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Hon SIMON BRIDGES (Leader of the Opposition): I rise to speak on this matter, given its significance for New Zealand and globally, and also given the significant uncertainty there is in relation to this matter. I want to say from the outset, on the coronavirus, that the Opposition stand ready to collaborate and to work with the Government on this matter of great importance, in every facet of it. I myself have been thinking about it from very early on, when I heard about it in China, and making sure every single day I understand what is happening on it. Indeed, that's partly why my health spokesperson was very quick to call for actions in this area, and there's been some criticism of that, but I make no apology on an issue of this significance for the Opposition and National Party to hold the Government to account on it.

I regret that at every single step of the way, my clear view is that the Government has done too little, too late. We've had comprehensive analysis conducted on where the United Kingdom, Australia, and the United States have been, and at every step, as they have done things, we have been several days behind them. I could run through that in some detail, but I simply want to touch on screening, and the many examples I've been told about from members of my caucus, from members of the public who've spoken to me about this issue. In theory, there is screening happening now in New Zealand from affected flights coming to New Zealand. This weekend, for example—and it is the only one I will give—I talked to a constituent of mine on the telephone who in fact lives very close to where I live. His clear view, bringing his family back from a neighbouring province and with great concerns about the effect of this on them, was that there was nothing that happened as they came through New Zealand—no screening, no checks, no nothing. What is also true is that as I rang him, because he'd contacted my office and I think I've met him before, he was out in self-isolation in a public space where many other people were, and he'd made quite clear that no one has contacted him. He has had nothing happen in relation to that "self-isolation".

I suggest that, actually, if we don't see harm in New Zealand, it will be much more by good luck than by good management and good practice by the Government. I regret to say I don't believe the Minister of Health is leading on this issue in any way, shape, or form. He waited for the first Cabinet to make preliminary decisions on this matter when a week earlier than that, decisions should have been made on this incredibly significant issue. I believe we must be more proactive, more precautionary, in the way we handle this issue of coronavirus. The Minister said that the Government, the Ministry of Health, has been measured. I regret to say I think what he really means is "laid-back". Kiwis are laid-back, but on an issue like this, that is not good enough.

I want to record the Chinese community's very clear outpouring of views and concerns in relation to this throughout New Zealand. They've been strong, they have been forthright, and, as I say, they have been concerned—deeply concerned—about the lack of measures, the lateness of the measures, in relation to these matters. I record as well my view, and, I'm sure, a view that the House agrees with, that there is absolutely no room for racism in this country on this issue in relation to our Chinese community, who are valued members of our society.

I also want to make this final point that is wider than health when it comes to coronavirus: it is quite clear on the reports that are out in international media about a very significant shutdown throughout China of manufacturing and industry. There is undoubtedly an economic effect that will hit and is hitting this country. Even today, were this issue to resolve itself, it will not be insignificant. I look forward to hearing very clearly from the Government what their economic strategy in relation to this issue—that is a health issue but is also much wider and affects our economy—is and will be.

Hon Dr DAVID CLARK (Minister of Health): Just to respond to a few of the member Simon Bridges' points, first of all, I would stress that all decisions that have been taken in response to the coronavirus have been taken with the public health of New Zealanders and the public safety of New Zealanders as our primary concern. All decisions taken have been informed by the science. The advice that we have received from doctors and clinical experts has informed every step that we have taken, and you will see that we have moved very quickly after Australia to close our borders upon reviewing the evidence and receiving the advice from the experts. To date, I stress in this House—and members will know this—that we have not had a single case of the coronavirus in New Zealand and we have indeed only had one case that could even have been suspected to have met the test of the virus, and that proved to be negative.

We make no apology, though, for taking a precautionary approach and making sure that, for example, we had full Cabinet consideration of the categorising of the disease. We have the health pathways in place. The doctors were ready to refer. The powers that we now have in place can be invoked at any time, but historically, in situations like this, they have not been required, because New Zealanders understand the importance of taking care of their friends and family and those that are around them.

