Oral Questions

1. to the Minister of Finance: What recent reports has he seen on the New Zealand economy?

The Government’s continuing support to secure the economic recovery is being reflected in the overall volume of house building. Building activity rose a seasonally adjusted 3.7 percent in the March 2021 quarter, compared with the previous quarter. The increase was underpinned by continued strength in home building, which rose 4.3 percent, led by Auckland. There was also a rebound on commercial projects. Westpac bank’s economist expects strong construction activity over the year ahead, given the size of the existing pipeline of work. They note that the strong pace of home building combined with a sharp drop-off in population growth as a result of the border closure means that the country is now making significant progress in addressing the housing shortage that has accumulated over previous years.

💬 Dr Duncan Webb: What other reports has he seen on the economy?

💬 Hon GRANT ROBERTSON: The primary sector is continuing to support and secure the recovery. The ANZ world commodity index has lifted 1.3 percent in May, the eighth successive monthly rise, and I can inform the House that the index is at a record high. The gains were widespread, with producers experiencing better returns due to robust demand globally and higher prices for their goods. Tighter supplies for some commodities are also playing a part. The meat and fibre index rose 1.4 percent, horticulture up 1.7 percent, and dairy a more modest 0.2 percent. Forestry grew at 3.3 percent in May to extend the record prices this sector is achieving. When returns to producers are converted back to New Zealand dollars, the overall index rose by 1 percent.

💬 Dr Duncan Webb: What other reports has he seen on the health of the primary sector?

💬 Hon GRANT ROBERTSON: Rabobank New Zealand’s June monthly 2021 agribusiness report is generally positive about the outlook for commodities. In the beef sector Rabobank expects farm-gate prices to lift over June, due in part to reduced competition from Australia. Sheep meat prices are expected to firm in June, thanks to continued demand from key markets. In the dairy sector, Rabobank expects China to continue to drive global demand and support prices, though it is expecting some softening of dairy imports in China in the second half of 2021. Producers continue to operate in a volatile market, with Rabobank noting that uncertainties do remain over the global supply chain.

Question No. 2—Prime Minister

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

Yes, in particular I stand by this Government’s investments into training and upskilling our people as part of our recovery. Already we have seen 2,469 placements through our expansion of Flexi-wage to support more people into work; 135,200 learners have been supported by the Targeted Training and Apprenticeship Fund since July 2020, including 65,440 apprenticeships; 2,547 rangatahi supported to overcome barriers to employment educational training through He Poutama Rangatahi. Not only are we equipping our workforce with the skills they need to excel, we’re also creating jobs. This Government has committed a record $57.3 billion in infrastructure over the next five years as part of supporting our economic recovery from COVID-19.

💬 Hon Judith Collins: Does she still believe, as she stated in January 2020, that “New roads in Auckland will help unlock the chronic gridlock the city faces.”, and, if so, what is her Government’s higher priority: addressing chronic gridlock or a cycle bridge tourist attraction?

💬 Rt Hon JACINDA ARDERN: To answer the first part of the member’s question, yes.

💬 Hon Judith Collins: What is the estimate she has been given for how many cyclists will use the bridge each day?

💬 Rt Hon JACINDA ARDERN: My recollection is it’s in the order of 3,000. We know, at this point in time, that, of course, we do not have the ability to connect the CBD and the North Shore through alternative modes of transport. I note that previous members of the National Party have supported creating that link; I notice the National Party has now changed its position.

💬 Hon Judith Collins: What advice has she received on the risk of structural issues in the current Auckland Harbour Bridge that are posed by heavy freight - moving trucks?

💬 Rt Hon JACINDA ARDERN: The only reason we’ve put forward the alternative to what was originally proposed as SkyPath was because of advice that it was not possible to pursue that project. That was based off the advice of engineers. Our view has been, therefore, that an alternative needed to be found. I note that the member, again, has backed future investment in additional harbour crossings that rely on tunnels. That, of course, does not solve the issue, therefore, of how we add additional modes to enable people to move around our city. So this is a solution to that. I’d be interested in whether or not that means the member is now abandoning the idea of there being any cycle or walking connection between the North Shore and the central city.

💬 David Seymour: Would the Prime Minister continue to support the Waitematā Harbour cycleway if the cost per cyclist per day was over 10 bucks a crossing?

💬 Rt Hon JACINDA ARDERN: Again, what we’re supporting here is the ability for people to use multiple modes of transportation across Auckland city. And the idea that, currently, we don’t have any ability for walking or cycling, there has generally been good support for creating an option there. We now have discounted the ability to do that through an attachment to the harbour bridge in the form of SkyPath; engineers have said that’s not going to be possible. The question is, does that mean we therefore abandon the idea of linking the two sections of the city? My view is that we need to give people options. We’re in an environment now where public transport, but also the ability to walk and cycle, should be something that we’re able to facilitate. At the moment, this is the best option we have to do that.

