Oral Questions
1. to the Minister of Finance: What recent reports has she seen on the economy?
š¬ Rt Hon Chris Hipkins: Audition No. 1.
Are you not letting Kieran have a question today?
š¬ SPEAKER: No, no, hang onāhang on. Donāt start out that way. Weāll start again, all nice and calm.
On behalf of the Minister of Finance, last week Treasury released its long-term insights briefing, which highlights the dangers of excessive Government spending. The report explores the role of fiscal policy in economic shocks and crises, including the way Government finances were used during and after COVID-19. The COVID-19 response cost New Zealanders $66Ā billion, or 20.4 percent of GDP. By way of comparison, this is twice the cost of the Canterbury earthquakes as a proportion of GDP, which cost around $23 billion.
š¬ Cameron Brewer: How did the COVID-19 response impact Crown debt?
On behalf of the Minister of Finance, non-urgent COVID spending, including spending on measures that were not tied to COVID, was a key driver of structural deficits in the years after 2021. COVID-19 spending sent net core Crown debt on an aggressive upwards path. From financial year 2015 to 2019, net core Crown debt was relatively flat, but from 2019 to 2023, net core Crown debt increased by 169 percent, to over $155 billion. Treasury notes in the long-term fiscal insights report that āAs the economy recovered in the second half of 2020 and into 2021, [it] advised shifting towards more targeted support and recommended against further stimulus from Budget 2022 onwards.ā However, only 30 percent of funding allocated to the COVID-19 response was spent in the 2019-20 year; in fact, 36 percentāroughly, a thirdāoccurred after June 2021, including when inflation hit 7.3 percent.
š¬ Cameron Brewer: Supplementary. How didā
š¬ SPEAKER: This will be a concise question with a concise answer.
š¬ Cameron Brewer: How did New Zealandās fiscal response to COVID-19 compare with those of other developed countries?
Well, on behalf of the Minister of Finance, the Treasury report finds that the overall scale of our discretionary fiscal response was one of the largest amongst advanced economies. The report does not suggest that spending when crises or shocks occur is bad; it does, however, make the point that we should interrogate the scale and the quality of the spending. There were numerous programmes and initiatives not tied to the shock that had a lagged impact on the economy and proved difficult to unwind laterāfor example, increases to benefits, the Jobs for Nature programme, and so-called shovel-ready projects, some of which are only starting now. Itās a very, very diplomatic way of saying that we are still paying the price for a big-spending approach that diverted wildly from a pandemic response.
š¬ Cameron Brewer: What are the key insights and lessons from the report?
On behalf of the Minister of Finance, the lesson from the mishandling of the COVID response is that while there are times when Governments have to increase spending in response to major eventsā
š¬ Hon Kieran McAnulty: Point of order, Mr Speaker. Thank you, sir. We have not raised a point of order up to now because everything has been absolutely compliant with whatās required in Speakersā rulings and the Standing Orders, but as soon as a Minister is, basically, asked to provide his opinion on what the lessons are, weāre straying into the exact territory which you have warned the Government not to do, and the Ministerās description of the COVID response in that answer is in breach of what youāve guided him not to do.
š¬ SPEAKER: Well, can I just say that I didnāt quite hear that part because there was somebody waving their arms up in the broadcasting box and I thought there was some sort of a thing going on that we should be aware of, but apparently not. Minister, youāve just heard the concerns. They are concerns that Iāve outlined before. Please keep your answer within the bounds of that previous ruling.
On behalf of the Minister of Finance, the lesson I take from the COVID response is that there are times when Governments have to increase spending in response to major events, but it is really important that the fiscal guardrails are restored as soon as possible. Itās easy to turn the money tap on but harder to turn it off. It is imperative, I believe, that we return to surplus and get debt down as soon as possible after an event, because the reality is that New Zealanders will face other emergencies, and we need to start saving for them.
š¬ Hon David Seymour: In what ways and how do New Zealanders pay for a fiscal blowout of the type that heās described?
Well, Iād refer the member to the Pre-election Economic and Fiscal Update (PREFU) from 2023, issued just before the change of Government in 2023, which indicated increased debt, increased unemployment coming into the future, inflation, and a very difficult economic environment that would persist for the next few years. That is precisely what has transpired. Fortunatelyā
š¬ Hon Carmel Sepuloni: The Minister needs to take some responsibilityāstill playing the blame game.
Itās literally your own reportāthe fiscal settings left by that member. Itās her own Pre-election Economic and Fiscal Update, for which she now seems to bear no responsibility for, whatsoever. Actually, unemployment is now lower than was forecast in the PREFU in December 2023.
Question No. 2āPrime Minister
2. to the Prime Minister: Does he stand by all his Governmentās statements and actions?
Yes.
š¬ Rt Hon Chris Hipkins: Supplementary questionā
š¬ SPEAKER: Iāve got to ask this question again: how do we carry on from this point, where a questioner says, āDo you stand by all the Governmentās statements and actions?ā, and the answer is āYes.ā? What more can there be?
š¬ Rt Hon Chris Hipkins: I was asking a supplementary.
š¬ SPEAKER: Yeah, I know. But what supplementaries can you have to that?
š¬ Rt Hon Chris Hipkins: Well, if you hold your breath, youāll find out!
š¬ SPEAKER: Well, give it a go, but weāve got four primary questions today that ask the same thing.
š¬ Rt Hon Chris Hipkins: Why does he stand by Nicola Willisā statement that people who have lost their jobs āshouldnāt take it personallyā?
š¬ SPEAKER: That was very skilfulāwell done.
š¬ Rt Hon CHRISTOPHER LUXON: As that member knows, if you looked at the finance Ministerās comments in full, the reality is that the previous Government spent $66 billion and made the cost of living crisis worse for low and middle income working New Zealanders. That is the legacy of the Government that he led, and thatās the context of the comment that she made.
š¬ Rt Hon Chris Hipkins: So why doesnāt he think people who have lost their jobs should take it personally?
š¬ Rt Hon CHRISTOPHER LUXON: I think people having lost their jobs is an incredibly sad thing. The reason itās happened is because of his administration, because he actually didnāt run the economy well, and when you donāt run the economy well, you end up causing pain and suffering for low and middle income New Zealanders; and thatās exactly what he did.