In closing, I would say that we will continue to review the situation. The member at one point says we should move faster and more stringently; at the other, he acknowledges that there are economic effects of this virus around the world. We are reviewing the situation because we do not want this situation to be in place any longer than is necessary for the public health and safety of New Zealanders. We are a trading nation, and we are concerned to ensure that we are doing the right thing for the health of our people, and we will also look to the economy.

ORAL QUESTIONS

QUESTIONS TO MINISTERSQuestion No. 1—Finance

1. MARAMA DAVIDSON (Co-Leader—Green) to the Minister of Finance: Does he agree with the Salvation Army's State of the Nation Report, which said that "despite some significant progress, much more needs to be done to ensure the growing prosperity of our economy is shared more fairly"

Hon GRANT ROBERTSON (Minister of Finance): I agree with the Salvation Army report when it says—and I quote—"This report points to significant progress, including an increase in average incomes, a much needed extra spend on welfare and hardship support for beneficiaries, a decline in offending and imprisonment rates, an increase in the number of social houses, [and] new house builds at a 45-year high." I do acknowledge that there is more that we can do, and this Government remains committed to ensuring that all New Zealanders get their fair share of the benefits of economic growth.

Marama Davidson: Does he agree with the Salvation Army report that this Government has taken "the first steps towards the society-wide change that is needed", and, if so, what are the next steps to share Aotearoa's prosperity more fairly?

Hon GRANT ROBERTSON: Yes. The Government is committed to improving the living standards and wellbeing of all New Zealanders. In this year's Wellbeing Budget, we saw significant investments to make sure that New Zealanders see their fair share of prosperity, and I point to just a couple of those, including the indexation of main benefits to wages and lifts in the abatement rate. In this year's Budget, there will be five priorities, all of which will support that, including the Just Transition future of work work, particularly around lifting Māori and Pacific incomes, skills, and opportunities, and reducing child poverty, and child wellbeing. We are making significant investments in all these areas, and we must continue to do so.

Marama Davidson: Can people struggling in our communities be confident that this Government recognises the need to urgently increase incomes and that he's listening to the evidence presented by experts like the Welfare Expert Advisory Group (WEAG) and the Salvation Army report about ways to achieve this?

Hon GRANT ROBERTSON: In answer to the second part of that question, absolutely, and I have a great deal of respect for both the Salvation Army for their work in this area and, indeed, the WEAG report. We are at a time where incomes are growing. We see wage growth at its highest level. We see the minimum wage rising. We see settlements across the public sector, the State sector, that are supporting those on middle and low incomes as well. So we are committed to seeing wages rise in New Zealand and incomes across the board rise, and I believe we are seeing evidence of that.

Marama Davidson: As finance Minister, will he be looking to use Budget 2020 to deliver on the Welfare Expert Advisory Group's recommendation to raise core benefit levels?

Hon GRANT ROBERTSON: As the member knows, we don't comment on the Budget outcomes until they are completed, but it does give me the opportunity to say to the House today that the Budget will be delivered on Thursday, 14 May.

Marama Davidson: Does the Minister understand that some people had hoped to see more action from the Government to reduce income inequality, given unemployment is at a record low and the Crown's accounts are in good shape yet too many families are still doing it tough?

Hon GRANT ROBERTSON: It's always my expectation that the public will have high expectations of the Government, but I am extremely proud of the record of this Government in delivering to low- and middle-income New Zealanders, and I can't think of anything better to evidence that than the Families Package, where we turned around a set of tax cuts that would have disproportionately benefited the highest income earners in New Zealand to ensure that we delivered to low- and middle-income earners.

Question No. 2—Prime Minister

2. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements and actions?

Rt Hon JACINDA ARDERN (Prime Minister): Yes, particularly the Government's $12 billion New Zealand Upgrade Programme, which will see road, rail, schools, and hospitals built or upgraded throughout New Zealand. Even though we only recently made the announcement, for schools in particular I'm hearing about projects that are already under way.

Hon Simon Bridges: Can she name one project that's already under way from that $12 billion spend up?

Rt Hon JACINDA ARDERN: As I just mentioned, the $400 million that has gone into schools. We're already seeing individual schooling projects I mentioned. Grant Robertson's electorate is one. I've heard from Chris Hipkins in his area. In fact, if the member cares to ask members on his side, every single school in their areas will have a project that they will be delivering with that funding.

