• ORAL QUESTIONS

QUESTIONS TO MINISTERS

Economy—Reports on Diversification

1. ALASTAIR SCOTT (National—Wairarapa) to the Acting Minister of Finance: What reports has he received on the diversification of the New Zealand economy?

Hon STEVEN JOYCE (Acting Minister of Finance): I have received a range of positive reports over the course of the year. For example, the most recent Statistics New Zealand export data release shows that despite a drop in the value of dairy exports of around $1 billion, total exports in the year to June increased by $3.3 billion. That growth is coming from across the economy. In the primary sector, meat exports are up 3.6 percent, fruit up 30.9 percent, and wine up 10.1 percent. In services, international visitor spend was up 18 percent, international education is worth $4.28 billion, and in the manufacturing sector the volume of sales rose 2.1 percent in the September 2016 quarter, following a similar rise in the June quarter. These numbers are a testament to the hard work of our producers and exporters and validate the approach of this Government of an outwardly focused and open trading economy.

Alastair Scott: How is the Government encouraging diversification of the New Zealand economy?

Hon STEVEN JOYCE: In addition to our strong commitment to free and open trade, which is creating new markets for new products offshore, we have recognised the huge role that innovation plays in making our companies more productive, competitive, and profitable. Through Callaghan Innovation and New Zealand Trade and Enterprise, we are encouraging innovators and entrepreneurs to develop, commercialise, and sell new ideas and products, and they are taking up the Government's challenge. New Zealand's 200 leading high-tech companies grew their investment in research and development by a record 16 percent last year, and their turnover was up $1 billion in the year to $9.4 billion. This growth is fuelling more jobs and more opportunities for Kiwis and their families.

Alastair Scott: What role does infrastructure play in encouraging economic growth?

Hon STEVEN JOYCE: Well, it plays a very significant role. Critical infrastructure like roads and broadband connect our cities and regions with the rest of New Zealand and with the rest of the world. That is why we have invested so heavily in recent years in projects like the roads of national significance and our $200 million Accelerated Regional Roading Package. It is why we are rolling out ultra-fast broadband to 80 percent of the country and rural broadband initiatives to more remote areas.

Alastair Scott: How is this growth delivering more jobs for New Zealanders?

Hon STEVEN JOYCE: This is a very important question. The growing economy is delivering strong labour market growth, with 144,000 more people in work in the last year alone. This has seen the unemployment rate fall to 4.9 percent, which is the lowest rate since December 2008, before the global financial crisis, and it is projected to fall to 4.3 percent in coming years. Labour market participation is now 70.1 percent. That is the highest since the series began in 1986. Average weekly wages are up 1.9 percent in the last year, compared with inflation of 0.4 percent. These are the results that count: results for hardworking Kiwis and their families, delivering more and higher-paying jobs.

• Immigration, Minister—Statements

2. Rt Hon WINSTON PETERS (Leader—NZ First) to the Minister of Immigration: Does he stand by all his statements; if so, how?

Hon MICHAEL WOODHOUSE (Minister of Immigration): Yes, in the context in which they were given; and, to the second part of the question, vertically and confidently.

Rt Hon Winston Peters: I never thought he would say that. Can I ask the Minister this: how does he reconcile, and I quote him, "there are forms of exploitation that are going on" with Immigration Instruction BM2, that people will not be eligible for the grant of residence if they exercise significant influence over the management and administration of any business that has not complied with our employment, immigration, and taxation laws—page 52?

Hon MICHAEL WOODHOUSE: With no difficulty whatsoever.

Rt Hon Winston Peters: Does he agree, in respect of compliance with the Holidays Act 2009, that it is relevant legislation in terms of Immigration Instruction BM2, page 19?

Hon MICHAEL WOODHOUSE: I need to check with the Minister for Workplace Relations and Safety, but I think the Holidays Act was passed in 2003. [Interruption]

Rt Hon Winston Peters: They were in power at the time. Can he confirm that many Government departments, like the Ministry of Business, Innovation and Employment (MBIE) and Immigration New Zealand, have not complied with the Holidays Act 2009 by not paying the correct holiday pay for several years, resulting in a taxpayer liability estimated between $200 million to as high as $2 billion—that is page 45?

Hon MICHAEL WOODHOUSE: That is beyond my ministerial responsibility. It would be best directed at either the Minister for Economic Development, who has responsibility for MBIE, or the Minister for Workplace Relations and Safety.