š¬ Rt Hon Chris Hipkins: Does he accept that for people losing their jobs itās one of the most life-changing things that can happen to them, and that his Minister of Finance accusing those concerned about job losses of āglass half-empty [thinking]ā just rubs salt into the wound?
š¬ Rt Hon CHRISTOPHER LUXON: I fully agree: losing a job causes a lot of distraught-ness for lots of people who lose their jobs. Itās incredibly sad, itās a terrible tragedy, and I wish that that member would take some responsibility for causing it.
š¬ Rt Hon Chris Hipkins: Does he still believe the economy is āturning the cornerā, when every day, 76 New Zealanders lose their jobs and 340 Kiwis give up and leave the country because his Government is making things worse, not better?
š¬ Rt Hon CHRISTOPHER LUXON: Well, Iāll just say to the member that the context for the situation that weāre managing with the economy is that it is tough times for New Zealandāitās been a very difficult time. Weāve had the biggest recession weāve had since the early 1990s. Weāve had a post-COVID hangover, as youāve just heard from the Treasury report of last week, that his Government made worse, driving up inflation and interest rates, putting the economy into recession, and people now losing their jobs. Youāve seen good growth at the back end of last year, youāve seen good growth at the beginning of this year, and since April, there has been a loss of confidence and sentiment around the world and in New Zealand as a function of the tariff announcements. This is a Government that is doing everything it can to drive economic growth, and weāll continue to do so.
š¬ Rt Hon Chris Hipkins: Supplementary questionā
š¬ SPEAKER: Just before the member starts: rare and reasonable.
š¬ Rt Hon Chris Hipkins: Does he stand by his decision to pause, delay, or cancel construction projectsādecisions that have actively made things worse and put 18,000 construction workers out of work since he became Prime Minister?
š¬ Rt Hon CHRISTOPHER LUXON: Well, Iād just say to the member, who I think we should start calling āThe Sixty-six Billion Dollar Manāābecause when I grew up as a kid, there was a show called The Six Million Dollar Man, and this member is the āSixty-six Billion Dollar Manā; itās the way to think about it. But we have got $206 billion worth of infrastructure pipeline. This is a Government that has announced $6 billion worth of infrastructure projects, with people on the end of the shovels before Christmas. If the member cared deeply about construction jobs, why doesnāt he reverse his decision on fast track?
š¬ Rt Hon Chris Hipkins: If things are so much better under his Government, why were there seven times as many State houses under construction in 2023 compared to today; and six out of 10 construction firms who were previously building State houses have now exited the market?
š¬ Rt Hon CHRISTOPHER LUXON: Well, Iāll say to the member that we have gone through a period of timeācaused by his previous Governmentāthat has actually put the New Zealand economy into recession. His actions drove up interest rates and caused huge devastation on the construction sector. They canāt borrow money when interest rates are high for development and new projects. But this is a Government committed to doing more building of classrooms across the schools. This is a Government committed to doing more roads of national significance. If the member really cared about it, get in behind, support fast track and Resource Management Act reform.
š¬ Rt Hon Chris Hipkins: Has he found a single family who has received the full $250ā
š¬ SPEAKER: Sorry. Someone was speaking then, while the question was being asked. That person may well want to put their head down, butā
š¬ Hon Judith Collins: Iām very sorry, Mr Speaker.
š¬ SPEAKER: I beg your pardon; I havenāt asked you to beā
š¬ Hon Judith Collins: I apologise. I was talking to my colleague, and Iām very sorry.
š¬ SPEAKER: Right. Well, then your apology is sort of accepted, but donāt make a habit of it. When everyone is quiet, the Rt Hon Chris Hipkins.
š¬ Rt Hon Chris Hipkins: Has he found a single family that has received the full $250 extra a fortnight that he promised them during the election campaign?
š¬ Rt Hon CHRISTOPHER LUXON: Iāve spoken to many families up and down this country who so greatly appreciate the tax relief that this Government provided. Not an ideological conceptālifting tax thresholdsābut, again, he failed to support it. Iāve also spoken to many families who are very grateful for our FamilyBoost, helping offset expensive early childcare costs. Again, a simple processāencourage everybody to get on myIR and get it done.
š¬ Rt Hon Chris Hipkins: Point of order, Mr Speaker. It was a relatively straightforward question as to whether heās been able to identify a single family thatās received the $250 a fortnight that he promised them. I think anybody listening objectively to that would have no idea what his answer to it was.
š¬ SPEAKER: I certainly donāt, because there was a lot of noise coming from my left that prevented me from hearing it, so I canāt make a judgment on it. But you have, I think, made your point. Do you have another supplementary?
š¬ Rt Hon Chris Hipkins: No, thatās it.
Question No. 3āPrime Minister
3. to the Prime Minister: E tautoko ana ia i ngÄ kÅrero me ngÄ mahi katoa a tÅna KÄwanatanga?
[Does he stand by all of his Governmentās statements and actions?]
Yes.
Chlƶe Swarbrick: Does he agree with the Minister of Foreign Affairs that āThere are a broad range of strongly held views within our Governmentā, and, if so, who in the Government is opposing recognising Palestinian statehood?
š¬ Rt Hon CHRISTOPHER LUXON: There are a broad range and strongly held views across the whole of our society and across the whole of New Zealand, and, as you would expect, across this Chamber there will be a variance of views as well.
Chlƶe Swarbrick: What is the harm, if any, of recognising Palestinian statehood?
š¬ Rt Hon CHRISTOPHER LUXON: Well, itās been a longstanding position of successive New Zealand Governments since 1947 to recognise the creation of a State for Israel and a State of Palestine where two peoples can live together in peace and security. That has been a longstanding position of the New Zealand Governments of different political parties. The issue is that we need to, as weāve said, as youāve heard the Foreign Minister say, and itās been a longstanding positionāitās a matter of when, not if. But the immediate challenge for the situation in the Middle East is, of course, Hamas must release hostages. As a terrorist organisation, they must release those hostages. Secondly, Israel must allow unfettered humanitarian access into what is an absolute catastrophe, and there must be a ceasefire and diplomacy and dialogue.
Chlƶe Swarbrick: Is the Prime Minister aware that Israeli hostages have been offered back multiple times and Israel currently holds approximately 10,000 Palestinian prisoners?
