Oral Questions

1. to the Minister for COVID-19 Response: What progress has been made on the roll-out of the COVID-19 vaccination programme?

I’m very pleased to report that over the last week, we’ve ticked off a number of additional milestones in our vaccine roll-out. As of midnight last night, we have delivered 404,208 doses of the vaccine across New Zealand, an increase of 84,320 on this time last week. More than 125,000 people have now received their second doses of the COVID-19 vaccine, meaning that they are receiving the maximum protection through their vaccinations. Just yesterday, we delivered 14,694 doses nationally, and overall we are tracking ahead of plan. Based on these statistics, we’re expecting to hit the half-million mark within the next fortnight.

💬 Shanan Halbert: How are DHBs currently tracking towards meeting their planned deliveries for vaccination?

💬 Hon CHRIS HIPKINS: The good news is DHBs are overall well ahead on their planned deliveries. We’re seeing particularly strong performances from a number of DHBs. I want to acknowledge and extend a special word of thanks to Bay of Plenty, MidCentral, Capital and Coast, Hutt Valley, and Southern, who are currently leading the pack when it comes to delivery of the vaccine. My thanks go to all of the DHBs right up and down the country for the hard work that they’re putting in. I know that some people are working very long hours in the vaccination programme, and they are delivering very good results.

💬 Shanan Halbert: What vaccination sites have recently opened in Northcote and the wider Auckland region?

💬 Hon CHRIS HIPKINS: On Monday, we saw the opening of Auckland’s fourth large community vaccination centre in the Birkenhead mall. That centre will have the capacity to vaccinate up to a thousand people a day, and it’s in addition to similar large sites in Mount Wellington, Highbrook, and Henderson. On Tuesday, Auckland’s first primary care provider, Waiheke Medical Centre, began its vaccination programme—they’ll be doing up to 90 vaccinations a day—and yesterday, Auckland DHB’s second Pacific-led site, at the Westgate Shopping Centre in West Auckland, opened its doors. That site’s being run in partnership with the Fono healthcare and Pacific collective, and they’ll be vaccinating up to 300 people a day.

Question No. 2—Environment

2. to the Minister for the Environment: Will the National Policy Statement for Freshwater Management be updated to include a bottom line for dissolved inorganic nitrogen before becoming part of the National Planning Framework through the resource management system reform?

Last year, the Government agreed to “reconsider the possibility of a DIN bottom line of 1 mg/l (likely with exceptions)” and, in doing so, to revisit the environmental and economic implications. When I take a recommendation on a dissolved inorganic nitrogen (DIN) bottom line to Cabinet, I will be considering the current requirements of the National Policy Statement on Freshwater Management (NPSFM) 2020 and advice of the scientific and technical advisory group. I’d also like to make the point that the periphyton attribute carried over into the NPSFM already, effectively, provides for a DIN level below 1 milligram for gravel-bottomed rivers. The outstanding issue is muddy-bottomed rivers. I would say that we have to be careful that we don’t want a DIN of 1 milligram to, effectively, become a weaker target for gravel-bottomed rivers.

💬 Hon Eugenie Sage: What advice, if any, has the Minister received on establishing a bottom line for dissolved inorganic nitrogen for fresh water when, in May 2020, the Government said that a 12-month delay would allow for a thorough review of its environmental and economic implications?

💬 Hon DAVID PARKER: The advice I have is that this has to be taken into account with other measures relating to nitrogen contamination. There are already rules that prevent the decline of water quality or ecosystem health. There are rules to manage nitrate toxicity by directly requiring nitrogen concentrations in rivers to reduce to 2.4 milligrams per litre. There are rules to manage direct nitrogen concentrations in lakes, which has implications for upstream environments; targets to manage DIN in rivers to ensure bottom lines for ecosystem health like the macroinvertebrate index and periphyton are achieved; and rules to require that DIN levels are managed to ensure the health of environments downstream, like estuaries and wetlands. I think all of those things have to be taken into account, together with advice from the scientific advisory group.

💬 Hon Eugenie Sage: When does he expect to be able to take to Cabinet a decision as to whether to establish a bottom line for dissolved inorganic nitrogen for fresh water?

