRANT ROBERTSON: It is a wage subsidy scheme. It is a scheme to support businesses to be able to make adjustments at this time. It is set at a cap which would cover most small businesses in New Zealand.

💬 Hon Paul Goldsmith: So what would he say to the owner of a hotel in Queenstown, for example, with 200 staff, whose revenue has dropped by more than 50 percent and is facing very substantial lay-offs, in terms of how this subsidy will help?

💬 Hon GRANT ROBERTSON: What I would say to that business is that they should be talking to their bank in the first instance. I’m sure the member appreciates it is not possible for the Government to fund and run every business in New Zealand. The package contains significant benefits for that business in terms of the tax changes around depreciation and around provisional tax. There also is the possibility for larger businesses to be talking to us as well but in the first instance it is the bank that that business needs to talk to.

💬 Hon Paul Goldsmith: So what was the rationale for prioritising roughly half of the $12 billion package to longer-term issues and roughly half the package to short-term focus on subsidising workers?

💬 Hon GRANT ROBERTSON: I reject the premise of that question. I think the member might be putting depreciation issues, for example, into that category in terms of longer term; actually, that’s available for people from next month.

💬 Hon Paul Goldsmith: What job losses is he expecting in the medium-sized business area?

💬 Hon GRANT ROBERTSON: I don’t have a specific number available for that, but as the Prime Minister has said earlier today, the advice that we have had is that the effect of this will be greater than the global financial crisis. During that time, unemployment reached 6.7 percent. This will have a significant impact. The good news is that the package we announced today will help cushion the blow.

Question No. 8—Health

8. to the Minister of Health: What was the average wait-time for Healthline yesterday, and is he confident in the Government’s ability to track those who are self-isolating for COVID-19?

Mr Speaker, this answer is likely to be slightly longer than usual, and I trust your office has been notified, but it’s not terribly long.

💬 SPEAKER: Yes. No, I have been notified—like the wait times. Carry on.

💬 Hon Dr DAVID CLARK: Healthline is delivering an unprecedented level of support to New Zealanders. Yesterday, more than 7,000 contacts were managed by Healthline, which is seven times higher, I’m advised, than the usual volume of calls. That has led to some delays and longer than usual wait times. I appreciate that will have caused some frustration for people looking for advice and support. Healthline has already added significant new capacity. Two hundred additional non-clinical staff have been trained, and 50 additional nurses have been recruited. Today, the Government announced a one-off funding boost of $20 million to allow for further staff to be hired. Yesterday, the average wait time was 44 minutes. Proactive calls to people in self-isolation are now being separately managed by a dedicated call centre with 150 staff. There will be zero tolerance for those who do not follow the rules of self-isolation.

💬 Hon Michael Woodhouse: Is he concerned that people will give up on getting through to Healthline and therefore not self-isolate properly?

💬 Hon Dr DAVID CLARK: My expectation is that people will continue to observe the requirement around self-isolation. Ten thousand people have been registered with Healthline. They’re registered when they come into the country, they’re contacted by Healthline, and New Zealanders and our visitors have been taking this seriously. As I have said, there will be zero tolerance for those who do not.

💬 Hon Michael Woodhouse: How exactly is Healthline monitoring those in self-isolation?

💬 Hon Dr DAVID CLARK: They are in contact regularly. We are also going to be doing spot-checks, and the member will also know that, under the Health Act, there is the ability for the medical officer of health to have the police intervene if there is concern that someone is not complying with the requirement for self-isolation.

💬 Hon Michael Woodhouse: Was Healthline ready for the announcement at the weekend, and, if so, why did the Director-General of Health describe it as facing “huge pressure”?

💬 Hon Dr DAVID CLARK: There’s no doubt that right through the COVID-19 experience, and certainly since the World Health Organization declared this a pandemic, there has been a huge demand on services as people have sought advice. I do ask those who are calling in to be patient where they do face some delay, but, as I have said, we’ve just committed an additional $20 million to ramping up that service, and I know that that is happening already today.

💬 Hon Michael Woodhouse: Does the Ministry of Health know exactly where everyone currently self-isolating is, and, if not, why not?

💬 Hon Dr DAVID CLARK: People who come into New Zealand fill out a form indicating where they will be self-isolating.

Question No. 9—Workplace Relations and Safety

9. to the Minister for Workplace Relations and Safety: What is the Government doing to support people to self-isolate to stop the spread of COVID-19?

