Oral Questions to Ministers

Asked by: DEBBIE NGAREWA-PACKER, Answered by: Rt Hon CHRISTOPHER LUXON

to the Prime Minister: Does he stand by all his Government’s statements and actions?

Yes.

💬 Debbie Ngarewa-Packer: Which regions will experience fuel shortages first, and has the Government modelled the impact on rural and Māori communities?

Well, as the member will well know, we are in what we call phase 1, which is watchful, and that just means the market is operating effectively and fuel is available nationwide.

💬 Debbie Ngarewa-Packer: Will the Prime Minister release all internal modelling on fuel supply risk so New Zealanders can see the full picture?

Well, again, what we did last Friday was we outlined the four phases of our national fuel response plan. We are very much in a place where we have sufficient stocks and sufficient supplies, and so there is no significant supply disruptions. All we are doing is preparing for the eventuality that that may possibly happen in future months. That’s why we’ve laid out the four phases.

💬 Debbie Ngarewa-Packer: Has the National Fuel Plan been operationally tested, and what role do iwi have in its execution?

We are meeting with officials every morning, and many times through the course of the day. But, at this point, our major focus, as you know, is to secure fuel supply; without it, that is the thing that can do the most damage to incomes and jobs. That is why we are doing everything we can to secure fuel.

💬 Debbie Ngarewa-Packer: Will the Government commit to using the extra $11.8 million in GST revenue per week that they are making off the back of this fuel crisis, to increase mileage subsidies for essential workers; if not, why not?

Well, I heard the Leader of the Opposition say something similar last week and I just want to say to the members here that there is no windfall gain or benefit from higher fuel prices for the Government. Petrol excise tax, as everyone will understand, is fixed. While there may be a slight increase in GST theoretically increasing, there is an offset as people spend less money on other categories other than fuel.

💬 Rawiri Waititi: Supplementary?

💬 SPEAKER: Um—Rawiri Waititi.

💬 Rawiri Waititi: How could you forget me that quickly, Mr Speaker?

💬 SPEAKER: Yes, quite; you’re not exactly forgettable!

💬 Rawiri Waititi: Will the Government be harmonising our fuel excise tax with Australia by cutting it by 50 percent, just like they have harmonised our fuel requirements with Australia?

As we’ve said before: actually, for us, in our response to supporting New Zealanders at this time, it is important that we have timely, targeted, and temporary support. Obviously, making reductions to excise tax is not particularly targeted. It often benefits higher-income people and, importantly, can also drive more consumption. For us, it’s not meeting the criteria of what we need, which is timely, targeted, and temporary.

💬 Hana-Rawhiti Maipi-Clarke: Will the Government consider freezing road-user charges during the fuel crisis to support whānau in Hauraki-Waikato, who are frequently impacted by the closure of the Karangahake Gorge, have limited access to public transport, and are paying more than $230 to fill a diesel tank?

We well understand how important diesel is, particularly for the New Zealand economy. Again, that’s why our focus is very much on securing extra supply.

💬 Hana-Rawhiti Maipi-Clarke: What support, beyond the limited package announced last week, will the Government be giving to whānau in Papakura, who commute daily to mahi with no option to work from home, who are paying over $170 to fill up with 91, and who are trying to keep up with the rising high prices?

Again, the criteria for this Government, as we’ve outlined from day one, is to make sure that we are offering temporary, targeted, and timely support to our most vulnerable New Zealanders. We’re freely admitting that we will not be able to alleviate the pressure for everybody, but we have also learnt the mistakes from COVID, which is to make sure that we are also being economically responsible and not creating more of an impact on rising inflation and also growth. That is very much our frame. We’re very pleased to say that we’ve been able to extend support to 143,000 working families, as we announced last week—an extra $50 per week. That comes to about $375 million of total cost for the Government. We will continue to look at what more we can do, but we’re doing it through that lens. It’s important that we don’t repeat the mistakes from COVID.

💬 Oriini Kaipara: What assurance can the Prime Minister give to the people of Tāmaki-makau-rau that fuel security planning is keeping pace with escalating global risks, and why has there been no clear public communication about what a level 3 and 4 escalation would mean for households, essential workers, and Māori communities?

Because, as we’ve been reiterating many times in regular media engagements, New Zealand does not have a fuel supply problem at this time. The market is operating effectively. There is plenty of supply and stock in country. That’s why we’re working so hard to make sure we work on phases 1 and 2, so that we never have to get to phases 3 and 4.

💬 Oriini Kaipara: What impact will the fuel and cost of living crises have on homelessness in Tāmaki-makau-rau and Aotearoa, and what real solutions does his Government have for homeless whānau beyond his cruel move-on orders?

I’d just say to the member—and we’ve discussed homelessness in this House before quite significantly—it’s a very complex issue. This Government is supporting, with $550 million a year, agencies and organisations on housing—$5 billion a year. We’ve opened up 300 extra Housing First places. We’ve put $10 million into rough sleeping. Auckland Council now are doing a daily count of homelessness in the Auckland CBD, and typically the numbers are running at 24 to 30 people.

