ORAL QUESTIONS

QUESTIONS TO MINISTERS

District Health BoardsFunding

1. Hon ANNETTE KING (Deputy LeaderLabour) to the Minister of Health: Does he believe that DHBs have enough funding to meet the needs of the public in a fair and equitable way?

Hon Dr JONATHAN COLEMAN (Minister of Health): And happy New Year to you, too. Yes, under this Government, Vote Health has increased by $4.3 billion. In terms of fairness and equity, funding is distributed to district health boards (DHBs) via the population-based funding formula introduced by health Minister King nearly 20 years ago.

Hon Annette King: Is it a fair and equitable system when 20 percent of people refused a first specialist assessment under his funding are people needing orthopaedic operationsin other words, older New Zealanders living in pain and disability?

Hon Dr JONATHAN COLEMAN: The member is focusing on the small percentage of people who are not getting a first specialist assessment, but the wider picture is actually that first specialist assessments under this Government have gone up massively, by about 110,000 per year. In fact, I think it is actually even more than that. In terms of hip and knee surgery for older people, there has been a huge uplift in joint replacements over the last 8 years, from 8,800 in our first year in Government to over 11,000 now. So we are doing more all the time, helping more New Zealanders to get the services they need. The member should be positive and focus on the good things that are being done rather than nit-pick around the fringes.

Hon Annette King: Does he stand by his statement that the answer to increased demand is to do more, when the increase in hip and knee surgery was a mere 2.7 percent over the previous year, and eighteightdistrict health boards are doing fewer hip and knee operations than before while the demand and need for surgery is exceeding the funding he is putting in?

Hon Dr JONATHAN COLEMAN: The member wants to be cheerful and focus on the big picture, which is, actually, that hip and knee surgeries have gone up 8 percent over time. In terms of doing more, I agree that we should be doing more. That is why I was very disappointed that when Mrs King was Minister she managed to deliver 7,500 fewer operations each year. [Interruption]

Mr SPEAKER: Order! Can we just have the supplementary question, please.

Hon Annette King: When he said on 2 November that eye treatment in the public health system was "actually pretty good", was he aware that the College of Ophthalmologists estimated that more than a hundred people could lose their vision or go blind because of delays in treatment?

Hon Dr JONATHAN COLEMAN: Once again, the Minister should not be so gloomy. When you are looking at eye assessments and eye surgery, let us look at the bigger picturethe facts. Ophthalmology assessments are up 40 percent in the last 8 years, and ophthalmology surgeries are up a whopping 57 percent. Of course, there is always more to do, and that is what we are doingunlike, of course, when Mrs King was Minister, when she did less.

Hon Annette King: Is the hastily-put-together $2 million package announced 2 days before Christmas realistic when the College of Ophthalmologists estimate that up to 21,000 people are overdue for follow-up eye appointments, from the five main centres, and the only people who are gloomy are those who are not seeing properly?

Hon Dr JONATHAN COLEMAN: Oh, no, I know a lot of thought went into that $2 million package$100,000 for each district health board. It was consulted with the ophthalmologists, and they thought it was an excellent initiative that is going to benefit a lot of New Zealanders.

Hon Annette King: Was it acceptable to him to sit on his hands and do nothing, denying warnings that the college gave him a year before of the massive failures in follow-up eye treatment, and watch an estimated hundred people lose their vision or go blind on his watch?

Hon Dr JONATHAN COLEMAN: As Mrs King knows, that just did not happen.

EconomyOutlook

2. ALASTAIR SCOTT (NationalWairarapa) to the Minister of Finance: What is the outlook for the New Zealand economy over the next 3 years?

Hon STEVEN JOYCE (Minister of Finance): The Reserve Bank's Monetary Policy Statement released this morning highlights a strongly positive outlook for the economy over the next 3 years. The bank noted, in particular, New Zealand's positive outlook for growth relative to other advanced economies and noted the recent strengthening of growth to an annual rate of 3.5 percent in the most recent quarter, expecting that to continue at around this level for the next 2 years and to continue strongly over the forecast period at around the 3 percent mark.

Alastair Scott: What else does the Reserve Bank say about New Zealand's growth?

Hon STEVEN JOYCE: The bank noted that the growth has been driven by a wide range of service industries, including construction, low interest rates, a recovery in dairy prices, strong population growth, and increased household spending. In addition, the bank highlights strong employment growth in the last year, as demonstrated by the number of people employed reaching 2.5 million for the first time and New Zealand's employment rates and participation rates reaching all-time highs of 66.9 percent and 70.5 percent respectively in the last quarter.

Alastair Scott: What is the outlook for the housing market?

Hon STEVEN JOYCE: Today's statement notes that although annual house price inflation remains high by historical standards, it has slowed recently due to increasing interest rates and the tightening of loan-to-value ratios, with nationwide monthly inflation averaging 0.1 percent over the last 5 months compared with 2.1 percent in the 5 months prior. The bank also highlights the strength of the construction industry, driven by strong residential investment, and notes an expected increase in residential building in Auckland once appeals that the Unitary Plan is currently working through are through. This is further supported by today's Statistics New Zealand building consents release, which shows the total number of homes consented in the year was just under 30,000, up 10 percent from 2015 and the most for a calendar year since 2004, with Auckland consents up 7 percent on 2015.

