Oral Questions to Ministers

Asked by: Hon WILLOW-JEAN PRIME, Answered by: Hon LOUISE UPSTON

to the Minister for Social Development and Employment: Does she stand by her statement that “I accept responsibility” for a series of mistakes related to payments from the Ministry of Social Development; if so, why did it take her more than three weeks to publicly accept responsibility?

To the first part of the question: yes. To the second part of the question: I reject the member’s assertion. As Minister for Social Development and Employment, I accept full responsibility for my portfolio, including when people are let down. As I’ve said previously, what happened was unacceptable, and I would again like to apologise to everyone who was impacted. My focus as Minister is on ensuring this does not happen again. The review that was released last week identified where things went wrong and what needs to change, and my expectation is that Ministry of Social Development (MSD) will implement the recommendations as soon as possible.

💬 Hon Willow-Jean Prime: How many disabled people who missed out on payments they were entitled to fell behind on rent as a result?

The report that was released last week by MSD states the number of people who were affected. Some of those were on the Supported Living Payment; that number is 2,349.

💬 Hon Willow-Jean Prime: How many pensioners who missed out on payments they were entitled to couldn’t afford food as a result?

I don’t have an answer to that. As I said, I recognise that the mistakes meant that payments were suspended that shouldn’t have been. The focus was on ensuring that payments were made at pace—MSD did do that—but I acknowledge that there will be people who suffered hardship as a result.

💬 Hon Willow-Jean Prime: Were there other benefits, such as Jobseeker, affected by processing delays at MSD?

The Confirming Your Circumstances review related to predominantly those on the Supported Living Payment. There were a very small number on emergency benefits that were affected.

💬 Hon Willow-Jean Prime: When will she admit that people had to go without food, medical appointments, or fell behind on rent, because of her changes under urgency and her cuts to staff at the ministry?

I reject the assertion of that question. I have said in this House, previously, that people had payments suspended that shouldn’t have. As soon as that was identified the payments for the winter energy payment were made within 48 hours. There has been a review—which the Ministry of Social Development delivered last Thursday—with recommendations, and I expect them to deliver those at pace.

Social Development and Employment

Question No. 10

Asked by: RICARDO MENÉNDEZ MARCH, Answered by: Hon LOUISE UPSTON

to the Minister for Social Development and Employment: How many suspensions and cancellations of main benefits occurred as a result of processing delays triggered by Confirming your Circumstances reviews, and how many of them were Supported Living Payment recipients?

The Ministry for Social Development (MSD) have advised me that 2,460 clients on a main benefit were affected by the processing delays; 2,349 clients were receiving the Supported Living Payment. MSD did not break this affected group down by cancellations or suspensions. MSD has acted quickly to clear the backlog and make sure that these clients have had their payments reinstated and any arrears paid.

Ricardo Menéndez March: Has she bothered to ask the Ministry for Social Development whether any of the sick, injured, or disabled New Zealanders who lost their main source of income went hungry, into debt, or became homeless?

It is clear from the review that was undertaken that people went without payments that shouldn’t have, and I have acknowledged—as has the chief executive of MSD—that that has created harm and hardship, for which we have both apologised.

Ricardo Menéndez March: Has she asked her ministry whether any of the sick, injured, or disabled New Zealanders who lost their main source of income went hungry, into debt, or became homeless?

I’ve answered that question and acknowledged that those who had payments suspended that shouldn’t have, have experienced harm and hardship. That will be in a range of ways, with a range of different circumstances.

Ricardo Menéndez March: Has she sought any briefings or advice on the impact on sick, injured, or disabled New Zealanders who lost their main source of income, and whether this led to people going hungry, into debt, or into homelessness?

Yes, because that is why a review was undertaken, on which MSD reported last week. As I said, it is clear that people had payments suspended that they shouldn’t have, and that had an impact on them.

Ricardo Menéndez March: If her answer to my previous question over whether she sought advice or briefings about whether people went hungry, into debt, or into homelessness was “Yes”, what did MSD have to say about the number of people who went hungry, into debt, or experienced homelessness?

I’ve answered the question in terms of the number of people who had a main benefit suspended when they shouldn’t have, and the review that was provided by MSD last week clearly goes into what happened and why, and how many were affected. As I’ve said in this House on multiple occasions, as soon as I was aware of the issue, my focus, and my request of MSD, was to ensure that payments were put in people’s bank accounts at haste, and they have been. There are recommendations now in terms of what has happened and why, and I expect MSD to action them with pace.

Ricardo Menéndez March: On what date did she first receive correspondence from welfare recipients or members of Parliament alerting her that people were experiencing cancellations and suspensions to their main benefits or supplementary assistance due to MSD processing delays, and this excludes the briefing she received on 13 August by her own ministry?