Finance

Question No. 2

Asked by: NANCY LU, Answered by: Hon NICOLA WILLIS

to the Minister of Finance: How is conflict in the Middle East affecting the New Zealand economy?

The most immediate and noticeable impact of the Middle East conflict has been on the price of oil and, therefore, on the price of refined fuels in New Zealand. Prices have risen markedly since the start of the conflict. Petrol has gone up 34 percent and diesel has gone up 86 percent. Petrol and other fuels make up just under 4 percent of the basket of goods and services in the Consumers Price Index, so these price rises will have a direct impact on overall inflation.

💬 Nancy Lu: How do fuel prices affect inflation more widely?

As members know, fuel is a key input for a whole range of industries. An increase in fuel prices will tend to flow through to higher prices for other goods and services in the economy, to the extent that producers pass those costs on. That won’t just happen domestically; we will also import inflation from overseas. Food prices, in particular, will be affected by the present conflict as food production depends on both fuel and fertiliser, both of which are impacted by oil and gas prices. We can anticipate that inflation forecasts will be higher than previously expected, at least in the short term. The Reserve Bank will release its next set of forecasts on 27 May, and the Treasury will follow suit the day after, in the Budget update.

💬 Nancy Lu: Given the importance of fuel, is there enough supply in New Zealand?

Current advice is that fuel supply remains sufficient. New Zealand has 58.7 days of petrol, 52.2 days of diesel, and 46.2 days of jet fuel in country, within our exclusive economic zone, and on the water heading here. That data is updated twice-weekly using maritime tracking and cross-checked against shipping information, giving us a high level of confidence in its accuracy. Overall stock levels remain within normal operating ranges, and there are still no indications of supply disruption. We will continue to monitor fuel stocks, shipments, and international developments closely, and act, if needed, in a measured, targeted, and evidence-based way, ensuring New Zealand remains well supplied and the economy keeps moving.

💬 Nancy Lu: How will the conflict affect growth in the economy?

The conflict will have a negative impact on the economy, through prices, but also, potentially, through other channels like shipping disruptions, freight costs, reduced demand for New Zealand exports, financial markets disruption, and greater uncertainty. The Government can take the sharpest edges off for vulnerable New Zealanders, and you’ve seen that with the $50 a week increase in the in-work tax credit, but there is a real cost from this conflict: New Zealand is poorer because of these global events. How big that impact is depends on how the conflict evolves and how it gets resolved. Again, the Reserve Bank and Treasury will release their updated forecasts in May.

Prime Minister

Question No. 3

Asked by: Rt Hon CHRIS HIPKINS, Answered by: Rt Hon CHRISTOPHER LUXON

to the Prime Minister: Does he stand by all his Government’s statements and actions?

Yes.

💬 Rt Hon Chris Hipkins: Why has the Government prioritised an almost 80 percent pay rise for the directors of Fire and Emergency New Zealand, while front-line firefighters are getting no pay rise and have to continue to work in unsafe conditions with equipment that keeps breaking down?

Well, as we’ve previously discussed in this House, obviously, our new Government framework on director fees is designed so that we can attract good talent to make very important decisions on governance. There is about $60 billion worth of Government spending, and as that member knows, having lost half of the $66 billion of COVID spending, it’s important that it’s well-governed.

💬 Rt Hon Chris Hipkins: Why did the Government decide that many families with children who work part-time won’t be eligible for the extra $50 a week fuel payment his Government’s offering?

Because, again, we’re working through the lens of being timely, targeted, and temporary. We’ve got 143,000 families and households that have $50 a week extra to support them. We continue to monitor the situation as to how much more we can do, but we’ll continue to look at it through that lens.

💬 Rt Hon Chris Hipkins: So if the support is timely and targeted, why is it not targeted towards the families on the lowest incomes with children, who are facing the same fuel price increases as every other family?

Well, again, it is. That is why we’ve gone through the in-work tax credit where 143,000 families are earning $50 a week. We have been up front: we are not going to repeat the mistakes of COVID that that member created when he was the Prime Minister.

💬 Rt Hon Chris Hipkins: Point of order, Mr Speaker. The questions weren’t about COVID-19 or the previous Government; they’re about the decisions that this Government has made. They’ve said that they’re targeting support to families; all I’m asking is why they have chosen to target the support in the way they have. It’s nothing to do with the previous Government. New Zealanders aren’t getting this support, low-income New Zealanders with kids, in work, aren’t getting this support, and I’ve asked the Prime Minister why that is. It’s not unreasonable to expect an answer that doesn’t attack the previous Government.

💬 SPEAKER: Yes, and I was about to say that the Prime Minister would do well not to reference the previous Government in a way that’s not related to the immediate question. You can sort of say, “Well it is related because of this or that.”, but the particular point that a member was responsible for the actions of a whole Government is also quite unreasonable.