Alastair Scott: What risks are there to this economic outlook?

Hon STEVEN JOYCE: The Reserve Bank identifies that international factors are the key risks to the economy. Although the Reserve Bank notes an improved global outlook resulting from more positive business and consumer sentiment in other developed countries and recovery in commodity prices, rising geopolitical uncertainty may impact on the outlook in this country. In particular, the bank cites uncertainty resulting from the new US administration, the upcoming euro-area elections, and Brexit as potential risks.

Conservation, MinisterStatements

3. CLAYTON MITCHELL (NZ First) to the Minister of Conservation: Does she stand by all her statements?

Hon MAGGIE BARRY (Minister of Conservation): Yes, in the context in which they were made.

Clayton Mitchell: Does she stand by her statement that the Department of Conservation (DOC) had the budget it required in denying that it was being increasingly underfunded; if so, why?

Hon MAGGIE BARRY: In order to inform the member of the facts of the matter, because that member has been responsible for peddling some complete nonsense, the DOC operating budget has increased[Interruption]listen carefully, you may learn something that is factual and will help youand $316 million, in 2008-09, has gone to $374 million in this financial year. Vote Conservation has increased from $416 million in 2008-09, to a forecast of $491 million this financial year. Not a cut, not a knock back, not razoring down all of the facilities that DOC has as its resources

Tracey Martin: I raise a point of order, Mr Speaker.

Mr SPEAKER: Order! It is a point of order. It will be heard in silence.

Tracey Martin: The question was: does the Minister stand by her statement? She actually has yet to answer whether she stands by her statement.

Mr SPEAKER: Order! No. [Interruption] Order! The question was very clearly addressed, to my mind, and there were a significant number of interjections coming throughout the answer from many members of New Zealand First. The Minister has the opportunity then to respond to those interjections. Are there further supplementary questions?

Clayton Mitchell: In light of her answer, how does she can explain that fire control expenditure for fire management of over 8.6 million hectares of conservation lands has dropped by 94 percent, from over $11 million in 2011-12 to just $724,000 last year?

Hon MAGGIE BARRY: It may be helpful to the member to understand that our fire services have been reviewed substantially. The Minister responsible for that is Peter Dunne. DOC has managed its firefighting expenditure very well. I think what the member might be alluding toand I am happy to help the member, if he would like to write me a question about it, to go through the detail of the costs and operational. But it has been a major review and the basis of the charges has been changed, and therefore it would be appropriate for me to respond to you in writing, if you would like to know more, or for you to address the questions to Minister Dunne.

Clayton Mitchell: Supplementary

Mr SPEAKER: Order! There is going to be little point in carrying on with supplementary questions if you cannot get the assistance of your own parliamentary colleagues so that we can all hear the answer.

Clayton Mitchell: In that case, is it not true that under the restructuring of the Fire Service, DOC will retain its responsibilities for controlling fires on conservation land?

Hon MAGGIE BARRY: The Department of Conservation will always look after public conservation land in the way that it has in the past, and also in the way that the new regulations hand down. There are some alterations to the ways in which and the areas in which this is done, and the size of the areas. As I say, it is a very detailed assessment and change that has gone through. Very happy to answer the member's questions if he would like to put those to me in writing. The primary question did not in any way allude to this line of questioninghappy to address it, but it needs to be done in the proper channels.

Clayton Mitchell: What impact has the extreme reduction in fire expenditure had on preventing fires like last Saturday's 300,000 hectare fire on DOC land at Castle Hilla fire that also resulted in the closure of the Christchurch to Greymouth rail link?

Hon MAGGIE BARRY: Putting resources and money into preventing fires is a very difficult business. There could be any number of reasons why those fires were started. It could have been a naturally occurring event, it could have been an accidental throwing away of a cigarette, it could have been arsonnobody knows. No amount of money that DOC or any other entity can put into fire precautions is going to stop those kinds of things from happening. Firefighting is always something that DOC takes seriously and always will.

Clayton Mitchell: I seek the leave of the House to table a document showing the figures outlined, as I have spoken about today, with a 94 percent reduction

Mr SPEAKER: Order! All I need now is the source of the document.

Clayton Mitchell: This was sent through to us. It is a compilation of annual reports put together and confirmed by the Parliamentary Library, so it is in fact from the Parliamentary Library, from 7 February.

Mr SPEAKER: Order! I will put the leave and the House will decide. Leave is sought to table that compilation prepared by the Parliamentary Library. Is there any objection to it being tabled? There is objection.

Climate Change Issues, MinisterStatements

4. JULIE ANNE GENTER (Green) to the Minister for Climate Change Issues: Does she stand by her statement, "we're on the right track on tackling climate change"?

Hon PAULA BENNETT (Minister for Climate Change Issues): Yes I do, and to just expand on the quote, it was that: "Ratifying the Paris Agreement is a good way to show our strong commitment internationally, but the real work happens at home, and I am optimistic we're on the right track to finding better ways to live and leave this world for future generations."

Julie Anne Genter: Does she agree that the real work of reducing climate pollution can be achieved only by investing in infrastructure that does not rely on fossil fuels?