š¬ Rt Hon CHRISTOPHER LUXON: Sorry, Iām not going to respond to that question. Thatās not what Iāve been briefed on.
Chlƶe Swarbrick: Point of order, Mr Speaker. [Interruption]
š¬ SPEAKER: A point of order is heard in silence.
Chlƶe Swarbrick: Iām just seeking your guidance when the Prime Minister refuses to answer a question which seeks to tease out the logic that he is using with regard to Government decision making.
š¬ SPEAKER: No, I donāt think thatās reasonable. The Prime Minister said he wasnāt prepared to answer it because it wasnāt within the scope of the briefing that heās received.
Chlƶe Swarbrick: Is the Prime Minister aware, then, of our obligations under the genocide convention, and, if so, what are they?
š¬ Rt Hon CHRISTOPHER LUXON: Yes, and what Iād say to the member is I would be very careful throwing terms like āgenocideā around. Itās very important that the right bodies, that we support under the international rules-based systemāthe International Court of Justice and the International Criminal Court are those closest and are the appropriate bodies which we fully support to make those determinations.
Chlƶe Swarbrick: Is the Prime Minister finally willing to say that Israelās slaughter and starvation of Palestinians in Gaza is a genocide, and, if not, what does he know that Holocaust and genocide scholars donāt?
š¬ Hon David Seymour: Point of order. Standing OrdersāI think itās about 390āare very clear that a questioner must not make arguments or argumentations in asking a question that are not necessary to make it intelligible. This questioner is making a series of assertions in order to convey information rather than seek it by asking a question. A question like that, according to Standing Orders, should be ruled out.
š¬ SPEAKER: Had the member not been so quick off his feet, it probably would have happenedāand it is now happening. Have another go.
Chlƶe Swarbrick: What does the Prime Minister know that Holocaust and genocide scholars apparently do not when they call what is currently occurring in Gaza a āgenocideā?
š¬ Rt Hon CHRISTOPHER LUXON: Well, what I know is that thereās a humanitarian catastrophe happening in the Middle East. What I know is that we want to see peace and stability and security reign in the Middle East, and, for that to happen, Hamas must release hostages immediately. What happened on 7 October from a terrorist organisation inflicting 1,200 deaths on innocent civilians was unacceptable. We are also saying, clearlyāand weāve done it through a number of calls with other countries as wellāthat we want Israel to give unfettered humanitarian access. We do not want more military action. We need to make sure that we actually see diplomacy and dialogue reign in the Middle East.
š¬ Hon David Seymour: Point of order. Mr Speaker, I draw your attention to the member who has just resumed her seat, which is adorned with a Palestinian scarf, and I invite you to consider what this House might look like if everybody who had an interest in a global conflict started adorning their seats with symbols of one side or the other of a conflict. I think that would bring the House into disrepute, and no member should be allowed to do such a thing, particularly when you yourself have forbidden members from wearing tiny pins on their lapels.
Chlƶe Swarbrick: Simon Courtās currently removing his.
š¬ SPEAKER: Sorryāexcuse me. No, I think you make a very good point, actually. I think Iāve been willing to accept that if people were wearing something that did not particularlyāoh, here we go. Good. OK, well, stay warm. Weāll move on now.
Question No. 4āEducation
4. to the Minister of Education: What announcements has she made regarding NCEA?
Last week, I announced a proposal to replace NCEA with a new national secondary qualification. This includes: replacing NCEA level 1 with a foundational skills award; replacing NCEA 2 and 3 with the New Zealand Certificate of Education and the New Zealand Advanced Certificate of Education; requiring students to pass at least four subjects to attain each certificate; returning to clear marks out of 100, with grades like A, B, orĀ C; being ambitious for our kidsāunlike some members of this Houseāand the creation of new coherent subjects and standards, to support strong vocational education. New assessments will be based internationally benchmarked and consistent national curriculum. Until now, no Government has been bold enough to take decisive action, but we areāso our kids get the very best chance to succeed.
š¬ Carl Bates: Why is she proposingā
š¬ SPEAKER: No, just hang on. Just wait until the House has sort of settled itself. All right.
š¬ Carl Bates: Thank you, Mr Speaker. Why is she proposing these changes?
š¬ Hon ERICA STANFORD: The warning lights have been flashing for some time. There are clear issues with the design and implementation of NCEA, which is overly flexible, difficult for parents and employers to understand, and the lack of consistency leaves too much to chance. For example, last year in new level 1 mathematics, only 11 percent of students were assessed against all four standardsāthe whole curriculum. More than 250,000 exam papers were left blank, students are more than twice as likely to get an Excellence grade if itās marked internally rather than externally, and 60 percent of teachers donāt believe that the new NCEA is a reliable measure of student knowledge and skill. Doing nothing in the face of all this is not an option. We have to strengthen the system, and our proposals are designed to do just that.
š¬ Carl Bates: What will these proposed changes mean for parents?
š¬ Hon ERICA STANFORD: My message to parents is this: like you, we are ambitious for your children; they deserve a world-leading education system, and we are delivering that. Our proposals mean that the very best parts of NCEA will stayāthings like a combination of internal and external exams, flexibility to do both vocational and general subjects, and special assessment conditions for those students with additional needsāwhile other aspects will be improved and delivered on: assessment against an internationally benchmarked curriculum, clear grades out of 100, and stronger attainment requirements like passing at least four subjects to gain a qualification. We want there to be more coherence, more consistency, and more clarity of what students know and can do.
š¬ Carl Bates: What feedback has she received from parents?
š¬ Hon ERICA STANFORD: Well, it has been overwhelmingly positive. One parent reached out to say, āGreat job on the new education policy. Iāve got one kid about to enter NCEA, and Iām very glad my youngest will miss it and enter in through the new way. Keep up the great work.ā Another parent reached out to say she was delighted to see the proposal. But my favourite comment was one simply saying: āWoo hoo! Fantastic policy. Woo hoo! Letās go.ā This Government is ambitious about the future success of our young people, and I look forward to working across the House to ensure that we secure enduring success of this proposal.
Question No. 5āEconomic Growth
5. to the Minister for Economic Growth: Does she agree with the Minister of Finance, who said about the additional 16,000 people unemployed that they āshouldnāt take it personallyā; if not, why not?
