Oral Questions

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

The dairy sector continues to support the economy. Last week, the dairy cooperative Fonterra increased its milk price forecast range for the 2021-22 year from $8.90 to $9.50 per kilo of milk solids to $9.30 to $9.90 per kilo. The midpoint of $9.60 would be the highest milk price ever paid out and see Fonterra contribute over $14 billion to the economy. We thank those who work in the dairy sector for their contribution to the economy despite a volatile and uncertain environment due to the ongoing impact of the pandemic and geopolitical events such as Russia’s unprovoked and unjustified invasion of Ukraine.

💬 Barbara Edmonds: How is the rest of the primary sector supporting the economy?

💬 Hon GRANT ROBERTSON: The ANZ bank’s monthly World Commodity Price Index in January rose by 1 percent to a record high—apart from dairy, which rose 2.5 percent compared with the previous month. Horticulture gained 2.6 percent, with summer fruits selling well, with a much better season for cherries. Meat and fibre declined 2.6 percent through lamb and beef prices, which are still at very high prices. When converted back into local currency, returns to primary producers rose 1.9 percent. The global environment, however, remains volatile with shipping costs on the rise, due to an increase in delays at ports—particularly in China, where some have been affected by the pandemic—and ongoing global supply constraints.

💬 Barbara Edmonds: What reports has he seen on the prospects of the primary sector in 2022 on the economy?

💬 Hon GRANT ROBERTSON: Rabobank’s agribusiness outlook 2022 found the country’s farmers are well positioned for another profitable year underpinned by strong prices, limited global production, and a lower New Zealand dollar boosting returns. Rabobank said that this would represent the sixth consecutive year of general profitability for the sector. The report noted that the flow of goods globally has held up well, despite the pandemic disrupting the supply chains, while trade relations with China have remained strong. None the less, we do acknowledge that the sector faces a number of challenges in response to the pandemic and our international commitments around climate change, which we are working together to achieve. We continue to work closely with primary producers to ensure the long-term sustainability of what is an important part of our economy.

💬 SPEAKER: I’m just going to remind members, or tell members, that as we were looking at the virtual or the hybrid system yesterday, we were having some problems with sound balance and people, especially on Zoom, not being able to hear—when an interjection level which might normally have been acceptable wasn’t. So, if people can keep it a bit quieter, that would be good. I will make the point to both Ms Willis and Mr McAnulty that, while I might eat a lot of meat, I’m not responsible for the success of the rural sector, all right? So don’t use the second person when you’re interjecting.

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 record of reducing child poverty. According to the data released by Statistics New Zealand last week, child poverty has continued to trend downwards across all nine measures under this Government. Despite the impact of the COVID-19 global pandemic, the Government has achieved two out of the three targets it has set itself and has made significant reductions in the third. Our health and economic response, as well as income support initiatives like increasing benefits and Working for Families, has cushioned the impact for families and provided the support they need. It is now estimated that there is 66,500 fewer children in low-income households on the after-housing-costs poverty measure and 21,900 fewer children experiencing material hardship since we came into Government. Now, our job is to keep going.

💬 Christopher Luxon: How many more children are living in benefit-dependent homes?

💬 Rt Hon JACINDA ARDERN: As a percentage of the population on main benefits, my recollection is we’re sitting at about 11 percent, which is a lower percentage than what we were during the global financial crisis (GFC). I’d be happy to provide the member with a specific number, although I don’t have it with me currently. But the point that I would make is that in times of economic crisis, you would expect the call on our Government support to increase. But relative to the GFC, the call on main benefit rates has been lower.

💬 Christopher Luxon: Does she agree that we have a cost of living crisis, given interest costs on a $700,000 mortgage are up more than $8,000 in the last 12 months?

💬 Rt Hon JACINDA ARDERN: Of course, we have seen the Reserve Bank make adjustments to the official cash rate in recent times, but I would point out that it is off the back of historically low rates, including lower rates than obviously when that member’s party was last in Government.

💬 Christopher Luxon: Does she accept that removing tax deductibility for mortgage interest has contributed to the more than $7,000 increase in annual rent since she came into office?

💬 Rt Hon JACINDA ARDERN: The member seems to ignore the fact that we have been very focused on trying to even up the playing field for first-home buyers in the housing market. And what we have seen is a reported reduction in the percentage of mortgages going to investors, and according to CoreLogic, an increase in the percentage of first-home buyers in the market. We wanted to see first-home buyers accessing the market. At the same time, we have taken steps to try and ease the pressure on renters, ensuring that there is only able to be one rent increase per year, dealing with the fact that there had previously been a situation where they were bidding wars for rents, and introducing requirements to ensure that homes are healthy, warm, and dry. The last Government took none of these steps and left us with a housing crisis.

💬 Christopher Luxon: Can she confirm that motorists have paid an extra $515 million in tax at the pump since she introduced the Auckland regional fuel tax; and, with petrol hitting $3 a litre, does she agree motorists need some relief?

💬 Rt Hon JACINDA ARDERN: One of the things that I would point out if the member wishes to pursue the idea that we shouldn’t have any kind of excise is the fact that when his party was last in Government, they continued to increase excise because that is, of course, how we pay for our roading projects. And I note that a number of his members had been at the very roading projects that that excise has funded. So if the member wants to no longer fund roads, he will have a significant problem because that was almost entirely the National Party’s infrastructure plan when they were last in Government.

💬 Hon Michael Wood: Does she stand by the Government’s investment in the Eastern Busway to the Botany electorate that is part funded by the regional fuel tax?

💬 Rt Hon JACINDA ARDERN: Obviously, yes. But interestingly, the member who services that community does not.

💬 Christopher Luxon: Does she think it’s fair that someone on the average income is paying $1,300 more in tax today compared to a year ago, despite real wages going backwards as a result of record high inflation?

💬 Rt Hon JACINDA ARDERN: This is an interesting conundrum for the member because he now seems to be promoting the idea of tax decreases or tax reductions, which, of course, would have an inflationary impact, which he’s also arguing against.