From today, we have introduced the COVID-19 leave payment scheme to provide support for people unable to work because they are in self-isolation, sick with COVID-19, or caring for dependants in either of those situations. The payments will be $585.80 per week for full-time and $350 per week for part-time workers. This is one of the most important tools to prevent community transmission of the virus. We need people to self-isolate appropriately, and we recognise that this burden should be shared between workers, employers, and the Government.

💬 Marja Lubeck: Who does the scheme apply to?

💬 Hon IAIN LEES-GALLOWAY: This applies to all people working in New Zealand, including employees, contractors, and the self-employed. We have designed the scheme to be easy to access and use. We’ve also built safeguards into the scheme. The scheme applies to those acting in accordance with public health guidance and registered with Healthline. People who leave New Zealand now, knowing that they will be required to self-isolate on their return, will not be eligible. Those who are caught intentionally abusing the scheme will have to repay the money.

💬 Marja Lubeck: Why has the Government introduced the scheme?

💬 Hon IAIN LEES-GALLOWAY: This is a global issue, and New Zealand is part of the global response. Protecting New Zealanders’ health and stopping the spread of the virus is our number one focus. The best protection for the economy is containing the virus. Everyone has a responsibility to help us get through this. We want to ensure that people who do the right thing are taken care of, and that includes helping them meet their essential costs.

Question No. 10—Health

10. to the Minister of Health: Is he confident that the health system is well prepared for a coronavirus outbreak?

COVID-19 is putting pressure on even the best-prepared health systems around the world, with Italy and some other countries overwhelmed. In New Zealand, thanks to our early and decisive action, we have so far had relatively few cases. We’ve been working from our comprehensive pandemic plan since January to flatten the curve, and today we’ve announced a $500 million health fund to combat COVID-19. But we know we will see more cases here. As I’ve noted many times in this House, there has been under-investment in health, but our health services are prepared; our doctors, nurses, and other health staff have had time to plan. I have huge confidence in their skills and professionalism and their ability to respond to COVID-19.

💬 Dr Shane Reti: Have robust primary care inventories been undertaken for coronavirus protective equipment in general practice, and, if so, when were they completed?

💬 Hon Dr DAVID CLARK: General practice has been issued with personal protective equipment (PPE)—of course, much is being held at the centre in order to ensure that it is available for any hot spots. We have 9 million of one type of face mask and 9 million of another, as the member knows, and those are being held to ensure that they are in the right place at the right time.

💬 Dr Shane Reti: How many suspected coronavirus patients a day does an average general practice have protective equipment on hand for?

💬 Hon Dr DAVID CLARK: I don’t have that exact number in front of me. The member will know that currently we have only very few COVID-19 cases in train, and that PPE is used in those practices best where we have more cases.

💬 Dr Shane Reti: Will Healthline reconnect with people who were told a week ago that close contact was 1 metre face to face, now that the New Zealand definition has been changed to 2 metres, and why did New Zealand not align with the international definition from the very start?

💬 Hon Dr DAVID CLARK: I reject the premise of the member’s question.

💬 Dr Shane Reti: Does New Zealand coronavirus testing align with Centers for Disease Control and Prevention recommendations to test all older people with symptoms who also have heart conditions; if not, why not?

💬 Hon Dr DAVID CLARK: The member will have heard from the Prime Minister earlier in today’s House session that all primary care workers who are so qualified are being encouraged to test if they have any clinical suspicion.

💬 Dr Shane Reti: What is the weakest point in the health system for coronavirus management, and how can we help?

💬 Hon Dr DAVID CLARK: It’s misinformation, and members of the Opposition can help by making sure that they are pointing people toward the Ministry of Health website, where the most up-to-date and correct information is on hand. They can share that widely, and I would appreciate it. Thank you.

Question No. 11—Small Business

11. to the Minister for Small Business: Does he stand by all the Government’s actions and statements regarding small business?

Yes, especially the $12.1 billion package to support New Zealanders and their jobs from the domestic and global impact of COVID-19. We are moving quickly to help people stay in work and reduce the hit to businesses. The global economic impact of COVID-19 on New Zealand’s economy is going to be significant, so we are acting now to soften that impact. I thank the Prime Minister and the Minister of Finance for their leadership, and I’m incredibly proud to be part of a team that has taken the tough calls, but the right calls.

💬 Hon Todd McClay: What advice has he received on the economic cost that COVID-19 will have on New Zealand’s small businesses?