💬 Rt Hon Chris Hipkins: Why did his Government decide that low-income workers who don’t have children won’t be eligible to receive any additional financial support, given that in many cases they will still be facing the same increase in fuel costs as New Zealanders with children?

Well, as I have previously explained, this is a Government that recognises there is huge pressure on households and businesses up and down this country because of this fuel crisis. We are doing everything we can to support Kiwis, but we are also not going to repeat the mistakes of COVID that led to a 32-year high in inflation and $180 billion worth of debt, and so the frame is very simple. We need to be economically responsible so we don’t drive, and have a further impact on, inflation and debt, which ends up causing huge pain and suffering to New Zealanders, which is what they’ve experienced. On the other hand, they need timely, targeted, temporary support, which is what we have done through the delivery of relief to 143,000 families.

💬 Hon David Seymour: Does the Government have a finite amount of money to spend, or does he subscribe to the economic philosophy of Fred Dagg that we can always borrow a few billion more?

Well, I think the learning from COVID, as talked about in the royal commission of inquiry, was that it’s all very easy to fire a cash bazooka around. That creates lots of short-term gain, but it creates endless long-term pain. We only have to look at the last two years to see the pain and suffering that low and middle income working New Zealanders have endured because of reckless economic management through the COVID period.

💬 Rt Hon Chris Hipkins: Does the Government believe that low-income New Zealanders with children and who are working part-time are less deserving of additional support than low-income New Zealanders with children and who are getting the support?

As I said to the member, this is a Government that will continue to look at what more we can do to support vulnerable New Zealanders in this difficult time. The first initiative that we have supported is that of 143,000 working families with children having $50 per week. That’s a temporary increase, it’s targeted, and it’s very timely.

💬 Rt Hon Chris Hipkins: Is the Government now considering extra financial support for care and support workers; if so, does he regret unilaterally cancelling their pay equity claim that could have seen them getting that support two years ago?

I’d just say to the member, it has been well canvassed. The Minister has been taking advice on that particular topic about healthcare workers—we’ll have more to say about that very shortly. But with respect to pay equity, there is still a pay equity regime in this country.

💬 Hon Kieran McAnulty: You cancelled it.

No. What has happened is that it was unworkable and it was unaffordable, and I look forward to the member saying whether or not he will reinstate another $10 billion to be able to go back to what he previously put in place.

💬 Rt Hon Chris Hipkins: If a pay equity regime is still available to care and support workers, why did his own Government pass a law that specifically prohibited care and support workers raising a new pay equity claim?

We have a pay equity regime in this country that is now workable and affordable. We encourage members to actually launch claims. We have put money aside to support those claims. But I just say that the member needs to be very up front with New Zealand about where he is going to find the $10 billion to $11 billion to support his policy and the reversal of that change.

💬 Rt Hon Chris Hipkins: Is he not aware that his Government specifically passed a law that prevents care and support workers raising a new pay equity claim?

I’m well aware that our Government passed a law to make sure an unworkable system and an unaffordable system is now workable and affordable.

Social Development and Employment

Question No. 4

Asked by: TIM COSTLEY, Answered by: Hon LOUISE UPSTON

to the Minister for Social Development and Employment: What changes to welfare supports will come into effect today to help respond to cost of living pressures?

As global fuel price challenges continue to impact Kiwis, from today more than 1.5 million New Zealanders will receive extra support in their pockets. The increased support will come from the Ministry of Social Development’s annual adjustments. The people who will benefit include students, working-age beneficiaries, and superannuitants, as well as non-beneficiaries getting supplementary assistance. Our Government is determined to keep progressing sensible, measured changes that provide some relief to those impacted by the cost of living challenges.

💬 Tim Costley: How will students be better off as a result of these changes?

From today, students will receive a boost in support for living costs. Around 52,000 students receiving student allowance and loans will get an increase in financial support—for example, a single person over the age of 24 receiving the student allowance will gain an additional $22 a fortnight.

💬 Tim Costley: How will seniors, like those in Kāpiti, be better off from today’s changes?

Nine hundred and sixty thousand Kiwis receiving superannuation and veterans pension will get more money in their pockets. Superannuation for a married couple who both qualify will lift more than $50, to $1,708 a fortnight. This is an increase of over $180 since the 2023 general election, which, of course, has helped to ease the cost of living pressures.

💬 Tim Costley: Who else will benefit from these changes?

Four hundred and thirty-five thousand working-age beneficiaries will get increased support for the cost of living, and approximately 67,000 non-beneficiaries will get an increase in their supplementary assistance. A couple with children, receiving jobseeker support, will receive an increase of more than $40 a fortnight. A sole parent receiving sole parent support will receive an increase of more than $30 a fortnight.

💬 Hon Willow-Jean Prime: How can she claim that this is a new cost of living measure when this happens automatically every single year?

I haven’t.

Prime Minister

Question No. 5

Asked by: Hon MARAMA DAVIDSON, Answered by: Rt Hon CHRISTOPHER LUXON

to the Prime Minister: E tautoko ana ia i ngā kōrero me ngā mahi katoa a tōna Kāwanatanga?

