• TUESDAY, 14 MARCH 2017

Mr Speaker took the Chair at 2 p.m.

Prayers.

ORAL QUESTIONS

QUESTIONS TO MINISTERS

Prime Minister—Statements

1. ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that "Nick Smith has dealt with some of the most complex problems of resource law and housing more successfully than any other politician here could have"; if so, in what ways, if any, does he think the housing situation for New Zealanders has improved under Hon Nick Smith?

Hon PAULA BENNETT (Acting Prime Minister): Yes, because the Government has a comprehensive programme to increase housing supply, and it is working.

Andrew Little: Have housing costs as a share of family incomes risen or fallen under National and Nick Smith?

Hon PAULA BENNETT: It depends on how you measure it.

Andrew Little: I seek leave to table the household expenditure survey report showing the share of household incomes spent on housing is at the highest level since the survey began, in 2007.

Mr SPEAKER: On the basis of the way the question was answered, I am going to put the leave. Leave is sought to table that particular document. Is there any objection? There is none. It can be tabled.

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

Andrew Little: When his Government's own housing expenditure survey shows increased housing costs were 94 percent of households' income increase, leaving them only $2 a week for other costs, does he now accept that housing is eating up what small pay increases some families are getting?

Hon PAULA BENNETT: There can be no doubt that we have seen—particularly in the Auckland area but in other areas as well—housing prices increase over recent years, although in recent months we have seen an easing of that. The last quarterly report is actually saying that as well: that we are seeing that slowdown. Equally, with those who are renting, we are seeing a bit of pressure there, but that is why we have such a comprehensive programme that is making sure we have got the land supply that is available and that is also making sure those houses are being built.

Andrew Little: How does he think it feels for the typical family to work hard but to see their income rise by just $2 a week after paying for skyrocketing housing costs?

Hon PAULA BENNETT: Well, I will have to check on the $2 a week because the member is not known for getting his numbers right. But at the end of the day, what they are seeing is a Government that is working hard for them, actually addressing the complex issues around housing supply—that have not been addressed for decades, quite frankly—and making sure that we have got an increase. We have seen the biggest number of building consents that we have ever seen—literally up 30,000 now, and from 10,000 just a few short years ago. That is what is going to make a fundamental difference.

Andrew Little: How can he pretend everything is fine when research published in the latest Economist, a periodical, shows New Zealand now has the most unaffordable housing in the developed world?

Hon PAULA BENNETT: We have got the largest sustained building boom ever, with residential building activity at an all-time high. Building consents are more than double what they were 5 years ago, we have got more than 200 special housing areas that have been done, we have got the National Policy Statement on Urban Development capacity that is making a difference, and we have got the Crown land programme. I saw just the other day that the Hon Amy Adams and the Prime Minister went and opened the Luke Street development, where we saw 43 houses built in a matter of weeks, actually. We have got more than 20,000 people who are getting the HomeStart loans. There is a lot happening in this area, and it is making a difference.

Rt Hon Winston Peters: From the Government's answers, can we assume that with a 40,000-plus house shortage and thousands who are living in degradation when it comes to accommodation it is not the case that the quote should be: "Nick Smith has dealt with some of the most complex problems of resource law and housing more successfully than any other National politician could have"?

Hon PAULA BENNETT: I repeat that it is around land supply and the number of houses that are being built. We have seen the number of building consents double in just the last 5 years, and, fundamentally, it is about those places being built that people can move into.

Andrew Little: What does he say to Kristin of Henderson, who wrote to me to say "I will never earn enough as a full-time teacher to afford a mortgage.", and is it really fair that a full-time teacher in this country cannot afford her own home?

Hon PAULA BENNETT: I would say that that is not true, and that with the help from the HomeStart loans, and, equally, just in my own electorate of Hobsonville Point, we are seeing houses being built there at $460,000—there are some like that, and there are opportunities for teachers like her.

Andrew Little: Just how far off the tracks are we when the dreams of hard-working Kiwis in well-paying jobs are being crushed by rising house prices and rents, and when are we going to see real leadership and a real plan to restore the Kiwi dream of homeownership?

Hon PAULA BENNETT: What we are seeing is a comprehensive plan on housing that reaches across increased building consent, land supply, and urban development, and the construction sector at the moment is absolutely booming and about where it is. I find it ironic that a party that labelled people with foreign-sounding names as the problem wants now to bring them over to build people houses.

Metiria Turei: Is he proud that New Zealand tops every category of housing unaffordability in The Economist magazine?

Hon PAULA BENNETT: I am proud of a lot of things. I am proud that we have doubled the building consents, I am proud that we are opening up Crown land for houses, and I am proud that we are able to have HomeStart loans, which means there is access for those who cannot save for the deposit. Those are the kinds of things I am proud of.

Metiria Turei: Will the Government invest more in building affordable homes now that the Aussie banks are putting the squeeze on Kiwi developers, proving that the market will not solve this housing crisis by itself?

Hon PAULA BENNETT: What we have seen the market do in just the last 2 or 3 months is actually slow down and housing prices get a bit more affordable. So I would expect to see a bit of a correction, personally, and that will mean what we were also seeing just this morning. I was looking at the houses that are being built in Hobsonville Point—

Metiria Turei: On TradeMe?

Hon PAULA BENNETT: Well, I was actually looking at the TV, and there they are building them at $460,000. There are more apartments coming up. There are more opportunities.

Metiria Turei: Is the Prime Minister worried by reports from the Ministry of Education that hundreds of teachers are being driven out of Auckland by unaffordable rents and house prices; if not, why not?

Hon PAULA BENNETT: I was speaking to the Minister of Education the other day, and she was saying that, actually, the vacancies in Auckland are relatively low and that they are not seeing the numbers move out that are sometimes reported on without the evidence behind them. But I would say that one needs to be really carefully when one starts going there, because I do not think a teacher in Auckland is, necessarily, worth more than a teacher in Tūrangi or in Gore, for example.