💬 Christopher Luxon: Can she confirm Kiwi workers will pay over $12 billion more in income tax this year than in 2017, and does she think that’s fair when wages are no longer keeping up with the cost of living?

💬 Rt Hon JACINDA ARDERN: Again, the member contradicts himself. On the one hand, he seems to be arguing for tax cuts, which, of course, would have an impact on inflation. On the other hand, the increase in tax take, of course, is linked to the fact that we do have people on higher wages and we’ve been working very hard to ensure that’s the case: more people in work, more people earning more. And, of course, as a Government, some of those people are people who are teachers, who are nurses, who all deserve those pay increases that they received.

💬 David Seymour: Can the Prime Minister’s Government control the cost of living and, if it can, why is the price of so much going up so fast for everyday Kiwis?

💬 Rt Hon JACINDA ARDERN: You will see that the Reserve Bank itself has pointed to the fact that many of the causes of the increases in inflation that we’ve seen are caused by the likes of higher prices for imported goods and, in particular, oil. Those are their words themselves. And I would reflect on statements made by members of this House: “There’s not a lot that you can do about fuel prices, because they are dictated globally.” That was the honourable leader of the National Party, Chris Luxon.

💬 Christopher Luxon: Is it her position that a record increase in new spending at a time of record increases to prices is not going to make the cost of living worse?

💬 Rt Hon JACINDA ARDERN: If the member wishes to criticise the level of spending that this Government has made, then he may wish to question the time that National was in office when, as a percentage of GDP, they were relatively similar. We spent in 2020, as a percentage of GDP, 34.3 percent; National, in 2009, 34.7. You’ll see the same again for 2021. So if the member is now departing from what has been an established principle around the Crown spending relative to GDP, then he may wish to tell voters what services, what investments he will cut. Will it be education? Will it be health? Will it be infrastructure?

💬 Christopher Luxon: Does she accept that with the cost of living going up at the fastest rate in over 30 years, she actually has plenty of tools available to help struggling Kiwis but she is choosing not to use them so she can increase her Government’s own spending?

💬 Rt Hon JACINDA ARDERN: The tool that the member is talking about is cutting the very services that New Zealanders rely on. It’s cutting healthcare spending, it’s cutting education spending, and if that is not the tool the member is referring to, then he owes it to New Zealanders to explain what tool exactly it is.

Question No. 3—Immigration

3. to the Minister of Immigration: What steps, if any, will he take to support people in Ukraine fleeing due to invasion and war in their homeland?

Our thoughts are obviously with the people in Ukraine impacted by the conflict. As we have said, Immigration New Zealand are able to prioritise urgent visa applications from Ukrainian nationals, and they’re also considering what further mechanisms can be utilised within our existing policy. I understand that as of Monday Immigration New Zealand had 172 applications on hand across all visa categories, where the principal applicant’s nationality is Ukrainian; 106 of those are offshore, 66 of those onshore, and I understand that 30 applications have been approved in the last week and that in the month of February a total of close to 70 applications were approved. New Zealand is also providing $2 million to Ukraine to help deliver essential humanitarian assistance with a focus on supporting health facilities and meeting basic needs such as provision of food and hygiene items. I want to stress in terms of people in New Zealand it is understandable that people will want to stay here longer, and that they can apply for an extension to existing visas. Each application is considered on a case-by-case basis, and I understand that the approval rate for the month of February for those types of applications is close to 99 percent. New Zealand also has a longstanding refugee programme, where this Government recently increased the quota to 1,500. Under this programme we work closely with organisations like the United Nations High Commissioner for Refugees (UNHCR) on all emergency referrals and we are working closely with international partners on this, and we stand ready to assist with the situation in Ukraine.

Ricardo Menéndez March: Will he include Ukrainians on the list of visa-waiver countries so Ukrainians can have safe passage and be reunited with their families in Aotearoa; if not, why not?

💬 Hon KRIS FAAFOI: If there are Ukrainian nationals who are either citizens or residents in New Zealand, they are able to use the channels available to them now to bring their family to New Zealand—their dependents and partners. As I say, we stand ready to prioritise applications that come to Immigration New Zealand and we are also ready to deal with any humanitarian crisis, obviously, and we will be able to look at our UNHCR commitment of 1,500 refugees per annum.

Ricardo Menéndez March: Point of order. My question was around the visa waivers for Ukraine, and I don’t believe that was addressed whatsoever.

💬 SPEAKER: It mightn’t have been answered but it was addressed. The member can have another supplementary to have a go—an extra supplementary.

Ricardo Menéndez March: Thank you. Will he commit to removing barriers such as the living together requirement for partnership visas and to reopen the parent category without the high salary requirements, so Ukrainians can be safely united with their whānau in Aotearoa?

💬 Hon KRIS FAAFOI: To the first part of the question, I’ve already spoken about the prioritisation and the pragmatism that Immigration New Zealand take when dealing with applications from the Ukraine. I would also note that I think most New Zealanders would want to make sure that we keep rigour in the system around making sure that people who are in partnerships are actually in genuine partnerships. But, again, Immigration will look at every case that comes through Ukraine, as I’ve mentioned. There are a small number of cases at this stage, and there’s a pragmatic basis to make sure they are making the decisions that suit but also that they have the rigour of a process that we usually have when reassessing temporary visa applications.

Ricardo Menéndez March: Has he considered waiving visa fee applications of Ukrainian nationals and people facing war in their homelands?

💬 Hon KRIS FAAFOI: Not at this stage, but if that is a large barrier to people putting forward applications for their situation, we can certainly look at it. I don’t think that would be too much of an impost given the small number of applications coming in to this day.

💬 Erica Stanford: Will he urgently adopt National’s suggestion to implement a Ukrainian humanitarian visa to allow immediate family members of Ukrainian Kiwis to travel to New Zealand to keep them safe, and if not, why not?