In terms of the question, the first identification that went to an MSD staff member about a suspension was at the end of April. As I said last week, it took far too long for MSD to draw the threads together when issues had been raised by multiple people. That was unacceptable, and that is where I expect the recommendations of this review to be delivered at pace.

Ricardo Menéndez March: Point of order, Mr Speaker. My question was specifically on correspondence that she received from welfare recipients or other members of Parliament. At no point did she address either of those groups; she talked about correspondence from MSD but did not address whether she received correspondence from welfare recipients.

💬 SPEAKER: I’m not sure that that’s right. I think the question was certainly addressed.

I’m happy to answer it. I don’t have that detail in front of me. If the member wants to put a question down in written form, I will answer that for you.

Tourism and Hospitality

Question No. 11

Asked by: NANCY LU, Answered by: Hon LOUISE UPSTON

to the Minister for Tourism and Hospitality: What recent reports has she seen on tourism in New Zealand?

Data released by Stats NZ yesterday shows New Zealand’s international visitor numbers continue to rise, with arrivals for July exceeding 2019 levels. Our first target for visitor numbers was to return to 2019 levels, so this result is great news: 256,600 international visitors arrived in New Zealand in July 2026—an increase of 8.5 percent on July 2025. We’ve also welcomed 3.69 million arrivals in the year to July—an increase of 9 percent on the year prior, which puts us at 95 percent of the 2019 levels for the year. Growing tourism is a key part of our Government’s plan to fix the basics and build the future, and this progress shows that our plan is working.

💬 Nancy Lu: What markets have seen the strongest growth?

We are seeing continued growth from our largest visitor market, Australia, with a record number of our Aussie mates crossing the ditch in July. Visitor arrivals from Australia increased by 6 percent on July last year, reaching 194,900 visitors. There was also strong growth from other key tourism markets, including a 12 percent increase in visitors from the United States and a 25 percent increase in visitors from China. These results are another positive step towards our goal of doubling the value of tourism exports by 2034. With one in nine New Zealanders working in tourism and hospitality, growing visitor numbers means growing job opportunities.

💬 Nancy Lu: What commentary has she seen on these reports?

ASB senior economists said global demand for New Zealand tourism has held up more than anticipated given recent global shocks. Rotorua mayor Tania Tapsell said, “The efforts that have gone in, both locally and from the Government, to these key markets is really starting to pay off. July is usually a quiet time, so the big win is the 70 percent jump in business and conference events that keep Rotorua afloat.” Dave Beeche, the CE of Queenstown-based tour operator RealNZ, has said that the visa pilot for Chinese visitors has been enormously successful and has made it a lot cheaper and easier for them to visit. Tourism is critical to our economy, and our investments will help deliver lasting benefits for communities and businesses across New Zealand.

💬 Nancy Lu: What steps is the Government taking to support an increase in tourism growth?

We know domestic visitors generate nearly twice as many guest nights as international visitors and account for around two-thirds of all guest nights across New Zealand. We do not believe that New Zealanders booking a weekend away or travelling for a family funeral or sports event should face an additional tax on top of the costs they already pay when travelling domestically. We are working hard to attract more visitors to New Zealand because the more visitors we have to our cities and towns, the more money is being spent in local shops and cafes. It’s a key part of our plan to grow the economy so we can keep investing in front-line public services that Kiwis rely on, without having to reach for new taxes.

Commerce and Consumer Affairs

Question No. 12

Asked by: ARENA WILLIAMS, Answered by: Hon CAMERON BREWER

to the Minister of Commerce and Consumer Affairs: Tēnā koe e te Māngai o te Whare. Ngā mihi o Te Wiki o Te Reo Māori. Does he stand by his statement that the Government’s policy is for “sustainable food price increases”; and, if so, how much does he think prices will rise for things Kiwis cannot go without?

Yes, which is why annual food inflation is at 1.9 percent. In terms of prices and inflation more generally, I would note that Budget 2026 forecasts inflation for 2027 and 2028 within the Government’s target band of 1 to 3 percent. That is a significant improvement on the 7.3 percent inflation rate recorded in 2022.

💬 Arena Williams: Does he stand by his statement “We acknowledge that, overall, Kiwis pay too much for their groceries.”; if so, what actions has he taken to reduce food prices for Kiwis?

Yes, we do acknowledge that Kiwis pay too much for their groceries. That is why the Commerce Commission is continuing its compliance work against major supermarket operators, that is why we are supporting reforms to improve competition and lower barriers to entry in the grocery market, and that is why we are increasing penalties for fair-trading breaches.

💬 Arena Williams: Was it a good use of time and resources to spend three years trying to attract a third supermarket entrant from overseas when, during that time, the duopoly has maintained an 80 percent market share and grocery prices continue to rise?

💬 SPEAKER: Sorry, no one speaks while a question’s being asked. The member will ask the question again, with no one else adding any commentary.