Rt Hon Winston Peters: Given active corruption and investigations into Immigration New Zealand staff, huge Holiday Act liabilities, and migrant workers being exploited, which is seriously harming our reputation, and given that he exercises significant influence over management and administration of Immigration New Zealand, does that mean that he is not a fit and proper person?

Hon MICHAEL WOODHOUSE: Well, firstly, I reject the inference in the first part of that question that there are investigations into widespread corruption at Immigration New Zealand, or that it is occurring. Actually, I am very proud of Immigration New Zealand. When this Government came into office, and certainly under the oversight of the very excellent former Minister of Immigration, Dr Jonathan Coleman, it was a mess. It was tidied up. Timeliness has improved, the quality of decision making has been improved, and, most importantly, the public perception of that organisation has materially improved.

• Prime Minister—Police Resourcing, Homeownership, Education, and Government Debt

3. ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Which of these facts, if any, is he most proud of as he looks forward to Christmas: understaffed Police, as confirmed by his police Minister; the lowest homeownership since 1951; pupils getting the worst PISA test scores ever; or the most debt ever amassed by a New Zealand Government?

Mr SPEAKER: Before I call the Prime Minister, my office has been advised that the answer may be a little longer than normal.

Rt Hon BILL ENGLISH (Prime Minister): In the first case, they are not facts. But, secondly, the member should cheer up. The country is pleased that it has been able to get a new Prime Minister, with a stable Government that wants to pay off debt, lift education standards, support the Police, reduce crime, and build on its major achievements from last year. [Interruption]

Mr SPEAKER: Order! School will be out shortly. In the meantime we need to complete question time.

Andrew Little: How much of a merry Christmas will young Aucklanders have after being shut out of the Kiwi Dream of homeownership because now the average home costs more than a million dollars?

Rt Hon BILL ENGLISH: I am sure there are some who will go into Christmas disappointed that they have not been able to buy the house they wanted for a million dollars, but actually a significant number of young New Zealanders have bought houses in Auckland because they have had the lowest interest rates in 50 years, because they have had good jobs with rising incomes, and they have been able to get into the housing market. Those who have not can see that the Government's building programme is getting under way, and the policy changes that have led to the enabling of a lot more houses in Auckland will give them the opportunity in the future.

Andrew Little: Is it a merry Christmas for the 90,000 children in severe poverty under his Government?

Rt Hon BILL ENGLISH: I can tell the member that it is a much better Christmas this year for the 100,000 of New Zealand's lowest income - earning households that on 1 April got a $25 a week increase, the first such increase in 40 years, and an increase that the Labour Government did not put in place even though it had large surpluses.

Andrew Little: With so many Kiwis missing out after 8 years of National, is it not true that the best present he could give them is Labour's plan for affordable houses, more cops on the beat, properly funded schools and hospitals, and a fair share for all?

Rt Hon BILL ENGLISH: I do not think anyone would want to inflict on a New Zealand household, particularly one that was working hard to get ahead, the dreary picture that Labour paints of their prospects in this wonderful country. We certainly would not want to present them with anything from the Labour Party.

Andrew Little: Will Judith Collins finally get more police in her stocking this year, or is it a merrier Christmas for the burglars, who now have a 95 percent chance of just getting away with it?

Rt Hon BILL ENGLISH: I am sure that the Minister of Police will be getting a lovely Christmas card from the Commissioner of Police, and also that any burglars who think they are going to be active over Christmas need to understand that the commissioner has said that burglary is a priority and the police will be attending burglary call outs.

Andrew Little: Will Jonathan Coleman finally get the properly funded health system he asked for in his letter to Santa last week, or is he on the naughty list for challenging the leadership?

Rt Hon BILL ENGLISH: As his deputy leader will know, every Budget is like Christmas time for a health Minister, because they always get the lion's share of new spending from Government. But this health Minister has actually made much more impact with the money that he has had through new programmes like the bowel screening programme, which will screen, I think, hundreds of thousands of New Zealanders and prevent hundreds of deaths.

Andrew Little: Given that he now has four ambitious amigos, three resigning Ministers, and two brooding rivals, who is going to rescue Nick Smith from the pear tree?

Rt Hon BILL ENGLISH: The basic difference is this: we have 59 members of Parliament, and that is a great deal more than that member has. It does not matter what presents he gets for Christmas—that is basically not going to change.