💬 Hon DAVID PARKER: I expect to be taking further advice for guidance from Cabinet this year.

💬 Hon Eugenie Sage: If a bottom line for dissolved inorganic nitrogen is not included promptly in the national policy statement for fresh water, how will we achieve stronger regulation to protect water quality and the climate caused by pollution from intensive stocking and overuse of synthetic nitrogen fertilisers?

💬 Hon DAVID PARKER: Well, in addition to the long list of measures that I’ve already outlined, we also have a cap on the amount of synthetic fertiliser that can be applied to any hectare of pastoral land in any year. It’s a limit of 190 kilograms per hectare per annum, which knocks off the top of that application bell curve. But sometimes I had reports that over 300 kilograms of nitrogenous synthetic fertiliser was being applied per hectare per annum, and that was unnecessarily high.

💬 Hon Eugenie Sage: Does he agree that Aotearoa New Zealand needs to reduce the extent of extensive dairying and shift to more sustainable forms of agriculture to better protect water quality, soil quality, and our climate?

💬 Hon DAVID PARKER: I certainly agree that in areas where waterways are degraded through the excessive eutrophication caused by high nitrogen levels, we need to do better.

Question No. 3—Children

3. to the Minister for Children: Does he stand by his statement that “The report from the Waitangi Tribunal aligns very closely with the direction I have given Oranga Tamariki”; if so, what, if any, are the outcome measures for success for that direction?

on behalf of the Minister for Children: Yes. The direction I have given Oranga Tamariki is that they must focus on enhancing relationships with whānau and Māori, embedding professional social work practices, developing a positive culture, and starting to entrust funding and decision making to Māori and to people on the ground in our regions. I expect that once I receive the report from my independent ministerial advisory board, we will have time to fully consider the recommendations of the Waitangi Tribunal, we will put in place a plan based on my direction, and I intend that plan to include measures for success.

💬 Dr Shane Reti: Is he committed to establishing a Māori transition authority for the protection of children, as recommended by the Waitangi Tribunal?

On behalf of the Minister, I have committed to consider all the recommendations in the Waitangi Tribunal report. In regards to a transition authority, I believe support for the transition will need to be required, but think there is a better way to provide that support than the entity suggested in that report.

💬 Dr Shane Reti: Does he agree that the State has an obligation to remove children from harmful environments, albeit as a last resort, and will his direction change that?

On behalf of the Minister, I believe the Government has a responsibility to care for and protect our most vulnerable children, and the very serious responsibility which is removing a child from their family is one the Government must retain.

💬 Dr Shane Reti: To what degree will any Māori transition authority be required to account for the needs of non-Māori children in State care?

That will be a decision that’s made once the work of the ministerial advisory board has been received, and decisions will be made from that point.

💬 Dr Shane Reti: When he said he was considering compensating parents who had had their children removed by Oranga Tamariki, what criteria is he considering for compensating those parents?

I don’t have that information to hand. If the member would like to put that in writing, I will ensure the office gets back to him with an answer.

💬 Dr Shane Reti: What is one measurable outcome of success for any Māori transition authority that the Government will hold itself accountable for in the first year of establishment?

While we’re waiting for the advisory board to make its recommendations to this Government, can I say one thing: that any uplift, any child in danger, is a failure of our system to protect that child and that this Government will do everything it can to improve the situation at Oranga Tamariki, a situation that was started—Oranga Tamariki cannot be in the same condition as the previous Government has left it in.

Question No. 4—Disability Issues

4. to the Minister for Disability Issues: What recent announcements has she made about supporting New Zealand Sign Language?

[Uses sign language] Good afternoon, Mr Speaker. On Monday, I joined the Deaf and hard of hearing community to launch New Zealand Sign Language Week. This week is an opportunity to not only underline and lift the status of New Zealand Sign Language but to also celebrate and affirm the diversity of our Deaf and hard of hearing community. We’re recognised as a world leader for our commitment to maintaining and furthering the use of sign language, and this is something we should take pride in this week.