Metiria Turei: Does he agree with the International Monetary Fund (IMF), which also rated New Zealand as the No. 1 least-affordable place to buy a home in the world, that a capital gains tax would help to rebalance our economy and to fix the housing market; if he does not agree with the IMF, why not?

Hon PAULA BENNETT: I probably do not agree with the member's interpretation of what the IMF said, but what I would say is that we are doing more for home affordability for all New Zealanders than has been done in decades. That means making sure that more homes are being built. More than 20,000 people have accessed HomeStart loans, and that means they get that help with the deposit so that they can get into homes. We are also seeing, I think, a bit of a correction recently.

Rt Hon Winston Peters: Given international experts saying this is the highest-price market and the most difficult market in the world to be in now, how does she think she is going to get away with statements like: "We have been working on affordability, and it's improving."?

Hon PAULA BENNETT: Because, in a lot of cases, the houses are cheaper today than they were 2 months ago.

• Better Public Services—Productivity Initiatives

2. BRETT HUDSON (National) to the Minister of Finance: What steps is the Government taking to improve productivity in the public service?

Hon STEVEN JOYCE (Minister of Finance): The public sector cost New Zealand around $74 billion last year. For this we received many products and services that help New Zealanders lead successful independent lives. But we do need to constantly work to increase the productivity of the Public Service and develop new and better ways of helping people. One of the key ways—and we are doing that in the upcoming Budget—is delivering better public services for our growing country, accommodating demand pressures where they exist, but also ensuring we get a measurable additional productivity benefit for any investment we make.

Brett Hudson: What progress is the Government making to improve outcomes for New Zealanders who need Government services and support?

Hon STEVEN JOYCE: As part of this programme to improve productivity, Ministers yesterday reported on their Better Public Services results and the improvements they are making to the lives of New Zealanders. More young people are getting education and qualifications to help them get jobs. Fewer children are getting rheumatic fever or being physically abused. There is less crime in our communities and more people are getting into work and off benefits. There is more to do, but these are real improvements that are making a real difference to real New Zealanders. [Interruption]

Mr SPEAKER: Order! [Interruption] Order! As I have said on many occasions, I do not mind some level of interjection, but when it becomes as loud as it was towards the end of that question, then I am left with no choice but to deal with it.

Brett Hudson: Are all of the Government's Better Public Services targets on track?

Hon STEVEN JOYCE: Across the 10 results, there are 11 targets. Seven of them are on track to be achieved in the time frame sought. The remaining four are still making progress but will need more work. These 11 targets are deliberately set to be challenging, otherwise there would be no point in doing it. Although not every result has yet been achieved, there has been significant progress for each target that we have set. In order to keep driving progress, the Government will be considering new methods for tackling individual challenges and continuing to challenge the Public Service to think differently.

Brett Hudson: How is improving Public Service productivity helping businesses be more efficient?

Hon STEVEN JOYCE: The Better Public Services targets include a target to make it easier for business to interact with the Government. A good example of this work is the IRD's Business Transformation project. As of just a short time ago, small to medium sized enterprises (SMEs) are now able to not only register for GST online but also prepare and amend their returns and pay their GST directly. SMEs can even pay their GST directly now off the back of their accounting software. All this is estimated to reduce the time that small and medium sized businesses spend on their GST returns by one-third. Already, 4,000 SMEs have reported the new system is saving them substantial time each month. [Interruption]

Mr SPEAKER: Order! It would be a great pity if the member was not here to ask his question later on.

• Health Services—Methamphetamine Addiction Treatment

3. MARAMA FOX (Co-Leader—Māori Party) to the Minister of Health: Does he agree with counsellor Andrew Hopgood, regarding P addicts, that "… a lack of detox and live-in rehabilitation centres limits options for addicts seeking help"; if so, what is he doing to address this shortage?

Hon Dr JONATHAN COLEMAN (Minister of Health): Methamphetamine is an ongoing problem, and, unfortunately, New Zealand has one of the highest rates of P usage in the world. With regard to Mr Hopgood's comments, there is ongoing pressure on facilities, but that is why the Government is driving the Tackling Methamphetamine Action Plan, which so far has invested $31 million in anti-drug programmes funded from the proceeds of crime Act. The most recent funding allocation, last October, included $8.7 million on a range of health initiatives, including treatment facilities, as well as funding more innovative ways for police to work with health services in order to reduce demand.

Marama Fox: What is he doing to address the reports of a chronic shortage of live-in rehabilitation centres in the regions, specifically regions like Ikaroa-Rāwhiti?

Hon Dr JONATHAN COLEMAN: I am not sure that there is a chronic shortage in those regions, but it is important to note that there are different treatment options that may be available—not just live-in rehabilitation. Most people will receive help through intensive outpatient services provided by the district health board provider arms and NGOs.

Marama Fox: Given the Government's investment approach, is he concerned that the Hauora addictions programme, which has had a successful programme evaluation in 2016 has not been allocated any further funding from the Ministry of Health; if so, what is he going to do about it?

Hon Dr JONATHAN COLEMAN: I am aware of this, and I am advised that officials are considering future options for the programme and the delivery of those outcomes.

• Regional Economic Development—Gisborne Region

4. JONATHAN YOUNG (National—New Plymouth) to the Minister for Economic Development: What update can he give on ways the Government is supporting economic development in the Gisborne region?

Hon SIMON BRIDGES (Minister for Economic Development): Well, a couple of weeks ago, alongside a number of ministerial colleagues, I released the Tairāwhiti Economic Action Plan. This plan is a shared one between the Government and people of Tai Rāwhiti to increase the region's economic development. It will provide opportunities to grow the region's potential, reduce unemployment, and attract visitors and investment to the region. The plan is linked to, and was launched alongside, the Tairāwhiti Māori Economic Development Report, which focuses on a Māori economic perspective, and I acknowledge Te Ururoa Flavell's role in that. The dual launch demonstrates the strength in our regions and that Māori have a critical role to play in boosting economic growth.