💬 David Seymour: Does that mean that her Government is committed to building the cycleway across the Waitematā at any cost; and, if not, what’s the limit?

💬 Rt Hon JACINDA ARDERN: Again, at this stage, we have estimates but they are just that over the likely uptake: 3,000 possible cyclists, 2,000 possible pedestrians. But I don’t think we should limit ourselves on what future usage would be, when I expect that Aucklanders will increasingly, as we make it safer for people to cycle around the city, take up those opportunities.

💬 Hon Julie Anne Genter: Can she confirm that the only reason a new bridge is needed and that high cost needs to be spent is because of a desire to keep five peak hour lanes reserved entirely for cars rather than four?

💬 Rt Hon JACINDA ARDERN: I reject the premise of that question because the assumption therefore is made that we could take out just one lane. The issue that has been raised with us is that from the New Zealand Transport Agency’s perspective they are concerned about the safety issues with only allocating one, and the view is that if you were to do it you would need to allocate two. Of course, that raises other issues. Our view is creating a dedicated ability for people to move safely across the harbour is a better long-term option.

💬 Hon Judith Collins: How will a cycle and walking bridge affect the structural integrity of the existing Auckland Harbour Bridge, which estimates show will not be able to continue to take freight for another 40 years?

💬 Rt Hon JACINDA ARDERN: The assumption the member is making is that it’s somehow structurally the same thing to allow a truck over as it is to somehow build an entire structure in addition to the harbour bridge, and I don’t think it’s fair to make that assumption.

💬 Hon Judith Collins: No, no, the existing bridge.

💬 Rt Hon JACINDA ARDERN: That is my point. The assumption therefore is that a truck moving over the harbour bridge is the same structurally in terms of impact as attaching the SkyPath to the bridge. I’m not an engineer but I do place a lot of weight on the advice that we’ve received. If we’re told it is not a structurally sound decision to make, then we need to look at an alternative. The suggestion has not been that that means the harbour bridge itself is unsafe.

💬 Hon Judith Collins: So who is proposing SkyPath if it’s not that Government’s previous Minister; certainly not us?

💬 SPEAKER: I think there was a question there at the beginning.

💬 Rt Hon JACINDA ARDERN: I think the member seems to almost have answered her own question. Of course, we have supported SkyPath. The advice that we have from engineers is that that is not a project that we can continue to safely pursue. The question I put back to the member is: we’ve taken our position—

💬 SPEAKER: Order! Order! I think the Prime Minister knows that she answers the questions.

💬 Hon Judith Collins: Will hundreds of thousands of South Aucklanders face more or less chronic gridlock due to her decision to reduce funding on the widening of State Highway 1 and Mill Road?

💬 Rt Hon JACINDA ARDERN: Our view is that we can continue to provide transport options to an area that is high growth. We’ve an additional train station to that area, and at the same time our expectations around housing growth remain too. The issue that we have to factor in all of these decisions is: how do we ensure that we both have the capacity in terms of housing but also provide multimode transport options and not allow ourselves to simply say that if you design new housing areas the only option for transport is cars. We need to provide alternatives.

💬 Hon Michael Wood: Can she confirm that the New Zealand Upgrade Programme makes $2.7 billion worth of investment in transport projects in South Auckland—exactly the same as was confirmed at the beginning of the programme?

💬 Rt Hon JACINDA ARDERN: Yes, I can confirm that.

💬 Hon Judith Collins: What advice has she received about how many tradespeople are going to be travelling on the cycleway with their tools?

💬 Rt Hon JACINDA ARDERN: The suggestion there that somehow the harbour bridge is simply disappearing is ridiculous.

💬 Hon Judith Collins: You’ll be falling into the foam. You’ll be falling into the ocean.

💬 SPEAKER: Order! Order! I think the Leader of the Opposition knows that I won’t be.

Question No. 3—Energy and Resources

3. to the Minister of Energy and Resources: What action is the Government taking to reduce emissions across New Zealand’s transport fleet through Budget 2021?

We are continuing to fund the success of the Low Emission Transport Fund (LETF) by increasing the amount the Government is contributing with an even match to the fuel levy to reach $25 million a year for projects by 2023-24. Formerly the Low Emission Vehicles Contestable Fund, the name change reflects a widening of eligibility to include projects for areas like aviation, maritime, and off-road vehicles. We’re modernising this fund to tackle the challenges of reducing emissions from our transport fleets, which make up 21 percent of our overall greenhouse gas emissions, and I’m excited to see what innovative projects will emerge.

💬 Glen Bennett: What kinds of new projects can the LETF fund?

💬 Hon Dr MEGAN WOODS: The wider scope of the LETF will enable the co-funding of a range of projects such as high-capacity electric vehicle (EV) chargers up and down the country, and transport projects utilising other low-emission fuels such as biofuel and hydrogen. The fund will also see the demonstration of new technologies across a range of transport modes, including low-emissions trucks, maritime ferries, and even aviation.