💬 Arena Williams: Was it a good use of time and resources to spend three years attracting a third supermarket entrant from overseas when, during that time, the duopoly has maintained an 80 percent market share and grocery prices have continued to rise?

Yes, it was a good use of resource and the fact that food price inflation is down to 1.9 percent is an indicator. When one does nothing, and one fuels the economy and pours petrol on the fire, that is when you get food price inflation of 12.5 percent under the last Labour Government in an annual context. We are a lot different from that lot.

💬 Arena Williams: Are New Zealanders paying higher prices for groceries, petrol, airfares, and banking, and have they been told, repeatedly, by this Government, that more competition is coming and that will help those prices?

This Government continues its focus on reducing inflationary pressures, while supporting reforms to lower competition and lower barriers. A 1.9 percent annualised food inflation is a lot better than the 12.5 percent in the year to June 2023. In the year to June 2023, under a Labour Government, fruit and vegetables went up 22 percent.

💬 Hon Nicola Willis: Can the Minister—[Interruption]

💬 SPEAKER: Just wait for your own crew to calm themselves down.

💬 Hon Nicola Willis: Can the Minister confirm that in the 12 months to July the price of eggs, in terms of food price inflation, went down 15.5 percent, which compares to a 77.9 percent increase in a 12-month period under Labour; and can he also confirm that the price of tomatoes dropped 29.3 percent compared to a 148 percent increase during a during a 12-month period under Labour?

I can confirm both things and I can confirm in the three years to 2026, food inflation—[Interruption]

💬 SPEAKER: Just a minute, sorry. The member’s asked a question and clearly wants answers, so it would be a good idea, I think, to listen and to hear those answers. Start the answer again.

Yes, I can confirm both those numbers. I can also confirm that in the three years to 2026, under this administration, food inflation has been 6.8 percent. But I can also confirm that in the three years to 2023, under the last Labour Government, food inflation was 21.9 percent.

💬 Arena Williams: Does he stand by his Government’s approach to competition and believe it has been sufficient to protect New Zealand consumers from the market power of big companies?

Yes, we do, and we also stand by our decision to remove the Grocery Commissioner and put more powers into the ComCom, and it was a decision that was made by Dame Paula Rebstock, who made the recommendation to remove the individual Grocery Commissioner role, and if you looked at the select committee report, the Labour Party unanimously agreed to the Rebstock report.

💬 Hon Nicola Willis: Can the Minister confirm that in the last 12 months, tinned spaghetti has dropped 6 percent in price compared to a 35 percent increase in a 12-month period under Labour; that the price of chicken has fallen 4 percent compared to a 23 percent increase in a 12-month period under Labour—

💬 Hon Willow-Jean Prime: What’s the price of mince?

💬 SPEAKER: Sorry, we’re just going to back it up a bit. The rule is, and everyone knows it Ms Prime, Willow-Jean, the Hon, that we don’t—[Interruption] Yeah, I said we’re backing it up. We don’t speak at all when the question’s being asked. The Hon Nicola Willis, ask the question again.

💬 Hon Nicola Willis: Can the member confirm, in terms of food prices, that in the past 12 months, tinned spaghetti has fallen 6 percent in price, which compares with a 35 percent increase in price in one 12-month period under Labour; and that in the same 12 months the price of chicken fell 4 percent compared with a 23 percent increase in a 12-month period under Labour?

I am delighted to confirm those decreases, particularly around tinned spaghetti. I received a delighted email, a very pleased email, from the Hon Bill English, who makes spaghetti and pineapple pizzas—he too is delighted.

💬 Arena Williams: Is that what he says to the people who are paying 88 percent more for butter, 96 percent more for tomatoes, and 72 percent more for bread under his watch?

What I would say to those people is that fruit and vegetable prices are lower than a year ago, down 1 percent, and that is a stark contrast to food prices being up 12.5 percent in the year to June 2023, including fruit and vegetables up 22 percent in the year to June 2023 under the last Labour Government.

💬 Hon Nicola Willis: In light of that member’s question, would the member be surprised to learn that, in fact, in the 12 months to July this year, butter price inflation fell 1.9 percent, which, again, compares with a 13.5 percent increase during one 12-month period under Labour?

Yes, I can confirm that, and also reiterate that, while fruit and veges went up 22 percent in the last year of the previous administration, fruit and vegetables in the last year of this administration have gone down 1 percent.

💬 Hon Carmel Sepuloni: Can he confirm that he flippantly said to the general manager of Fair Food, the food rescue organisation, when she was sharing with him about the cost of living crisis and struggle with people purchasing food, “Don’t you think a little bit of hunger is just inevitable?”

Anyone who knows me knows that I would never have said such a thing, so I dispute that. Just because that claim was made doesn’t make it true.

💬 SPEAKER: That concludes oral questions.