💬 Hon KRIS FAAFOI: As I mentioned in an earlier supplementary answer, if Ukrainian nationals are here in New Zealand and they are either residents or citizens, they are able for the partners and dependants to be able to apply through the normal means in order to bring their families here. If there are other humanitarian issues that they find themselves in, there are also other existing policies—they could do that—and we stand ready with our increased refugee quota of 1,500 to deal with any humanitarian crisis that might eventuate.

Golriz Ghahraman (remote): Will the Minister commit to taking 2,000 Ukrainian refugees, who have fled violence who are right now stranded in overcrowded refugee camps at the border, to acknowledge that New Zealand’s refugee quota has not, in fact, been filled for the past two years?

💬 Hon KRIS FAAFOI: The situation in Ukraine is obviously developing quickly. We are speaking with our international partners on a weekly basis to understand the humanitarian situation there and, as I said, we are ready to respond to it. This Government recently increased our refugee quota from 750 to 1,500, and we stand ready to utilise that to respond to the situation in Ukraine. This Government acted and lifted its weight and took its weight in Afghanistan last year. It will continue to do that with the situation in Ukraine this year with our increased refugee quota.

Ricardo Menéndez March: Is he confident the current visa settings are sufficient to reunite Ukrainians with their family; and what are the expectations in regards to the visa processing time lines for those people?

💬 Hon KRIS FAAFOI: As I mentioned, Immigration is able to prioritise applications from Ukrainian nationals and they are doing that as we speak. As I said, if we are talking about partners and dependants of Ukrainian nationals who are citizens and residents here at the moment, there is the ability for them to bring their families here. There are also other measures in terms of compassionate grounds that people are able to apply for a visa and, as I want to stress, we also stand ready with our UNHCR commitment to 1,500 refugees per annum to respond to the humanitarian crisis in Ukraine.

Golriz Ghahraman (remote): It’s good to hear the Minister confirm that the refugee quota still stands, but noting that it has, in fact, been on hold for the past two years, will he commit to reopening the refugee quota so Ukrainians fleeing violence and others escaping crises around the world right now can begin to apply for refugee resettlement here again?

💬 Hon KRIS FAAFOI: All our refugees come through the UNHCR process so we will work closely to respond to the situation in Ukraine alongside the UNHCR and we will manage that within the 1,500 refugees that we have recently increased, as I have mentioned. The situation in Ukraine is developing quickly and, as we have noted a number of times over the last week, we believe that the preference for a lot of the people who are fleeing their homes at the moment is to return to their homes. That is why we are standing ready to respond to the emerging situation in Ukraine.

Question No. 4—Finance

4. to the Minister of Finance: Does he stand by all his statements and actions on public spending?

Yes, in their context. In particular I stand by the Government’s announcement of the targeted COVID support payment to help businesses who are most directly affected by the Omicron outbreak. The first payments for this scheme went out yesterday, with a total of $166 million paid out to over 33,000 businesses. We’ve seen, in recent times, that demand bounces back strongly once concerns about the spread of COVID-19 have eased. The COVID support payment is a good example of the role of public spending in making sure that the supply side of the economy is supported through the effects of the pandemic, and is better able to meet consumer demand when economic activity does bounce back.

💬 Hon Simon Bridges: Does he accept that, according to the OECD, he has spent more public money during the pandemic, as a proportion of GDP, than any other Government in the Western World bar the United States and, with $6 billion of new spending coming in Budget 2022, when is enough?

💬 Hon GRANT ROBERTSON: I do accept that New Zealand has responded strongly to a one-in-one-hundred-year global economic shock to support New Zealanders’ lives and livelihoods. I also accept that members of the Opposition have often called for us to spend even more in those particular areas. I also accept that the OECD has remarked upon the fact that New Zealand continues to have a very strong fiscal strategy, including one of the lowest levels of debt in the OECD.

💬 Hon Simon Bridges: Does he accept what Adam Creighton wrote in The Australian newspaper last week: “New Zealand, cocooned away from the world for almost two years to keep Covid-19 at bay, increased its public debt between 2019 and this year by the equivalent of 24.5 percent of its annual economic output, more than any other advanced nation”, and, if so, why does he feel the need to double down on this mountain of debt and spending with $6 billion in Budget 2022?

💬 Hon GRANT ROBERTSON: No.

💬 Hon Simon Bridges: Does he accept that his forecast $6 billion in operating allowances or new spending in Budget 2022 will be the highest new spend in a Budget ever, in New Zealand?

💬 Hon GRANT ROBERTSON: What I accept is that the Government, faced with nine years of neglect by the National Government of the health system, has to invest in a one-off way to create what is a significant operating allowance. That money is required to make sure that New Zealanders get the health services that they deserve. The question the member has to answer is: “What would he cut?” Will it be health, will it be education, will it be housing?

💬 Hon Simon Bridges: Well, in light of that about health spending in his statement at another question time that, “a big chunk” of his $6 billion will go on a health restructure, how can this be a good idea—let alone value for money—when one of the biggest DHBs, the Waitematā DHB, has recently stated that there is a major and likely risk of “disruption to the delivery of safe and effective patient care due to the uncertainty and distraction created by those health reforms”?

💬 Hon GRANT ROBERTSON: What we have seen throughout the COVID-19 pandemic is the New Zealand health system step up and make sure that we look after the lives of New Zealanders. Equally, it has also highlighted the enormous inequities in our health system—the fact that Māori have much poorer outcomes than non-Māori; the fact that we have a postcode-style health system that that member’s party entrenched by underfunding health for nine years. On this side of the House, we are extremely proud of the fact that we take health funding seriously.

Question No. 5—COVID-19 Response

5. to the Minister for COVID-19 Response: What recent changes has the Government made in response to the Omicron outbreak in New Zealand?