Rt Hon Winston Peters: Exactly what sort of Christmas will it be for a bunch of egregious, self-serving careerists who have been given the "Don't come to"—[Interruption] Ha, ha! They cannot take it, eh? They cannot take it. [Interruption]

Mr SPEAKER: Order! I can understand the reason for the interjection, but we now require no interjection so the question can be heard, and then I can decide whether it has been addressed satisfactorily.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. I had hardly got going and they recognised themselves. [Interruption]

Mr SPEAKER: Order! I am not sure why they were making that noise, but I do not think that was the reason. The member can proceed with his question if he wants.

Rt Hon Winston Peters: How will a bunch of egregious, self-serving, ambitious careerists, who have been given the "Don't come to caucus Tuesday" message, and certain tiresomely useless Cabinet Ministers, get on this Christmas when they know they have been given the boot?

Rt Hon BILL ENGLISH: Given it is the season of goodwill, and the member has seen many Christmases, I must say he is a very well dressed egregious, self-serving careerist.

• Kaikōura Earthquakes—Government Response

4. NUK KORAKO (National) to the Minister of Civil Defence: How has the Government responded to the Kaikōura Earthquakes of 14 November 2016?

Hon GERRY BROWNLEE (Acting Minister of Civil Defence): One month on from the magnitude 7.8 earthquake this Parliament and the Government continues to stand beside the people of the affected communities in Kaikōura. During the last 2 weeks the House unanimously passed three bills that provided the legislative framework that allows us to support and promote full recovery from those earthquakes. The bills recognise the significance of the earthquake sequence and show the willingness of this House to move swiftly in supporting communities to resume their livelihoods and restore the damaged infrastructure without unnecessary roadblocks.

Nuk Korako: What additional support has the Government provided to the disaster response?

Hon GERRY BROWNLEE: Key to any civil defence response is a wide range of Government agencies working together. Examples of how other agencies have contributed to affected communities are: the $12.5 million business support package to cover 16 weeks of wage losses from the date of the earthquakes; the $3.6 million health package to support Kaikōura and Marlborough, so people can access the health services they need following the recent earthquakes; and a $5 million support package for the primary sector in the upper South Island. Tax measures and KiwiSaver relief are also available to affected areas. The enhanced Taskforce Green has been activated so councils can employ local job seekers to support in a clean-up operation, and the Earthquake Commission and New Zealand's major insurers have reached an agreement that will have thousands of claims dealt with more quickly than might ordinarily have been the case. The assessment of what is needed in these areas will continue, as I am sure the support from across the House will.

• Prime Minister—Government Policies

5. METIRIA TUREI (Co-Leader—Green) to the Prime Minister: Ka tū ia i runga i te mana o āna kaupapa here katoa?

[Does he stand by all his Government's policies?]

Rt Hon BILL ENGLISH (Prime Minister): Yes.

Metiria Turei: Does he stand by the policy of the previous Minister responsible for HNZC on the sale of the State houses in Christchurch that "No decision has been made on the proceeds from the proposed transfer in Christchurch.", or does he stand by the previous Prime Minister's statement that "The Government would use that capital to build even more State houses."?

Rt Hon BILL ENGLISH: The Government's policy is that any proceeds from the transfer of social houses in Christchurch to another provider of social houses will be used to finance the Housing New Zealand building programme.

Metiria Turei: Is the reason Treasury officials were sent to Sydney this week to try to sell State houses to overseas investors that his plan to sell them to New Zealand housing providers has been completely stuffed?

Rt Hon BILL ENGLISH: You would need to talk to Treasury officials about why they were going to Sydney, but it has, clearly, been the Government policy to bring—

Grant Robertson: A holiday or something? Shopping?

Rt Hon BILL ENGLISH: If the member just looks at our State housing stock, even she might believe that something should change. Keeping doing the same thing may mean that our communities where there is a lot of State housing continue to be run down. The Government is keen to see a wide range of participants in social housing with the skills to do a good job.

Metiria Turei: Should he not reconsider his policy to sell off thousands of State houses now that it is clear that most community housing providers, particularly those in Christchurch—people who know best about these issues—are against his policy?

Rt Hon BILL ENGLISH: No. I do not agree with the member that the providers are against the policy; most of them are just too small to take on the responsibility of 4,000 or 5,000 houses or 2,000 houses, and the process, of course, will create consortia, which may well include those providers that do have good experience with their communities and the tenants.

Metiria Turei: Does the Prime Minister agree with the recent Press editorial that asked: "how can an Australian provider know best what New Zealand tenants need?"