Jonathan Young: What economic opportunities for the Gisborne region does the action plan identify?

Hon SIMON BRIDGES: The economic action plan sets out many opportunities actually identified by the region and represents its priorities for the next 5 years. The plan focuses on adding value in sectors like mānuka honey, wood processing, and increasing production through irrigation. The plan also supports growing Tai Rāwhiti tourism to attract the expected rise in the number of tourists visiting the region. The action plan also provides new funding to grow the skills and capability of Tai Rāwhiti's regional labour force—including youth—so it better supports the region's businesses to really grow. To support future growth, the Government will also upgrade State highways and improve digital connection to enable better access to markets and to make the region much more accessible for the many tourists who want to visit.

Denis O'Rourke: Why has there been no action to support the people and businesses in the Gisborne area by reopening the important closed section of the Gisborne to Napier railway between Gisborne and Wairoa?

Hon SIMON BRIDGES: The member shows quite clearly that he does not even follow the papers, let alone visit Gisborne—

Denis O'Rourke: I raise a point of order, Mr Speaker. Under Standing Order 386, the Minister is required to be concise and not to refer to anything required other than answer the question. [Interruption]

Mr SPEAKER: Order! The member is partly right. But on this occasion, throughout the question, his own colleagues kept interjecting and yelling at the Minister while the question was being asked. If the members could cooperate with Mr O'Rourke while he is asking his questions, that would make it easier. I will now ask the Minister to complete his answer.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. If your ears were so acute as to hear what members on this side were saying, how come Mr Joyce was not heard interjecting the whole way through the question being asked?

Mr SPEAKER: Because I did not hear Mr Joyce, but I certainly—[Interruption] Order! My patience will not last a lot longer with some members who have continued to interject—[Interruption] Order! My patience might dissipate very, very quickly. There was a large barrage of interjection coming. I could not identify from which members, but I would say it was many of the members. I have dealt with the matter. Mr O'Rourke is right to expect his question to now be addressed. But if it is infiltrated with a lot of interjection while the question is being delivered, it certainly gives more license to the Minister when he answers his question.

Hon SIMON BRIDGES: What the member will find in the region is, in fact, part of that rail line is subject to commercial work, and we have seen a deal done there between commercial parties and KiwiRail in relation to the transfer of logs. The other part is subject to a commercial tender going on right at the moment. What is also true—

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. My colleague specifically asked about the Gisborne to Wairoa connection of the Gisborne to Napier line. He is talking about the Wairoa to Napier connection, and getting it all wrong.

Mr SPEAKER: Order! I will listen more carefully to the answer. Does the Minister wish to add anything to the answer?

Hon SIMON BRIDGES: No. [Interruption]

Mr SPEAKER: Order! Mr Mark and Mr Peters, you have continued to interject most of the way through question time. If either of you interject again through the balance of question time, I will be asking you to leave.

• School Buildings—Temporary Classrooms

5. CHRIS HIPKINS (Labour—Rimutaka) to the Associate Minister of Education: How many schools across the country are currently using libraries, halls, and other areas not intended for regular teaching as temporary classrooms?

Hon NIKKI KAYE (Associate Minister of Education): It is not possible to give a specific figure, because schools regularly change how they use space and do not update the ministry when this occurs. There are more than 30,000 teaching spaces across New Zealand. What I can tell the member is that every school receives property entitlement funding based on its roll, and it is then up to them as to how they choose to use that space. There are a range of reasons why some schools may be choosing to do this, including taking out-of-zone students, choosing not to take relocatable classrooms when redevelopment work occurs, or actively using some of the spaces as curriculum spaces.

Chris Hipkins: Is a caravan a suitable substitute for a real classroom; if so, will this year's Budget include funding for hundreds of caravans, to finally, after more than 8 years, get ahead of demand and address ballooning class sizes throughout the country?

Hon NIKKI KAYE: The answer to the second part of the question is no. But what I can tell the member is that under this Government we have spent a third more on school property—$1.5 billion more—than the last Government. We have spent $850 million on school expansions and more than hundreds of millions of dollars on roll growth classrooms.

Todd Barclay: What reports has the Minister previously received on the state of school property?

Hon NIKKI KAYE: I am advised that when we came into Government the average age of New Zealand school buildings exceeded 40 years. I am also advised that the school property portfolio had a $1 billion leaky building problem. Since then, we have spent a third more on school property funding. We have spent more than $850 million on new schools and expansions, and hundreds of millions of dollars on new teaching spaces. This Government is proud of its record of investing in school property.

Chris Hipkins: Given that detailed assessment, how many schools, as of today, do not have enough classrooms to accommodate the students whom they currently have enrolled?

Hon NIKKI KAYE: I answered that in the primary question—that we do not keep specific numbers. But what I can tell the member is that we do two things: one is we update school property funding, as per school property entitlement; and, secondly, we add a number of roll growth classrooms, either through conversations with the school or through amending their enrolment zone.

Todd Barclay: What recent announcements has she made to address roll growth in Auckland and Queenstown?

Hon NIKKI KAYE: Since Budget 2016 this Government has announced significant investment. In Auckland, around $160 million was announced. That includes $19 million for a new primary school in Hingaia South, $7.3 million to expand Ormiston Primary School, $18 million for new roll growth classrooms and replacement classrooms, and $17 million for new roll growth classrooms. In Queenstown, $38 million was announced: $25 million for Wakatipu High School, $11 million to redevelop an Arrowtown primary, and $2.8 million for eight roll growth classrooms.

Chris Hipkins: Is she telling New Zealanders that despite the detailed assessments of school property that her Government has completed, she does not know how many classrooms short current schools are, given the number of students they currently have?