Hon PAULA BENNETT: I believe that it is going to take a concerted effort across everything, from how we live our lives, the products we use, and yes, infrastructure as well. Electric vehicles I am a big fan of. I also think that our renewable energy targets are good. So a whole lot of workacross forestry and everything as well.

Julie Anne Genter: As climate change Minister, did she agree with the decision to replace clean electric trains on the North Island rail line with diesel trains?

Hon PAULA BENNETT: It was not a decision for me to agree to or not. It was an independent decision by the directors.

Julie Anne Genter: Does she agree that the independent decision made by the directors was influenced by the amount of funding that is available to KiwiRail by her Government?

Hon PAULA BENNETT: No, and in fact I am someone who has sat, over the years, and watched literally hundreds of millions of dollars

Hon Steven Joyce: Billions.

Hon PAULA BENNETT: it is billions, I am being toldgo to KiwiRail, so I do not believe it was a funding issue.

Julie Anne Genter: Does she agree that the 10-year transport plan set out by her Government, which will spend over $30 billion on infrastructure, should consider the overall impact on climate pollution and allow for investment in rail, not just highways?

Hon PAULA BENNETT: We spend literally billions on rail over the years. I am aware this Government has proven itself to be a supporter of rail, but we also need roads that cars can go on and that people can travel on.

Julie Anne Genter: Does she agree that completing the electrification of the rail network and buying new electric trains will not only help reduce climate pollution from freight but will mean New Zealanders can reduce freight costs, reduce maintenance and operational costs, have cleaner and quieter transport through our towns, and that that will benefit the country for generations to come; if not, why not?

Hon PAULA BENNETT: I believe that that would cost billions and billions of dollars. Ultimately, they have decided to retain the diesel trains because it would cost more than $1 billion and would have taken years to upgrade the electric trains. I am also assured that this would have meant more trucks on the road in the interim, and trucks emit 66 percent more to move the same amount of freight as a diesel train.

Julie Anne Genter: Does she know that her Government could fully electrify the rail line between Auckland and Wellington, allowing electric trains to go the full distance, for less than the cost of 17 kilometres of "Holiday Highway", which will do nothing to reduce climate pollution or even save time for trucks?

Hon PAULA BENNETT: I very much question the member's math.

Marama Fox: Given that answer, is there any plan for the Government to announce about reconnecting the rail line from Napier to Gisborne?

Mr SPEAKER: Order! There is no ministerial responsibility, as Minister for Climate Change Issues, for that question.

Julie Anne Genter: I raise a point of order, Mr Speaker. My question was about the relative cost of electrification and a project that the Government is currently funding. Those numbers are publicly available to the Minister.

Mr SPEAKER: Order! This is not a point of order. The question has been addressed, and if the member feels that there has been a misrepresentation, then there is another way forward. But it is not by raising it as a point of order.

David Seymour: I raise a point of order, Mr Speaker. I just seek your guidance and clarification on when a supplementary question is appropriate. Marama Fox asked a supplementary question off the back of the Minister for Climate Change Issues citing statistics that trains actually reduce emissions. Marama Fox asked whether, perhaps, trains would be applied in another part of the country. Surely that is an appropriate supplementary question, or is it not?

Mr SPEAKER: No, on this occasion it is not. There was no reference in the question from Marama Fox that in any way related to climate change issues. She simply asked whether a particular railway line would be reopened. The Minister does not have a responsibility for that whatsoever.

Julie Anne Genter: I raise a point of order, Mr Speaker. [Interruption]

Mr SPEAKER: Order! I will deal with the point of order first.

Julie Anne Genter: Sorry, Mr Speaker. I called for a point of order before the supplementary question from Marama Fox.

Mr SPEAKER: I do not understand now what the point of order is.

Metiria Turei: I raise a point of order, Mr Speaker. Julie Anne Genter sought a point of order from you immediately after the Minister's answer to her question, but you did not hear it and you gave a supplementary question to Marama Fox. As a result, Julie Anne Genter was not able to ask you to ensure that the Minister answered her question. That is what her point of order is about.

Mr SPEAKER: I thought I had made it quite clear that the question that was asked by Julie Anne Genter was, in my opinion, then addressed by the Minister. If the member has another point of order, I am happy to hear it. But if it is questioning whether the previous question asked by Julie Anne Genter had been asked and then addressed by the Minister, in my opinion it had been.

Julie Anne Genter: Does she really expect New Zealanders to take her Government's efforts on climate change seriously when her Government cannot produce a long-term plan for infrastructure investment that is going to reduce climate pollution in the long term?

Hon PAULA BENNETT: The member will be absolutely thrilled to know that we are currently working on that very long-term plan of how we meet our nationally determined contribution for 2030, and that will certainly include emissions reduction in New Zealand.

Marama Fox: Given her response that climate change and emissions will be reduced when you use rail over trucks, will the Government be announcing the reopening of the Napier to Gisborne rail line?

Mr SPEAKER: Well done.

Hon PAULA BENNETT: I cannot answer that question because I am not the Minister of Transport. So, sorry, I am not sure exactly where they are, as far as opening or reopening other tracksbut not intending to.

Julie Anne Genter: I seek leave to table the business case from KiwiRail cited 21 December 2016, released to us under the Official Information Act, showing the switch to diesel trains will increase emissions by 12,000 tonnes.