💬 Glen Bennett: What organisations benefit from this investment?

💬 Hon Dr MEGAN WOODS: The fund has supported some of our largest transport companies like Fuso and Hyundai Motors New Zealand to test new technologies such as electric and hydrogen demonstration trucks. It has helped put in place a network of public EV fast chargers to ensure EV owners can fuel up around the country, kick-started EV car-share schemes, and supported community groups like Kaibosh Food Rescue, who have demonstrated how electric vans can be used for everyday logistics.

Question No. 4—Prime Minister

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

Yes—in particular, the Government’s work to prioritise the construction of new housing throughout the recovery from COVID-19. We saw the impact of the global financial crisis on the residential construction industry, with residential construction activity halving between 2008 and 2011. That’s why it’s particularly pleasing to see the number of new homes consented was up 15 percent from April 2020. I’m also proud of the new building laws passed last week that will lift the efficiency and quality of building work and enable off-site manufacturing. The new scheme will allow off-site building manufacturers who are certified, to sign off on their own designs and construction, drastically speeding up the building consent process.

💬 David Seymour: Why did the Prime Minister choose to use housing as her example of good policy, when house prices are up 20 percent year on year, and 8 percent for the quarter?

💬 Rt Hon JACINDA ARDERN: Because we have record consenting numbers not seen in this country ever, and that’s during an economic downturn, when usually, based on past evidence, we’ve seen a decline in the residential building sector. Also, because in the Budget, Treasury are predicting that house price growth will drop down to 0.9 percent, demonstrating that the changes we’ve made will have an effect on the housing market. Thank you for the second patsy question.

💬 David Seymour: Ha, ha! Too easy. Does she stand by her policy of spending $675 million on a cycle bridge in Auckland while nurses up and down the country go on strike?

💬 Rt Hon JACINDA ARDERN: Look, of course we accept that we are in a period of time where we do have to both make the investments in infrastructure, billions of dollars’ worth, to continue to create jobs, and build the infrastructure that we need for it in order to have a world-class city. I don’t think the member necessarily agrees with the idea that our city should be split in two and that people do not have the ability to walk or cycle between the CBD and the North Shore. On the issue of nurses, we have made an offer that substantially lifts those who are on the lowest pay bands and in the starting brackets for the nursing community. But, at the moment, their ask is 17 percent; we’re just not in the position to be able to fund that at this point in time.

💬 David Seymour: Does she stand by her Government’s recent Budget, which forecasts an increase of $2 billion each and every year on jobseeker support and emergency benefits, from pre-COVID levels, while nurses up and down the country go on strike?

💬 Rt Hon JACINDA ARDERN: I’m not necessarily sure that I see the direct relevance there. We are working hard to invest in reducing the call on job seeker—for instance, creating jobs through infrastructure investment. The first primary question I gave today demonstrated that we are seeing a large number of people moving into training and education to fulfil the infrastructure pipeline that we as a Government are creating. We also have Treasury predicting we will see a fall in job seeker numbers because of the investments that we are making. That is at a time when we are in one of the biggest economic crises that New Zealand has ever experienced.

💬 David Seymour: Does she stand by her Government’s policy of spending half a billion dollars a year on fees-free tertiary education, which has not increased participation, and mainly accrues to students who went to—

💬 SPEAKER: Order! Order! Order! I’m—

💬 David Seymour: Sorry?

💬 SPEAKER: Sorry, I’ll stand up and rule if the member wants it clarified. The member may ask a question; he doesn’t need to add to the question material which is unnecessary for the sense of the question. We have been liberal in recent times and allowed two legs to a question, but neither of those legs should be a statement. The member asked a question and then went on to make a statement which is out of order.

💬 David Seymour: Point of order, Mr Speaker.

💬 SPEAKER: I just—the member will resume his seat—hope the member’s not going to argue with me. There’s not much more clear cut in the Standing Orders and Speakers’ rulings than what I’ve just to the member.

💬 David Seymour: Point of order. Mr Speaker, I would never argue with you; I accept your ruling wholly. But I would draw your attention to the Standing Orders, which have the same requirements on the answers. Now, in the answer most recently given by the Prime Minister, rather than addressing the expenditure on benefit, she tried to argue that benefits were going down, while accepting that the money spent was going to go up. Now, those two can’t both be true. It was pointless argumentation, it was completely superfluous, and yet she got away with it. I just ask that there be some equivalency between the answers and the questions.

💬 Hon Grant Robertson: Speaking to the point of order, Mr Speaker. The member’s question that he just referred to there asked the Prime Minister if she stood by the Government’s Budget, and then he said, “which includes”; the Prime Minister had a very wide area that she could answer on, given that the question simply asked if she stood by her Budget—which, thankfully, she did!

💬 SPEAKER: The member might be technically right—the Hon Grant Robertson—and David Seymour, of course, has an ability to take a point of order after the question, not after he is pulled up. But I would have pointed out to him that I think the only responsibility that I have in that particular area was not for the answer itself but for the length, which I think was beginning to push things.