Hon Simon Bridges: What advice has she received on the economic effect of coronavirus on New Zealand?

Rt Hon JACINDA ARDERN: The advice that I've seen thus far has said it is too early to make any assumptions, because much of what we're seeing could well be temporary. In tourism, the question is whether or not the 13 percent of tourism we see come in from the Chinese market will postpone their visits or whether or not they will indeed turn into cancellations. Regardless, we're not waiting. We are looking at, within tourism for instance, packages that may help redirect some of those tourist dollars into other parts of the market, even our domestic market. We are asking tourism to work with IRD, for instance, on provisional tax relief as a way of easing the burden on the some 100 small to medium sized enterprises that rely directly on tourism that comes in from the Chinese market, predominantly into Auckland, Rotorua, and Queenstown. We've also, as the member, if he's listened to my post-Cab, will have heard, taken a sweep across forestry, the Ministry for Primary Industries (MPI), particularly the rock lobster industry. Those that are seeing direct effects now we're working closely with, and in the education sector we've already worked with education to extend visas for students that may be affected by the border controls.

Hon Simon Bridges: How significant does she believe the effect of coronavirus will be on our economy both now and in the future?

Rt Hon JACINDA ARDERN: As I have said, actually, whilst it is difficult for us to quantify it now, it is almost inevitable. In fact, I've already said that, in June when we receive the GDP results that cover this period, I absolutely expect for us to see that reflected in our GDP numbers. As you can imagine, as a trading nation, one that receives a lot of tourism from China, one that has an education sector that has a lot of students coming in from that market, and given China themselves have already reflected in their forecasts for GDP a downgrade, inevitably we will see impacts in New Zealand, but we're working to mitigate that to the best of our ability.

Hon Simon Bridges: What does she believe the Government's response to the economic effects of coronavirus should be, not just in tourism but in education and primary exports?

Rt Hon JACINDA ARDERN: As I have said, at the moment the most direct impact we're seeing for exports is in the live export industry. MPI have worked closely with the rock lobster industry to allow them, for instance, where pots are in the sea, where they've been collected, they're able to be released and in alternative situations MPI are working in conjunction with the industry to give permissions where appropriate for release. At the moment, the Minister of Fisheries is consulting on whether or not their take should be carried over into the new year. So that's something that's been consulted on. When it comes to wider exports, at the moment logging is probably the area where the next biggest impact is. That's not just coronavirus; there's a beetle incursion in Europe which is causing a large amount to logs to be exported into China. The supply chain there has a backlog because people are not necessarily unloading at the port. We're working in the areas most affected, particularly Tai Rāwhiti, on ensuring that the Ministry of Social Development is catering for needs that we might see from contractors who are in harvesting but also on whether or not we can marry up those who might be feeling those impacts with others parts of our forestry industry. Te Uru Rākau are working on that as we speak. We are seeking to be as proactive as we can.

Hon Simon Bridges: Given the consensus reports of about a half a percent off GDP at the moment, that being about $1.5 billion and half a billion less in revenue, what will that lower revenue have in terms of effect on this year and the budgetary process?

Rt Hon JACINDA ARDERN: Again, those are just some of the estimated and assumed impacts. As I've said, at this point in time it is just too early to say. For instance, we have really until through to April for some parts of the education sector to see whether or not that will have a long-term impact. Roughly, 59 percent of the overseas education market have their students already in New Zealand. Of course, we expect for the university sector that, even if delayed, students are most likely to still come in if border restrictions lift in appropriate time, and so really it's just too early to say at this point what those wider impacts will be.

Question No. 3—Prime Minister

3. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements and actions?

Rt Hon JACINDA ARDERN (Prime Minister): Absolutely, particularly the 18-page comprehensive statement that I released today, which includes a long list of significant achievements I'm incredibly proud of and couldn't possibly pack into a mere 20 minutes.

Hon Simon Bridges: How much of that Prime Minister's statement has been done, then?