Mr SPEAKER: Leave is sought to table that particular information obtained under the Official Information Act. Is there any objection to it being tabled? There is not. It can be tabled.

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

Police ResourcingNumbers

5. IAN McKELVIE (NationalRangitkei) to the Minister of Police: What announcements has the Government made about increased police for rural and regional New Zealand?

Hon PAULA BENNETT (Minister of Police): This Government's half-a-billion-dollar Safer Communities package is focused on ensuring that police are accessible to all New Zealanders when they need them. That is why the package includes 140 new sworn officers who will be dedicated to serving just our regional and rural communities. This will bolster staff in up to 20 regional stations to 24/7 capability. Regional communities will also benefit from the new police to fight organised crime and investigate serious crimes such as child abuse and family violence.

Ian McKelvie: How will this boost in police numbers make police more accessible for rural communities?

Hon PAULA BENNETT: Police have made a commitment that 95 percent of New Zealanders will live within 25 kilometres of a police presence 24 hours a day, 7 days a week. This does not mean police sitting behind a desk at a station 24/7; it means police out on the streets, patrolling in their cars, and ready to come to the assistance of people who need it.

Kelvin Davis: When she stated last week "I think the timing was about right" for her announcement, how safe does she think those of us who live in the Far North felt in our communities, with a 140 percent increase in robberies last year, when we needed the police?

Hon PAULA BENNETT: Under this Government we have seen nearly a thousand equivalent police in the last 8 years600 of them came from previous Minsters, and we introduced 354 through technology advances, which freed up more police on the front line. So the time was about right to bring in more police at this stage.

Kelvin Davis: I raise a point of order, Mr Speaker. The question was "how safe does she think those of us who live in the Far North felt", not just a relitigation of her policy.

Mr SPEAKER: Well, if the member could make that the question instead of the lead-in, that would make it easier. If the member asks the question again, because it was a confusing question in the way it was askedI will allow Kelvin Davis to ask it again and we might get the answer.

Kelvin Davis: When she stated last week "I think the timing was about right" for her announcement, how safe does she think those of us who live in the Far North felt in our communities, with a 140 percent increase in robberies last year, when we actually needed the police?

Hon PAULA BENNETT: I am going to repeat my answer because I am answering the first part of it: the timing is right. This Government has committed 600 new police, on top of the equivalent of 354

Kelvin Davis: That wasn't the question.

Hon PAULA BENNETT: Your question was whether or not the timing was right, and the timing was right for this introduction over 4 years, which will make a huge difference to those up in Northland, and will ensure that they have more police on the beat.

Ron Mark: How many of the 880 sworn officers fought for by the Hon Judith Collins and announced by her will be based in Waipukurau, Woodville, Pahatua, Carterton, Martinborough, and Featherston by June 2018and even by June 2020?

Hon PAULA BENNETT: The deployment of officers is a matter for the commissioner.

Ian McKelvie: In what other ways does the Safer Communities package help rural communities?

Hon PAULA BENNETT: This package includes funding for 12 new mobile policing units to provide policing services on the move to where they are most needed in those very small rural communities and towns. Police will also establish the rural duties officers' network, recognising that in many of our rural communities they have different crime issuesand addressing some of those as well.

Ron Mark: What confidence should residents in Rangitkei have in her plan for improving safety in the community, when statistics show that from 2008 to June 2016 there were 215 burglaries in Taihape for only three arrests, and 35 cars were stolen for only three arrests, the last of which was made in 2013?

Hon PAULA BENNETT: With this new announcement, with a half-billion dollar investment and with more than 1,100 new police staff, I am told that all districts will be getting more officers on the beat, and that will make a difference.

Ron Mark: In her full and detailed briefing that she received from the police about the need for an extra 880 sworn officers and where the needs lay, can she now tell the House precisely which towns are going to receive those extra police, or do we all expect them to end up in Auckland as normal?

Hon PAULA BENNETT: OK, one more time for the member, and if he listens carefullyall 12 districts

Ron Mark: I raise a point of order, Mr Speaker. Is sarcasm the norm for this House?

Mr SPEAKER: It is something that frequently infiltrates the House. On this occasion I can understand it, in that the question now being asked is very similar to a question that was just answered by the Minister. But the member has got every right to ask the question again, and I will invite the Minister to answer the question again.

Hon PAULA BENNETT: Thank you. I was very specific in that all 12 districts will be getting more police. So we are making an absolute obligation to do that. The deployment of police officers is absolutely at the discretion of the police commissioner, and it is not for politicians to be deciding where our police force should be around the country. I can honestly stand here in this House and say that I do not know at what numbers where police will be deployed over the next 4 years. [Interruption]

Mr SPEAKER: Order! [Interruption] Order! Mr Mark, I need substantially less interjection once the questioning has finished. If the member wanted to use a supplementary question to ask that, he could have done so.

Finance, MinisterPrevious Minister's Statements

6. GRANT ROBERTSON (LabourWellington Central) to the Minister of Finance: Does he agree with his predecessor's reported statement that "the Government was keen to get the cost of housing down, so that whether people owned or rented a house they did not use such a large proportion of their income paying for it"?