Hon NIKKI KAYE: No, I am not telling New Zealand that. As I have already explained, it is up to schools as to how they use their teaching spaces. Some schools have larger classes; they choose to teach in a different environment. Other schools use teaching spaces in different ways. We do keep figures around additional roll growth classrooms. What I can tell the member is that if he is trying to run an argument that we do not invest enough in roll growth, the utilisation figures do not support that and this Government's spend does not support that. The member is just cherry-picking particular situations, and he does not actually understand the bigger picture. [Interruption]

Mr SPEAKER: Order! Mr Brownlee.

Chris Hipkins: What does she say to Berhampore School principal Mark Potter, whose school is about 60 students over its 240-student capacity, and who has had to lose school resource rooms and the library to accommodate extra student growth?

Hon NIKKI KAYE: We are always happy to look at individual situations, but what I would say to the member, without knowing the individual situation around Berhampore, is that sometimes it is the case that schools have taken out-of-zone children. That is sometimes the situation. Sometimes we also have fluctuations in numbers. What I can tell the member is that in 2011-12 we had an overall drop of student numbers, and now we are seeing a number of New Zealanders choosing not to leave, because of this National Government's great plan from an economic perspective. So numbers do fluctuate, and we are happy to add roll growth classrooms where it makes sense.

Chris Hipkins: When she said in 2015 "We're absolutely going to get ahead of demand" for additional classrooms, did she mean by forcing schools to convert libraries, halls, gymnasiums, dental clinics, staffrooms, and caravans for use as classrooms; if not, why is that happening?

Hon NIKKI KAYE: No. What I can tell the member is that back in 2008, when Labour was in Government, some schools did use those spaces for teaching the curriculum. That has always happened. What I can tell the member is that we are absolutely getting ahead of growth, because we spent more than $850 million on expansions and we have got tranches of roll growth classrooms happening all across New Zealand. The utilisation figures do not support the member's argument; nor does the spend that we are spending.

• Anti - Money-Laundering and Countering Financing of Terrorism Regime—Phase Two

6. ANDREW BAYLY (National—Hunua) to the Minister of Justice: What recent announcements has she made regarding phase two of the anti - money-laundering and counter-financing of terrorism regime?

Hon AMY ADAMS (Minister of Justice): Yesterday I introduced legislation into Parliament to bring lawyers, conveyancers, accountants, real estate agents, and sports and racing betting into the anti - money-laundering regime after the Government fast tracked implementation last year. Additionally, businesses that deal in certain high-value goods, including motor vehicles, jewellery, and art, will also be covered under the legislation when they accept large cash transactions. Following the release of the exposure draft late last year in consultation with affected sectors, the bill aims to strike the right balance between combating crime, minimising the cost of compliance, and protecting our international reputation.

Andrew Bayly: How will the proposed phase two regime impact New Zealanders?

Hon AMY ADAMS: Once in place, the new regime will affect both the sectors covered and the New Zealanders who interact with them. For example, when people are buying or selling property; setting up trusts; buying cars, boats, art, or jewellery with large amounts of cash; or having an accountant manage funds for them they will need to provide proof of identification and address. In some cases, they may also need to provide information about the source of the funds and beneficial ownership. The affected sectors will also need full risk assessment and compliance programmes, and will be obliged to report suspicious activities. Although this will mean extra cost, the new regime is seen as an essential tool in the fight against money-laundering and terrorist financing.

• Bottled Water Exports—Government Response

7. CATHERINE DELAHUNTY (Green) to the Minister for the Environment: Will he put a moratorium on bottled water exports, in response to a 15,000 strong petition and nationwide rallies on water issues taking place today?

Hon Dr NICK SMITH (Minister for the Environment): No. Bottled water exports last year totalled 9 million litres out of New Zealand's annual water resource of 500 trillion litres. It amounts to 1 litre being exported in over 50 million, or 0.000002 percent. A moratorium on bottled water exports to address water shortages makes about as much sense as a moratorium on tricycles to solve New Zealand's traffic problems.

Catherine Delahunty: Thank you for mansplaining. Is there a contradiction in areas such as

Mr SPEAKER: Order! [Interruption] Order! I did not hear the start, but there clearly was one that caused my right-hand side to then erupt. The member will start the question again.

Catherine Delahunty: Certainly, Mr Speaker. Is there a contradiction in areas such as Hawke's Bay and Canterbury, where people have had to buy bottled water to ensure what they give their children is safe, essentially paying a private company for what should be free and available to them?

Hon Dr NICK SMITH: Whether you look at the water issues in Canterbury or Hawke's Bay, the amount of water that is taken for bottled water exports is so minuscule that it is absolutely irrelevant to any sensible discussion about improving New Zealand's water management. There are issues of infrastructure for some councils, which is at the core of the inquiry in Hawke's Bay and shows that the Green Party is exactly on the wrong track to address the issues.

Catherine Delahunty: I raise a point of order, Mr Speaker. I did appreciate the Minister's answer, but he did not address the question about whether people should have to pay for this water. He talked about a lot of other important issues.

Mr SPEAKER: No, the question was very definitely around whether there was a contradiction. You did not ask whether people should have to pay. The Minister definitely addressed the question that was asked.

Richard Prosser: Why has this Government not yet adopted New Zealand First's policy, announced over a year ago, of imposing a royalty—

Mr SPEAKER: Order! [Interruption] Order! The member will resume his seat. I have spoken very severely to some members to my left. I am now giving exactly the same warning to members on my right. If I see a continued interjection coming from any member whom I identify, that person will also be leaving the Chamber. Richard Prosser is to start his question again.

Richard Prosser: Why has this Government not yet adopted New Zealand First's policy, announced over a year ago, of imposing a royalty on every litre of water exported from this country, with at least 25 percent of that royalty being returned to the region from where the water was sourced?

Hon Dr NICK SMITH: Yes, I did see a proposal from the New Zealand First Party to charge all water users 10c per litre. Noting that it takes 400 litres to produce a litre of milk—

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

Mr SPEAKER: Order! [Interruption] Order! Dr Smith will resume his seat.

Rt Hon Winston Peters: The Minister is not permitted to outline another party's policy, particularly when he just said that policy was deceitful—not a fact—and he cannot show me one piece of evidence.