Rt Hon BILL ENGLISH: As I understand it, it would have to meet the criteria laid out for the transaction, which is that it demonstrates close links to its community. The member may not realise this, but the effect that had in Tauranga was that a number of different players with property skills, financial skills, and tenant-management skills came together into consortia. You can call it cooperation or collaboration, but that seems to be the recipe that makes these transactions successful.

Metiria Turei: Is it not a fact that, in the middle of the housing crisis, he has no idea who is going to be buying these homes, and that the Press editorial is right when it says that "He now leads a tired Government that has almost completely lost interest in the job of providing warm, dry, and safe homes for New Zealanders."

Rt Hon BILL ENGLISH: That is complete nonsense. In fact, the Press should talk with the Christchurch City Council, which has been displaying a great deal of enthusiasm for precisely the opportunity that the Government is providing. In fact, it is going through a process of upgrading its own social housing stock, which is large and poorly managed. So it would help if the local newspaper talked to the local council, and it would be better informed. In fact, the member should probably go and talk with the local council, rather than relying on the newspaper.

• Health Services—Funding Levels

6. Hon ANNETTE KING (Deputy Leader—Labour) to the Minister of Health: Does he stand by his statement, "if health starts to slide, governments are in trouble", and is this the reason he called for health to be "properly funded" when seeking leadership of the National Party?

Hon Dr JONATHAN COLEMAN (Minister of Health): First of all, merry Christmas to the member. I would like to thank her for her questions this year; they are like a little Christmas present to the Government every single sitting day. In response to the second part: no. As she knows, as usual, she is out of context, and that is total distortion. In relation to the statement "if health starts to slide, governments are in trouble": absolutely, yes. That is what happened to the Labour Government in the mid-2000s, when health, under her watch, fell apart, leading to her departure from the portfolio and the eventual decline and fall of her Government.

Hon Annette King: Talking of distortions, why has he been claiming all year that health has all the funding it needs, only to declare when he got a sniff at the leadership: "mortgage-belt New Zealand—they're not saying to me I need a tax cut, they're saying actually we want to make sure we're getting access to the best and latest drugs."?

Hon Dr JONATHAN COLEMAN: Because it is true—but, of course, as usual, she is part of the past, and we are talking about the future.

Hon Annette King: If he is ensuring New Zealanders are getting access to the best and latest drugs as Minister of Health, why did he ask for funding for cancer drugs that have been given high priority by Pharmac since 2013 for patients with head and neck cancer?

Hon Dr JONATHAN COLEMAN: As the member knows, Pharmac funding has gone up by $200 million under this Government—from $650 million to $850 million. If she can still remember yesterday's question, I announced that new tranche of medicines, many of them to deal with a range of cancers and for various new applications of medicines. New Zealanders are getting very good access to the medicines they need, and we have got a world-class system in Pharmac. Actually, I know that the member agrees with that, but she cannot say that in here.

Hon Annette King: Why have approximately 160 women, who have already been diagnosed with breast cancer and are taking Herceptin, been denied the new breast cancer drug Perjeta and are required to pay for it if they want it?

Hon Dr JONATHAN COLEMAN: The member asked this question yesterday, and what I told her was that there is actually a new drug that has just been approved, Pertuzumab, which is for metastatic breast cancer and it is actually the very best treatment available. Pharmac is funding it, and the Government totally backs it in doing that.

Hon Annette King: Does he agree with Craig Foss, now former Minister of Statistics, who tweeted today that New Zealanders—

Hon Members: He still is.

Hon Annette King: Well, he has announced that he is going, like you are going to be, Nick, soon.

Mr SPEAKER: Order! There is no need for interjections from my right, but there is equally probably no need for the part in there about Mr Foss. To give the essence of the question, please ask the question.

Hon Annette King: Does he agree with Craig Foss, Minister of Statistics—

Hon Member: Yeah, get it right.

Hon Annette King: —yeah, I am getting it right—who tweeted today that New Zealanders are now spending almost $40 a week out of their household budget on health costs, and what impact will that have on people on modest incomes?

Hon Dr JONATHAN COLEMAN: I mentioned in my opening answer about distortions and taking things out of context, and I am sure this is yet another example.

Hon Annette King: If he retains the health portfolio, will he stop being a gringe and a grouch of Parliament, will he lighten up, instead of lighting up, and will he spread a little bit of joy around for those who have been waiting all year for some services from the health system?

Hon Dr JONATHAN COLEMAN: The problem for the Labour Party is they have absolutely no one else who could do the health portfolio, and that is why Mrs King is still stuck there, 30 years after first assuming it.