I agree with the full quote made by the Minister of Finance, which was that āit is an incredibly tough experience. They shouldnāt take it personally, because what they are often the victims of is an economy that was mismanaged, where inflation and interest rates were out of control, and where many businesses have retrenched.ā It is absolutely the case that the economy was mismanaged by the previous Government, with inflation and interest rates out of control, and we are still recovering from that.
š¬ Hon Ginny Andersen: How is it notā
š¬ SPEAKER: Just wait. Everyone needs to calm down a bit. When questions are being asked, theyāre asked in silence, and nothing that youād be saying to anybody else in the House matters.
š¬ Hon Ginny Andersen: How is it not personal that 16,000 people have lost their jobs under National?
I would just direct the member to the full quote in the context in which I gave on the primary answer. She shouldāve listened.
š¬ Hon Ginny Andersen: If he truly cares about peopleās lives and livelihoods, why does he dismiss the thousands of people who have lost their jobs and canāt pay their bills, as if their daily struggle doesnāt matter?
Well, the good news is that the Budget forecasts a 240,000 increase in jobs over the next four years as growth starts returning to the economy, after years of mismanagement under the previous Government. At the end of the day, the Governmentās job is to implement good public policy and good fiscal policy and allow growth in the economy to return, generating jobs and higher living standards for New Zealanders. Thatās what the Budget forecasts will happen over the next four years, and we look forward to that continuing.
š¬ Hon Ginny Andersen: Does he stand by his statement that āSome New Zealanders have got themselves into the habit of what I call glass half empty economicsā, and, if so, does he think that those people who lost their jobs should just cheer up?
Yes, I do stand by that statement, and, no, I was referring to most members of the Opposition, including the shadow Minister of Finance, who said in a podcast a couple of days ago, āWe donāt have to provide the solutions to issues,ā and āItās not my job to find the solutions.ā I do stand by those statements as well.
š¬ Rt Hon Chris Hipkins: Point of order. Mr Speaker. I wonder whether you could clarify for us what the ministerial responsibility in the last part of that answer was?
š¬ SPEAKER: Well, if you go back to the supplementary that was asked, it was asked āwhat do they mean?ā and āwhat did they say?ā and ādoes it just mean cheer up?ā. The answer that was given, very clearly, stated why the statement was made in the first place. I donāt think thatās unreasonable.
š¬ Rt Hon Chris Hipkins: Further point of order, Mr Speaker. How on earth is a statement by Barbara Edmonds, the finance spokesperson for the Labour Party, a matter of ministerial responsibility?
š¬ SPEAKER: Well, the question was: āDo they stick by the comment that those who are pessimistic are glass half empty?ā, and then it went on to ask if, in fact, it was the 16,000 people who have lost their jobs who should just cheer up. That was clarified, very clearly, by the Minister. I think youāve got to look to the supplementaries to work out how the answers might go.
š¬ Rt Hon Winston Peters: Minister, on the basis that all politics is local, has he got any examples of employers abusing their staff?
š¬ SPEAKER: Well, how does that relate to the primary?
š¬ Rt Hon Winston Peters: The Minister can answer the question about its relativity. Itās very obvious. Weāre talking about people over there who are claiming that employers are not looking after their workersāor, in this case, blaming the Government. Iām just making the connection of a local example.
š¬ SPEAKER: I think thatās probably just where we might leave that.
š¬ Hon Ginny Andersen: Does he know what the unemployment rate would be if thousands of New Zealanders had stayed here and not left the country in search of jobs and higher wages?
š¬ Hon Carmel Sepuloni: Itās not funny.
No, itās not. Your mismanagement of the economy was not funny. It definitely was not funny, my friend.
š¬ Hon Carmel Sepuloni: Why were you laughing?
Iām laughing because I know what the unemployment rate would have been if that memberās party had been re-elected. The Pre-election Economic and Fiscal Update said one thing, but New Zealanders know that if Grant Robertson had been allowed to recklessly spend his way through another three years, unemployment would be even higher than it is today, debt would be even higher, and weād be approaching 50 percent. If people think things are bad now, God only knows what it would have been under Grant Robertsonās profligate reign of fiscal terror.
š¬ SPEAKER: The House will calm itself.
š¬ Hon Ginny Andersen: Can he see that telling people who lost their jobs not to ātake it personallyā and who are āglass half emptyā that itās just another kick in the guts for Kiwis whose lives are worse and not better under National?
The member needs to cheer up. The Budget shows, over the next four years, over 200,000 new jobs will be created. There are billions of dollars of infrastructure investment coming down the pipe, including $6 billion between now and Christmas. Fast-track projects are being consented. In fact, there are due to be, between now and Christmas, over 10 fast-track projectsā[Interruption]
š¬ SPEAKER: Sorry, thatās just outrageous. Another one of those outbursts, and itās good afternoon to you.
āpotentially receiving consent. School property projects and a range of health projects are under way. No one is pretending that life in New Zealand is perfect, and no one is pretending that everything is rosy. But we are making progress. The key lesson is this: youāve got to stick to good public policy and good fiscal policy and stick to the economic plan. At least this Government has one. In the words of the shadow Minister of Financeāor at least the current one in the Labour Partyāthey donāt have any policy.
Question No. 6āBuilding and Construction
6. to the Minister for Building and Construction: What reports has he seen on the building and construction sector?
This week, Kennards Hire released its 2025 Construction Confidence Check survey and found that an overwhelming 93Ā percent of construction business leaders are confident in the industryās growth and performance over the next five years. Better still, more than halfā52Ā percent, in factāare āvery confidentā that we will see strong growth in New Zealandās building industry. This Government is backing the building industry, and itās great to see thatāafter reports that the industry activity had levelled outāthe vast majority of business leaders believe that we are now moving forward.
š¬ Dr Vanessa Weenink: What other findings did the survey make?
š¬ Hon CHRIS PENK: The survey also highlights factors driving such surge in optimism among our building industry leaders. Around halfā47Ā percentāpoint to increased Government investment in infrastructure as a reason to feel that the future is brighter. They are also celebrating increased foreign investment and growth in regional infrastructure projects. These are all priorities for the Government, so it is that, for example, we are reforming the Overseas Investment Act to bring wealth into New Zealand, we are investing into our regions, and weāve committed to $6 billion worth of infrastructure projects before Christmas.