Mr SPEAKER: Order! No, the question was very definitely: why has the Government not adopted a New Zealand First policy? That was the question that was asked. [Interruption] Order! That was the question that was asked, and that is the question I now want to hear the answer to.

Hon Dr NICK SMITH: A cost of 10c a litre would amount to a $40-a-litre charge for our dairy industry, and, no, this Government does not want to wipe out New Zealand's most important export sector.

Scott Simpson: What steps has this Government taken to ensure better management of New Zealand's fresh water, and what advice has he seen on its main uses?

Hon Dr NICK SMITH: The two significant steps our Government has taken are to require all councils to set minimum flow rates in our waterways, and we also introduced compulsory metering. This has seen the volume of water taken and measured increase from 25 percent to now over 85 percent. We now also have a significant number of red-zone catchments where no further extractions are allowed. Three-quarters of the water taken in New Zealand is used for irrigation, about another 10 percent by industry and municipal supplies, 3 percent is taken for stock water, and the portion taken for bottled water is less than a thousandth of 1 percent.

Catherine Delahunty: Does the Minister understand the frustration many New Zealanders feel as water in rivers, lakes, and aquifers is being siphoned away for commercial use, including irrigation and water bottling, at no actual cost to the user but at massive cost to communities and the environment, which also depends upon it?

Hon Dr NICK SMITH: Every New Zealand household, all 1.6 million of them, has access to water for their own use, for which they only pay for the cost of the reticulation not the use, and if parties opposite want to start imposing new taxes on the use of water, where are they going to stop? Will air be charged for next?

Catherine Delahunty: Does the Minister understand that not taking action to prevent profiteering from our water is the final straw for many New Zealanders who have put up with water restrictions, polluted swimming holes, dried-up over-allocated rivers, and "boil water" notices?

Hon Dr NICK SMITH: This Government does want to see issues like the problems in Hawke's Bay, which the member associated with intensive dairying. Actually, the evidence before the inquiry has shown that it was in fact sheep and, secondly, non-intensive and more likely to be caused by poor maintenance by the council of its well. I think that member owes the dairy industry an apology. [Interruption]

Mr SPEAKER: Order! [Interruption] Order!

Catherine Delahunty: How will the Government support the rights of iwi and hapū such as Ngāti Tama to protect Waikoropupū Springs if the Government insists on allowing our water to be given away for free to private industry?

Hon Dr NICK SMITH: In respect of those springs, I am considering a water conservation order because it is my view that that particular world-renowned spring is one that does need to be protected, and I have meetings on Friday with local iwi in that respect. It may be interesting that the bill to be debated when question time finishes actually ensures that Māori have a more effective role and say in springs like those in Waikoropupū Springs, supported and advocated for by the Māori Party but, I note, opposed by every other party in the Parliament.

Catherine Delahunty: Will the Minister support the Green Party position that those making a profit from water should have to pay for the right to use it and prove that their commercial use is actually sustainable?

Hon Dr NICK SMITH: Through the Government's water reforms we have a technical advisory group that is looking at the questions of both allocation and charging. We do think there is potential for improvement, but I point out to the member that, say in my own constituency, where you have got a bottled water plant established by a couple of guys who were made redundant from Solid Energy next door to Coca-Cola, which makes soft drink just along the road from a beer plant, that both the Coca-Cola plant and the beer plant use a lot more water than the water bottling company. We need to be sure that any steps we take are fair to all users.

• Mori Development, Minister—Confidence

8. KELVIN DAVIS (Labour—Te Tai Tokerau) to the Minister for Māori Development: Does he have confidence that his leadership of Te Puni Kōkiri and its programmes are resulting in the best outcomes for Māori?

Hon TE URUROA FLAVELL (Minister for Māori Development): Tēnā koe, Mr Speaker. Kia ora tātou. Tēnā koe tēnā pātai. I believe that thousands of whānau up and down the country are being well supported by Te Puni Kōkiri to achieve better outcomes. Our whānau deserve the best possible support they can get, which is why I have high expectations of all Government agencies and their leadership, including myself, to deliver to our people—to Māori people.

Kelvin Davis: How does he reconcile that view that he is doing his best for Māori when the gap in median weekly earnings between Māori and Pākehā has risen 47 percent since his party shacked up with this Government?

Hon TE URUROA FLAVELL: The member asked about better outcomes, and to take an example—let me highlight just one or two. I will start with Māori housing, for example: 344 whānau communities like in Kaeō in the member's electorate are now in safer, warmer, and heathier—

Kelvin Davis: I raise a point of order, Mr Speaker. The question was around median weekly earnings.

Mr SPEAKER: No, the member then added something that almost caused me to rule the question out of order, and he referred to a coalition arrangement in some rather political terms, so that gives a very wide ambit to the Minister in answering the question.

Hon TE URUROA FLAVELL: If I can continue with this fine record, 344 whānau and communities, like Kaeō, are now in safer, warmer, and healthier homes. Sixty whānau and communities, like Ōmāpere, are now in new affordable rental homes. Homeless whānau are now getting better support in communities like Kaeō and Kaitāia through emergency housing projects. I was pleased to see, for example, the member in Kaitāia—the member and me; both of us together—launching and supporting Ricky Houghton in his housing project. Those sorts of projects are producing good outcomes for our people and I am pleased to be supporting them.

Kelvin Davis: Does he believe, as Minister for Māori Development, that the selling off of State houses is rangatiratanga, as his colleague stated, when Māori are four times more likely to be waiting for a State house despite all of those things he has just gone through?

Hon TE URUROA FLAVELL: Speaking about housing, we disagree with the submission put through by that member at the moment. But I can say, on the opposite side, for example, that in the community of Ngāruawāhia, where I had the privilege to be probably just about a week ago, there was the opening of te Turner papakāinga housing. It is a nine bedroom home that will house four generations—10 adults and nine tamariki. Those are the sorts of projects that are really benefiting Māori and getting better outcomes for our people. Those are the sorts of projects that Te Puni Kōkiri are supporting, and those are the projects that I am proud to be Minister to advocate for.