💬 David Seymour: Thank you, Mr Speaker. Does the Prime Minister stand by her policy of spending half a billion dollars a year on fees-free tertiary education, which has not increased participation, while nurses—

💬 SPEAKER: Order! No, the member’s lost it now.

💬 David Seymour: Point of order, Mr Speaker. I thought I was allowed to name one feature of the policy. No—none at all?

💬 SPEAKER: No.

💬 David Seymour: Why didn’t Budget 2021 have measures to provide tax relief for middle income New Zealanders such as nurses and teachers and police, who will be watching this industrial action very closely?

💬 SPEAKER: Oh—I am going to allow the question, but I’m going to remind the member: first of all, he added something on, a phrase, at the end about who was watching; and, secondly, he had at least two further legs to the supplementary. I’m going to allow the Prime Minister to pick any one of the multiple questions that she was asked to answer.

💬 David Seymour: Point of order.

💬 SPEAKER: Um—I mean—David Seymour.

💬 David Seymour: Mr Speaker, I seek your guidance. The Standing Orders say that you cannot add irrelevant material—unnecessary—to make the point of the question. Now, the point of my question is that there is a contrast between nurses and other civil servants. A tax package could have given relief to all of them. The Government’s policy targets only one—

💬 SPEAKER: All right, OK.

💬 David Seymour: So there was a point to—

💬 SPEAKER: OK. Now, we’re not—the member will resume his seat. We’re not going to have a policy debate here now. I’ve already said, although I’m tempted to reverse my position, that the Prime Minister can answer the question, but I will refer him now to Speaker’s ruling 181/4, which, if members continue to argue with me about the limits, I will enforce.

💬 Rt Hon JACINDA ARDERN: As the member will be well aware, the focus of Budget 2021 was on our recovery from COVID-19 and also investing in the long-term challenges that New Zealand faces. One of those long-term challenges is inequality and child poverty. That was the reason why we made the choice to invest in those on the lowest incomes in New Zealand, that includes those on Government support. It also has the double effect of providing economic stimulus into the economy at a time when we require that as part of our ongoing recovery. So that’s to answer the member’s question as to why we chose to invest in that way rather than tax cuts, which is his party’s position. The second and final point I’ll make is that that is not mutually exclusive from us trying to continue to lift the wages of those lowest-income earners. That is why the nurses’ settlement that was put before them included a lift for those healthcare assistants that was between 12 and 5 percent; for enrolled nurses, of between 11 and 4.2 percent; and registered and community nurses, those starting out bands, of between 4.4 percent and 2.9 percent. Even though we are in an economically constrained environment, we still wanted to see those on the lowest wages lifted because in our last pay round of negotiations, which was, roughly, $500 million, we focused on lifting general wages across that workforce.

💬 David Seymour: Is the Prime Minister aware that ACT’s alternative Budget, by removing the 30c tax rate, would have delivered nurses in the middle of their pay scale $2,000, or almost 4 percent a year?

💬 Rt Hon JACINDA ARDERN: I will have to concede that I am not across every single element of ACT’s policies.

Question No. 5—Health

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

Yes.

💬 Dr Shane Reti: What actions, if any, has he taken to prevent tomorrow’s planned nurses’ strike?

💬 Hon ANDREW LITTLE: Negotiations in relation to the nurses’ pay and conditions is a matter between the Nurses Organisation and the district health boards represented centrally and collectively. I have monitored the progress of those talks, and, unfortunately, agreement hasn’t been reached, and the nurses have exercised their industrial right to take industrial action.

💬 Dr Shane Reti: What steps has he taken, if any, to ensure industrial action does not cause delays to the coronavirus vaccination roll-out?

💬 Hon ANDREW LITTLE: When the nurses take industrial action, they engage with the district health boards on ensuring that life-preserving cover is provided for in the hospitals. They have provided an exemption for nurses working in the managed isolation and quarantine facilities, but no such exemption has been provided for registered nurses covered by the Nurses Organisation working in the vaccination facilities. But there are other vaccinators as part of the vaccinator workforce, and I’m confident that the vaccination programme will continue.

💬 Dr Shane Reti: What advice did he receive from health officials around Budget 2021 DHB wage cost pressures, if any, and did he build a specific DHB nursing pay rise into his Budget 2021 bid?

💬 Hon ANDREW LITTLE: On this side of the House, when it comes to negotiations, particularly industrial negotiations, we have a policy of not showing our hand, because that’s typically how contract negotiations take place. The cost pressures part of the health budget in the 2021 Budget was negotiated. It provides an across-the-board 4 percent increase from one year to the next in terms of DHB funding. How DHBs utilise that, apart from ring-fenced funding in some areas, is a matter for DHBs.

💬 Dr Shane Reti: Will spending $485 million to restructure the health system be money better spent on front-line nurses?