Hon STEVEN JOYCE (Minister of Finance): Yes, and that is in fact the case. Overall affordability of an average mortgage repayment on a medium priced house currently costs 38 percent of gross household income compared with 49 percent back in 2007. Improving housing costs relative to incomes is a priority for the Government, and

Grant Robertson: Interesting numbers and dates here.

Hon STEVEN JOYCE: Well, actually, 2007, for the member's benefit, was the highest ever rate back for quite some time, as far as records are available, and today is around 38 percent. The Government is focused on improving housing costs relative to incomes by encouraging increases in supply of housing

Grant Robertson: Not working.

Hon STEVEN JOYCE: and today's consent data shows that it is working, with a total number of houses consented in the year of nearly 30,000up 10 percent from last yearand the most for any calendar year since 2004. And we expect that to continue to increase.

Grant Robertson: What responsibility does he take, given his failure to support the building of affordable homes, for first-home buyers needing to borrow $400,000 on average to get into their first home and his recent admission that they are hugely exposed to risks from rising interest rates?

Hon STEVEN JOYCE: Unlike in Labour's control economy, people actually get to make their own decisions in terms of their investments, and they go into their mortgages based on the affordability of their mortgage repayments, and, of course, interest rates are at historic lows. My concern about that is they may not necessarily stay at historic lows, and that is the nature of the comments I have made in the last few days and I think it is important that people think about that over the next period when considering entering into new mortgages.

Grant Robertson: Does he think it is people's own decision that the rise in housing costs in 2016 totally wiped out any income increases they had, according to Statistics New Zealand's household expenditure and income survey?

Hon STEVEN JOYCE: Well, I think we have to be careful about these individual small changes, both on increases in incomes and in housing costs. But I think the good news is the trend is good, because in 2007 we reached a peak of the cost of a house mortgage relative to income, which was 49 percent of people's incomes. That is the correct figure, unlike Mr Robertson's alternative facts, and this year it has been running at 38 percent. It is still a bit higher than we would be comfortable with, but it is a significant improvement on what it was back then.

Grant Robertson: What is his response to the Reserve Bank Governor's assessment that he "has an ongoing concern about the imbalance between supply and demand in housing"? In other words, after 8 years, the Government is still not building enough houses.

Hon STEVEN JOYCE: The Reserve Bank Governor not only made that concern apparent in the Finance and Expenditure Committee today, he also discussed it with me as late as yesterday. But he also signalled that he was very pleased to see the increase in construction that is occurring and the very big increase in the number of building consents, and, like me, he believes that the supply response is growing, and that is indicated in the figures. Again, I say for the member's benefit that the number of houses consented in the last calendar year was 29,970, up 10 percent in 1 year, and the most for a calendar year in 12 yearsthe most since 2004.

Grant Robertson: When his first comment on housing as Minister of Finance is to caution first-home buyers against buying a house, can he see what a complete failure his Government's housing policy is?

Hon STEVEN JOYCE: If the member thinks that was my first comment on housing as Minister of Finance, then he must have been asleep for the whole of January.

Health ServicesFirst Specialists Assessments

7. SIMON O'CONNOR (NationalTmaki) to the Minister of Health: Can he confirm the number of patients benefiting from first specialist assessments has risen from 404,511 a year in 2008, to 552,423 a year in 2016, and that this is an increase of 147,912 more patients now being seen?

Hon Dr JONATHAN COLEMAN (Minister of Health): Yes, indeed. This new data shows a huge 36 percent increase in the number of patients who are now receiving a hospital specialist assessment each year. That is due to the hard work of health professionals and the extra $4.3 billion invested in the health system under National.

Simon O'Connor: Can the Minister confirm that this positive increase in specialist assessment has included a big increase in the number of patients benefiting from ophthalmology assessment?

Hon Dr JONATHAN COLEMAN: Once again, yes. In 2008, 41,468 patients had ophthalmology first specialist assessments, and in 2016, 57,004 patients had ophthalmology assessments. That is an increase of 15,500 patients, or 37 percent more than under the previous Government.

Hon Annette King: How confident is he that the figures he has provided of nearly 60,000 New Zealanders being refused a first specialist assessment are in fact robust figures and are not considerably higher?

Hon Dr JONATHAN COLEMAN: I would be much more confident of those figures than anyone in the Labour Party would be of their position on the Labour Party list.

Hon Annette King: I raise a point of order, Mr Speaker. I do not think there was anything political in my question. I will repeat it if you like, and you can hear it.

Mr SPEAKER: Nono need. No need to repeat it. The question asked[Interruption] Order! The question asked how confident the Minister is in the particular figures of people who are refused first assessment, and he said, obviously, that he was reasonably confident. He added something that was certainly unnecessary, but

Hon Annette King: Well, did he say "reasonably confident"? Did he say that bit?

Mr SPEAKER: He said he was more confident than he would be in some other figures[Interruption] It was enough to address the question.

Finance, MinisterStatements

8. DAVID SEYMOUR (LeaderACT) to the Minister of Finance: Does he stand by his statement made yesterday in the Finance and Expenditure Committee that "New Zealand is in the middle of its largest ever building boom"; if so, how?