💬 Terisa Ngobi: What progress has been made to support New Zealand Sign Language?

💬 Hon CARMEL SEPULONI: This year marks 15 years since New Zealand Sign Language became the third official language of New Zealand, championed by the former Minister for Disability Issues, the Hon Ruth Dyson. I’m pleased to continue the work of the former Minister as well as the progress we’re making. We’ve increased funding to the New Zealand Sign Language Board. We’re now investing $1.6 million each year to support them to promote and maintain New Zealand Sign Language. During COVID-19, an all-of-Government accessible communications group was stood up to make COVID information accessible through the provision of interpreters, and we’ve invested in inclusive and accessible spaces for the Deaf and hard of hearing community through our Creatives in Schools programme, for example.

💬 Terisa Ngobi: Why is it important that we continue to celebrate, affirm, and recognise New Zealand Sign Language as an official language in New Zealand?

💬 Hon CARMEL SEPULONI: There are approximately 20,000 people in New Zealand who use sign language as a form of communication and, of this, approximately 4,600 are Deaf or hard of hearing. While this week is New Zealand Sign Language Week, every week we must take steps forward towards improving accessibility, raising awareness, and building inclusivity for our Deaf and hard of hearing community. I’m pleased that New Zealand Sign Language continues to evolve and thrive as an official language of New Zealand.

Question No. 5—Corrections

5. to the Minister of Corrections: Will he set a target for reducing the number of corrections staff that are assaulted in corrections facilities; if not, why not?

on behalf of the Minister of Corrections: I have zero tolerance for violence in our prisons, but I do not believe that setting targets will do anything to actually reduce assaults. We are working on an action plan alongside the Public Service Association and the Corrections Association that will be far more meaningful.

💬 Toni Severin: How many times has he met with the Corrections Association about assaults on corrections staff, and what actions did he take following these meetings to address any concerns raised?

In answer to the last part of the question, the Government is working with the Public Service Association and the Corrections Association to develop an action plan in order to ensure that we deal with the issue of assaults in prisons. No assault in prison is OK. In answer to the first part of the question, I don’t have a list of all of the Minister’s appointments.

💬 Toni Severin: The policies that you were talking about to introduce—will these be introduced this year, so that we will see a reduction of assaults on corrections staff?

💬 SPEAKER: I’m just going to note that I’m not introducing anything—

💬 Toni Severin: Yep—oh, sorry.

💬 SPEAKER: —and I’m happy to do some more advice to people about asking questions. But I think we’ve got the gist of it, rather than go over it again.

The length of time it takes to put in place the actions in the action plan will, of course, depend on what those actions are, and I wouldn’t pre-empt that.

💬 Simeon Brown: What does he say to the corrections officer who said, “I really hope this gets resolved fast, because I love my job and some days wonder if I will see my children again.”, and why did he only request monthly briefings on this issue in February this year?

I would say to that corrections officer that they should be entitled to go to work without the fear of being assaulted in prison, and the Government is absolutely committed to working to address that issue.

Question No. 6—Revenue

6. to the Minister of Revenue: Has he seen reports that tax relief has been included in Australia’s Budget, delivered yesterday; if so, can hard-working New Zealanders expect similar tax relief in Budget 2021?

All hard-working New Zealanders will be better off after Budget 2021, as well as Mr Bayly. I do not have ministerial responsibility for the Australian Federal Budget, but in terms of specific policy areas that may or may not be in New Zealand’s Budget, the member will have to wait just seven more sleeps.

💬 Andrew Bayly: Do hard-working small-business owners deserve tax relief measures in Budget 2021, as was provided in Australia’s Budget delivered yesterday?

💬 Hon DAVID PARKER: The problem with the National Party at the moment is that Tuesday’s finance spokesperson asked us to keep a lid on debt; this day’s finance spokesperson asks us to reduce revenue, which would increase debt. No wonder people are confused.

💬 Andrew Bayly: Will Budget 2021 address the issue of hard-working New Zealanders paying more tax as a result of inflation pushing them into a higher tax bracket?

💬 Hon DAVID PARKER: As has been said many times this week, the member will have to wait seven more sleeps.