Rt Hon JACINDA ARDERN: If the member had actually read the report, he would have seen that it is a reflection of all the things that we've delivered, and includes, for instance, a snapshot of our economic record: 2.7 percent growth, unemployment at 4 percent. Of course, we're also debt-down 21 percent, lower than what we inherited, and that's even when you take into account, of course, going out with the Upgrade Programme of $12 billion, that we still have debt at lower rates than what we inherited. There is a long list in there of achievements, all of which I'm very proud of.

Hon Simon Bridges: What is her Government currently doing in relation to the dispute at Ihumātao?

Rt Hon JACINDA ARDERN: I've reported on this many times in this House. The member will remember that in July there was a dispute on that land. Essentially, what happened was agreement between Fletcher's and mana whenua that nothing would happen there until a solution was found. We've simply played a role in assisting to try and broker that solution. I would like to think that that's what leadership is.

Hon Simon Bridges: When she said last year she hoped it would be resolved by Christmas—has that come to pass?

Rt Hon JACINDA ARDERN: It's currently 12 February. The member will well be aware we have passed Christmas, but it's obvious that it's been our aspiration to see a dispute like that resolved as soon as possible. That's in everyone's interest, and I would include in that New Zealand's interest, and if the member had an eye to the kind of relations that we want to foster in this country, then that member might look for a solution as well, rather than stoking cheap politics.

Hon Simon Bridges: Did she resolve it by Waitangi, like she said she would?

Rt Hon JACINDA ARDERN: That member, unfortunately, has a poor understanding of the situation if he believes that there is only one party involved in this. There is mana whenua. There is the private company, in Fletcher's. And, of course, the role we're trying to play: to broker a solution.

Hon Simon Bridges: Will taxpayers' or ratepayers' money be spent on the Ihumātao dispute?

Rt Hon JACINDA ARDERN: Again, as I've said many times in this House, a solution is still yet to be announced or a resolution announced. What has been key in all of this was keeping in mind that there is a proposed heritage order over the land. That puts Fletcher's in a very difficult position, and I ask the member, who I would imagine would have an interest in that, what would he do in this situation for a company, after the bumbling decision of a housing Minister had left them in this situation by calling it a special housing area? What would that member do in this situation?

Hon Simon Bridges: In light of the lack of legal significance around the heritage status, why is she considering spending taxpayers' or ratepayers' money on the Ihumātao dispute?

Rt Hon JACINDA ARDERN: The member's reflection of the heritage status and its effect is inaccurate.

Hon Simon Bridges: Does she believe resolution of this dispute with taxpayers' money will encourage more protests around New Zealand?

Rt Hon JACINDA ARDERN: That's a hypothetical.

Hon Simon Bridges: Does she mean that the dispute is not going to be resolved?

Rt Hon JACINDA ARDERN: As I've said many times in this House, once there is a resolution, I would happily debate it with that member. But I'd like to see what his proposals would be and if he believes the solution for New Zealand is to see protest, violence, and a dispute continue after that side of the House declared this a special housing area, without any plan on properly managing that—if that chaos, protest, and violence is their response to that situation and if that's their version of leadership, they are welcome to it.

Hon Simon Bridges: So when will this be resolved by the Prime Minister?

Rt Hon JACINDA ARDERN: Again, I don't take such an arrogant view of my role in this situation.

Question No. 4—Finance

4. Dr DEBORAH RUSSELL (Labour—New Lynn) to the Minister of Finance: What reports has he seen on the economic impact of the New Zealand Upgrade Programme?

Hon GRANT ROBERTSON (Minister of Finance): I've seen a range of reports from business leaders emphasising the significant impact that the Government's $12 billion New Zealand Upgrade Programme will have for the economy and for businesses. Business New Zealand chief executive Kirk Hope said the additional spending on roading infrastructure will be positive for business, while money for commuter rail services in Auckland and the Wellington region will also help build efficiency and productivity. Fletcher Building CEO Ross Taylor said, "This isn't just planning. It's targeted projects that are real. Often there's quite a lot of plans and options for projects with price tags that might be years away. I can see this is the infrastructure which is needed and it will happen." I'm pleased to be part of a Government that is getting on with the job of addressing years of under-investment in New Zealand's infrastructure.