💬 Hon ANDREW LITTLE: In relation to the money appropriated to set up the new system, I can say that the money includes also money for commissioning of new services both by the interim Māori Health Authority and interim Health New Zealand. The reason why we are setting up Health NZ and the distributed leadership model that we’re adopting is because with many of the nationwide programmes we sought to adopt in recent years, we have struggled to get the DHBs to implement them consistently. One of those programmes is Care Capacity Demand Management, which is the programme to increase nursing personnel to better match demand of patient arrival in hospitals. We see now that three years on, the agreed deadline for implementing it, which was 30 June this year—only half of DHBs say that they will meet that deadline. Another seven say it might be the end of the year before they meet it, and three are saying they’re not sure whether they can meet it at all this year and it might be sometime next year. It is time to get coherence and consistency in our health system.

Question No. 6—Social Development and Employment

6. to the Minister for Social Development and Employment: What recent reports has she seen on Ministry of Social Development employment initiatives?

Kia ora, Mr Speaker. I’m pleased to report that progress has been made across our Government suite of employment initiatives, which is helping us to secure our economic recovery. The expansion of Flexi-wage to support more people into work has had a total of 2,469 placements since February. The Apprenticeship Boost scheme, which is rolled out in collaboration with the Tertiary Education Commission, has already benefited 26,902 apprentices. These are only two examples of the suite of Government initiatives that we’ve got in place to support more New Zealanders into employment, education, or training.

💬 Terisa Ngobi: What progress has she seen on Mana in Mahi?

💬 Hon CARMEL SEPULONI: Mana in Mahi is one of a number of Ministry of Social Development (MSD) employment initiatives that are showing positive signs that our recovery is gaining momentum. Three years on from launching Mana in Mahi, Mana in Mahi has reached a significant milestone, having now supported over 3,000 job seekers into jobs with career training pathways. Ninety percent of them are active, completed, or have exited early and have not returned to benefit. Of these placements, it’s really pleasing to see that 38 percent of Mana in Mahi participants are Māori. Mana in Mahi is continuing to go from strength to strength, as evidenced by the number of people going into jobs.

💬 Terisa Ngobi: How do these reports align with the latest household labour force survey?

💬 Hon CARMEL SEPULONI: Unemployment, employment, and labour market participation all improved in the March 2021 quarter. Employment grew by 15,000, with an extra 32,000 people going into jobs since September 2020. Over the year to March 2021, self-employment has risen 24,700. With unemployment now down to 4.7 percent and 33,000 more people coming off the benefit and into work, it’s clear that initiatives such as Flexi-wage, the Apprenticeship Boost, Mana in Mahi, and our other employment initiatives are assisting us to secure our recovery.

Question No. 7—Transport

7. to the Minister of Transport: Did the Government re-scope transport projects it announced in January 2020 as part of the New Zealand Upgrade Programme in order to fund the $785 million Northern Pathway, which includes the cycling and walking bridge?

No.

💬 Hon Michael Woodhouse: Was any analysis undertaken comparing value for money of the Northern Pathway against Waka Kotahi’s November 2020 option of a $2 billion crossing that included cars, trucks, walking, and cycling, and, if so, what was the outcome of that comparison?

💬 Hon MICHAEL WOOD: Yes, consideration was given to a range of options, including the one that the member identified in his question. I do note, however, that the indicative business case for the alternative Waitematā crossing proposes that the best and most likely option will be a tunnel, something that the Opposition has previously supported as well, something that would be inappropriate for a walking and cycling connection. As such, it was determined that it was best to proceed with a stand-alone walking and cycling structure.

💬 Hon Michael Woodhouse: Is he comfortable that the benefits to Herne Bay and Takapuna walkers and cyclists is more important than avoiding further deaths on New Zealand’s deadliest road, from Te Puna to Ōmokoroa?

💬 Hon MICHAEL WOOD: I reject the premise of the member’s question.

💬 Hon Michael Woodhouse: Does he agree with political commentator Josie Pagani, who said, “It just seems to me no process. They haven’t thought it through, and it looks like they’re looking after the Herne Bay/Takapuna lot, not South Auckland.”?

💬 Hon MICHAEL WOOD: I don’t agree with that comment, and as has been identified in this question time, over $2.7 billion of transport investments are being made in South Auckland, exactly the same as was indicated at the launch of the New Zealand upgrade package. I do need to say to that member that this Government does have a fundamental commitment to investing across a range of transport modes. This is no longer the 1950s. What I would also say is that along with that member, I stood in this House and I voted for a climate emergency. I voted for the Climate Change Response Act, and if I just mouthed those words and didn’t do anything about it, then I’d be a hypocrite, and I’m not.

💬 SPEAKER: Order! No, the member will resume his seat. I think the member went too far then. He will withdraw and apologise.

💬 Hon MICHAEL WOOD: I withdraw and apologise.

💬 Hon Chris Hipkins: Point of order, Mr Speaker. A member can’t refer to another member as a hypocrite or say that someone has done something that is hypocritical. There’s nothing to stop a member talking about themselves in that regard.