• Kaikōura Earthquakes—Health Funding in Affected Areas

7. SARAH DOWIE (National—Invercargill) to the Minister of Health: Can he confirm that the Government is committing $3.76 million to assist the people of Kaikōura and Marlborough to access the health services that they need following the recent earthquake?

Hon Dr JONATHAN COLEMAN (Minister of Health): Yes. The Government is committed to supporting the people of Kaikōura and Marlborough, and we know, from the Canterbury earthquakes, that psychosocial recovery is a long-term process. For this reason, we have announced that $1.76 million will be split between Canterbury and Nelson-Marlborough district health boards to essentially fund a range of mental health clinical staff and to increase access to general practice consultations. We will review this package in a year's time, but we are committed to these people for the long haul.

Sarah Dowie: What is the other $2 million of the package going to provide?

Hon Dr JONATHAN COLEMAN: Earlier this year, I had the privilege of opening the new $13.4 million Kaikōura health centre, which is a major hub for the community and the sole provider of health services in Kaikōura. The Government put in $10 million and the community contributed $3.4 million, but up to this point they had only raised $1.4 million, leaving a debt of $2 million still to be paid. Given the other challenges facing the people in Kaikōura, the Government is providing $2 million to clear the loan. We feel it is really important that these people can focus on the challenges that the earthquake has presented, and we do not want them weighed down by the prospect of raising $2 million. That is why the Government is coming to the party.

• Economic Development, Minister—Statements

8. FLETCHER TABUTEAU (NZ First) to the Minister for Economic Development: Does he stand by all his statements?

Hon STEVEN JOYCE (Minister for Economic Development): Yes, particularly my statement where I congratulated that member on asking me as many Northland-related questions in the last 2 days as the member for Northland has in the last 2 years.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. [Interruption]

Mr SPEAKER: It is a point of order and it will be heard in silence.

Rt Hon Winston Peters: Having asked over 1,100 questions since I have been the MP for Northland, this man must be stopped from being a demonstrable liar.

Mr SPEAKER: Order! I have explained to the member on a number of occasions that if he feels there is a case of deliberate misrepresentation, he needs to refer to Standing Order 359.

Hon Gerry Brownlee: I raise a point of order, Mr Speaker. As you know, Mr Speaker, the Business Committee has made some determinations about the adjournment debate this afternoon. I know that New Zealand First will be taking speeches. Should that member wish to extend his time by 5 minutes to list his achievements on behalf of Northland, then the Parliament—or this party, I am sure, would be agreeable to him doing this. Of course, it would not take 5 minutes; it would take 5 seconds.

Mr SPEAKER: That, equally, is not a point of order. The member Mr Peters may decide to seek leave to take that course of action later in the adjournment debate.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. You see, Mr Speaker, I love that idea and I seek leave for that motion to be put right now—the House being a master of its own destiny.

Mr SPEAKER: Leave is sought—[Interruption] Order! If I can summarise the leave that is being sought by the Rt Hon Winston Peters, he is seeking leave for an additional 5 minutes in his call in the adjournment debate this afternoon. [Interruption] I will invite him to list his achievements as the member for Northland. Is there any objection to that course of action? There is. That is a very sad decision but it is the decision of the House.

Fletcher Tabuteau: If—and I quote the Minister—"The Government's procurement programme has a proven track record of creating significant value for taxpayers", is the Minister worried that the Government's own procurement corruption-free status could be questioned, given that the former deputy chief executive officer at the Ministry of Business, Innovation and Employment (MBIE), responsible for procurement, Peter Thompson, joined Fuji Xerox just before it then won a multimillion dollar Government contract for printers?

Hon STEVEN JOYCE: I am advised by officials that there are no issues with the claim that the member has raised.

Fletcher Tabuteau: How has Fuji Xerox created significant value for Northland schools by: (1) charging them for much higher print volumes than they previously used; (2) saying there is no monthly charge but then charging $195 per month per machine; and (3) locking schools into 84-month - long contracts with exorbitant cancellation fees?

Hon STEVEN JOYCE: I am happy to take the member through it, as I already have done with Mr Peters in written questions. The key point is the contracts he is referring to were signed by the schools outside the all-of-Government framework and without MBIE's knowledge. At that point, the whole accusation falls to bits.