Hon STEVEN JOYCE (Minister of Finance): Yes, I do. The value of building consents nationwide was $19 billion in 2016. That is the highest level ever recorded, and it is 68 percent higher than in 2008. The number of people employed in the construction industry in this country is also the highest ever. At the end of December last year the household labour force survey recorded 242,900 people employed in the construction industry; it has never been higher.

David Seymour: Minister, how can you stand by that statement, when the actual number of dwellings consented per 1,000 of population was 13.1 in 1974, 8.3 in 2004, and last year only 6.2?

Hon STEVEN JOYCE: With the greatest respect to the member, he is asking a different question. He asked me whether this was the biggest building boom New Zealand has ever seen, and, quite obviously, it is.

David Seymour: Well, I guess if inflation gets going, it will solve the whole problem. Can I askanother question, ha, ha!

Mr SPEAKER: I have given the member the call.

David Seymour: That is all rightthat is all right. I wonder if the Minister's Government will back the likes of Kathleen and Steve Vitasovich, who would like to develop their land, which is 3 minutes from a train station but outside Auckland's rural urban boundary; does he agree with the Productivity Commission that such boundaries are a "constraint on urban growth", reducing the supply of new housing?

Mr SPEAKER: Two supplementary questions therethe Minister can address either or both.

Hon STEVEN JOYCE: The member's latest question will not get a cheer from Phil Twyford. Two points, if I may: firstly, in clarification to the member's rejoinder before he asked the question, it is both in nominal and real terms that it is the biggest construction boom ever; to the second point, in relation to the rural urban limit, I do have great sympathy for the concerns of your example couple that you mentioned, because that has been a very significant problem. If you look at the trend in availability of sections in New Zealand from the year 2000 through to now in Auckland, the rural urban limit, or what was then known as the metropolitan urban limit, has greatly restricted the availability of sections over that period. That has been a cause of a reduction in available supply, despite population increase, which is now being addressed by a range of measures, both by this Government and by Auckland Council. My view would be to encourage Auckland Council to speed up the availability of land, and I am pleased that, for example, the Auckland Unitary Plan is making sure that there is more land available for building houses in that city.

David Seymour: In light of that concern, does the Minister agree with Local Government New Zealand president, Hastings mayor, and prospective National Party candidate, Lawrence Yule, who says that ACT's proposal of new fit for purpose urban land use planning laws is something that "warrants consideration"?

Hon STEVEN JOYCE: There was some reasonably relevant information in that question, but, in regard to the overall question around planning legislation, the member may be aware that the Productivity Commission is due to report back on those matters shortly. In terms of planning law, the Government looks forward to that report-back because we have a round of Resource Management Act (RMA) reform in the House at the moment that will make significant differences, and it is important to look to the longer term in terms of where you go next after that. In the meantime, I would advise Phil Twyford, who talks quite a big game but does not actually do anything, to vote for the bill.

David Seymour: In that case, will the Minister also consider ACT's suggestion of central government sharing revenue with local government for infrastructure on the basis of their consenting activitya suggestion that The New Zealand Initiative chairman, Roger Partridge, has described as "compelling"?

Hon STEVEN JOYCE: In terms of the question, rather than Mr Partridge's endorsement, I think it is important to note that, actually, the Government makes a very big contribution to infrastructure in our cities and towns now, for example, in terms of paying for 50 percent of the roading costs of all roading in the local roading system through the petrol excise duty and road-user charges system and the National Land Transport Fund. The Government also makes very significant contributions through such matters as the Ultra-fast Broadband Initiative. So there are a number of ways in which we do thatand we also have the Housing Infrastructure Fund, which is offering to do that for new subdivisions. So there is very, very significant investment. In fact, our total infrastructure investment around the country in this current year is expected to be around $7 billionand I look at Minister Parata and I forgot to mention the very big investment in the education sector in schools.

Housing AffordabilityMinisterial Responsibility

9. PHIL TWYFORD (LabourTe Atat) to the Minister for Building and Construction: What responsibility does he take for the housing affordability crisis?

Hon ALFRED NGARO (Minister for Pacific Peoples) on behalf of the Minister for Building and Construction: The Minister's core responsibilities are for building and construction, which also include growing supply and ensuring that our quality assurance systems work. The number of new houses being constructed has doubled, from about 13,000 to 30,000 per year, during this Minister's time. This is the result of the strongest growth in residential construction in New Zealand history. The growth in Auckland last year alonethe member may be interested in figures out todaywas 27 percent, and that is phenomenal growth in anyone's eyes.

Phil Twyford: Does he take responsibility for the failure of his policies to deliver houses when, despite his promises of thousands of extra consents, Ministry of Business, Innovation and Employment officials told the Social Services Committee yesterday that only 653 houses were completed by Government-backed building programmes in Auckland last year and that only half of those were affordable?

Hon ALFRED NGARO: There is no single Minister responsible for housing issues. There are many more, and just as there are a number of Ministers in charge of[Interruption]

Mr SPEAKER: Order! I apologise for interrupting the member, but I need to hear the answer.

Hon ALFRED NGARO: There are other Ministers who are in charge of the economy, and also, too, around child poverty as well. In regard to the comments that were made about what is the actual number of dwellings that have been delivered in the various Crown projects in 2016 at select committee yesterdaythe member's questionsthe officials did report this number as 653 houses built in 2016. However, the correct number is actually 759. The original figure quoted did not include numbers for the last few months of the 2016 year.