💬 SPEAKER: Well, possibly unlike the Leader of the House, I listened to the whole of the answer, and any reasonable person who listened to the whole answer would’ve taken the same inference that I did.

💬 Hon Michael Woodhouse: In respect of climate change, does he stand by his statement that the cycle bridge will be both a tourist attraction and reduce emissions, and, if so, how does he plan to offset the emissions from international tourists flocking to New Zealand to use the bridge?

💬 Hon MICHAEL WOOD: In answer to the first part of the member’s questions, I do stand by that statement. I stand by another statement that was made by someone who has had a bit to do with these issues, who said, “If we look to the future, it’s not possible to just keep adding lanes to the motorway network. It becomes more expensive for less and less gain. We need to make better use of our existing networks and explore new opportunities to influence travel demand.” The Hon Simon Bridges was right in 2018 and he’s right now.

💬 Hon Julie Anne Genter: Can he confirm that the Ministry of Transport’s green paper on reducing transport emissions states that “investments to expand urban state highways and major roads … leads to more people living in car-oriented suburbs, which causes increasing car use and traffic, emissions, and higher travel times and costs.”, and how do those facts influence the rebalancing of the New Zealand Upgrade Programme?

💬 Hon MICHAEL WOOD: Well, there were two key considerations for the Government in the rebalancing of the New Zealand Upgrade Programme. One was managing cost pressures, and the other was responding to the urgent need to decarbonise our transport system. So in the rebalancing that we have announced today, we do see a number of changes of investments which support a more decarbonised transport system. One which I would highlight is the shift in investment towards bringing rail between Whangārei and Port Marsden, an investment that will get significant numbers of heavy vehicles off the road, helping to decarbonise our transport network as well as bringing much greater resilience into our supply chain.

Question No. 8—Biosecurity

8. to the Minister for Biosecurity: How has Budget 2021 invested in New Zealand’s biosecurity?

Budget 2021 provides the resources needed to step up our efforts to protect kauri against dieback and preserve the taonga for future generations. There is great work being done across the country, but with this additional $32 million over five years, we have the opportunity to do more to protect our forest giants, their wider ecosystems, and the beautiful clean, green brand that makes us proud. It will fund the roll-out of a national pest management plan—the strongest form of protection available under the Biosecurity Act—to bring together Government, councils, iwi, and NGOs under a new umbrella agency that will oversee all activity regarding the spread of kauri dieback. Right now, these iconic trees face potentially fatal threats from kauri dieback. Stopping the spread of the disease needs increased support and resources, and this Government is delivering that.

💬 Jo Luxton: How has Budget 2021 supported the Government’s Mycoplasma bovis programme?

💬 Hon DAMIEN O’CONNOR: Budget 2021 invests a further $66 million over the next year to continue the Mycoplasma bovis eradication programme. It also sees investment of $22.5 million to continue improving compliance with and enforcement of the National Animal Identification and Tracing scheme—or NAIT, as it’s called. Our ability to trace cattle and deer through the NAIT system is a critical factor in managing biosecurity threats, including M. bovis, that could have a devastating impact on New Zealand’s agricultural sector. Traceability is also important for food safety and quality assurance programmes and for responding quickly to natural disasters. We’ve achieved increased levels of NAIT compliance in recent years, and this funding will help us maintain and build on that good work.

💬 Jo Luxton: How has Budget 2021 boosted biosecurity protections at our border?

💬 Hon DAMIEN O’CONNOR: Well, more good news. Budget 2021 is investing $8.9 million for advance screening technology to detect biosecurity threats in international mail. The investment will enable the installation of new 3-D scanner technology that has the potential to automatically detect things like seeds and fruit. The Budget also provides temporary funding for the Ministry for Primary Industries to continue essential biosecurity border services in the face of revenue reductions because of COVID-19. As a country whose economy and lifestyle is linked to our unique environment, this Government’s focus on biosecurity is absolutely vital. Budget 2021 backs up that focus with significant investments to protect and enhance our natural heritage and our primary exporters.

💬 SPEAKER: I’m just going to remind Nicola Grigg that I noticed she had a lot of questions then. If she really wants to ask them, she should stand up.

Question No. 9—Housing

9. to the Minister of Housing: Did she receive an aide-memoire dated 22 December 2020 from the Ministry of Housing and Urban Development about potential impacts of changes to the treatment of rental properties; if so, did that include advice that “churn increases the risk that households may need to rely on transitional housing or emergency housing special needs grants, or increase the numbers of the public housing register”?

Yes, and yes.

💬 Nicola Willis: Did she receive advice that the best way to minimise the impact of proposed tax changes on existing renters was to exclude existing rental properties from the policy, and, if so, why didn’t she take that advice?