[Does he stand by all of his Government’s statements and actions?]

Yes.

💬 Hon Marama Davidson: Does he stand by his statement from question time yesterday that “We care about working New Zealanders and we’re making sure that we can support the most vulnerable as best we possibly can.”, and, if so, what will he do today to address the impacts of rapidly rising fossil fuel prices on care and support workers?

In answer to the first part of the question, yes.

💬 Hon Marama Davidson: What does he think the impact is on people who are sick or need health support when care workers are reporting, “I had to call in sick on Monday because my car was too low on fuel and I had to wait on my partner’s student allowance so I could put fuel in my car and go to work the next day.”?

That’s why the Minister’s taking advice on it. We’ll have more to say about it shortly.

💬 Hon Marama Davidson: I seek leave to table a document that is not publicly available, with feedback from providers under the Home and Community Health Association.

💬 SPEAKER: What’s the source of it?

💬 Hon Marama Davidson: It is feedback from the Home and Community Health—correspondence.

💬 SPEAKER: Where did you get it from? Where does it come from?

💬 Hon Marama Davidson: Correspondence, Mr Speaker, that is not publicly available.

💬 SPEAKER: Leave is sought. Is there any objection? There appears to be none.

Document, by leave, laid on the Table of the House.

💬 Hon Marama Davidson: Thank you. Is he comfortable with care workers having to use Afterpay to recover their fuel costs?

In answer to my first question, the Minister has been taking advice with respect to care workers, and we’ll have more to say about that shortly.

💬 Hon Marama Davidson: Is he comfortable with reports of support workers reducing or refusing visits to remote clients because they can’t afford to fill up their cars?

As I’ve said, we are a Government that is freely admitting we will not be able to alleviate the pressure on everybody across the country. We know it’s an incredibly difficult time for households and businesses, but our frame is very clear. We need to be economically responsible so we don’t hurt working New Zealanders with higher levels of inflation and more debt, but, equally, we need to make sure we’re doing everything we can to give them timely, targeted, and temporary support.

💬 Hon Marama Davidson: Will he commit to providing temporary, targeted, and timely relief to care workers by implementing immediate, short-term, in-between travel funding increases to cover the gap between current fuel prices and existing reimbursement rates?

I’ve already answered that with my previous answers. [Interruption]

💬 Hon Marama Davidson: Mr Speaker—

💬 SPEAKER: Just before you go—when a question is being asked, all the way through, the House listens to it.

💬 Hon Marama Davidson: Thank you, Mr Speaker. I seek leave to table two letters addressed to the Minister of Finance, both from the Home and Community Health Association, requesting the Minister consider urgent fuel cost relief for care and support workers, and neither of these letters are available publicly.

💬 SPEAKER: Yeah, but they’re not—whose letters are they?

💬 Hon Marama Davidson: Correspondence from the Home and Community Health Association.

💬 SPEAKER: Copied to you? Leave is sought. Is there any objection? There appears to be none.

Documents, by leave, laid on the Table of the House.

💬 Hon Marama Davidson: Thank you.

Finance

Question No. 6

Asked by: Hon BARBARA EDMONDS, Answered by: Hon NICOLA WILLIS

to the Minister of Finance: Has Treasury revised its inflation “worst case scenario” on 16 March of 3.7 percent; if so, what are its latest inflation forecasts?

In answer to the second part of the question, Treasury’s latest inflation forecasts are in December’s half-year update, but they are clearly out of date. Treasury is developing its next set of forecasts for the Budget update in May, and I anticipate that alongside their central forecast, they will present another of upside and downside risks to those forecasts. That, of course, reflects the uncertainty around how the conflict in the Middle East will evolve. In terms of the first part of the question and the 16 March scenario referred to, I can confirm the Treasury has subsequently developed further stylised scenarios to highlight possible macroeconomic impacts associated with the ongoing conflict in the Middle East. These involve a number of judgments and assumptions about how severe the disruption will be, how long it will last, and how oil prices will respond. These do not describe a worst-case scenario but, rather, the worst among a group of illustrative scenarios. They are not forecasts.

💬 Hon Barbara Edmonds: Why can’t she share the latest stylised, high-level, and general scenarios and assumptions given that she has just confirmed that she has received some?

I will absolutely present the forecasts in May, and I expect that they will be significantly worse than the forecasts previously presented. I’m not going to give a running commentary on all the discussions Treasury has with me as they develop their understanding of how the conflict will impact the economy. The member will be well aware that a number of economists in New Zealand and across the world have developed varying views on how the conflict will unfold and its impact for macroeconomic conditions. It is fair to say, as I said in my answer to the earlier question today, that events in the Middle East have made New Zealand poorer, they will be negative for our inflation rate and for the cost of living, and they will be destructive of growth.

💬 Hon Barbara Edmonds: Does she agree with ASB’s forecast of inflation reaching 4.2 percent by the middle of the year?