Thank you, Mr Speaker. As of last Friday, with case numbers growing, New Zealand’s moved to phase 3 of our Omicron response plan. These changes are intended to help ease the pressure on our testing and contact tracing systems as case numbers increase over the coming weeks, while also helping to ensure that critical services and supply chains remain operational and our economy can keep moving. There’s no doubt that the next few weeks are going to be quite challenging, but New Zealand is better positioned than most countries to respond to Omicron. What we’re seeing with case numbers is what we’ve expected to see; we just need to stick to the plan as we manage higher case numbers in the coming weeks before we do reach that peak.

💬 Vanushi Walters: How does isolation change for individuals at phase 3?

💬 Hon CHRIS HIPKINS: There are number of significant changes that we’ve announced. Close contacts will no longer be required to self-isolate. Only confirmed cases and household contacts of a confirmed case will be required to do so. Confirmed cases and household contacts should isolate for 10 days, but they can now self-release after the 10th day, providing testing requirements are met. If they develop symptoms, they are encouraged to test sooner. We’re continuing to support our critical services to operate and the critical worker exemption scheme announced last month will enable eligible household contacts—

💬 David Seymour: What about teachers?

💬 Hon CHRIS HIPKINS: —to return to work during their isolation period—including teachers, where they have to—by returning a daily negative rapid antigen test.

💬 Vanushi Walters: What does testing look like at phase 3?

💬 Hon CHRIS HIPKINS: With millions of rapid antigen tests (RATs) now dispatched around the country to testing sites, GPs, pharmacies, and within workplaces, rapid antigen tests have become the primary form of testing. The people who need them can now access a RAT test from hundreds of locations, making it easier to get. Over the coming days, the number of access points will continue to increase significantly. Locations that have rapid antigen tests available can be found on the Healthpoint website. PCR testing will be reserved for people who are clinically indicated, so that it’s targeted to those most in need. A PCR test will no longer be required to verify a positive rapid antigen test result in most cases. In addition, approved rapid antigen tests are now available to be sold to the public through retail outlets. This will provide a choice and access for the general public and for small businesses.

💬 Vanushi Walters: What else can people do to prepare themselves and their households against the spread of Omicron?

💬 Hon CHRIS HIPKINS: Preparation and supporting one another will continue to be a key measure. We’ve been asking people to prepare for the last few weeks, both mentally and by putting their own response plans in place. People should make their own isolation plan and their stay-at-home kits in conjunction with friends and whānau, and be ready to use the tools that are available. That will help us to free up vital resources. Our vaccination rate should make the next period less of a worry for the vast majority of people, but we are still strongly encouraging people to get vaccinated and to get boosters. You’re 10 times less likely to need hospital care and it helps to lower the rate of transmission.

Question No. 6—Health

6. to the Associate Minister of Health: Does she stand by her statement on 25 January 2022 that the Government has “Increased our PCR testing capacity from a maximum of 39,000 tests a day to a baseline of 58,000 tests. Surge capacity is now 77,600 tests, which can be sustained for 7 days”, and is she satisfied with the performance of COVID-19 testing during the current outbreak?

That statement was based on the advice and information provided at the time. As the Director-General of Health said yesterday, the Ministry of Health overestimated PCR capacity and provided an explanation for the circumstances that led to this. However, regardless of the baseline capacity, it was always clear that PCR testing would need to be switched to rapid antigen testing as Omicron cases increases.

💬 Chris Bishop: Why didn’t you do anything?

💬 SPEAKER: Order!

💬 Hon Dr AYESHA VERRALL: That’s why they were a core part of the three-phase plan I announced on 26 January. Phase 2 provided for a transition from PCR to the increasing use of rapid antigen tests (RATs) to accommodate the growth in cases. That transition proved challenging, but in the last week, 7 million RATs have been sent out from the Ministry of Health to be distributed in testing centres, general practices, pharmacies, and other pick-up points. I am satisfied that our testing system is delivering free testing to people who need it.

💬 Chris Bishop: When, if ever, was she advised by the Ministry of Health that the baseline figure of 58,000 tests and surge capacity of 77,600 tests would not be reached, and why did the Government not correct those figures earlier than yesterday when Dr Bloomfield apologised?

💬 Hon Dr AYESHA VERRALL: There was a variety of different figures raised by officials as the baseline figure, but I would remind that member of my primary answer, which is that the issue here about people who have had a delay in obtaining their PCR result is not caused by the baseline capacity but by the need to transition to rapid antigen tests. The director-general has initiated an investigation into the difficulties with that transition that led to the backlog in PCR tests.

💬 Chris Bishop: Point of order, Mr Speaker. I think that was a very specific question about when she was advised by the ministry that the baseline figure was incorrect, and that was not addressed.

💬 SPEAKER: Well, I think the Minister started off by saying there was a range of dates. Was that the expression?

💬 Chris Bishop: On what date was she advised by her advisers at the Ministry of Health that the 58,000 figure was wrong?

💬 Hon Dr AYESHA VERRALL: That 58,000 figure—sometimes referred to as the baseline or business as usual, figure—was agreed with laboratories and that figure does not relate to the problem of pooling; which includes our pooled capacity. It includes pooled capacity and is higher than the current number without pooling, which is approximately 30,000 tests.

💬 Chris Bishop: Why did the Ministry of Health advise media just nine days ago that it stood by its estimate of 58,000 tests per day, and did she know that that figure was wrong earlier than nine days ago?

💬 Hon Dr AYESHA VERRALL: The difference between the 58,000 figure and the figure which is 30,000 is the difference between a capacity with pooling, which is the higher number, and a capacity without pooling, which is the lower number.

💬 Chris Bishop: Why did the ministry release figures nine days ago to media saying that 58,000 tests could be conducted per day, and is this not misleading the public as to the actual availability of PCR testing in New Zealand?

💬 Hon Dr AYESHA VERRALL: The Director-General of Health has set out yesterday the reasons for the underestimate of the capacity, which in particular—the discussion yesterday was about the unpooled capacity. The director-general has apologised for that, and taken responsibility for fixing the backlog of PCR tests.

💬 Chris Bishop: Have any PCR samples aged past the point at which they lose accuracy, and if so, how many have been processed anyway, and how many, if any, have been discarded?