Kelvin Davis: Does he, as Minister for Māori Development, believe that, given lower Māori life expectancy, it is fair that the age of superannuation is raised?

Hon TE URUROA FLAVELL: Talking about life expectancy, one of the great things that I have to be proud about is a funding allocation of $2 million this year to support initiatives aimed at reducing rangatahi suicide, including video resources and hui. Those are the sorts of things that are positive.

Hon Members: Answer the question.

Mr SPEAKER: Order! I am going invite the member to ask that question again.

Kelvin Davis: My point of order is that I asked whether it is fair—

Mr SPEAKER: No, no, I have asked will the member please ask the question again.

Kelvin Davis: OK. Does he, as Minister for Māori Development, believe that, given lower Māori life expectancy, it is fair that the age of superannuation is raised?

Hon TE URUROA FLAVELL: That is a Government policy. In terms of the Māori Party view of that—as one part of the coalition arrangement with the Government—we believe that our policy is clear: to maintain the age as it is at present. That is our view.

Chris Hipkins: I raise a point of order, Mr Speaker. The member is answering as a Minister on behalf of the Government. It is not his job as a Minister to give a party perspective; it is his job to answer on behalf of the Government as a Minister in the Government.

Hon Gerry Brownlee: Mr Speaker—

Mr SPEAKER: I do not think there is much to talk about, but I will hear from the Hon Gerry Brownlee.

Hon Gerry Brownlee: It was established in this House by Helen Clark and, in fact, Jim Anderton and the new hope for the Labour Party, Laila Harré, that a person who is a Minister inside a coalition Government, when asked a question about their party's policy, could answer so.

Mr SPEAKER: I need no further help, but I thank both members for their assistance. In this case a very clear question was asked, and I think that the Minister answered it very satisfactorily.

Kelvin Davis: When Māori unemployment is rising, the wage gap is growing, health outcomes are getting worse, and homeownership is a fantasy, how can he, with a straight face, say that Māori are getting positive outcomes under his watch?

Hon TE URUROA FLAVELL: The gist of the questions asked by the member is about responsibility, and I take those responsibilities really seriously. Can we do better? Of course we can do better, and my hope is to do that by way of advocating through my role as the Minister for Māori Development. For example, in Whānau Ora $40 million over 4 years is about addressing those issues that the member has put in front of the Parliament today. In terms of business and innovation, it is about moving families to get into positions of self-sustaining businesses, and so on—again, $4 million over 4 years. Those are the gains that we have been able to achieve to address best outcomes for our people. I think they need to be applauded.

Mr SPEAKER: Question No. 9—[Interruption] The member has used her supplementary question.

Marama Fox: Sorry, we had an agreement to have another supplementary question allocated. That is my understanding.

Mr SPEAKER: Order! I can see that the chief Government whip is saying that is true, but it is helpful for me, in running question time, if I am made aware of such arrangements.

Marama Fox: Apologies, Mr Speaker, and thank you for your indulgence. Has the Minister read any reports about the very good work that he and Te Puni Kōkiri are doing?

Hon TE URUROA FLAVELL: As it happens, I do. If I can quote from that report: "I have to take my hat off to the Māori Development Minister Te Ururoa Flavell for keeping the kaupapa of the Māori Party beating while gaining wins from the Government in the 2016 Budget." The quote goes on: "in the past two years, he has done a good job for Māori and can feel satisfied with a new Whanau Ora injection of another $40 million over the next four years—a total of $72 million a year in welfare, education and health spending to go through Whanau Ora providers." That quote came from the newest member of the Labour Party, Willie Jackson. [Interruption]

Mr SPEAKER: Order!

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

Mr SPEAKER: Order! This is a point of order and I expect to hear it in silence.

Rt Hon Winston Peters: The Hon Te Ururoa Flavell said it was a report. That being the case, can I ask him to table it.

Mr SPEAKER: This is easily arranged if the Minister was quoting from an official document. Was the Minister quoting from an official document?

Hon TE URUROA FLAVELL: No, Mr Speaker, from a radio broadcast.

Mr SPEAKER: Then the matter is resolved.

• Better Public Services Targets—Education Sector

MAUREEN PUGH (National): My question—[Interruption]

Mr SPEAKER: Order! The front bench must also cease interjecting, so we can hear the question from Maureen Pugh.

9. MAUREEN PUGH (National) to the Minister of Education: What announcements has she made about the Government's education-related Better Public Services targets?

Hon NIKKI KAYE (Minister for Youth) on behalf of the Minister of Education: I was very pleased to announce that the latest results for the Better Public Services targets show that 96.7 percent of children are now participating in early childhood education. This is an increase of 2 percent since March 2011. I was also delighted to announce that the provisional results also show that 85.2 percent of 18-year-olds achieved NCEA level 2 or equivalent last year. This has been a huge increase of 10.9 percent since 2011. I would like to congratulate students, teachers, and parents for this fabulous result, which is a reflection of their hard work.

Maureen Pugh: Can she provide further information to the House on Māori and Pasifika NCEA level 2 achievement?

Hon NIKKI KAYE: I am pleased to advise the House that there has been a huge improvement in Māori and Pasifika achievement since 2011. Can I acknowledge the Māori Party for its contribution to education policy. An estimated 74.7 percent of Māori students achieved NCEA level 2 or equivalent in 2016, up from 57.1 percent in 2011. More than 80 percent of Pasifika 18-year-olds achieved NCEA level 2 in 2016, up from 65.5 percent in 2011. This Government is proud of the Māori and Pasifika achievement under this Government.

• Mental Health Services, Kaikura—Funding

10. Dr DAVID CLARK (Labour—Dunedin North) to the Minister of Health: How much did the Canterbury District Health Board receive from the Government for mental health and addiction services support in response to the Kaikōura earthquake, after paying off the debt of Kaikōura's health centre?