It’s not my responsibility to agree or disagree with a particular forecast. As I just noted in my earlier answer, there are a range of forecasts from bank economists and others that predict a higher rate of inflation this year than would have been the case without the Middle East conflict. It is my view that I concur that inflation will go higher this year as a result of the Middle East conflict. How much higher it goes depends on the decisions and judgments of leaders in countries on the other side of the world. I join the Prime Minister and our Government in wishing for a cessation to the conflict, a negotiated outcome, and the resumption of the normal passage of oil and refined fuels in the world, because that is what is required to bring down the price of fuel in New Zealand and to strengthen our economy.

💬 Hon Barbara Edmonds: Does she agree with Nicola Willis, Opposition finance spokesperson in May 2022, who said, “it can’t simply blame these issues on overseas factors”?

Absolutely, I do. It’s not enough to just say, “overseas factors meant I had to throw out the rule book and take bad decisions”. The grave responsibility we now have as a Government is to take these world events and control our response to blunt the impacts, and that is exactly what we are doing. We are making sure that we have a plan for responding to disrupted fuel supply. We’re making sure that our own spending decisions don’t make that inflation spiral more vicious than it might otherwise be. We have choices, and we will take our choices responsibly. I remain of the view, which the royal commission shares with me, that the last Government did not take those choices responsibly, made our inflation spiral deeper, and our debt hole deeper than it need have been.

💬 Hon Chris Bishop: Would the right policy response to this crisis be to borrow billions to spend it on things “that we were going to do anyway”?

I am aware that that is the position of some members of this House and the way they responded to previous global events. What is the case, and I’m sure that members opposite would quite agree with me on this, is that our world is more fragile today than it has been in some time. In the midst of that fragility, our Government has a responsibility to ensure that New Zealand is as strong as possible, to see its way through not just the next few weeks and months, members, but potentially the next few years. Putting us in a position where we are highly indebted and fragile, subject to global interest rate fluctuations, and unable to finance public services is not a position I am prepared to take. It is also the case that we need to be careful that our choices don’t inadvertently add to the inflation fire.

💬 Hon Barbara Edmonds: Supplementary. [Interruption]

💬 SPEAKER: Just a moment. Only one person speaking when a question’s called.

💬 Hon Barbara Edmonds: How will she “blunt the impact” on care and support workers who are reportedly having to refuse jobs because they cannot afford the fuel to get there?

The Government will make an announcement on that tomorrow.

💬 Hon Barbara Edmonds: How will she “blunt the impact” on a net 93 percent of businesses who are expecting costs to increase?

It is not within my power to end the conflict in the Middle East. However, I know that to blunt the impact on New Zealand firms, it is essential that we do everything we can to ensure they continue to have the fuel supplies needed to support jobs, incomes, and economic activity. It is also the case that the Government must take a measured and careful fiscal response, which should include temporary, timely, and targeted measures to offer support where it is required, and which should include engaging extremely closely with business and industry to make sure their views are at the fore as we continue to execute our fuel response plan.

Transport

Question No. 7

Asked by: KATIE NIMON, Answered by: Hon CHRIS BISHOP

to the Minister of Transport: What announcements has he made regarding Cyclone Gabrielle recovery work in the Napier to Wairoa corridor?

As we know, transport infrastructure across the North Island was hit hard in recent years by intense rainfall and events like Cyclone Gabrielle, which caused widespread damage, triggered slips, and forced the temporary closure of key State highway connections, which I know the member will be well aware of as the local MP. Our priority has been restoring these connections as quickly as possible. Yesterday, we announced that recovery work on the Napier to Wairoa corridor following Cyclone Gabrielle has been completed. The final asphalting is now done, meaning the 4-kilometre road rebuild at State Highway 2—known as “Devil’s Elbow”—is once again open to traffic. It’s a major milestone in recovery works in Hawke’s Bay and will mean a more efficient connection between Wairoa and Napier.

💬 Katie Nimon: What was involved in the rebuild of State Highway 2, Devil’s Elbow?

There were crews from local contractors working alongside Transport Rebuild East Coast (TREC) since 2023 to repair that extensive damage. It’s a particularly narrow and winding section of the road—very challenging conditions—and I want to thank all the contractors who have worked hard on that. Since Cyclone Gabrielle, there have been 11 recovery projects along this corridor. Major underslip repairs include a 12-metre-high retaining wall where a 40-metre long and 10-metre high underslip took out the southbound lane. They’ve also completed a full culvert replacement and repair programme to improve stormwater management, helping ensure the impacts of any future adverse weather events are minimised.

💬 Hon Kieran McAnulty: “Waste of money.”

💬 Katie Nimon: What progress is being made on other Cyclone Gabrielle works required for Hawke’s Bay?

Quite to the contrary of mutterings from the other side that these projects are a “waste of money”—the local residents of Napier and Wairoa and the Napier electorate will be interested to discover that members opposite consider these projects a waste of money—we are, in fact, making good progress. The final repairs are under way on Rail Bridge 217, the rail line between Hastings and Napier, expected to be completed by the middle of the year. Crews are also still working hard on underslips at State Highway 38 between Lake Waikaremoana and Tūai. Repairs will help restore the road to its original width, improve resilience, and keep communities connected. Work on these projects will continue into the middle of this year and will be the final TREC projects delivered in Hawke’s Bay.