💬 SPEAKER: Any one of the three questions.

💬 Hon Dr AYESHA VERRALL: The plan for addressing of the backlog is done in conjunction with the laboratory network, where pathologists who are experts in these matters participate in the decision making.

💬 Chris Bishop: I raise a point of order, Mr Speaker. That doesn’t address the question at all.

💬 SPEAKER: It didn’t actually address any one of the three questions that was asked.

💬 Hon Dr AYESHA VERRALL: Pathologists who are experts in when the samples are at their period where they can be analysed will be making the decisions on whether or not these samples are analysed.

💬 Chris Bishop: So has she been advised as to whether any PCR samples have aged past the point at which they lose accuracy and have therefore been discarded?

💬 Hon Dr AYESHA VERRALL: No, I have not. But the most important thing is that for the people concerned, they have been advised by text message that their samples have been delayed and that they are encouraged to seek a rapid antigen test in order to get an answer for the reason that they sought a test in the first place. In addition, we know that many of them have sought that option out.

Question No. 7—Economic and Regional Development

7. to the Minister for Economic and Regional Development: What announcements has he made recently about the Regional Strategic Partnership Fund?

Recently, I announced that the Government has invested in world-leading lithium recovery technology, helping Geo40 Ltd to scale up its proprietary technology in the central North Island. The investment of $2 million through Kānoa will see the Government take a further equity stake in Geo40 Ltd. It will allow the company to progress its lithium recovery process, which it does through processing the by-product of geothermal energy production, before moving to commercial-scale development. This is a game-changing programme of work that aligns exactly with New Zealand’s global brand in that it has potential to strengthen our geothermal energy in advanced manufacturing sectors, contribute to a lower-carbon future, extract a premium due to New Zealand ingenuity, and diversify our regional economies.

Tāmati Coffey: What has been the response to the Government’s investment in lithium recovery technology?

💬 Hon STUART NASH: The response to the Regional Strategic Partnership Fund investment into Geo40 has been positive. I’m incredibly excited about the investment into this game-changing technology, and this aspiration is catching on. Research scientist Isabela Alves de Castro said the local workforce, which includes world-leading experts in engineering and renewable energy, is—and I quote—“Just very excited to be working on extracting lithium. That is something really big.” Geo40 chief executive John Worth said, “We’re in the lithium tech race. It’s a pretty exciting race because the demand for lithium has never been stronger.” And other media have noted that “Taupō is a region heavily dependent upon tourism. This technology will juice up a different sector.”, and “It’s hoped when it’s produced on a large scale it will bring long-lasting benefits for our economy and a cleaner future on the road.”

Tāmati Coffey: Why is the Government investing in regional economies through the Regional Strategic Partnership Fund?

💬 Hon STUART NASH: I’m incredibly proud of our Government’s track record on delivering for regional New Zealand. We have delivered on our manifesto commitment to continue supporting regional economic development. Through our Regional Strategic Partnership Fund, local leaders help set the strategic priorities for investment in which seed funding is provided and is used as a catalyst for other investment. Unlike the Northland ghost bridges announced by those on the other side of the House—

💬 SPEAKER: Order! Order! The member will resume his seat. The tail end of the answer is clearly out of order, and I suggest that the first part of it didn’t actually address the question, but that’s probably poor drafting of patsies.

Question No. 8—Immigration

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

Yes. In particular, I stand by the 2021 Resident Visa. Yesterday marked the successful launch of phase 2, with applications opening for another 85,000 migrants here in New Zealand. As of midday, 18,500 applications were successfully submitted in the first 24 hours of phase 2. This is a significant achievement because, previously, the highest number of visa applications received by Immigration New Zealand was around 3,500 in a 24-hour period. Under phase 1, which began in early December, nearly 10,000 applications have already been approved, which equates to more than 20,000 people becoming New Zealand residents. The Government has created this new, one-off residence pathway, recognising the immense contribution migrants have made to New Zealand during the COVID-19 crisis, and appreciating the uncertainty they have faced with border restrictions. We’ve been working hard to make sure that the new 2021 Resident Visa application process is simple and that it is streamlined and easy for individuals. This has also meant Immigration New Zealand are able to process these applications on a highly effective basis, which is borne out in these numbers.

💬 Dr James McDowall: Why, after three months of preparations since the opening of phase 1 of the 2021 Resident Visa, was Immigration New Zealand not able to prevent its website crashing upon the opening of phase 2, and does he acknowledge that the demand for this visa is the result of an immigration system that takes far too long to process visa applications and constantly shifts the goalposts?

💬 Hon KRIS FAAFOI: I note that the member continues to focus on the negative. There was a 10-minute outage of a system that has been in operation, as of 2 o’clock today, for 1,680 minutes. As I say, there have been 18,500 applications so far. I think it goes to show that there is demand for it and that the system is working, and I’m very proud of the people who have put in an effort to make sure that that system is up and running to ensure those 85,000 applicants can become New Zealand residents.

💬 Dr James McDowall: Does the Minister think it is fair to give the lowest processing priority to families who did the right thing at great cost in renewing their work visas in the past few months, while prioritising those whose visas are expiring soon but can be granted a one-year 2021 interim visa to tide them over anyway?

💬 Hon KRIS FAAFOI: I thank those families who made sure that they stayed legal in terms of their visas. The processes around the triaging of the applications were worked through by Immigration New Zealand with a focus group which included Business New Zealand, the Employers and Manufacturers Association, Federated Farmers, and the Council of Trade Unions. They all agreed—and also licensed immigration advisers, of which sector the member has come from. I would note that they were very happy with that approach in order to make sure that the processing of those applications is done in an expeditious and efficient way.

💬 Dr James McDowall: Why is the Minister, as part of the Government’s immigration reset, considering sidelining hospitality workers in its forthcoming residency changes and hiking up the investor 1 category to as high as $25 million when he should instead be focused on fixing a broken immigration system that has destroyed families and made it near impossible for businesses to fill workforce shortages?

