Oral Questions

1. to the Associate Minister for Social Development: Will Budget 2020 make our communities safer by supporting family violence services in Aotearoa New Zealand; if so, how?

on behalf of the Associate Minister for Social Development: Budget 2020 includes nearly $203 million in funding for services and support for all those affected by family violence. This includes victims and survivors, people who use violence and want to change their behaviour, and people who have experienced non-fatal strangulation. This sector has done and continues to do incredibly important work, but they have done so without adequate funding for far too long, and we are beginning to fix that.

💬 Jan Logie: How will these Budget initiatives support family violence services such as Women’s Refuge?

For decades, family violence and sexual violence services have not received the funding they need to do their work. We are changing that and finally beginning to fund organisations based on the actual costs in delivering their services, including provision for fairer wages, training, supervision, and management of staff. I acknowledge under-secretary Jan Logie, who said yesterday, “We want these services to be able to focus on their work, not running sausage sizzles to survive.”, and Dr Ang Jury of Women’s Refuge, who said, “This will mean they can recruit and retain workers without burning them out.”

💬 Jan Logie: Why is it important to fund services for people affected by elder abuse?

Data from the New Zealand Longitudinal Study of Ageing concluded that 10 percent of people aged over 65 and living in the community experience abuse. Elder abuse is a form of family violence. It can be physical, psychological, spiritual, or financial, but it is often not recognised when we speak of family violence. I know that my colleague the Minister for Seniors has advocated consistently and is particularly pleased that we are now doubling the funding over the next four years for specialist organisations to respond to this specific sector of an overarching problem.

💬 Jan Logie: Why is the Government putting funding into the response for non-fatal strangulation?

It is well documented that strangulation or suffocation is a significant risk factor for future violence. People who are victims of non-fatal strangulation can be up to seven times more likely to be killed. This Government, building on the work begun by the Hon Amy Adams, made non-fatal strangulation or suffocation a distinct offence at the end of 2018. The funding announced as part of Budget 2020 will support our police, health, and justice systems to provide victims with the psychosocial help they need, and properly resource and train forensic services to ensure successful prosecutions.

💬 Jan Logie: And how significant is this funding in the context of the whole-of-Government response to family and sexual violence?

These initiatives represent the second-biggest Budget package for family violence and sexual violence in the history of New Zealand. It is only surpassed by last year’s Budget, which contained $320 million in funding over four years. It is also significant because of the joined-up, all-of-Government approach which has been taken and which is essential to properly responding to and ending this terrible violence. I commend all the Ministers, under-secretary Jan Logie, and the respective chief executives who have come together to take collective responsibility for addressing it.

Question No. 2—Prime Minister

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

Yes, particularly the Government’s decision to move to level 2 as soon as possible. This will mean on Thursday this week, retail, malls, cafes, restaurants, cinemas, and other public spaces, including playgrounds, can reopen. On Monday, 18 May, all children and young people will be able to return to school and early learning, and on Thursday, 21 May, bars—under the provisions that already exist around Easter Sunday and Anzac trading for the week prior—will then after that be able to open under normal legislative provisions. This will mean that in 10 days’ time, we will have reopened most businesses in New Zealand, and sooner than many other countries around the world. This has only been possible because of the strong measures we have put in place, and the hard work of New Zealanders, who have all joined together and united against COVID-19.

💬 Hon Simon Bridges: Is Westpac correct that Government debt is likely to increase by more than 50 percent of GDP in the next few years?

💬 Rt Hon JACINDA ARDERN: For any future forecasting and speculation, I ask the member to wait, as others are, until Budget day.

💬 Hon Simon Bridges: When was the last time net core Crown debt in New Zealand was over 50 percent of GDP?

💬 Rt Hon JACINDA ARDERN: What I can tell you is that it currently sits around the 20 percent mark under this Government, which is lower than what we inherited.

💬 Hon Simon Bridges: Does she accept that every single dollar of debt her Government borrows will need to be repaid with interest by future generations?