Education

Question No. 8

Asked by: Dr LAWRENCE XU-NAN, Answered by: Hon ERICA STANFORD

to the Minister of Education: Will she commit to maintaining at least the current level of delivery for school transport and access to learning during the fossil-fuel price spike?

In the face of increasing fuel prices, the Government is committed to students being able to access and attend school. It is this Government’s priority to ensure that students are learning in school as learning was significantly disrupted by COVID, and our Government will be prioritising making sure children are learning in classrooms. The situation in the Middle East is dynamic, and, as you would expect, the Ministry of Education is planning for a range of different scenarios.

💬 Dr Lawrence Xu-Nan: Has she sought advice on options to support school transport providers—which includes specialised school transport assistance providers—with the extra costs they are facing to continue delivering current services, and, if not, why not?

As I have told the media this week, at the moment the Ministry of Education, at my direction, has been out contacting individual schools and working with school transport providers to understand the range of different challenges in different situations. We’re gathering all that data and information, and, as you would expect, we’re planning for a range of different scenarios, depending on what happens in this very dynamically shifting environment.

💬 Dr Lawrence Xu-Nan: Will she commit to increasing the specialised school transport assistance conveyance allowance above 27c per kilometre, given Auckland Transport has said that with current fuel costs, a typical 15-kilometre trip costs around 80c per kilometre in fuel, and, if not, does she accept that the status quo will drive some families further into hardship?

As I’ve already stated, the Ministry of Education is gathering that information at the moment. All options are on the table, as of course you would expect in that dynamically shifting environment. We are planning for a range of different scenarios. There is a range of different challenges, and we will plan accordingly.

💬 Dr Lawrence Xu-Nan: Does she accept that if she does not put in extra funding for greater access to school transport, school attendance will decline when around half of all students drive or are driven to school in private passenger vehicles, and transport costs have risen by at least a third in the last month and are projected to climb much higher?

Firstly, can I say that I need to congratulate and thank parents for prioritising getting their children to school, because what we have seen is that school attendance has held at broadly the same rate as it was at this time last year. There are, as I’ve already said, shifting things happening—there is a dynamic situation happening. We understand that as these things change, we will need to change our settings. The Ministry of Education is already out gathering all that information and putting together future plans, depending on what happens.

💬 Dr Lawrence Xu-Nan: Will she make a temporary and targeted and timely relaxation of school transport eligibility requirements to allow currently ineligible students to catch school buses to get to school during the fossil fuel crisis, and, if not, why not?

As I’ve said in every answer to every single question today, everything is on the table, depending on what happens in a dynamically shifting environment. We’re gathering together a range of options. We’re responding to this, and at the right time, we will be able to announce those. But my job is to make sure—as this Government has already said—that schools remain open, that children are able to get to school, and that school transport is available to them. That is my priority.

Energy

Question No. 9

Asked by: Hon Dr MEGAN WOODS, Answered by: Hon SHANE JONES

to the Associate Minister for Energy: Does he stand by all his statements and actions?

Yes, especially when the Minister gave her consent for the decommissioning of the refinery.

💬 SPEAKER: No—sorry, Mr Jones. We’ve been through this yesterday and the day before—

Speaking to a point of order—

💬 SPEAKER: No, no, I’m speaking, so I’ll give you a point of order in a minute. It’s not appropriate for a Government Minister, answering for the Government, to make an interpretation of a Cabinet paper which is of a type not unusual for Cabinets to consider.

Point of order. It falls to me to educate the House—

💬 SPEAKER: You don’t do that by way of point of order.

Figuratively, Mr Speaker.

💬 SPEAKER: Well, a point of order has to be about order.

OK. The point of order that I’m raising is my reference to a statutory consent issued by that member pertaining to her role where she agreed with Ampol purchasing the refinery and agreeing with the continuation of the decommissioning of the refinery, which would not have happened had she not issued her consent as an overseas investment officer.

💬 SPEAKER: Well, I’m in a position now where I don’t know what that procedure was, and that puts me in a difficult position. [Interruption] No, no; it’s all right, I don’t need your help. I would just suggest that if you’re answering something in the nature that you were, make it very clear what its relationship is to the Government’s response to the topic of the questioner.

💬 Hon Dr Megan Woods: Did he see advice that it was possible to fund a 70 million litre strategic reserve of diesel with the surplus built up in the Petroleum or Engine Fuels Monitoring levy fund account?

It is time for us to strip the fiction away. At no point had Megan Woods either sought a budgetary allocation, nor did she have the necessary permits.

💬 SPEAKER: Hang on. You can’t talk about what a previous Government did.

Point of order, sir.

💬 SPEAKER: No, no. it’s not a point of order because I’m still talking. And so the question was—[Interruption] No one else is talking while I am. The question was had he received information. Anyone’s welcome to come to the Standing Orders and change the way we do things. But at the moment, it has to relate to the Government’s activity. That’s what question time is for.