💬 Andrew Bayly: Will Budget 2021 provide tax relief for business owners purchasing new plant and equipment, as provided in the Australian Budget yesterday?

💬 SPEAKER: Was it yesterday, or was it on Tuesday?

💬 Hon DAVID PARKER: The same answer applies, but I would note that considerable support is being given to small businesses throughout New Zealand as a part of COVID. It is actually the main reason why debt has grown—[Interruption]—the enormous amount of support that was given to businesses generally, including small businesses, to provide wage support to their employees, and for the benefit of Mr Woodhouse, those payments were all made to businesses, not to individuals.

💬 Andrew Bayly: Will Budget 2021 deliver any new tax incentives to encourage innovation and to create maximum value from intellectual property created by smart New Zealanders, as was provided in Australia’s Budget delivered yesterday?

💬 Hon DAVID PARKER: As I said in the answer to my first question, all hard-working New Zealanders will be better off after next week’s Budget.

💬 Andrew Bayly: Will he rule out the Government passing the new interest deductibility rules under urgency as part of Budget 2021 so that mum and dad investors can have their say as part of a democratic process?

💬 Hon DAVID PARKER: In respect to the first part of the question, yes. We don’t intend to pass that legislation under urgency as part of the Budget. There is a round of consultation coming on some of the details.

Question No. 7—Internal Affairs

7. to the Minister of Internal Affairs: What progress has she seen on New Zealand Libraries Partnership Programme?

I’m pleased to report that as part of the Government’s COVID-19 recovery package, $58.8 million was allocated to New Zealand’s public library system to deliver jobs, support the role of librarians in our communities, and provide free Wi-Fi access in public libraries. So far, 161 librarians have already been employed out of the 198 jobs made available through this funding. This targeted funding has not only kept librarians in jobs, it has also upskilled them to provide extra assistance to job seekers and to people wanting to improve their reading and digital literacy skills.

💬 Anna Lorck: Why was Government investment needed in this area?

💬 Hon JAN TINETTI: Libraries play a vital role as community hubs. They can be places where people can get real, practical help and stay connected, especially during tough economic times. This Government recognises the role that librarians play in communities and that local councils are facing funding pressures. The package also includes—

💬 Hon Simon Bridges: Librarians’ votes are very important.

💬 Hon JAN TINETTI: —$13.3 million to support national library support to schools. This programme—

💬 Hon Simon Bridges: Turn up the thermostat.

💬 Hon JAN TINETTI: —provides targeted services to children and young people in high-needs communities, including rural and isolated communities to help with literacy, learning—[Interruption]

💬 SPEAKER: Order! Order! I know that the interjection was a very easy and obvious one to make following Mr Bridges’ own interjections, but I think we’ll just—

💬 Chris Bishop: Well, thanks for the gratuitous commentary.

Sorry? I’m on my feet. What I would like—[Interruption]—no, it wasn’t the member. It was the member on his right who interjected while I was on my feet. I think having that sort of interchange about forthcoming publications is not appropriate, even during this question.

💬 Hon JAN TINETTI: This programme provides targeted services to children and young people in high-needs communities, including rural and isolated communities to help with literacy, learning, and the joy of reading.

💬 Anna Lorck: What impact is this programme having in communities?

💬 Hon JAN TINETTI: I have heard great reports from communities across the country of how this Government has not only supported jobs and community services during one of our toughest economic times but also enabled our libraries to lead greater digital innovation and enrichment of te reo Māori in our communities. For example, in the Central Hawke’s Bay, the funding has resulted in the employment of two new roles: a digital inclusion programme coordinator to ensure all members of the community have access to digital services and are digitally connected, and a He Kura Kāinga coordinator focusing on mātauranga Māori collections and supporting learners and speakers with their te reo Māori.

Question No. 8—Health

8. to the Minister of Health: Can he confirm that as of 16 April none of the $25 million fund for tertiary student mental health support announced 10 months ago had been spent on front-line mental health services, and no additional students have accessed mental health services as a result of this funding?