š¬ Dr Vanessa Weenink: What common challenges face the industry, according to the survey?
š¬ Hon CHRIS PENK: The survey highlights a couple of major challenges. One is a lack of quality and availability of building materials, and outdated equipment. This is exactly why the Government has introduced Investment Boostāthis helps tradies and other businesses to invest in the technology and tools that they need to grow by immediately allowing them to deduct 20 percent of the cost from the income tax due that year. Weāve also changed the law to remove unjustifiable barriers, making it easier for Kiwis to access high-quality building products, increasing availability and innovation, boosting competition, and driving down prices.
š¬ Dr Vanessa Weenink: What other recent data on the construction sector has the Minister seen?
š¬ Hon CHRIS PENK: Stats NZ data shows that for the year ending June 2025, nearly 34,000 new dwellings were consented. While the rise of 1 percent may seem small to some, it does mark the end of a downturn period that started several years ago. It represents hope, despite the hope on the benches opposite that the reverse were true. Itās hope for the sector, hope for our housing supply, and commentators say that this data signals activity is stabilising and recovery is on the way.
š¬ Arena Williams: Was the report of the senior construction professional with 20 yearsā experience wrong when he said last month that what makes this construction downturn different is the absence of large-scale public investment because the Government has ājust pulled the [plug] on everythingā?
š¬ Hon CHRIS PENK: That view isnāt representative of the sector; but, more importantly, isnāt representative of the facts. For example, as Iāve stated previouslyāand not just two minutes agoāthe Government has $6 billion worth of infrastructure projects that are lined up to commence before Christmas, and plenty more beyond that, as my colleague and friend the Hon Chris Bishop, and indeed the Prime Minister, have already outlined today.
Question No. 7āHealth
7. to the Minister of Health: Does he agree with Hon Dr Shane Reti when he said, āI want to see IMPBs (iwi-MÄori partnership boards) powered up to support the health outcomes for your whÄnau and your communitiesā; if so, what does that look like?
I agree with the Hon Dr Shane Reti, who was very clear that iwi-MÄori partnership boards, IMPBs, should be providing advice on the health needs of MÄori across the country and that they should not be commissioning agencies. Thatās why weāre strengthening the Hauora MÄori Advisory Committee and clarifying the role of iwi-MÄori partnership boards. Local IMPBs will continue to engage with local MÄori communities about their health needs, aspirations, and health outcomes and will provide that advice directly to the Hauora MÄori Advisory Committee. That advice will then support decisions made by the Minister and the Health New Zealand Board. This is about putting patients back at the centre and ensuring the voices of MÄori communities are clearly heard where they can make the most difference.
š¬ Hon Kieran McAnulty: Point of order. That was a question on notice, and whilst the second part was addressed, the first part certainly was not. It was a direct question asking if the Minister agreed with Dr Shane Reti and a direct quote. His response was that he agreed with two other things that Shane Reti had said. He did not address the question as to that direct quote.
š¬ SPEAKER: Well, perhaps, given that Ministers answer where they think itās in the public interest, that might have been what drove his answer, but Iāll ask the Minister to say something again.
š¬ Hon SIMEON BROWN: As I said in the answer, the IMPBsāas the Hon Dr Shane Reti saidāshould be providing advice on the health needs of MÄori communities but they should not be commissioning agencies, and we expect Health New Zealand to continue to work alongside IMPBs as part of the legislative changes, but I and the previous Minister have been very clear that IMPBs are not to be commissioning agencies.
š¬ Hon Kieran McAnulty: Point of order. When a question is on notice and it is direct, as this one is, there is an expectation, as outlined in Speakersā Rulings, that a Minister addresses that. Now, it is a straightforward question whether they agree or not, and if he doesnāt agree, he should explain why, as the question requests.
š¬ SPEAKER: Yeah, but Iām not sure, in the answer, that he said he doesnāt agree. Iāve listened very carefully twice, and what he said is that both he and Dr Reti agree about what they should be doing. Now, if you want to have an argument about the term āpowered upā, thatās a different argument, but I donāt think it negates the answer thatās been given. You can have another supplementary.
š¬ Hon Peeni Henare: Can the Minister explain to the iwi-MÄori partnership boards why he has made such a decision regarding the minimisation of their role after they have expressed extreme concern with the proposals led by this Minister?
š¬ Hon SIMEON BROWN: The Government has been very clear that, as part of the legislative changes that are being made, we want to streamline the advice that the IMPBs are providing, we want to clarify their rolesāthat they are not to be commissioning services; that is the role of Health New Zealandāand we want to strengthen the role that the Hauora MÄori Advisory Committee does play to provide advice both to the Minister and to the Health New Zealand Board.
š¬ Hon Peeni Henare: Does he agree with Hingatu Thompson from Te Taura Ora o Waiariki iwi-MÄori partnership board, who said, āThereās no way New Zealand is going to achieve improvement to MÄori health without having a planā, and, if so, will his plan include meaningful engagement with MÄori on the matter?
š¬ Hon SIMEON BROWN: Our plan is to make sure that we are actually delivering better outcomes for all New Zealanders, including MÄori, and I would just point out one of the facts that the Opposition doesnāt like to talk about, and that is the immunisation rate for two-year-olds, which fell from 89Ā percent of MÄori in 2017 when they came to office to 64.8 percent when they left. That is, ultimately, what drives better outcomes for MÄori: actually getting better outcomes.
š¬ Hon Peeni Henare: Does he agree with the Ministry of Health website, which states, āAs a department of the public service, the Ministry of Health - ManatÅ« Hauora has a responsibility to contribute to the Crown meeting its obligations under Te Tiriti o Waitangi.ā, and, if so, how does minimising iwi-MÄori partnership boards deliver on this commitment?
š¬ Hon SIMEON BROWN: Of course the Government, through its agencies, does have a role to ensure that it is delivering on Treaty settlements and making sure that it is doing that through relationships. However, we have been very clear that Health New Zealand, as a delivery agency, must be focused on delivering better services for all New Zealanders, including MÄori.