Fletcher Tabuteau: Will the Minister concede that it does not matter what statements he makes in his regional development reports as long as—and I quote Mayor Cameron from Ruapehu here, for yet another example of the Electricity Authority failing another region: "the issues created by the Lines Company and its charging model … is recognised as causing significant social issues and acting as a 'hand brake' on investment and growth."?

Hon STEVEN JOYCE: I completely agree with the premise of the member's question. Actually, I bring more good news for the area that he was talking about before—Northland. My colleague the Minister of Transport has announced today that there has been a completion of the $1 million upgrade of Whangarei Airport, which just shows another of the benefits of the Government's regional growth programme. Those upgrades were part of a partnership between the Crown—

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. This answer has nothing at all to do with the question he is being asked. [Interruption]

Mr SPEAKER: No, I do not need any assistance. It may well be the member's point of view, but when I listened to the length of the question and tried to decipher it myself—had there been a clear and concise question as there should have been according to the Standing Orders, I might have been able to help him, but it certainly was not.

• Wage Rates—Projected Growth

9. GRANT ROBERTSON (Labour—Wellington Central) to the Acting Minister of Finance: How much will real wages rise in percentage terms over the 2017 and 2018 years, according to the Half-Year Economic and Fiscal Update?

Hon STEVEN JOYCE (Acting Minister of Finance): The Half Year Economic and Fiscal Update forecast shows strong labour market growth in the period to 2021, with unemployment expected to drop to 4.3 percent; another 150,000 jobs expected to be created; and the average wage expected to increase by $7,500, to $66,000. In combination with an expected fall in net migration, and assuming inflation returns closer to its long-run average, Treasury forecasts real wage increases of 0.1 percent in 2017, 0.2 percent in 2018, 0.7 percent in 2019, 1.1 percent in 2020, and 0.9 percent in 2021. These are, of course, forecasts and, of course, we will see how they roll out in practice.

Grant Robertson: Does he think that an average wage earner getting $11 a week, in the face of record increases in housing costs and an average increase in rentals of at least $20 a week, represents a fair share of the economy for working people?

Hon STEVEN JOYCE: I presume the member is basing that on Treasury's predictions, and I should point out to him that Treasury's forecasting in relation to real-wage growth has undershot the actual real-wage growth three times in the last 4 years. In fact, since 2008, average Kiwi wages are up around 25 percent, which is almost double the increase in the cost of living over the same period. So we do not yet know how that is going to roll out in the years ahead, but I think if you were a betting man looking at Treasury's forecasts for the last 4 years, you would say it will probably be a little bit ahead of what it is proposing.

Grant Robertson: Can he confirm he will be using those same Treasury forecasts when he decides whether or not to do tax cuts?

Hon STEVEN JOYCE: In terms of the Government's spending intentions, and all its fiscal intentions, we will make the decisions at the time based on the actual accounts and also the forecast accounts, as we have always done. But I would point out to the member that in terms of real wage growth, the biggest variable has actually been the Consumers Price Index inflation figure. Treasury is predicting that that will return to 2 percent by 2018. It has, of course, been 0.4 percent in each of the last 2 years. Those predictions are yet to be borne out.

Grant Robertson: Does he think it is fair that salary increases for chief executives have increased at four times the rate of average workers' in the last year?

Hon STEVEN JOYCE: Well, I would have to check the member's figures on that and where he has got those from, but the actual fact is that wage growth over the last year has been strong relative to inflation, and average weekly wages are up 1.9 percent compared with an inflation rate of 0.2 percent. So, regardless of the individual elements of that, overall, Kiwi workers have done far better than inflation, and we are very pleased for them for that.

Grant Robertson: What, if anything, will he do differently from his predecessor, if he becomes the Minister of Finance, to fulfil the commitment of the new Prime Minister that he will ensure the benefits of growth are widely shared?

Hon STEVEN JOYCE: Well, this Government is already ensuring just that. Real wages—

Hon Members: No, it's not.

Hon STEVEN JOYCE: —have been growing at twice the rate of inflation. I know those members are not accustomed to this, because if you go back to 2008, they were actually growing nominally at 5 percent, but then inflation was around 5 percent as well. Now, with very low inflation rates, real wages have been growing, and I know that is not something the Labour Party is familiar with.

Grant Robertson: Does he really think that growth in real wages of 0.1 percent and 0.2 percent in the next 2 years represents a Government that is ensuring that the benefits of growth are widely shared?