I don’t know why the member confines himself to the date of 16 April 2021—$25 million was appropriated in 2020 for a four-year period. For this financial year, $2 million was allocated; for the next financial year, $5 million was allocated; for the following financial year, $8 million; and in the final of the four years, $10 million. Because of the equity issues we have sought to address, a decision was made to start by funding services at Te Pūkenga and the three wānanga. The Ministry of Health and Te Pūkenga have signed the contract for $3.2 million for the period covering 19 April 2021 through to 20 December 2022. The $1.6 million allocated for their learners this year will be transferred in full to them this financial year. The remaining $400,000 of that $2 million allocation will go to the wānanga, who are still talking to the Ministry of Health about how they will manage it. So although the $2 million available this financial year out of the $25 million available for the four years from 1 July last year was not committed as at 16 April this year, it has been since 19 April this year.

💬 Matt Doocey: Point of order, Mr Speaker. It was a question on notice, so I’d like the second leg of the question answered, please.

💬 Hon Gerry Brownlee: Come on, “Sir Humphrey”.

💬 SPEAKER: It’s not very helpful having that sort of support from Mr Brownlee, but I will ask the Minister to address the second part of the question.

💬 Hon ANDREW LITTLE: In relation to specific services made to students, I cannot confirm that services have been made available, as the agreement was signed for commencement on 19 April this year.

💬 Matt Doocey: How can the public have confidence in the level of spend when the New Zealand Union of Students’ Association president said, “It’s extremely disappointing that since this funding was announced, it has been trickled out by the ministry … it hasn’t been allocated to services—it’s not getting to the students who need it.”?

💬 Hon ANDREW LITTLE: I can say of my successor in that role that I would have checked about the funding profile for the appropriation that was made. It was very clear that $2 million is available for spending this year, and it would not make sense to spend $2 million in the early part of the financial year and then have to discontinue services for students who need those services and need them on a continuous basis.

💬 Matt Doocey: What is his response to a mental health provider who said in relation to the Government’s cancelled tender process for this funding, “We are concerned about the process. It isn’t transparent. No RFP means nepotism and no chance for a fair process.”?

💬 Hon ANDREW LITTLE: Well, I would say to that mental health professional to read a few more newspapers, listen to the media a little bit more, because they will know it was fully transparent that the ministry was engaging with Te Pūkenga and the three wānanga to negotiate the provision of services to their students, who have a higher profile of Māori and Pacific students, where the gap has been greatest. So the approach that has been taken is a greater equity approach than would otherwise have been the case.

💬 Matt Doocey: Why did this Government announce it would “expand and accelerate front-line mental health and wellbeing services” to students, and then fail to help a single additional student for the following 10 months?

💬 Hon ANDREW LITTLE: I am genuinely trying to help that member. Look, I know it’s hard—[Interruption]

💬 SPEAKER: Order! I don’t know who made that comment, but it shouldn’t have been made.

💬 Hon ANDREW LITTLE: I will help the member again by pointing out the funding profile that goes with the $25 million allocation over a four-year period: $2 million was allocated for the current financial year, and it goes up sort of incrementally from there, so it was always expected that the services that would be purchased with that allocation from that appropriation would be at the back end of the financial year. I know members opposite are struggling to understand how this sort of thing works, but that is what sensible management of this appropriation calls for, and we are doing it.

💬 SPEAKER: Order! I will say to the Minister, it’s not his responsibility to point out matters to do with the Opposition in that manner.

💬 Matt Doocey: How can the public have trust in any future mental health promises he makes when he can’t even deliver on a vital promise made to students 10 months ago?

💬 Hon ANDREW LITTLE: I am very proud to say we are fully delivering on the promise that was made in an appropriation that allowed for $2 million to be spent—[Interruption]

💬 SPEAKER: Order! Order! The member will resume his seat. We’re not going to continue if he’s going to be shouted down in this area.

Question No. 9—Workplace Relations and Safety

9. to the Minister for Workplace Relations and Safety: How is the recent increase in the minimum wage helping working New Zealanders?