š¬ Hon Peeni Henare: Are the Hon Dr Shane Reti and Sir Mason Durie ONZ both wrong in their support for iwi-MÄori partnership boards, and, if so, what makes the Minister so sure that he knows more about MÄori health than the MÄori health experts themselves?
š¬ Hon SIMEON BROWN: If the member was to read the bill before Parliament, the bill continues to have a role for iwi-MÄori partnership boards. However, we want to make sure we are streamlining that function and focusing it on delivery for servicesāsomething the previous Government forgot about, as evidenced by the appalling immunisation rate for two-year-old MÄoris. [Interruption]
š¬ SPEAKER: Question numberāhang on, sorry. Do we, symbolically, have to ask someone to take an early shower, as it were?
Question No. 8āRail
8. to the Minister for Rail: What recent statements has he made regarding rail?
Yesterday, we launched the 2025 rail safety week alongside rail workersā
š¬ Rt Hon Chris Hipkins: Did you wear a hi-vis for that?
š¬ Rt Hon WINSTON PETERS: Unlike you, I didnāt have to; people recognised me without having to wear fancy dress. As I was saying, before I was so rudely interruptedāunionists, transport leaders, and the Matamata-Piako mayor Adrienne Wilcock, whose community suffered a rail track death just months ago. The campaign message for 2025 is āStay off. Stay safe. Tracks are for trainsā. This serious message follows six deaths on the rail corridor this year alone. Trains weigh thousands of tonnes and can take a kilometre to come to a stop, so we are asking every member of this House to help get the message out.
š¬ Jenny Marcroft: What next steps has the Minister recently outlined for the Marsden Point rail link?
š¬ Rt Hon WINSTON PETERS: Last Tuesday, we announced that KiwiRail will make its Marsden Point rail link detailed designs available to builders and investors to assess and consider putting forward proposals. KiwiRail will have more to say about this process shortly. The new rail spur land is fully purchased, designated in the fast-track consents legislation, and covered under our coalition agreement. We have also outlined how Marsden Point can be the first energy export and special economic zone to create wealth right here in New Zealand, specialist jobs through a drydock, fuel security for our economy, and strong export connections.
š¬ Jenny Marcroft: Has the Minister attended any high-visibility events recently?
š¬ Rt Hon WINSTON PETERS: Last Friday, we joined the City Rail Link test train. Aucklanders have wanted this project since the 1920s and have been paying since we signed the main works contract back in 2019. In 2019, we backed a $250 million allocation so that the new stations would be longer. If we had not done that, they would have reached full capacity within a decade. Next year, we look forward to the public and members of the Opposition after the election riding this train to their jobs in central Auckland.
š¬ Jenny Marcroft: How is the rail ferry replacement programme tracking?
š¬ Rt Hon WINSTON PETERS: More good news: extremely well. The Governmentās company Ferry Holdings Limited is still in the market engaging with commercial shipyards, and everything is tracking to time. We will purchase two new ferries to serve our passengers, roads, and rail, and deliver the no-nonsense infrastructure solution that was supposed to happen in 2020, when I last had that job. We look forward to detailing this programme once the commercial contracts are entered later this year. Those sitting across this Chamber will see that, with a bit of management, firm cost control, pragmatism, and common sense, good things can still happen.
Question No. 9āBuilding and Construction
9. to the Minister for Building and Construction: What announcements has the Government made about building and construction?
Thank you very much, Mr Speaker, for this further opportunity to enlighten the Opposition. Last week, Iā
š¬ SPEAKER: Stop thereāstop there. For some reason, thereās talk right across the House before the Minister even began to make a comment. There was also one question that the person suggesting it knows is inappropriate under Standing Orders.
š¬ Rt Hon Chris Hipkins: Weāve already heard this one.
š¬ SPEAKER: Well, I havenāt.
š¬ Hon CHRIS PENK: Itās all good, Mr Speaker. Further good news: last week, I was pleased to announce, alongside Deputy Prime Minister and regulations Minister David Seymour, that by the end of this year it will be easier for Kiwis to put a garden shed, sleepout, or garage on their property. We are changing the rules so that small buildings under 10 square meters will no longer need to be set back from the boundary, and the set-back for single-storey buildings between 10 and 30 square meters will be reduced to just 1 metre.
š¬ Rima Nakhle: Why did the Government make this change?
š¬ Hon CHRIS PENK: Previously, garden sheds and other single-storey detached buildings had to be set back from the boundary or residential buildings by at least their own height. Anything closer meant that the homeowner had to get a building consent. While well intentioned, these rules created a ridiculous situation, forcing Kiwis to see garden sheds awkwardly in the middle of their lawns, wrestle with unnecessary paperwork, orāas has often, too, happenedābreak the law.
š¬ Rima Nakhle: What feedback has the Government received on these changes?
š¬ Hon CHRIS PENK: Well, apart from at question time today across the House, the feedback has been overwhelmingly positive. Everyday Kiwis and industry leaders alike have welcomed it. We know that in todayās housing market, land sizes are typically smaller and building costs remain high. People want to use their property wisely, without unnecessary hassle. The New Zealand Property Investors Federation said, āThis change will make it easier to add an extra bedroom, a new garage to keep cars safe, or a shed for tenants to store bikes, tools and other items. It will add value to an investment property and amenity for renters. Itās a win-win.ā
š¬ Rima Nakhle: What does this change tell Kiwis about the Governmentās approach to building and construction?
š¬ Hon CHRIS PENK: This is a perfect example of how the Government is scrapping burdensome regulations, big and smallāand smallāto make building in New Zealand easier and more affordable. Weāre relentlessly focused on building productivity, whether that means making it simpler to build sheds, sleepouts, granniesāgranny flats and garages; weāre not building any granniesāspeeding up consenting and inspections, allowing trusted building professionals to sign off their own work, increasing competition to drive down building product prices, and investing in public infrastructure.
š¬ Hon David Seymour: What does the Minister say to Alex and Christa Clarke of Onehunga, who reported the issue to the Ministry for Regulationās Red Tape Tipline and had the problem solved by him in a matter of months?
š¬ Hon CHRIS PENK: Well, I would say to that patriotic Kiwi couple, who just want to be able to use the land that they own in an efficient wayāfor example, to store their kidsā equipmentāthat Iām grateful for their intervention; Iām grateful for me getting in touch with the Government; Iām grateful for them utilising the Red Tape Tipline, which is how the proposal came about; and Iām also grateful to the Hon David Seymour for partnering as part of the Governmentās overall push to reduce unnecessary regulation and get a good, common-sense result for these Kiwi families.