Hon STEVEN JOYCE: This gets to the heart of Mr Robertson's trainspotting approach to the finance portfolio, because it is not Governments that decide the 0.1 percent; it is decided by the strength of the economy. This Government is absolutely focused on improving the competitiveness of the New Zealand economy, and that has flown through into real wage growth. I am prepared to predict that it will continue to flow into real wage growth, only provided you continue to elect a National-led Government.

• Prime Minister—Statements

10. JAMES SHAW (Co-Leader—Green) to the Prime Minister: Does he stand by his statement that "I want to be a Prime Minister that New Zealanders feel they can approach. Not just some of them, but all."?

Rt Hon BILL ENGLISH (Prime Minister): Yes.

James Shaw: What, then, will he say to Amanda Claire Richards, who has approached us to ask him whether he will be making climate change more or less of a priority than John Key did?

Rt Hon BILL ENGLISH: The Government policy will remain the same, and that is that climate change is an important area of policy. New Zealand has—actually, partly because of that member's party, back in the early 2000s—the most comprehensive emissions trading system in the world. We believe that is a powerful and effective tool.

James Shaw: What will he say to New Zealanders like Paul Axford, who wants to know why New Zealanders have to compete with non-resident investors in the housing market?

Rt Hon BILL ENGLISH: I would say to him, particularly if he is a Greens supporter, that he should encourage—

Hon Annette King: It doesn't matter who he supports.

Rt Hon BILL ENGLISH: —no—that he should encourage his party to support legislation that enables the building of more houses, because, in fact, the Green Party policy is to restrict the building of houses. That is the one thing sure to push housing prices up, and we know that because that is exactly what has happened in Auckland, twice in the last 15 years. I would hope that Mr Axford will encourage the Green Party to make more sensible policy.

James Shaw: What does he say to Anita Patterson, who has lived in her earthquake-damaged home for 6 winters fighting the Earthquake Commission and her insurance company, and who wants to know when her home will be repaired or rebuilt?

Rt Hon BILL ENGLISH: I think I would say to her that that must be an incredibly frustrating and, at times, very miserable experience, one which she has shared with a number of people in Christchurch. I wish that I could tell her when her claim will be settled, but I have no idea of the details of it. But I would hope that as the insurance process comes to its end, they are finding the most complex cases. For many people, who are just worn out by the process, getting to a solution is proving to be something of a challenge. We hope that she is able to get a solution.

James Shaw: Why should New Zealanders who are concerned about climate change or the housing crisis or rebuilding their homes believe that he will be able to fix these issues as Prime Minister, when he did not in his 8 years as finance Minister?

Rt Hon BILL ENGLISH: I think the member knows enough about climate change to know that it is a long-term issue and will not be fixed next month, last month, or even next year. With regard to housing, I can assure the member that there has been a large amount of activity, which is starting to bear fruit, in fact. The Government building programme is now picking up momentum, and we will be building thousands of houses over coming years. The success of the Auckland Unitary Plan has a high impact, and if that member would support more changes to legislation to enable more housing to be built, then we could go faster.

• Education, Minister—Statements

11. MELISSA LEE (National) to the Minister of Education: What recent announcements has the Government made about investment in school property?

Hon HEKIA PARATA (Minister of Education): Tēnā koe, Mr Speaker. This week I was pleased to announce over $30 million towards school redevelopments in Auckland. This means that in the last 6 months this Government has announced over $268 million of school property redevelopments in Auckland either under way or approved. We are committed to ensuring that students all over New Zealand can achieve the very best of their potential. That is why we are addressing the needs of schools with complex property issues, and we are also building new classrooms to accommodate roll growth up and down the country.

Melissa Lee: What priority is the Government giving to school property needs?

Hon HEKIA PARATA: In this year's Budget, Associate Minister Kaye and I announced over $880 million in new money for school infrastructure. This is more than twice the spend of last year's Budget and means the total amount this Government will have invested in school infrastructure is over $5 billion, significantly more than any previous Government. We inherited a school property portfolio with an average age of 40 years, so have put a huge amount of effort into getting the full picture of the state of the school property portfolio and making plans to address these needs such as weathertightness and earthquake strengthening. On top of this, we are also expanding the school network where necessary to accommodate roll growth in line with New Zealand's changing populations.

David Seymour: Can the Minister confirm that Newmarket Primary School's new building is the first four-storey classroom building in an Auckland school, will have 11 new learning spaces and a new school hall, and is a very welcome addition to the school network in that area by local residents?

Hon HEKIA PARATA: I am delighted, and fully able, to confirm the member's question, and it is to the tune of $8.7 million, announced on 18 July. There are many happy people in Newmarket, as there are on this side of the House.