Dr Deborah Russell: What reports has he seen on the economic impact of the New Zealand Upgrade Programme from the infrastructure sector?

Hon GRANT ROBERTSON: Infrastructure New Zealand CEO Paul Blair said that the Government's $12 million infrastructure programme is a fantastic start towards building the infrastructure New Zealand needs to realise its potential. The additional spending and multi-year nature of the package should provide the sector with the confidence to ramp up recruitment, training, and capital investment, with more yet to come. Along the same lines, the New Zealand arm of global engineering and design consultancy WSP has said it will dramatically increase its recruitment staff, hiring hundreds of planners, designers, and engineers to support its role in projects within the New Zealand Upgrade Programme. It is great to see the sector getting behind this package.

Dr Deborah Russell: What reports has he seen on the impact of the Government's increased investment in the economy on the Crown's finances?

Hon GRANT ROBERTSON: According to forecasts in the Treasury's Half Year Economic and Fiscal Update, net core Crown debt is expected to peak at 21.5 percent of GDP in 2021-22 as a result of the investments made in the Upgrade Programme. This is well below the 22.9 percent we inherited from the previous Government. In the last few weeks, following our announcement of higher investment levels, Fitch Ratings revised its rating for New Zealand to AA+, reflecting the New Zealand Government's sound fiscal management and low Government debt, which, to quote them, "enhances the country's resilience to economic and financial shocks".

Hon Paul Goldsmith: What reports has he seen on the economic impact of his Government cancelling or postponing National's road projects two years ago?

Hon GRANT ROBERTSON: The premise of the member's question is utterly wrong, because it's not possible to cancel ghost roads.

Question No. 5—Finance

5. Hon PAUL GOLDSMITH (National) to the Minister of Finance: What steps, if any, has he taken to ensure the integrity of ministerial decisions in the major spending programmes announced in the previous two Budgets?

Hon GRANT ROBERTSON (Minister of Finance): With regard to ministerial decisions that I am responsible for, in terms of the major spending programmes announced in the previous two Budgets, I took steps to ensure the integrity of them in line with the regular Budget decision-making process, similar to the previous Ministers of Finance, like Bill English or Steven Joyce. That process—and I hope not to make the answer too long, but I'll go through it—is that Budget initiatives are submitted by Ministers, in most cases, prior to Christmas. Individual initiatives are assessed by the Treasury in some instances and by secretariats of officials from other agencies in other instances. Budget initiatives are assessed according to a range of factors, including their alignment with Budget priorities, their wellbeing impacts, the robustness of their costings, their implementation readiness, and their value for money. These assessments are pulled together to give advice to Ministers on a package of initiatives that could be funded through the Budget. Ministers meet and take decisions on a package to be considered by Cabinet. Cabinet then considers it and makes final decisions on a final Budget package, and Parliament passes the Budget. After that point, there are parliamentary and other processes in place to further ensure the integrity of any spending.

Hon Paul Goldsmith: Has anything he has seen in the past three days caused him to question or doubt the integrity of ministerial decision-making about major spending projects has been maintained?

Hon GRANT ROBERTSON: No.

Hon Paul Goldsmith: Has he been following the news since Monday?

Hon GRANT ROBERTSON: I absolutely have been and, once again, the Government has been making announcements that benefit the New Zealand economy across the board. We've got a situation just today where we've seen our interest rates held and the Reserve Bank Governor or the monetary policy committee reflecting on the importance of the role that the Government's fiscal investment is playing in making sure that the economy is going well. In the matters for which I am responsible, I keep a close eye on the news.

Hon Paul Goldsmith: Has he considered reviewing major spending decisions involving New Zealand First Ministers while matters raised by the Electoral Commission and referred to the Serious Fraud Office are resolved?

Hon GRANT ROBERTSON: Well, I'd have to bow to the member's superior knowledge of the Serious Fraud Office in its inquiry work. But, from my perspective, I will await the outcomes of that inquiry like every other member. Otherwise, the Government gets on with its normal order of business.