💬 Hon KRIS FAAFOI: The Government agrees that the immigration system needs reworking, which is why we are rebalancing the immigration system to a high-wage and high-skill model. We will continue to work with sectors that have continued to work with the likes of working holiday visas or short-term temporary visas to make sure that they can transition to the new model. But, as the Productivity Commission is highlighting in some of its interim findings in looking at our immigration settings, there are some long-term settings that New Zealand has to look at in terms of its immigration system to benefit the economy and our country as a whole.

Question No. 9—Education

9. to the Associate Minister of Education: What steps is the Government taking to support new entrants’ literacy and oral language success?

Through our Better Start Literacy Approach (BSLA), all new-entrant and year 1 teachers have access to training in an integrated approach to developing vocabulary, oral language, spelling, writing, and reading skills in the first year of learning. This approach is steeped in the best of international and domestic research and evidence developed by the University of Canterbury over the last 10 years. BSLA focuses on the link between spoken and written language, systematically supporting children’s phonological and phonemic awareness, letter sound knowledge, and oral language, and is delivering results. The programme is part of the Government’s wider strategy to shift the dial on teaching and learning of literacy across the country.

💬 Angela Roberts: What results has the Better Start Literacy Approach shown so far?

💬 Hon JAN TINETTI: While we’re still in the early days of this programme, early data is showing that the majority of five-year-old learners are able to transfer their emerging phoneme awareness and phonic knowledge to the reading and spelling of words that they haven’t seen before. We are also seeing strong evidence that the delivery model is supporting positive changes to teaching practices. Feedback from teachers to date has been very positive about BSLA and the difference it is making to their teaching practice and learning outcomes for their students. This shows that the Government’s approach to working alongside the teaching profession, students, experts, and community is lifting literacy achievement in New Zealand.

💬 Angela Roberts: What other work is under way to assist young Kiwis in the early years of their literacy journey?

💬 Hon JAN TINETTI: Ensuring that all Kiwis are developing the tools they need to lead fully functioning lives is a priority for this Government. In addition to BSLA, we have funded the Oral Language and Literacy initiative in early learning education services across eight regions to support oral language and literacy skills in low socioeconomic communities. We’ve updated the Ready to Read junior readers to include phonemic awareness to support our children when they first enrol at school. We’ve invested in Reading Together to teach parents and whānau how to read and talk with their child and build strong foundations for language and literacy. We’ve also focused heavily on the refresh of the literacy curriculum, the NCEA co-requisites, and learning and assessment tools.

Question No. 10—Prime Minister

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

Yes, in particular our recent announcement to provide $140 million of extra support to Māori and Pacific communities to help them respond to the Omicron outbreak. This funding will focus on supporting 160 Māori and Pacific health providers to support their communities to respond to Omicron. We know Omicron is likely to have a disproportionate effect on Māori and Pasifika, and we know our targeted funding today has made a huge difference in lifting vaccination rates and reducing the vulnerability of whānau, which is why we’re continuing to build on this approach and continue to directly support our Māori health providers.

💬 Debbie Ngarewa-Packer: Why has the Director-General of Health decided to use rapid antigen testing as a diagnostic rather than just a screening tool, despite earlier criticising the reliability of rapid antigen tests?

💬 Rt Hon JACINDA ARDERN: Because, as the member has pointed out in the question, one of the reasons it’s been used as a diagnostic tool is simply to ensure that we can get the scale, reach, and immediacy for this period of the outbreak. In the beginning, of course, we were continuing to run an elimination strategy, which meant precision was key. We’re now at a point where we’re continuing to manage down as much as possible, to reduce the impact on the health workforce, so it means you have a greater tolerance for the fact that rapid antigen testing has an error rate of between 80 percent and above. For surveillance, it’s because of that error rate that you do rely on using them for those that you’ve identified as household contacts or for those who are symptomatic.

💬 Debbie Ngarewa-Packer: Isn’t this U-turn on rapid antigen testing and failure to order tests early enough the direct reason why so many of our people, such as kura kaupapa and iwi, are struggling to access tests as we speak?

💬 Rt Hon JACINDA ARDERN: I would actually refute the premise of that question. We have, in our Omicron response plan, embedded rapid antigen testing from phase 2. At the time that we did that, we had millions available. The access or the number of rapid antigen tests has not been an issue, unlike in the likes of Australia, where, at a critical point, they did run out. We’ve had 10 million arrive recently, another four—there is wide availability. But the question we’ve asked—

💬 Hon Member: No shortage?

💬 Rt Hon JACINDA ARDERN: If I may, I know that audio is difficult, when there is interjection, for a member.

💬 SPEAKER: I did make that point earlier to members, and that is that for people who are participating remotely, the level of interjection interferes more than it does otherwise, and if some of the dials are at 12, it then means we get other interference. The Prime Minister.

💬 Rt Hon JACINDA ARDERN: To respond to the member’s specific question on accessing kōhanga reo or in kura, this is an issue that’s been raised with us. I understand that Minister Davis has asked Ministry of Health officials to engage directly with leaders in the field. There was a hui, I believe, yesterday. We are really wanting to support and encourage greater availability of rapid antigen in those areas, so we hope that will ensure that that is happening as soon as we can.

Hon Peeni Henare (remote): Tēnā koe, Mr Speaker. Thank you very much. What reports has she seen about the recent Government announcement supporting the Māori response to the Omicron outbreak from Māori and/or Pacific health providers?

💬 Rt Hon JACINDA ARDERN: I’ve seen a range of reports, but if I perhaps reflect on one from at least one of our Māori providers, who has said, “I just want to start by saying no other Government leadership would provide the type of targeted funding to Māori and Pacific organisations as this Government has.”, and that was a statement made by John Tamihere; or the South Seas chief executive, who said, “We can pay for more staff. We can pay the coordinators at churches who organise.” We want to make sure that we have a step change in the way that people access their healthcare, and particularly our Māori and Pacific communities, and we are doing that through this COVID response.