Working New Zealanders on the minimum wage have now had over a month of receiving the new minimum wage rate of $20 per hour, which means at least a couple of pay packets in which they are receiving up to $44 additional per week for themselves and their families. Investing in our people is a key part of our economic recovery plan, and this measure is lifting the incomes of over 175,000 of our lowest-paid New Zealanders.

💬 Ibrahim Omer: Why was an increase in the minimum wage important?

💬 Hon MICHAEL WOOD: Having a good minimum wage is actually one of the most important things that we can do to stimulate local economic activity because it gives the New Zealanders most likely to spend it more money to spend in local businesses. At the same time as we’ve increased the minimum wage, we’ve seen our unemployment rate drop to 4.7 percent, which shows that the more that we support our lowest-paid workers, the more that we can support our local businesses and our economy.

💬 Ibrahim Omer: What are the flow-on effects of the minimum wage rise?

💬 Hon MICHAEL WOOD: The increase to a $20 per hour minimum wage is boosting wages across the economy by around about $216 million. There are many Kiwis who earn the minimum wage who have gone above and beyond in our fight against COVID-19, and I think that those Kiwis—the cleaners, the supermarket checkout workers, and the drivers who have served our country so well—deserve decent, fair, and just pay to live in dignity.

💬 Hon Scott Simpson: On what basis did he reject Treasury advice given to him to postpone increasing the minimum wage increase to at least October of this year, and then to do so by limiting it to just $19.75 an hour in order to protect existing jobs?

💬 Hon MICHAEL WOOD: That advice was considered, and I came to a different conclusion for the same reason that I come to a different conclusion whenever that member and that side of the House say that we need to hold down the wages of the poorest New Zealanders. We have shown that the reverse is true—that we can deliver a good minimum wage for working New Zealanders at the same time as having one of the fastest-growing economies and the lowest unemployment rates in the developed world.

Question No. 10—Immigration

10. to the Minister of Immigration: Does he stand by all his statements and actions?

Yes. This Government’s priorities include keeping New Zealanders safe from COVID-19. The Government has taken a tough decision to keep the border closed to protect New Zealand from a global pandemic. Closing our border was critical to keep COVID-19 out and keep our economy open and keep New Zealanders safe. We acknowledge that these decisions have caused difficulties for people, but they’ve also enabled us to get through the pandemic without large outbreaks, which continue to be experienced overseas. There is one statement I made in Tuesday night’s annual review debate about the dependent children of residency visa applicants who are turning 18. For clarification, if a person in this situation applied for a student visa, they would need to pay international fees. However, they would be eligible for a work visa. But what I absolutely stand by is this Government’s management of the border. Our border settings have saved lives, kept our economy strong, and are keeping everyone in New Zealand safe.

💬 Erica Stanford: Could the Minister explain what visa an 18-year-old with no experience or qualifications would get that would put them on a pathway to residence?

💬 Hon KRIS FAAFOI: There are a number of options available to someone in that situation. As I mentioned in the annual review debate on Tuesday, I clarified that situation. Someone in that situation could apply for a work visa if they separated their application from the residency application of their parents.

💬 Erica Stanford: Which exact work visa could an 18-year-old with no experience and no skill apply for that would put them on a pathway to residence?

💬 Hon KRIS FAAFOI: I’m not sure precisely what visa they would go for. I’m sure there are many options available to them. But what I would say is that the situation with the processing of visas is a difficult one in terms of the Skilled Migrant Category (SMC) at the moment, and I will acknowledge the fact that the demand in the SMC category has increased. The processing of those applications are not rubber-stamps; they are involved processes, and they should be. Also in terms of skilled migrant category processing, we have had an enormous amount of increased demand as opposed to forecast.

💬 Erica Stanford: Will he now admit that by separating from their parents’ residence application, those children over 18 would have no pathway to residence and no option but to return home and be split from their families?

💬 Hon KRIS FAAFOI: If the member is referring to the issue that I raised in my answer to the primary question, I did not say at that time that they had a path to residency, and I have clarified that issue in answer to the primary question.

Ricardo Menéndez March: Tēnā koe, Mr Speaker. Would granting residency visas to the many migrants who currently cannot participate fully in society not be a useful way to ensuring they can be safe from any resurgence of the pandemic?