💬 Hon Dr MEGAN WOODS: The piece of advice that the member is referring to is a piece of advice that we received on 22 December, right at the beginning of the journey of putting together our package. An aide-memoire that Ministers received on 15 January clearly stated that one of the things that we needed to do if we wanted to increase the supply of new housing and go some way to fixing the housing crisis was to indeed ring-fence out new builds to make sure that interest deductibility would still apply to new builds and that the brightline test would stay at five years for those properties. That is, of course, what we did.

💬 Nicola Willis: Why did she ignore the specific warning she received in this memo, dated 11 February 2021, that including existing rental properties in her new tax policy would “directly impact on renters, as they face either increased rent, poorer quality housing, or are forced to move out of their home”?

💬 Hon Dr MEGAN WOODS: I also note that that piece of advice on 11 February said, “We expect the brightline test extension will have a minimal impact on renters in the short term as the extension of the brightline test is proposed for prospective purchases only and has an exclusion for new builds. Existing property investors will not face additional costs on their properties.” More advice concludes, “Further, those investors who still wish to grow their portfolios would be able to do so under the existing five-year brightline if they purchase new builds.” In regard to interest deductibility, we are a Government that is interested in putting in place levers to increase housing supply, and that is what leaving interest deductibility on new builds achieves.

💬 Nicola Willis: Did she receive advice in a memo dated 11 February 2021 that if interest deductibility changes were phased in for existing housing stock, that could not only directly impact on renters but could also increase “the accommodation supplement and homelessness, with a resulting impact on the public housing wait-list”?

💬 Hon Dr MEGAN WOODS: Ministers received a huge amount of advice as we were putting together this March package, but as I have already indicated to that member, what Ministers made very clear that this Government’s priority was was putting in place measures that brought on new supply of housing. We have a housing crisis. We need new houses, and housing supply is what is our priority, and that is the advice that we were interested in.

💬 Nicola Willis: What steps has she taken to work directly with landlords to address New Zealand’s housing shortage, or is it her preference to simply scapegoat them for New Zealand’s housing problems?

💬 Hon Dr MEGAN WOODS: Our Government is taking multiple steps to work with landlords. One of the papers that will soon go out for consultation, and we’re very interested in hearing from landlords on, is around interest deductibility and how that will apply to—leaving that in place for new builds. I want landlords to be part of solving the housing crisis in New Zealand, and that means building more houses. I think we’ve found a good way to work with them on that.

Question No. 10—Transport

10. to the Minister of Transport: How is the Government keeping New Zealand connected internationally and positioned for recovery?

Recently, I announced that the Government has awarded a new round of airline support contracts through to the end of October 2021 to help keep New Zealand connected internationally and positioned for recovery. International air travel essentially shut down as COVID-19 spread, so the threat of isolation from global partners was very real. Airfreight is now at 90 percent of pre-COVID levels thanks to the International Air Freight Capacity scheme and its successor, the Maintaining International Air Connectivity scheme, which have helped to keep trade channels open and maintain supply of time-critical goods like medicine and high-value fresh produce into and from New Zealand.

💬 Shanan Halbert: Which carriers have agreements been reached with?

💬 Hon MICHAEL WOOD: A wide range of carriers have been announced recently to maintain our air links with the rest of the world. Those agreements have now been reached with Air New Zealand, Air Tahiti, Korean Air, Malaysia Airlines, Cathay Pacific, Emirates, and China Airlines, supporting up to 43 flights a week that would otherwise not have been able to happen.

💬 Shanan Halbert: What has the scheme meant for New Zealand and our Pacific partners?

💬 Hon MICHAEL WOOD: Since May of last year, the International Air Freight Capacity scheme and the Maintaining International Air Connectivity scheme have enabled more than 7,000 flights, carrying over 136,000 tonnes of airfreight, worth around $10 billion. It’s important to note that this scheme has also been important for our Pacific partners. It recently supported the delivery of nearly 200,000 COVID-19 vaccine doses to Fiji, Nauru, Samoa, the Solomon Islands, Tonga, and Tuvalu through the COVAX Facility. Nearly 75,000 people have returned to New Zealand on flights supported by the scheme, 53 percent of the total number of people to pass through managed isolation and quarantine facilities. It’s very unlikely that those journeys or the freight moved would’ve been possible without it.

Question No. 11—Health

11. to the Minister of Health: Have any district health boards requested to have more staff on duty tomorrow to provide life-preserving services than there would usually be on a non-strike day; if so, does this illustrate routine understaffing issues for nurses?

I’m advised that no district health boards have asked for more staff rostered for life-preserving services during the strike than would normally be on a roster. In fact, many areas asked for just one fifth of normal numbers. Just to be clear, nursing staff numbers on duty at hospitals during industrial action are the product of agreement between the New Zealand Nurses Organisation and DHBs. I will note, however, that during the strike there may be more people on a ward than usual for the safety of patients and the delivery of non-life-preserving service care. This is because the number of staff delivering life-preserving services does not meet the care needs of all patients, so district health boards will have volunteers, carers, and family involved. So in response to the first part of the member’s question, no; and, in response to the second part of the member’s question, no.