💬 SPEAKER: Further supplementary, Debbie Ngarewa-Packer, and I’ll just indicate to members participating remotely that we tend to do these in twos. So you automatically get two, and then anyone else will have a go.

💬 Debbie Ngarewa-Packer: Thank you; very keen to hold on to all of mine—thank you, Mr Speaker. Will the Prime Minister support an independent inquiry into the Ministry of Health’s handling of rapid antigen tests’ roll-out; if not, why not?

💬 Rt Hon JACINDA ARDERN: As you will have heard the Associate Minister already reference in her response, we had rapid antigen tests available within phase 2. That was the point at which the expectation was, as the positivity rate increased, that you’d see that flip from PCR into rapid antigen. Unfortunately, there are some individuals who, during that transition, were waiting just too long for their results, and that’s been acknowledged, and as you would have heard the director-general say, he is looking back at what happened during that transition. But, now, the rapid antigen tests we have—[Interruption]

💬 SPEAKER: Order!

💬 Rt Hon JACINDA ARDERN: We have plentiful stock available. It is now about making sure that we have access at those collection sites that are most convenient, particularly for our rural and isolated communities. We have hundreds of collection sites now; those will continue to increase next week, but I would, of course, say, as the Associate Minister of Education has already encouraged, we do want a specific solution for the likes of kōhanga reo.

💬 Debbie Ngarewa-Packer: Does the Prime Minister accept that thousands of whānau across the country are struggling financially and mentally in isolation, due to her Government’s failure to implement a Māori home isolation strategy, with targeted support.

💬 Rt Hon JACINDA ARDERN: Actually, I am going to push back on that. Over $250 million has gone into funding a response that supports our Māori communities through COVID-19, because we recognised from the beginning the disproportionate impact this pandemic would have on Māori communities and Pacific communities. And we’ve worked very closely on our care in the community model, and what demonstrates the impact that that model is having most is the fact that overall, relative to other countries, we have not seen the scale of loss of life, through that care in community model, that we have elsewhere. Are there things that we could improve on? Almost always and certainly, and we’ll continue to work alongside our providers to make sure we’re reaching whānau who need support as we navigate this pandemic.

Question No. 11—Workplace Relations and Safety

11. to the Minister for Workplace Relations and Safety: What recent reports has he seen about WorkSafe’s enforcement of COVID-19 rules for workplaces?

Since August 2021, WorkSafe has received approximately 9,000 COVID-related notifications and carried out over 7,000 COVID-related assessments taking 114 enforcement actions against businesses for deliberate and ongoing non-compliance under the COVID protection framework. WorkSafe plays a critical role in the Government’s response to COVID-19 ensuring that businesses and organisations are meeting their obligations under the COVID protection framework. I know how deeply COVID-19 has impacted many businesses and workers over the past two years. WorkSafe’s enforcement activities through the pandemic show that most businesses are overwhelmingly committed to following the rules and that the Government is firmly committed to ensuring that organisations are playing their part in keeping Kiwis safe from COVID-19.

💬 Camilla Belich: What other tools besides enforcement does WorkSafe use to ensure compliance?

💬 Hon MICHAEL WOOD: WorkSafe takes an “educate first” approach when engaging with businesses to help them understand their responsibilities under the COVID protection framework and the potential consequences if they continue to fail to meet their obligations. A graduated approach to enforcement is taken, moving from education and warnings through to written directions and infringement notices. Non-compliance is often due to misunderstanding, lack of awareness of requirements, or insufficient training—all of which can be corrected through timely intervention by WorkSafe’s team. And the relatively small number of serious enforcement actions taken by WorkSafe show that this positive engagement is working. It shows that WorkSafe’s strategy is effective and it shows that the overwhelming majority of Kiwi businesses want to do the right thing on behalf of the workers, their customers, and their communities.

💬 Camilla Belich: How has the Government funded and supported this work?

💬 Hon MICHAEL WOOD: The Government approved $4.373 million of funding for WorkSafe’s COVID compliance and enforcement role in late 2021-2022. This funding is supporting WorkSafe to build a COVID-19 - focused workforce and to deliver a range of education and enforcement interventions without having to trade off against other important priorities. It’s also helping WorkSafe to report iwi Māori community advisers to support engagement with Māori kaimahi and community on COVID-19 responsibilities. Additionally, over $2.1 million in funding was provided in 2020-2021 to industry leadership bodies who are experiencing financial difficulty in maintaining their core capacity—and that’s been important in making sure that we’ve had leadership on the ground.

💬 Camilla Belich: What sort of enforcement action has WorkSafe taken against businesses who have deliberately and repeatedly failed to comply with their obligations under the COVID protection framework?

💬 Hon MICHAEL WOOD: As I’ve said before, the overwhelming number of businesses are doing the right thing and, particularly when WorkSafe provides support and guidance, they generally respond very well. But it is important that a clear message is sent to the very small number who consistently and deliberately flout the rules. Some of these cases include businesses not having systems in place to check other people’s vaccine passes, to scan QR codes; allowing unvaccinated staff to continue working in spite of vaccine mandates; or failing to keep accurate contact-tracing records. Where these cases are persistent and deliberate and there is no response to reasonable engagement from WorkSafe they have taken a strong approach, including the imposition of infringement notices and fines of between $4,000 and $12,000 per offence, and that should send a strong message and give confidence to good Kiwi businesses that the other businesses who are not doing as they should do face consequences.

Question No. 12—Foreign Affairs

12. to the Minister of Foreign Affairs: Does she stand by the Prime Minister’s statement, “we have subsequently sought advice on a specific Russian sanctions bill”; if so, when will the Government introduce a specific Russian sanctions bill?

💬 SPEAKER: The Hon Grant Robertson.

💬 Hon Grant Robertson: It’s David Parker online.

Point of order. Mr Speaker, I’m very happy to answer on behalf of the Government if that’s going to be of any help.