Phil Twyford: Does he agree with his officials, who told the committee yesterday that only 30 hectares of surplus Crown land will now be built on; if so, how did Nick Smith get it so wrong when he promised 500 hectares 2 years ago?

Hon ALFRED NGARO: The figure of 500 hectares relates to the total Crown holdings within Auckland, not all of which is suitable for redevelopment as housing. Initial estimates by officials placed the likely amount of land available at around 100 hectares. Under the programme, the Ministry of Business, Innovation and Employment has purchased, or is close to purchasing, approximately 30 hectares, with a further 30 hectares in the pipeline.

Phil Twyford: Does he agree with independent economist Shamubeel Eaqub, who said that "Extremely unaffordable housing has had the expected consequences: increased homelessness, housing stress for the poor and vulnerable, and slipping hopes of middle classes ever owning their own home." and "denials of a housing crisis are now simply lies."?

Hon ALFRED NGARO: I am not responsible for the comments of this economist Shamubeel, but what I can say is that under this Government, it takes its core responsibilities seriously. We spend over $2 billion in regards to housing costs and subsidising those housing costs. We have taken our responsibilities, clearly. We know that we have increased benefit levelsby $25that have not been increased in the last 40 years. We think those are comprehensive in a number of different ways to meeting those needs as well.

Joanne Hayes: How are the Government's initiatives helping first-home buyers and the growing of supply?

Hon ALFRED NGARO: The Government made significant changes last year to the KiwiSaver HomeStart scheme, which is delivering very positive results. The number of first-home buyers accessing KiwiSaver for a deposit grew from 13,000 to 30,000 in 1 year, and the support grew from $200 million to $500 million. This was complemented by a large increase in HomeStart grants to first-home buyers. The special housing areas, the new unitary plan, the Crown Land Programme, and other good initiatives are also contributing to the recent 5 years of growth in housing supply, where we have building from 13,000 to 30,000 per year.

Phil Twyford: Does he agree with Bill English that the Government has reached the limits of what it can do, when three-quarters of renters cannot afford even the deposit on an average home and rent increases are outstripping wage increases?

Hon ALFRED NGARO: I always agree with the Prime Minister. He is a wise man. He made some wise appointments just lately, and I think that his wisdom is there. But I would also have to say that National does have a comprehensive housing programme213 special housing areas have been created nationwide, with a projected yield of more than 70,000 homes. We have announced nine sites in the Crown Land Programme, which will deliver 1,500-plus homes. More than 20,000 people have received HomeStart grants and more than $89 million has been paid out in subsidies. I could go on, but I think that is sufficient to give an indication of the comprehensive plan that, under this Government, we have in place.

Question No. 8 to Minister

DAVID SEYMOUR (ACTEpsom): I forgot in my earlier enthusiasm. Can I please seek leave to table a document showing that the current level of construction activity is far from New Zealand's largest ever building boom, measured by residential

Mr SPEAKER: Order! I just need the source of the document.

DAVID SEYMOUR: It is assembled from Statistics New Zealand data by my office.

Mr SPEAKER: In that it may be very coherently produced and be valuable information to the House, I will put the leave and let the House decide. Leave is sought to table that particular information. Is there any objection? There is not. It can be tabled.

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

Fuel MarketConsumer Prices

10. BARBARA KURIGER (NationalTaranaki - King Country) to the Minister of Energy and Resources: What is she doing to ensure drivers aren't paying too much at the pump?

Hon JUDITH COLLINS (Minister of Energy and Resources): Today I announced a market study into fuel prices and returns to determine how fair petrol and diesel prices are at the pump. The market study will be undertaken by the Ministry of Business, Innovation and Employment (MBIE), with cooperation from the industry. I want to know that fuel prices are reasonable and that motorists are getting a fair deal, and I am concerned that this might not be the case.

Barbara Kuriger: What is she doing to ensure the industry works with the Government to make the study a success?

Hon JUDITH COLLINS: I spoke to the industry yesterday about this, and I can assure the House that the advantage of a fuel market financial performance study is that it can be done reasonably quickly, and it will help to build a more informed picture of the overall performance of the fuel market. However, it will require the industry to cooperate. Having spoken to and written to the fuel companies this week, I have been assured by each of them that they will work with MBIE and that they will provide the required information. We are consulting on the terms of reference, and they will be released once they have been finalised.

Pay EquityCare and Support Workers' Case

11. JAN LOGIE (Green) to the Minister of Health: When will the Government make an offer to settle Kristine Bartlett and other care and support workers' equal pay case?

Hon Dr JONATHAN COLEMAN (Minister of Health): Since June 2015, negotiations have been under way between the Crown, unions, and providers. The negotiations are continuing, and I expect to receive an update on progress shortly. Any settlement would benefit 50,000 care and support workers across the country, so watch this space.

Jan Logie: Is it acceptable that the women who, on the request of the Government, put aside their legal claims for equal pay to negotiate directly with the Minister are still waiting for an offer over 15 months later?

Hon Dr JONATHAN COLEMAN: As I said, negotiations are under way, and I am not commenting any further. It would be pretty silly to do so.