💬 Hon STUART NASH: I haven’t received any advice on that to date.

💬 Hon Todd McClay: What advice has he received on the number of jobs in small businesses likely to be lost as a result of the economic shock caused by COVID-19?

💬 Hon STUART NASH: I think the Prime Minister and the Minister of Finance have both answered that question.

💬 Hon Todd McClay: I raise a point of order, Mr Speaker. I asked what advice he had had, not others.

💬 SPEAKER: I think the member can rephrase his answer to address the question.

💬 Hon STUART NASH: At this stage, we are unaware of how many jobs will be lost. What we do know is that a number of jobs will be lost. We think this is greater than the impact of the global financial crisis and the unemployment then was around about 6.7 percent.

💬 Hon Todd McClay: What advice has he received on the number of small businesses that are likely to close as a result of the economic shock caused by COVID-19?

💬 Hon STUART NASH: I haven’t received any advice—it’s early days yet—but we have put a substantial package in place to lessen the blow to a lot of small to medium businesses—keeping in mind, businesses with 19 or less employees make up about 97.5 percent of all businesses in this country.

💬 Hon Todd McClay: Does he continue to support the proposed increase to the minimum wage on 1 April, even though it is projected to impose a $300 million cost on businesses?

💬 Hon STUART NASH: Yes.

💬 Hon Todd McClay: Does it concern him that the cost of the 1 April minimum wage increase will put additional unnecessary economic pressure on small businesses because of COVID-19, and that more jobs and businesses will likely be lost as a result?

💬 Hon STUART NASH: I’d just say: ref. Macroeconomic Stabilisers 101.

💬 Hon Iain Lees-Galloway: Will it be important to small businesses that New Zealanders continue to be able to spend in their local economies, and is it true that the people on the lowest incomes are most likely to spend in their local economy?

💬 Hon STUART NASH: That’s a very good point. An increase in the minimum wage will in fact put more money in the back pockets of those who are on, obviously, the lowest wages. What all the research and all the literature and all the case studies show is that, when people on the lowest wages have more money, they actually spend it.

Question No. 12—Revenue

12. to the Minister of Revenue: What tax measures has he announced to support businesses affected by COVID-19?

In addition to the wage subsidy announcements today, the Minister of Finance and I announced a number of tax measures that will help support businesses who are affected by COVID-19. These measures are reinstating building depreciation for new and existing industrial and commercial buildings, and this includes hotels and motels; immediate deductions for low-value assets; increasing the provisional tax threshold from $2,500 to $5,000; writing off interest on late payments for tax for those who cannot pay their tax because of COVID-19; and information-sharing agreements with other agencies so they can help administer COVID-19 entitlements. These are tangible signs of action, and we are leading by example in our response to this global issue.

💬 Dr Deborah Russell: How do these tax measures help support businesses affected by COVID-19?

💬 Hon STUART NASH: The measures announced today will help support businesses by stimulating investment in new and existing buildings and increasing cash flows for businesses. Reinstating building depreciation for industrial and commercial buildings was identified as a key priority for improving productivity by the Tax Working Group. It will have a near immediate impact on a business’s cash flow as it reduces the provisional tax payments for the income year, which begins next month for most taxpayers. Expensing low-value assets will incentivise taxpayers, especially small businesses, to invest in capital assets for their businesses and, in the long term, will reduce their compliance costs. Waiving interest on late tax payments for those taxpayers affected by COVID-19 will provide similar relief to taxpayers as seen in other adverse events or emergencies, and increasing the threshold for provisional tax means that around 95,000 taxpayers, many of whom are small businesses, will have more cash in hand during the year and it will reduce their compliance costs. We have taken a targeted approach so we can be more—and this is likely to keep more people in work.

💬 Dr Deborah Russell: What responses has he seen in reaction to these tax measures?

💬 Hon STUART NASH: Overall, this package has been positively received. Buy New Zealand Made’s Ryan Jennings commented that the package is a positive move for businesses and it is a rescue plan to—and I quote—“save businesses and their employees in the face of significant economic uncertainty.” The New Zealand Council of Trade Unions’ president, Richard Wagstaff, has said—and I quote—“This package provides an immediate boost to get through these challenging times.” And Kirk Hope from Business New Zealand says the package “will substantially help businesses keep operating”. The wage subsidy and tax measures were—and I quote again—“well-focused on key areas of need” and “would provide much-needed breathing space and support for all businesses.” The rainy day is here and this Government is providing the umbrellas.