💬 SPEAKER: Order! Order! We have obviously had a communication error. I understand that the Deputy Prime Minister is going to answer on behalf of the Minister of Foreign Affairs.

on behalf of the Minister of Foreign Affairs: Indeed, I am now aware of that! On behalf of the Minister of Foreign Affairs, we are continuing to take advice on that matter and we will introduce such a bill as soon as we are able to.

💬 Hon Gerry Brownlee: To the Minister, what is your response to reports by The Wall Street Journal on the Government’s response to Russia? That “Foreign-policy experts and some lawmakers consider that response to be inadequate and risks creating a perception that New Zealand could become a backdoor for Russian money unable to find a home elsewhere.”; and is she embarrassed by how out of step New Zealand is with our traditional security partners?

On behalf of the Minister, no. The Minister has herself been in Europe recently discussing New Zealand’s response and, as the Prime Minister said yesterday, has in fact received a very positive view about the fact that New Zealand has been in line with the international community and indeed was one of the first countries to step up in the humanitarian aid space.

💬 SPEAKER: A point of order, the Hon David Parker, participating remotely.

Hon David Parker (remote): Thank you, Mr Speaker. I have been here throughout question time and as Acting Minister of Foreign Affairs was ready to answer that question, so I think there might have been a mistake in the Speaker’s office.

💬 SPEAKER: Well, the Minister is absolutely correct that there has been a mistake. As Speaker, I am normally informed of who is answering the question. I was not in this case. I sought advice as to who was answering the question and I used that when I called the Deputy Prime Minister—

Hon David Parker (remote): In the circumstances—

💬 SPEAKER: Order! Order! We can, actually, when a Minister enters the Chamber partway through the question, that Minister is able to continue answering the supplementaries as if he is the Minister, and what will happen from this point on is the Hon David Parker will answer further supplementaries. And to assist Mr Brownlee, I will grant him an extra supplementary.

💬 Chris Bishop: Point of order, Mr Speaker.

💬 SPEAKER: Well, as long as it is a point of order and it’s not disorderly, because the member’s got that look on his face.

💬 Chris Bishop: I haven’t even said anything yet!

💬 SPEAKER: No, well look, the member doesn’t need to.

💬 Chris Bishop: Point of order.

💬 Hon Member: Point of order.

💬 SPEAKER: No, Chris Bishop has the call.

💬 Chris Bishop: I was trying to assist the House in the spirit of bipartisanship. We’re in a slightly unusual situation here where we have the actual Acting Minister of Foreign Affairs in the Chamber, albeit virtually. I put it to the House, and put it to you, sir, that the simplest thing to do would be to actually just start again, because it’s clear the Deputy Prime Minister—with the greatest respect to him—did not anticipate that he would have to answer those questions. He did a manful job in the circumstances, but we actually do have the Acting Minister of Foreign Affairs in the Chamber. So why don’t we just put all that behind us, wipe it from the record and start again.

💬 SPEAKER: OK. I’m going to seek the leave for us to start this question again. Is there any objection to that process? There appears to be none. We’ll start the question again, but of course, Mr Brownlee, you won’t get that extra supp.

💬 Hon Gerry Brownlee: Point of order, Mr Speaker.

💬 SPEAKER: The member might lose—

💬 Hon Gerry Brownlee: Well, no, I’m not going to try and antagonise you.

💬 SPEAKER: The Hon Gerry Brownlee, a point of order.

💬 Hon Gerry Brownlee: I’m simply making the point that the extra supp was granted because of the inconvenience around this whole question. It is a serious issue, and when I was asking questions—I asked two questions to the Minister who was standing in—they were tailored largely understanding that that Minister wouldn’t have some of the understanding the other one does.

💬 SPEAKER: And I just work back: the member’s got all the supps he started with. All right? I’m not taking any off the member; I’m just not granting him any extras. And if it is such an important matter, then the Opposition might have saved more than two supps.

💬 Hon Gerry Brownlee: We’ve got three.

💬 SPEAKER: No—two. The Hon Gerry Brownlee, ask the question.

💬 Hon Gerry Brownlee: Does he stand by the Prime Minister’s statement, “we have subsequently sought advice on a specific Russian sanctions bill”; if so, when will the Government introduce a specific Russian sanctions bill?

💬 Hon DAVID PARKER: As the Deputy Prime Minister has already said, of course we stand by the Prime Minister’s statements and the actions that New Zealand immediately took to both condemn the Russian invasion and introduce the sanctions that have previously been listed on a number of occasions in the House. The member will be aware from the email that was sent to his office earlier today that the Minister of Foreign Affairs intends to take a proposed bill to Cabinet on Monday to enable further sanctions on Russia, and I’m pleased that the member has accepted the invitation for a briefing on that legislation, that briefing being scheduled for the day after tomorrow.

💬 Hon Gerry Brownlee: If as the Prime Minister has said, the Deputy Prime Minister has said, and the Minister himself has said, New Zealand has responded very, very positively and been well regarded for our response, why, then, is there a need for this bill?

💬 Hon DAVID PARKER: Because the breadth of sanctions that are enabled currently under New Zealand law are not as broad as those which we want to impose against Russia. The legislation will include a number of categories of further sanctions, the detail of which will be discussed with the member in the briefing but they will include the possible freezing of assets from named Russian individuals or others supporting the Ukrainian invasion.

💬 Hon Gerry Brownlee: How will any of those provisions just mentioned by the Minister differ from the provisions that would have been available had the House chosen to pass the Autonomous Sanctions Bill late last year?

💬 Hon DAVID PARKER: Well, that’s not the problem with the Autonomous Sanctions Bill. The problem with the Autonomous Sanctions Bill is that it has wider ramifications than Russia, as we discussed yesterday. So if there is to be a wider autonomous sanctions bill, we as a Government would want to consider whether it should be broader than the member’s bill, because his bill currently excludes foreign interference, cyber-security issues, and human rights concerns such as Magnitsky sanctions, none of which are in the ambit of his bill but would need to be considered in wider legislation.