Point of order. In actual fact, in seeking the information and seeking advice, I was advised about the proposal pertaining to additional storage, pertaining to advice that the Crown spent money on adding to storage capacity in New Zealand, and I was advised that the former Minister had no budget, no necessary statutory consents. So I can’t answer the question unless I share with New Zealanders what is the truth. After all, I said yesterday that I just represent righteousness and truth on this issue.

💬 SPEAKER: Well, thank you for the point of order. It has been interesting for the House. Now, to the question; what’s the answer?

Could she ask it again.

💬 Hon Dr Megan Woods: Did he see advice that it was possible to fund the 70 million litre strategic reserve of diesel with the surplus built up in the Petroleum or Engine Fuels Monitoring levy fund account?

Ah, yes. I have sought advice on this issue and I have been advised that the 960 million litres worth of fuel we may have access to by dint of international options was paid for by money in a levy account. That money has been well spent, and, of course, it could not have been spent on an imaginary, non-existent dream.

💬 Hon Dr Megan Woods: Did he see the advice that the accumulated surplus in the levy account fund would grow to $74.4 million by 30 June 2023 and $110 million by 30 June 2025?

Yes. I’m very happy to report that the funding, having gone into the levy account referred to, has enabled us to secure 960 million litres of fuel. Had that money been squandered to meet the threshold of some scribbling left behind by the member as she fled from her office, we wouldn’t have access to the 960 million litres.

💬 SPEAKER: The latter part of that is not at all helpful. The authoritative part at the front most certainly is of use to the public, but the last part not at all.

💬 Hon Dr Megan Woods: What is the current balance of the levy account?

If the member would write me a letter, I will respond appropriately.

💬 Rt Hon Chris Hipkins: Point of order. The Minister can’t possibly stand by the previous answers that he’s given if he doesn’t know what the balance is. Megan Woods’ question was specifically about the surplus. Shane Jones has said that the surplus wasn’t available to fund the storage that the previous Government had committed to, yet he can’t say whether the surplus even still exists. How can he have given the previous answers if he doesn’t know that answer to that question?

💬 SPEAKER: No; in sequence, he said that the money had been used to buy some 900 million litres of fuel and is therefore spent. The question asked, “What is the balance of the account?”, and that would obviously change on a day-by-day basis. So I don’t think it’s unreasonable to say a written question might get an answer that tracks it over time.

💬 Hon Dr Megan Woods: Is he still making claims about Labour and Marsden Point because he scrapped Labour’s fully funded plan and is now trying to cover up his own failure to prepare our country in a fuel crisis?

Far be it for me to add to such tawdry discussions. This is a serious issue where Kiwis are deeply concerned about the cost of living, the security of fuel, and options going forward. It really doesn’t uphold the status of the House—that tawdry contribution.

Health

Question No. 10

Asked by: RIMA NAKHLE, Answered by: Hon SIMEON BROWN

to the Minister of Health: What recent announcements has he made on health infrastructure in South Auckland?

Last week, Health New Zealand began the next step towards delivering a future hospital for South Auckland, with a targeted process now under way to identify and acquire land in the Drury area. This is about getting ahead of growth, ensuring we secure the right site early, and laying the foundations for a major new health precinct that will serve its surrounding communities for decades to come. We’re getting on with the job so Aucklanders can have confidence that their health services will be there when they need them.

💬 Rima Nakhle: Why is South Auckland a priority for future development?

South Auckland and North Waikato are some of the fastest-growing regions in the country, whilst also having some of the highest health needs in New Zealand. These communities experience higher rates of infectious disease and long-term conditions, while existing hospitals like Middlemore and Auckland City are already faced with increased demand. The next step recognises both the scale of growth and the need to ensure access to timely healthcare in this part of Auckland.

💬 Rima Nakhle: What will new health facilities in South Auckland mean for patients?

A new hospital in South Auckland will mean better access to care closer to home. Drury was identified as a strong location due to its proximity to key transport corridors, including our roads of regional significance and planned public transport connections, making it easier for patients, staff, and visitors to access care. Over time, this will reduce pressure on existing hospitals, improve wait times, and ensure that Aucklanders can have confidence that high-quality healthcare will be there when they need it. This is all part of our wider plan to improve health infrastructure across the country.

💬 Rima Nakhle: What are the next steps in this process?

Health New Zealand has issued a request for a proposal to landowners identified following an earlier request for information, released to market in October 2025. The site of the land being sought would enable a wide range of future health developments, including a major general hospital. This is a critical early step that allows us to plan with certainty, ensuring the future investment is well located, properly scoped, and able to meet the needs of a growing population.