Question No. 10āCommerce and Consumer Affairs (Grocery Sector)
10. to the Acting Minister of Commerce and Consumer Affairs (Grocery Sector): Has the Governmentās focus changed since the Prime Minister said in December 2023 that it would have a ālaser focus on bringing down the cost of livingā; if not, is she confident that she has the Prime Ministerās backing to bring down the cost of groceries?
on behalf of the Acting Minister of Commerce and Consumer Affairs (Grocery Sector): No, and yes.
š¬ Arena Williams: When she said, āPrices coming down is exactly what we want to seeā, has she done anything that has reduced prices?
On behalf of the Acting Minister of Commerce and Consumer Affairs, the Minister has an extensive work programme under wayāsome of which has been made public; some of which has not beenāand she is also aware of the hard work of her colleague the Minister responsible for RMA Reform and her colleague the Minister of Agriculture stripping red tape out of our growers and our farmers to make it easier for them to operate.
š¬ Arena Williams: Why did it take the Government until 30 March 2025āa full 16 months since the electionāto make a request for information (RFI) about changes in the supermarket sector?
On behalf of the Acting Minister of Commerce and Consumer Affairs, the Government has had a busy work programme since the election, including in the groceries sector and the groceries portfolio, for want of a better phrase. The RFI has gone out, and the member will soon be interested in seeing the responses.
š¬ Arena Williams: So, what, if anything, has happened in the 135 days since the Government made a request for information to the supermarkets?
Well, more has happened under this Government in the last 18 months than happened over six years compared to the previous Government. Unlike the previous Government, this Government is taking the issue of groceries competition seriously, and the member will have to wait and see where things get to. But, ultimately, like her, the Government wants to see greater competition in the supermarket sector.
š¬ Arena Williams: Will the Minister listen to Mike Hosking, who said that Nicola Willisā supermarket announcement was āyet another diatribe about what needs to be done, what could be done and what might be doneā, āa speech of hopeless contradictionsā, and āfor a Government with an image of more talk than action, she didnāt do anything to help that reputation.ā?
On behalf of the Acting Minister of Commerce and Consumer Affairs, I think the member might be confusing those comments from Mike Hosking allegedly about Nicola Willis with comments actually about the leader of the Labour Party.
š¬ Arena Williams: Why wonāt the Minister take responsibility for the well-documented rise in grocery prices since her Government came into power and admit that sheās making life worse for Kiwis struggling with the cost of living?
On behalf of the Acting Minister of Commerce and Consumer Affairs, the Government does not set the price of groceries, as the member, I think, knows, or perhaps not. The Government takes the issue of groceries competition seriously, and we will advance substantive, proper solutions, unlike the stupid policy of taking GST off fruit and vegetables.
Question No. 11āPrime Minister
11. to the Prime Minister: Does he stand by all his Governmentās statements and actions?
Yes.
š¬ Debbie Ngarewa-Packer: Why is the Prime Minister allowing the Government to delay recognition of the State of Palestine until September?
š¬ Rt Hon CHRISTOPHER LUXON: Well, itās a Government that wants to weigh up its position over the next month. We acknowledge that some of our close partners have changed their position; others have not. We will work our way through the process, as we outlined yesterday.
š¬ Debbie Ngarewa-Packer: What criteria does the Prime Minister believe Palestinians have not met that is preventing his Government from immediately recognising their humanity and statehood today?
š¬ Rt Hon CHRISTOPHER LUXON: Well, as I explained earlier, itās been a longstanding, bipartisan position that New Zealand supports a two-State solution. It goes right back to 1947 and the partition. We want to see a State of Israel and a State of Palestine living peacefully, side by side. But we are going to review and weigh up our position, as we articulated, and itās an important issue, itās a complex issue, and weāll work through it sensibly and seriously.
š¬ Debbie Ngarewa-Packer: How does the Prime Minister justify the targeted killings of journalists in Gaza, including Anas Jamal al-Sharif and the entire Al Jazeera journalist team based there?
š¬ Rt Hon CHRISTOPHER LUXON: Well, there isā
š¬ SPEAKER: The Prime Minister doesnāt have responsibility for that, and I think the question could be askedā
š¬ Debbie Ngarewa-Packer: My question was āHow does the Prime Minister justifyā. Do you want me to change thatāor thatās ruled out?
š¬ SPEAKER: Yeah, but the Prime Minister is not required to justify anything other than Government activity.
š¬ Debbie Ngarewa-Packer: To apply the Prime Ministerās logic, does the Israel Defense Forceās campaign against Palestinians undermine Israelās claim of statehood?
š¬ Hon David Seymour: Point of order, Mr Speaker. I know that that member is slow on the rules, but she cannot make an assertion that the Prime Minister has such language.
š¬ SPEAKER: Look, that is right. This is a very sensitive subject. Itās a matter that New Zealand has at afar, Iād say, and the Government positioning of it is something that you can question. But you canāt assert something and then ask a question about the assertion. So have another crack.
š¬ Debbie Ngarewa-Packer: Does the Prime Minister believe the killing of journalists in Gaza, including Anas Jamal al-Sharif and the entire Al Jazeera journalist team based there, is justifiable?
š¬ Rt Hon CHRISTOPHER LUXON: I have no responsibility for the actions of Israel or any other country; I am responsible, as Prime Minister of New Zealand, for New Zealand.
š¬ Debbie Ngarewa-Packer: What will be left to protect in a monthās timeā
š¬ Hon Members: Oh!
š¬ Debbie Ngarewa-Packer: āif the Prime Minister waits until September to act, with the Israel Government approving further escalationā
š¬ SPEAKER: No, just start the question again. It may be a question that some on the backbench to my right are not happy with, but they will listen to it.
š¬ Debbie Ngarewa-Packer: What will be left to protect in a monthās time if the Prime Minister waits until September to act, with the Israel Government approving further escalation in Gaza, including measures that will deepen the starvation and killing of Palestinians?