💬 Rt Hon JACINDA ARDERN: Absolutely, which is why we worked so hard, as a Government, to reduce the debt that we inherited after the last Government. I also want to point out that relative to other countries, we have come into what is a global economic shock in a much better position, with debt relative to GDP around the 20 percent mark. That is better than the UK, than the United States, than Australia. We came in better and we hope, of course, to come out stronger as well.

💬 Hon Simon Bridges: Is Westpac also correct that the fiscal deficit in each of the next two years could equal around $30 billion?

💬 Rt Hon JACINDA ARDERN: Again, I don’t want to get into speculation around the Budget, but what I think it is important to point out is this is a global pandemic. The impact, internationally, is being widely felt. New Zealand was never going to get out of this scot-free, but what we could do is take us into it in the strongest position possible. We always said that what we wanted to do was prepare ourselves for any potential shock that we might feel. In fact, I recall, it was not so long ago that many pointed out that we were running surpluses, and questioned whether that was the right thing to do. We always argued that New Zealand is a country that needs to be prepared. We have been, and the rainy day has come.

💬 Hon Simon Bridges: Will this week’s Budget show Government deficits for the entire 15-year forecast period?

💬 Rt Hon JACINDA ARDERN: Again, the member does not need to wait long to see some answers for some of his questions. But, again, what I also think it’s important to point out is some of the forecasting that’s been done, or assumptions that have been made from international institutions—which I think gives us helpful context, because New Zealand is not going through its own pandemic; we’re going through a global one—does demonstrate that the likes of the International Monetary Fund and the World Trade Organization (WTO) have pointed out that New Zealand’s relative position will be stronger than most. In terms of recovery, if my recollection is correct, around growth, roughly about 1 percent better than, on average, other advanced economies, and for the WTO, they are predicting that some of our trade is looking more heartening than, for instance, even Australia.

💬 Hon Simon Bridges: To limit the debt burden on New Zealand taxpayers, will her Government reprioritise existing spending that currently delivers low value for money, such as fees-free?

💬 Rt Hon JACINDA ARDERN: Again, I think what we have always taken into account is that we have to be prudent in our spending, and we have always said that. That’s demonstrated in the fact that we did get debt down from what we inherited. We’re also very mindful that when you’re in a period such as this, that what we need to invest in is people and skills. We will not be a Government that takes on a challenge and confronts it through austerity and cuts and by hurting people; instead, we will invest in people. That, equally, is the best way to stimulate the economy, get growth going, and get us into a better position to recover.

💬 Rt Hon Winston Peters: Could the Prime Minister assure us that there is no intention—and that she’s had discussions with the Minister of Finance as well—to multiply New Zealand’s Government debt over eight times, such as the last Government taking Government debt from $10 billion to $82 billion from 2009?

💬 Rt Hon JACINDA ARDERN: I think what the member demonstrates is that, of course, that side of the House should have a good understanding of what significant global economic shocks can do to an economy, that can do to unemployment, that can do to debt, and the suggestion from the member that somehow New Zealand now, having been through a global financial crisis, will isolate itself completely and feel no impact from this global pandemic is just incorrect.

💬 Hon Simon Bridges: Can she rule out extending the fees-free policy this Budget?

💬 Rt Hon JACINDA ARDERN: I will answer the same now as I have for every question: the member only need wait till Thursday to see what announcements the Government will make, and I just simply won’t get into any speculation he chooses to get into on announcements.

💬 Hon Simon Bridges: Can she rule out announcing a significant slush fund in the Budget that her Government can use in election year for anything she chooses?

💬 Rt Hon JACINDA ARDERN: Again, I’m not going to get into speculation around the Budget, but I think the member would do well to remember that we will be, in the next year, having to rebuild the economy and rebuild New Zealand. The election, for many people, is going to be at the back of their minds; instead, we have to focus on what’s best for New Zealand.

Question time interrupted.