Jan Logie: Is the Minister really telling this House that he thinks over 15 months is an acceptable time frame for a pay negotiation?

Hon Dr JONATHAN COLEMAN: The member would not know what has happened in those negotiations, and I am not going to comment on them further, because it is a negotiation.

Jan Logie: Has he chosen to let these tens of thousands of low-paid working women continue to struggle to make ends meet so he can get an election-year announcement?

Hon Dr JONATHAN COLEMAN: No.

SchoolsFunding and Fees

12. CHRIS HIPKINS (LabourRimutaka) to the Minister of Education: Is she concerned at the amount of money parents often have to pay for education at State and State-integrated schools; if not, why not?

Hon HEKIA PARATA (Minister of Education): Tn koe, Mr Speaker. The costs incurred by parents are determined by their school. The decisions they make over uniforms, the teaching and learning programme that they decide to deliver, and, therefore, the stationery and equipment that is required are all determined by their school, so I would be concerned if those schools are not doing it in consultation with, and with an awareness of, their parent community.

Chris Hipkins: Is the Nelson Budget Service wrong when it states that the number of parents seeking help with increased school costs has increased: "It's higher than it should be, it's definitely higher than it's been in the past and it seems to be creeping up."?

Hon HEKIA PARATA: I have no responsibility for the Nelson Budget Service, but I do have for Vote Education, and Vote Education is the highest it has ever been. It has gone up by 35 percent when student numbers have gone up by 3.56 percent, so this Government is not under-funding educationquite the opposite. In terms of parental contributions to the revenue of a school, it remained at about 1.8 percent all through the administration of the Opposition, and it remains the case today. However, where a parent is finding difficulty, then there is support available from Work and Income New Zealand and from their own schools, because the operational grant is discretionary.

Chris Hipkins: Does she acknowledge that Statistics New Zealand figures show that since she became Minister of Education in 2011, parental contributions have increased 23 percent, almost 5 times the rate of inflation?

Hon HEKIA PARATA: I cannot acknowledge that. I am not aware that that is the case. I am happy to look at that. But based on the information we have, which is the financial reports of each individual school every year, we can say that donations to schools are about 1.8 percent, of which parental contributions are a part. They do not make up the entirety of that.

Chris Hipkins: Is she concerned that a recent survey found that one in five parents revealed they had sacrificed basic necessities, including food, electricity, clothing, and personal hygiene, in order to cater for the cost of sending their children back to school; if so, does she still believe that the Government is honouring its legal commitment to provide a free school education for Kiwi kids?

Hon HEKIA PARATA: That member's record in quoting surveys is parlous at best, so I am not aware of that particular survey. In fact, that member was also reporting the costs that ASG used in its survey, and given that its client base is private schools, which make up 3.7 percent of the New Zealand education system, in neither regard are they representative of the issues being spoken about. However, as my colleague the Minister already indicated, this Government is the first Government in, I think, 43 years to raise benefit incomes for those families most at risk. This is also the Government that has provided in Vote Education, in last year's Budget, just over $43 million to be targeted at those families most at risk. Again, if there are particular families who have concerns, there are agencies standing ready to assist them.

Chris Hipkins: Given she has mentioned it, has she seen the data compiled by ASG that shows that parents of a child born today can expect to pay almost $40,000 for their child's education in a State school? Is that not yet more proof that schooling in New Zealand is not free?

Hon HEKIA PARATA: There are a number of questions about the ASG survey because the bulk of their clients, first of all, are Australian private schools, and in New Zealand they, again, relate largely to private schools. The member would actually be better spending his time looking at what the actual investment is through the Treasury account of what we spend rather than selecting specious examples to support his weak arguments.

Chris Hipkins: Is the president of the Principals' Federation, Whetu Cormick, wrong when he states that due to Government underfunding "schools will be forced to put pressure on families to help increase their operations grant."; if not, why will she not admit that lack of Government funding is making a mockery of New Zealand kids' legal right to a free schooling?

Hon HEKIA PARATA: Yes, he is wrong. This Government is not underfunding education. How can it[Interruption] If the member occupies that universe of "alternative facts", then yes, the member might be correct. But how is it possible to argue that? Funding has gone up 35 percent, to $11.04 billion, while student numbers have gone up 3.56 percent. How can that gap in funding be described as "underfunding" in anybody's world? [Interruption]

Mr SPEAKER: Order! [Interruption] Order in that quarter as well!

Ron Mark: I raise a point of order, Mr Speaker. Reflecting on the questions that I asked and the answer I received in your deliberation[Interruption]

Mr SPEAKER: Order! This is a point of order.

Ron Mark: Mr Speaker, can I ask you, I know that when you return to your office, you always review the transcripts and you always review the answers. The point that I would ask you to consider is that I never asked the Minister what allocation she had made; I asked her what allocations had been made. She has avoided the question by saying she does not make those decisions about allocations. I think she completely ducked the question. I think she should have answered my question specifically, given the advice from Police.

Mr SPEAKER: I will do the member a deal. I will go back and look at the Hansard today if the member also has a look at the Hansard from yesterday and the tone of questions that came from his own leader throughout question time yesterday afternoon.

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