Hon Dr JONATHAN COLEMAN (Minister of Health): Following the Kaikōura earthquake, the Government announced a $3.76 million support package for Kaikōura and Marlborough, including $2 million to clear remaining community debt for the new Kaikōura health centre, as well as a total of $915,000 for Nelson Marlborough District Health Board and $845,000 for Canterbury District Health Board. Although the Canterbury District Health Board sought a higher amount of funding, the support package was deliberately for only 1 year in order to allow immediate assistance to be delivered while the longer-term wider psychosocial recovery response is being considered.

Dr David Clark: Is it not true that the $845,000 he has just admitted to was meant to last the district health board (DHB) until December 2017, and that the DHB has already spent $2 million to date, previously earmarked for other services like aged care, on providing support as a result of the Kaikōura earthquake?

Hon Dr JONATHAN COLEMAN: Well, as the member knows, the district health board is bulk funded. It has got a budget of about $1.4 billion—that has gone up by $330 million over the time of this Government. This was a very carefully formulated package. It was consulted on with the Canterbury and the Nelson Marlborough DHBs and it has delivered a wide range of services, which I am very happy to take the member through.

Dr David Clark: Why did he not listen to the Canterbury District Health Board when he was told in official advice that the $845,000 for mental health services after the Kaikōura earthquake would not go far enough?

Hon Dr JONATHAN COLEMAN: Well, the Canterbury District Health Board made a case for a wider package—a greater amount of money—but looking through its figures, it actually got the figures wrong. So it wanted $3.2 million for the clearing of the debt when the debt was only $2 million. It also wanted about $2 million for community service coordinators, which was actually money that was provided across different portfolios. So there was a difference between the figures there. But the actual fact is that it is a package that is focused on delivering the services that are needed.

Dr David Clark: I seek leave to table official advice to the Minister that says his relief package is deliberately short term. It is from a briefing dated 2 December 2016 and released under the Official Information Act.

Mr SPEAKER: Leave is sought to table that information. 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.

Dr David Clark: Is the Canterbury DHB funded below the national average for mental health services?

Hon Dr JONATHAN COLEMAN: The Canterbury District Health Board receives a per-person amount that is based on exactly the same formula as every other district health board. So in terms of the total number, that will reflect the demographics of the population. It is higher than some DHBs and lower than others, but it is the same formula and it is fair right across the country. On top of that, there has been $106 million put in by the Government to help the Canterbury DHB through the effects of the earthquake. That includes $20 million last—

Dr David Clark: I raise a point of order, Mr Speaker. It was a very straight and short question as to whether it was funded below the national average.

Mr SPEAKER: And the Minister answered it. He said it is higher than some and lower than others.

Dr David Clark: Mr Speaker, that is not an answer to the question; that is a truism.

Mr SPEAKER: That is very much an answer to the question. If the member has further supplementary questions, I will hear them.

Dr David Clark: Does he think it is acceptable that financial pressures have put the Canterbury DHB in a position where, just last month, 40 adult in-patients were ferried off to a range of locations at night because there are currently more adult patients than beds in Canterbury?

Hon Dr JONATHAN COLEMAN: As he will know, his excellent predecessor, Mrs King, was involved in changing the model of care. It is a model that I support whereby, actually, we are not locking everybody up in the hospitals like we did last century; we are actually moving people into the community where they are cared for. I would suggest that the member puts aside his personal differences with Mrs King, sits down with her, learns from her experience, and learns—[Interruption]

Mr SPEAKER: Order! I do not think the answer continuing is going to help the order of the House.

Dr David Clark: Given anticipated demand and given the fact that the chief executive of the Canterbury DHB says a request for more funding was not unreasonable, is the Minister once again saying that he knows better than researchers and practitioners when it comes to post-earthquake mental health support?

Hon Dr JONATHAN COLEMAN: No, I am not saying that, but I have already taken the member through that answer. What I said was that there was a difference between what the Canterbury DHB chief executive thought the Canterbury DHB should receive, but, actually, the figures in that document were wrong. He wanted $3.2 million to clear the debt; the debt was $2 million. He wanted $2 million for community support coordinators; that is actually covered by a range of portfolios. I suggest, once again, he gets together—

Mr SPEAKER: Order! No, I do not think this is going to help the order of the House.

• Foreign Affairs, Minister—Statements

Rt Hon WINSTON PETERS (Leader—NZ First): I raise a point of order, Mr Speaker. Given the importance of this issue, I would seek to have this question deferred until the Minister is able to answer it.

Mr SPEAKER: The member is seeking leave to defer this question to an alternative day. Is there any objection to that happening? There is objection. [Interruption] Order! [Interruption] Order! Now there are interjections coming from both sides that are not helpful. I invite the member now to ask question No. 11.

Rt Hon Winston Peters: Supplementary question—

Mr SPEAKER: No, no—we need the primary question.

Rt Hon Winston Peters: Sorry—yes. Well, I was going to put another alternative.

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

Hon GERRY BROWNLEE (Minister of Defence) on behalf of the Minister of Foreign Affairs: Yes, in the context they were made and when accurately reported.

Rt Hon Winston Peters: If the Cabinet Manual requires that any international proposal including "denunciation" must go before Cabinet, can he confirm that Cabinet expressly approved his "spirit of unanimity" in which the United Nations Security Council passed Resolution 2334 criticising Israel?

Hon GERRY BROWNLEE: I would like to answer on behalf of the Minister of Foreign Affairs, but I did not hear the middle part of that question.

Mr SPEAKER: Then we will have it again, and we will have it without interruption from anybody.

Rt Hon Winston Peters: If the Cabinet Manual requires that any international proposal including "denunciation" must go before Cabinet, can he confirm that Cabinet expressly approved his "spirit of unanimity" in which the United Nations Security Council passed Resolution 2334 criticising Israel?