💬 Hon KRIS FAAFOI: That is an approach that the Government has not decided to take. What approach we have decided to take is that for those who are on temporary visas for the likes of working holiday visas or supplementary seasonal employment visas is managing to be able to extend those visas in order for those people to stay in New Zealand.

💬 Erica Stanford: Now that the Minister has admitted that there is no pathway to residence or ability to undertake domestic study, will he grant work visas to the dependent children of migrants who have finished school, but are unable to work, study, or volunteer because of the unprecedented delays in processing their families’ resident visas?

💬 Hon KRIS FAAFOI: I have addressed the issue around the processing delays for SMCs.

💬 Hon Dr Nick Smith: Answer the question.

💬 Hon KRIS FAAFOI: I will reiterate that the demand there—

💬 SPEAKER: Order! Order! Was that you, Dr Smith?

💬 Hon Dr Nick Smith: Yes, it was. I simply said, “Answer the question.”

💬 SPEAKER: The member knows, because I’ve told him at least 10 times in the past four years, that the responsibility for deciding whether a Minister is answering a question is mine. That interjection has been ruled out by a number of Speakers before me, and I just ask the member to learn. He is the father of the House, and I think that every now and again, it would be good if he could set a good example.

💬 Hon KRIS FAAFOI: I have outlined that there are delays to processing for the SMC category. It does come down to increased demand and also the fact that some of the capacity of Immigration New Zealand that would normally process those applications is actually taken up by assessing applications for border exceptions. As to the question, that option is not under consideration.

💬 Erica Stanford: Has the Minister directed Government MPs and their staff to not intervene in any immigration cases, and, if so, why?

💬 Hon KRIS FAAFOI: No.

Question No. 11—Commerce and Consumer Affairs

11. to the Minister of Commerce and Consumer Affairs: What recent announcements has he made about reducing merchant service fees for New Zealand businesses and consumers?

Yesterday, I was pleased to announce the Government’s next steps to reduce merchant service fees. It’s more good news. Merchant service fees are the fees that banks charge businesses when customers use a credit or debit card to pay. A retail payment systems bill will be introduced later this year that will, among other things, require reductions in the interchange component of these fees as soon as possible. These proposed changes are estimated to save New Zealand businesses approximately $74 million each year and will have a positive flow-on effect to shoppers.

💬 Jamie Strange: How do New Zealand’s merchant service fees currently compare with that of overseas jurisdictions?

💬 Hon Dr DAVID CLARK: Currently, unregulated New Zealand’s merchant service fees are almost double what they are in Australia. Looking further afield, UK merchants pay, roughly, a third of what they do here. These fees add significant overheads for retailers, who often pass the costs on to consumers through higher prices and surcharges. We will cap interchange fees for credit card transactions at 0.8 percent, which is in line with our trans-Tasman counterparts. We’re also capping the interchange fees charged for online debit card transactions at 0.6 percent, and contactless debit card interchange fees will be capped at the current average rate of 0.2 percent. For swipe and inserted debit, it will stay at zero percent.

💬 Jamie Strange: What feedback has he seen following his announcement?

💬 Hon Dr DAVID CLARK: I’ve seen a range of positive feedback following my announcement from retailers, banks, and the business community. Greg Harford from Retail New Zealand said, “For far too long New Zealanders have been paying high merchant [service] fees and it is fantastic news that the government is finally moving to bring us in line with other countries that pay significantly less”. Tim Deane of ASB said, “ASB has been a supporter of regulatory intervention to help get the balance right for businesses paying merchant service fees, recognising that card payment networks are a complex ecosystem involving multiple payment and financial services parties.” Matt Cowley from the Tauranga Chamber of Commerce said, “It is a great announcement as it complements the government’s focus on making it easier for businesses to do more business online.” Good news all round.

Question No. 12—Agriculture

12. to the Minister of Agriculture: What actions, if any, will the Government take in response to the findings in its Our land 2021 report that intensive agriculture and urban expansion can degrade the quality and health of soil and increase pollution in freshwater and marine environments?