Emergency Management and Recovery

Question No. 11

Asked by: CUSHLA TANGAERE-MANUEL, Answered by: Hon CHRIS PENK

to the Minister for Emergency Management and Recovery: Does he stand by his answer to oral question No. 10 on Tuesday, 31 March regarding civil defence and emergency services, “they’re already well prepared but there is a lot of contingency work going across all Government agencies because we have to take a responsible approach to this as a country”; if so, why?

on behalf of the Minister for Emergency Management and Recovery: To the first part of the question, yes. To the second part of the question, because the National Emergency Management Agency (NEMA) is leading work to coordinate with Government agencies as well as non-Government entities to consider coordination in the future hypothetical event of fuel shortages. Of course, at the moment, it’s business as usual for them to be planning for emergencies of various types, including the possibility of concurrent emergencies of a natural disaster type, but also in the event that an emergency of one category coincides with any future fuel shortages.

💬 Cushla Tangaere-Manuel: How will he ensure civil defence and emergency services can access critical fuel in the event of a shortage?

On behalf of the Minister, I’m very comfortable and confident that NEMA is leading work among emergency response - type agencies, including Police, ambulance services, Fire and Emergency New Zealand, as well as various responding and recovering entities in the communities, including iwi and hapū but not limited to them, of course. I’m comfortable that work’s taking place. Of course, NEMA is in the business of understanding what prioritisation decisions would need to be made in the event of an emergency, and I’m encouraging them to continue that work.

💬 Cushla Tangaere-Manuel: Will there be an all of emergency services response or a response for each of the emergency services in each of the National Fuel Plan’s phases?

The Government’s consulting on what some of the detail of further phases might look like, in particular phases 3 and 4, and so it’s the Government’s advice to submit to its process of understanding critical activities across the economy and society, including but not limited to emergency response. Of course, if, in the circumstance where fuel shortages were to occur, then there would be rationalisation or coordination or prioritisation decisions that would need to be made then in response to those unique and particular circumstances. In the meantime, effort to understand what those decisions might need to be based upon is exactly what’s occurring now.

💬 Cushla Tangaere-Manuel: Point of order, Mr Speaker. The question was very specifically in relation to whether there would be an all of emergency services response or a response for each of the emergency services. He explained process that might go around making that decision, but it was very specifically about whether it’s all of emergency services or a response for each of the emergency services.

💬 SPEAKER: Yes, but the member knows that you can’t expect answers in the nature of a yes or no, and when the Minister said that this is under discussion at the moment, then, clearly, there can’t be an answer as strong as that.

💬 Cushla Tangaere-Manuel: Who has the authority to trigger priority access for emergency services in the event that diesel stocks decline faster than forecast?

On behalf of the Minister, as with the previous question, the fact of a consultation taking place as to what might take place in a phases 3 and 4, should we need to reach those levels, decisions will be made, no doubt, about the prioritisation of fuel but also the command and control aspects of who would make what decisions and at what junctures in terms of any fuel shortage. So it’s impossible to answer with clarity at that point, but, suffice to say, the considerations that the member’s raising, I think, are good ones but are being contemplated as part of the Government’s planning and submission process for those phases 3 and 4.

💬 Cushla Tangaere-Manuel: What is the trigger point at which the Government would formally activate priority fuel access for civil defence and emergency services?

On behalf of the Minister, it’s not clear to me that it would necessarily be within my ministerial remit to make such decisions.

Food Safety

Question No. 12

Asked by: LAURA McCLURE, Answered by: Hon ANDREW HOGGARD

to the Minister for Food Safety: What advice, if any, has he received on the potential impact of the current global fuel supply disruptions on food safety in New Zealand?

The availability of hygienic, food-grade packaging underpins New Zealand’s world-class food safety system and relies on the supply of both oil and fuel. Businesses report that sufficient packaging is available. We are working closely with domestic and export-focused food businesses to ensure their on-hand stocks of packaging are sufficient. We are monitoring medium- to long-term availability as part of the work of the Government’s ministerial oversight group.

💬 Laura McClure: How can New Zealand’s food safety regulatory system respond if needed?

Our regulatory system is well placed to support companies to meet any availability challenges because it is not prescriptive about packaging. The legislation is focused on outcomes and is flexible enough for food producers to pivot to alternative supplies without a whole lot of red tape. Food producers will just need to continue to ensure that packaging protects food from contamination, that it is not a source of contamination itself, and that it preserves food quality and advertised shelf life.

💬 Laura McClure: What has he heard from food suppliers about the availability of inputs?

I’ve had a number of farmers contact me with concerns about the availability of both fuel and fertiliser. While I understand there have been some local challenges with getting diesel delivered, overall fuel supply remains sufficient, with good levels of fuel in the country and more on the way. I understand from the fertiliser industry that there is enough product both in New Zealand and ordered to meet demand until spring, and our co-ops have options for securing future supply that they are working through now. Having said that, of course, we are seeing the price of both fuel and fertiliser go up. I just want to say to farmers that at this stage, we just have to keep calm, plan ahead, work closely with suppliers, and make sensible business decisions about the use of inputs, just as we have always done in the past as costs go up.

💬 SPEAKER: That concludes oral questions. We’ll take 30 seconds before we move to the general debate.