Hon GERRY BROWNLEE: New Zealand's position on that resolution was as has been previously determined by this and other Governments.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. I asked a specific question, and I never got an answer to it.

Mr SPEAKER: I am going to ask the member to ask the question again. There is quite a lot that does not need to be in the question, but ask it as the member wants.

Rt Hon Winston Peters: If the Cabinet Manual requires that any international proposal including "denunciation" must go before Cabinet, can he confirm that Cabinet expressly approved his "spirit of unanimity" in which the United Nations Security Council passed Resolution 2334 criticising Israel; in short, did it go to Cabinet?

Hon GERRY BROWNLEE: We disagree with the questioner's interpretation of "denunciation".

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. This question asks, in the abbreviated form in which you asked me to give it, "Did a paper go to Cabinet?" It is that simple, and he will not answer me.

Mr SPEAKER: No, no. The difficulty is that you have got a very general primary question that was asked. I refer the member to Speaker's rulings 191/3-4. The member is now getting into something quite specific. We have had two goes at it. I think that on the second occasion the Minister has addressed the question. I invite the member to proceed with his line of supplementary questions, and I will give him one additional supplementary question.

Rt Hon Winston Peters: If "denunciation" was the roadblock in his answer, has he seen Cabinet Manual paragraph 5.73, which specifically refers to denunciation of an international treaty of agreement?

Hon GERRY BROWNLEE: I am not an expert on the Cabinet Manual. [Interruption]

Mr SPEAKER: Order! Thank you, Mr Hipkins.

Rt Hon Winston Peters: Or anything. If he consulted with the Prime Minister and/or the Secretary of the Cabinet prior to New Zealand co-sponsoring United Nations Security Council Resolution 2334, what response did he get from the Prime Minister or the Secretary of the Cabinet on the resolution?

Hon GERRY BROWNLEE: I think the member is trying to make something out of something that is not really the case. The first point I would make—and I have made it before—is that there was nothing in that resolution that New Zealand had not previously supported or had not been determined by Government; therefore, there was not the necessity for the discussion that he seems to think should have taken place.

Rt Hon Winston Peters: What information, briefings, or papers did the Cabinet external relations and defence committee specifically receive from him prior to UN Security Council Resolution 2334; will he table them?

Hon GERRY BROWNLEE: Across all of the activities of foreign affairs, there are numerous papers that are referred to that select committee. I am sure that that select committee will make its own determination about what papers it releases.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. This House is not the select committee. It is much bigger than a select committee, and he is saying now that if you are at the select committee he may do it, but if it is the House, he will not answer the question.

Mr SPEAKER: I think he meant a Cabinet committee. We will hear from the Hon Gerry Brownlee.

Hon GERRY BROWNLEE: My apologies, Mr Speaker. I am not being clever about it—I am having a little difficulty understanding or hearing, in fact, all of the words in the questions being asked.

Mr SPEAKER: Then the easy way forward is to ask the member to ask that question again.

Rt Hon Winston Peters: What information, briefings, or papers did the Cabinet external relations and defence committee specifically receive from him prior to UN Security Council Resolution 2334; will he table them?

Mr SPEAKER: There are two questions there. The Minister can address one or both.

Hon GERRY BROWNLEE: The Cabinet external relations and defence committee has received many, many papers from the Minister of Foreign Affairs over the last 8 years.

Rt Hon Winston Peters: Will he release all Cabinet minutes, briefings, diary notes, and aides-mémoire, including from Government officials, relating to United Nations Security Council Resolution 2334; if not, why not?

Hon GERRY BROWNLEE: I am sure that if there was an Official Information Act request made, there would be an appropriate release.

Rt Hon Winston Peters: I raise a point of order, Mr Speaker. There was such an Official Information Act request made, and the person requesting it was told: "We can't give it you and we may never give it to you."

Mr SPEAKER: Order! That is not a point of order. That is a matter for debate.

• Disability Support Services—Announcements

12. Dr PARMJEET PARMAR (National) to the Minister for Disability Issues: What recent announcements has she made regarding a nationwide transformation of the disability support system?

Hon NICKY WAGNER (Minister for Disability Issues): I announced that the Government will undertake a 3 month co-designed process with the disability sector to begin a nationwide transformation of the disability support system based on the Enabling Good Lives principle. This change is about ensuring that disabled people and their families have more choice and more control over their supports. Cabinet is expected to consider the system design in mid-2017.

Dr Parmjeet Parmar: What will be the focus of the design process?

Hon NICKY WAGNER: The transformation will focus initially on those receiving support from the Disability Support Services in the mid-central region. The Enabling Good Lives demonstration in the Waikato will continue, as will the arrangements for Christchurch. Input from the disability sector will be vital throughout the transformation process, particularly around the design phase. The new system will incorporate a social investment approach to improve outcomes for individuals and deliver cost-effective services over the long term.

Question No. 8 to Minister

Hon TE URUROA FLAVELL (Minister for Māori Development): I seek the leave of the House to correct an answer given in question time today.

Mr SPEAKER: Leave is sought for that course of action. Is there any objection? There is none.

Hon TE URUROA FLAVELL: During question time, I think I was asked a question with respect to superannuation. Although it was outside of the portfolio area, as raised by the Hon Gerry Brownlee, I said that the Māori Party policy was to keep superannuation at the current level. In fact, the policy is to drop it to 60 years of age.

CHRIS HIPKINS (Labour—Rimutaka): I raise a point of order, Mr Speaker. I think that this definitely creates an issue when Ministers who are answering as Ministers answer not as Ministers on behalf of the Government but on behalf of political parties, because, actually, strictly speaking, that is not an appropriate use of the correction system. That is correcting a party's policy, for which the Minister is not responsible to the House.

Mr SPEAKER: We cannot move past it at the moment. I will need to go back now and see the tone and the exact wording of the question, but my recollection was that the question did not really ask about a Government position but took the opportunity to ask about the member's position, or the member's party's position, but I will have another look at it.

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