Fletcher Tabuteau: I seek leave of the House to submit two documents relating to the Northland School cluster agreement—

Mr SPEAKER: Order! I just need to be clear. The member is seeking leave to table two documents?

Fletcher Tabuteau: Yes.

Mr SPEAKER: I need a brief description and the source of those documents.

Fletcher Tabuteau: They were supplied to New Zealand First confidentially, and they describe the cluster agreement between schools and the said company.

Mr SPEAKER: The easiest way is for the House to decide. I will put the leave. Leave is sought to table those two documents. Is there any objection? There is objection.

• Workplace Relations and Safety, Minister—Exploitation of Migrant Workers

12. IAIN LEES-GALLOWAY (Labour—Palmerston North) to the Minister for Workplace Relations and Safety: Does he accept that exploitation of migrant workers is pervasive in New Zealand; if not, why not?

Hon MICHAEL WOODHOUSE (Minister for Workplace Relations and Safety): Migrant exploitation in any form and in any quantity is a great concern, but I do not consider it to be pervasive. The vast majority of employers in New Zealand are law-abiding and treat their employers fairly, and the labour inspectorate is working very hard to stamp out those employers whose practices do not meet minimum employment standards.

Iain Lees-Galloway: Why does he think migrant workers continue to report high levels of abuse, intimidation, underpayment, debt bondage, and a host of other exploitative employment practices despite his so-called efforts to stamp out migrant exploitation?

Hon MICHAEL WOODHOUSE: Well, that is a question best put to the complainants, but I would imagine that it is because they have a great deal of confidence that they will be listened to, taken seriously, and that their issues will be prosecuted. Indeed, that is exactly what is happening with the extra resources we have given to the labour inspectorate.

Iain Lees-Galloway: Why does he think that migrant workers are reporting these issues to a researcher rather than taking them to the appropriate authorities?

Hon MICHAEL WOODHOUSE: I presume the member is referring to the document entitled Worker Exploitation in New Zealand: A Troubling Landscape, prepared and published by the University of Auckland. What is important to consider about that report is that although it draws conclusions that migrant exploitation is pervasive and widespread—and, indeed, it is a very thorough empirical study—the method of gaining those stories was to go and ask people who have said they have been exploited. One hundred and five people did so and told their stories. That is concerning, but given the tens of thousands of overseas workers—maybe more than that—during the period of those told stories, I do not believe that that constitutes pervasive or widespread exploitation.

Iain Lees-Galloway: Is he concerned that it is the same industries—dairy farming, fishing, hospitality, horticulture, construction, and international education—that keep coming up as the most exploitative; if so, why is he not doing more to end the exploitation epidemic in those sectors?

Hon MICHAEL WOODHOUSE: As I said in the answer to the primary question, I am concerned about any migrant exploitation wherever it occurs and in whatever volume, but if that member truly expects to come to this House and cry crocodile tears over migrant exploitation when his party is not prepared to support the very legislation that this Government passed, like the Immigration Amendment Bill, which significantly increased the penalties in 2015, and like the Immigration Amendment (Mass Arrivals) Bill that we passed in 2013, then there is a word for that sort of thing, and I am not allowed to use it.

Iain Lees-Galloway: Does he accept that migrant exploitation has a chilling effect on wages and conditions for all workers in those sectors; if not, why not?

Hon MICHAEL WOODHOUSE: Firstly, there is no evidence that the exploitation is widespread or that it would lead to the suppression of wages. Rather than be driven by hyperbole, I need to be driven by the data, and the data says that there has been a 3.1 percent increase in wages year on year in those industries since this Government came to office, and very low interest rates and inflation rates, which suggests quite the opposite: that wages are growing.

Richard Prosser: I raise a point of order, Mr Speaker. While the Minister is answering from the realms of fantasy, can you arrange for each member to get a unicorn for Christmas?

Mr SPEAKER: Supplementary question—Iain Lees-Galloway.

Iain Lees-Galloway: When will he accept that too many employers rely on exploiting migrant workers so that they can avoid paying decent wages and meeting basic employment standards?

Hon MICHAEL WOODHOUSE: Here is what I will accept: I accept that one example of migrant exploitation is one too many, which is why we invested heavily in improving compliance with immigration law, with a labour inspectorate that has grown by 90 percent since this Government came to office, and we have passed laws strengthening the sanctions against non-compliant employers. I encourage that member and his party to support the Government in its efforts.

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