💬 Dr Elizabeth Kerekere: Is the Minister concerned that district health boards are regularly not meeting safe nursing staff levels?

💬 Hon ANDREW LITTLE: I am concerned at the reports I am receiving from hospitals, particularly from nurses, about the pressure that they are under. I am concerned that—notwithstanding the agreement reached with the Nurses Organisation in 2018 for the Care Capacity Demand Management scheme, with an expectation that that scheme would be fully up and running across all DHBs by 30 June this year—only half of DHBs say that they will meet that deadline. Seven more are saying that it could be the end of the year before they meet it, and three are saying it could be sometime next year. Nurses are entitled to be disappointed about that level of achievement.

💬 Dr Elizabeth Kerekere: Is the Minister concerned by the reported levels of exhaustion and stress of nurses playing a critical role in protecting New Zealanders from COVID-19?

💬 Hon ANDREW LITTLE: Yes, I am. I know that even though we have added additional nurse positions right throughout the hospital network over the last three years, it is true that some district health boards are struggling to fill those roles on a permanent basis and are reliant on nursing agencies to fill roles on a lot of shifts. Oftentimes, staff coming from those nursing agencies are either not sufficient to meet the gaps on any particular shift or do not turn up and so other nursing staff are having to cover those gaps. That tells you just what a parlous state our hospital system was in when we became Government, and we will be working with the Nurses Organisation and others to make sure we fill those gaps.

💬 Dr Elizabeth Kerekere: Does the Minister acknowledge that the decision to strike tomorrow, during a global pandemic, cannot be one that nurses take lightly and indicates serious issues with staffing levels and pay rates for our essential workers?

💬 Hon ANDREW LITTLE: I’ve yet to meet a worker who goes on strike who does so willingly and because they think it’s a fun thing to do. Workers take strike action because the situation they find themselves in is serious, and I hear that from our nurses across the country. And that is why we must all work together, with all the parties involved—the DHBs, the Ministry of Health, and the Nurses Organisation itself—to make sure we do the best for our nurses now and in the future.

💬 Dr Elizabeth Kerekere: And what actions will the Minister take to address the rate of nurses either leaving the profession or the country because of stress and exhaustion?

💬 Hon ANDREW LITTLE: The Government, through the Ministry of Health, have established specific initiatives to deal with just those issues and to ensure that DHBs and their management are equipped to deal with the sort of issues that the member refers to. In the end, a challenge for us is to create a health system with a quality of management that makes the working environment one that nurses feel safe to work in and delivers the best quality care to patients in New Zealand.

Question No. 12—Energy and Resources

12. to the Minister of Energy and Resources: What is her response to Gas Industry Company consultation outlining that the most critical and urgent issues to resolve to enable gas to support the transition to 100 percent renewable electricity include “a perceived lack of predictability across a range of dimensions for participants at every level of the industry to be able to plan and invest appropriately”?

My response is that I welcome the consultation on work that I commissioned late last year.

💬 Barbara Kuriger: Is the Gas Industry Company correct to say that “it is clear that without significant investment … gas reserves … in existing fields will not come to market and security of supply will be comprised.” and that steps are needed to improve the investment climate so that this investment will happen?

💬 Hon Dr MEGAN WOODS: One of the things that we do know is that we have gas—one of the things the report tells us is that we have gas reserves through to about 2035. Beyond that we will need further investment in fields, but I do note that since we made our decision not to issue any new exploration permits in 2018 for oil and gas, there has been $1 billion of investment in those assets.

💬 Barbara Kuriger: Does she agree with the Gas Industry Company that policies the Government should pursue to improve investment certainty include greater use of the emissions trading scheme alongside increased policy clarity, and, if so, has she shared this view with the Minister for Climate Change as he considers Climate Change Commission advice?

💬 Hon Dr MEGAN WOODS: In answer to the second part of the question, the Minister for Climate Change and I speak frequently about the need to decarbonise our economy—indeed, as the whole world needs to do. And I do point that member to a recent report from the International Energy Agency that actually recommends to the rest of the world that they go down a path that New Zealand did in 2018, that we cannot keep issuing new permits for the exploration for oil and gas as we face a climate emergency.

💬 Barbara Kuriger: Does she stand by her answers to oral questions in the House three years ago when she said “We have exploration permits that go out for 30 and 40 years.” and “the sky isn’t falling in.” in light of advice from the Gas Industry Company that New Zealand explore importation of LNG?

💬 Hon Dr MEGAN WOODS: One point that came up in the consultation that the Gas Industry Company carried out is that we need to look at whether or not it is a fair question whether we need to look at LNG. I think that is a long way from what the member is suggesting. I have yet to receive the final report from the Gas Industry Company, but I do remind that member that actually this is a Government that is looking at ways in which we can decarbonise our economy. We are investing to look at more reliable storage for dry-year risk, looking at things such as pumped hydro.