š¬ Rt Hon CHRISTOPHER LUXON: I would just say to the member that there are strongly held views on all sides of this debate across the whole of New Zealand, and, in fact, all around the world. What this Government has been consistent in doing since this conflict started is actually calling for the immediate release of hostages from Hamas. Iām sure that member would agree with thatāthat that is the appropriate action. What this Government has been calling for is for Israel to give unfettered humanitarian access to protect civilians and to honour its obligations under international law, and what this Government has consistently called for is a ceasefire. That is the way in which we get ourselves to a pathway on the two-State solution.
š¬ Debbie Ngarewa-Packer: Point of order, Mr Speaker. My question was āWhat will be left to protectā.
š¬ SPEAKER: But that is not a question that the Prime Minister of New Zealand can possibly answer, and itās certainly not a question that is within his ministerial responsibilitiesāhis prime ministerial responsibilities.
š¬ Rawiri Waititi: Our position is.
š¬ SPEAKER: And the member next to you can assert that all he likes; that is simply not the case.
š¬ Hon David Seymour: Has the New Zealand Government, which the New Zealand Prime Minister is responsible for, made contributions of humanitarian aid to this crisis in Gaza, and, if so, how much money?
š¬ Rt Hon CHRISTOPHER LUXON: We have supported humanitarian assistance to the tune of $37 million, but one of the major challenges right now is that itās very difficult to get aid into Gaza because of the actions of Israel. That is why our Government has joined with many others, and foreign Ministers all around the world, in calling for Israel to release and enable unfettered humanitarian access.
Question No. 12āPrime Minister
12. to the Prime Minister: E tautoko ana ia i ngÄ kÅrero me ngÄ mahi katoa a tÅna KÄwanatanga?
[Does he stand by all of his Governmentās statements and actions?]
Yes.
š¬ Hon Marama Davidson: Why does he think worker-led collectives are describing his Government as the most anti-worker Government in decades?
š¬ Rt Hon CHRISTOPHER LUXON: Youād have to ask them, but what I can tell you is weāre on the side of low and middle income working New Zealanders because we believe they deserve tax reliefāfirst time in 14 years. Weāre backing fast track to create more jobs and opportunity to get things built in this country. Weāre the ones that have lowered inflation. Weāre the ones that are lowering our interest rates. Weāre the one thatās getting the economy growing again. We are doing everything we can to get this country put on a pathway to economic growth, and I think itās got a very exciting future.
š¬ Hon Marama Davidson: Why was his employment relations legislation designed with big businesses like Uber in mind, instead of their workers, who are predominantly vulnerable, low-paid migrant workers?
š¬ Rt Hon CHRISTOPHER LUXON: I reject the assertions and characterisation in that question.
š¬ Hon Marama Davidson: How does he reconcile his focus on growing wages with his Governmentās decisions to offer real-term cuts for minimum-wage workers and cancel fair pay agreements and pay equity claims for low-paid wÄhine workers?
š¬ Rt Hon CHRISTOPHER LUXON: Iād just say to the member that I would encourage her to look at the records. Since this Government has been formed, we have had wages growing faster than inflation. Compare that to the previous Labour-Greens Government, where we had 13 quarters where inflation was well ahead of wage growth. Wages being higher than inflation is how Kiwis get ahead, and thatās what weāre supporting.
š¬ Hon Marama Davidson: Does he accept that collective bargaining is the main way workersā wages increase, and, if so, why is he pushing through a bill that will undermine the collective bargaining power of hundreds of thousands of workers in Aotearoa?
š¬ Rt Hon CHRISTOPHER LUXON: There are ways in which employees reach employment arrangements with their employers, and that can be an independent contracting arrangement or it can be collective bargaining. We support lots of options.
š¬ Hon Marama Davidson: Why did he choose to cut thousands of jobs? [Interruption]
š¬ SPEAKER: No, sorry, thereās been far too much cross-bench chatter. Weāve got an important debate coming up that I know that both the offenders there will want to speak in, so just for the next five minutes, calm it. That question is not in order. If you want to try another one, that willāotherwise, weāll just finish for the day.
š¬ Hon Marama Davidson: Is he a Prime Minister for the regular working people like teachers, nurses, and taxi drivers, or for big business?
š¬ Rt Hon CHRISTOPHER LUXON: Absolutely, and thatās why we care about low and middle income workers, in this Government. We are the parties of workers, the people that the Labour and Green parties forsake, because they didnāt run the economy. They ran up huge amounts of debt, they ran up inflation, and they ran up interest rates, and who suffered the most? Low and middle income working New Zealanders. Adding $88 billion worth of new taxes and $44 billion worth of new debtāwith Chlƶe Swarbrick as a Minister of FinanceāI just suggest is not the way forward.
š¬ SPEAKER: That concludes oral questions. Weāll take 30 seconds for people to very swiftly leave the House if theyāve got other business.
š£ļø Spoke in this debate (18)
- Ginny Andersen (New Zealand Labour Party ā List Member)
- Carl Bates (New Zealand National Party ā Member for Whanganui)
- Chris Bishop (New Zealand National Party ā Member for Hutt South)
- Cameron Brewer (New Zealand National Party ā Member for Upper Harbour)
- Simeon Brown (New Zealand National Party ā Member for Pakuranga)
- Hon Marama Davidson (Green Party of Aotearoa / New Zealand ā List Member)
- Hon Peeni Henare (New Zealand Labour Party ā List Member)
- Hon Chris Hipkins (New Zealand Labour Party ā Member for Remutaka)
- Christopher Luxon (New Zealand National Party ā Member for Botany)
- Jenny Marcroft (New Zealand First Party ā List Member)
- Rima Nakhle (New Zealand National Party ā Member for Takanini)
- Debbie Ngarewa-Packer (MÄori Party ā Member for Te Tai HauÄuru)
- Chris Penk (New Zealand National Party ā Member for Kaipara ki Mahurangi)
- Rt Hon Winston Peters (New Zealand First Party ā List Member)
- Erica Stanford (New Zealand National Party ā Member for East Coast Bays)
- Chlƶe Swarbrick (Green Party of Aotearoa / New Zealand ā Member for Auckland Central)
- Dr Vanessa Weenink (New Zealand National Party ā Member for Banks Peninsula)
- Arena Williams (New Zealand Labour Party ā Member for Manurewa)