Our land 2021 confirmed that intensification of farming and urban expansion can impact on soil quality, freshwater quality, greenhouse gas emissions, and water availability. These pressures have been well reported previously. The Government’s vision for the primary sector, Fit for a Better World, acknowledges the need for sustainable systems and improving environmental management across all of these areas. We’re co-funding multiple projects to this end, while boosting economic growth and sustainability. Through the Sustainable Food and Fibre Futures fund, we’re contributing $10 million to trial and develop 12 farm nutrient technologies over five years. Through Jobs for Nature, we’ve invested $10 million in five catchment group projects to help farmers and growers in land restoration. The Ministry for Primary Industries and the Ministry for the Environment are developing options to implement certified freshwater farm plans aimed at better controlling the adverse effects of farming on fresh water and freshwater ecosystems. We are developing a national policy statement for indigenous biodiversity, one for urban development, and one for productive soils. We are doing a lot to move forward in this area.

💬 Teanau Tuiono: Is the Government’s decision to delay restrictions on intensive winter grazing for a year likely to make soil health and water quality better or worse this winter?

💬 Hon DAMIEN O’CONNOR: There is a lot depending on the climate and the conditions through winter that does affect on-farm management, but what we have clearly said for animal welfare purposes and for freshwater quality purposes is that we want farmers to acknowledge the challenge to put in place best practice and, where necessary, mitigate any of the adverse effects of intensive winter grazing in all areas of New Zealand.

💬 Teanau Tuiono: Is he comfortable with the environmental impacts of the 600 percent increase in the use of synthetic fertiliser and the 86 percent increase in the number of cows on intensive dairy farms in Aotearoa since 1990?

💬 Hon DAMIEN O’CONNOR: Actually, over recent years we’ve seen a decrease in the area of farmland and the number of dairy cows and in the use of phosphorous fertilisers. What we have seen is an increase in nitrogen fertilisers, and that’s one area of concern. There is now a cap per hectare on that to try and reduce the need for it, and, in fact, good farm practice doesn’t need that amount of nitrogen fertiliser. So we’re doing a lot in this area to ensure that farming can indeed be sustainable and that we’ve put in place best farm practice.

💬 Hon David Parker: Does the national environment standard (NES) now in force stop inappropriate increases in the area of intensive winter grazing by providing that those significant increases are no longer a permitted activity?

💬 Hon DAMIEN O’CONNOR: The NES does do this, and it encourages farmers to look at alternative practices to intensive winter management and caring for animals through the winter period. We don’t want to see animals starving or having insufficient feed, but we do want to protect soil quality and water quality, and ensure that the images of our farming systems offshore are the best in the world.

💬 Teanau Tuiono: Does he agree that cheap supplementary feeds like palm kernel expeller (PKE) enable dairy farming to be more intensive than the land can naturally handle, and, if so, what will he do to reduce PKE imports?

💬 Hon DAMIEN O’CONNOR: When the door was first opened to PKE importation, it was because we were going through a severe drought, and there will be times of the year and in different years when there is an acute shortage of feed. We need to make sure that animals do get sufficient feed. There has been an over-reliance on PKE, and the initial 40,000 tonnes that was allowed into the country has now expanded out to be 2 million tonnes per year. I personally would like to see a reduction in that and I think that both Fonterra, through its limits, and many farmers, through good, wise management, have been reducing the reliance on PKE, and that’s a good thing.

💬 Hon David Bennett: Does the Minister stand by his comments in the annual review debate that it would be a subjective test that “images of water pollution and ill-cared-for animals would be sufficient for him to determine that there has not been adequate process”?

💬 Hon DAMIEN O’CONNOR: I hope I don’t see any new photos; there’ll be lots of old photos that might be bandied around of mistakes of the past. I’m hoping that we see no photos of what we’d call adverse or unfortunate farm practice. We’re working with farmers in all parts of New Zealand, and particularly in Southland, to get alongside them to make sure that crops are planted in the right place, that we don’t have too many animals in the paddock at one time in an adverse event, and that we do everything possible to mitigate any possible images of bad farming practice in New Zealand that might go out around the world.