Wednesday, 17 May 2023 [Volume 767] The Speaker took the Chair at 2 p.m. KARAKIA/PRAYERS Hon JACQUI DEAN (Assistant Speaker): Almighty God, we give thanks for the blessings which have been bestowed on us. Laying aside all personal interests, we acknowledge the King and pray for guidance in our deliberations, that we may conduct the affairs of this House with wisdom, justice, mercy, and humility for the welfare and peace of New Zealand. Amen. PETITIONS, PAPERS, SELECT COMMITTEE REPORTS, AND INTRODUCTION OF BILLS SPEAKER: Petitions have been delivered to the Clerk for presentation. CLERK: Petition of Social Justice Aotearoa requesting that the House amend section 52 of the Corrections Act to require rehabilitation programmes for prison inmates be established within 12 months of imprisonment petition of Kate Stone requesting that the House pass a motion formally recognising the State of Palestine and urge the Government to formally recognise the State of Palestine. SPEAKER: Those petitions stand referred to the Petitions Committee. Ministers have delivered papers. CLERK: Museum of New Zealand, Te Papa Tongarewa, Annual Report 2021-22 Museum of New Zealand, Te Papa Tongarewa, Statement of Performance Expectations 2022-23. SPEAKER: Those papers are published under the authority of the House. Select committee reports have been delivered for presentation. CLERK: Report of the Justice Committee on the petition of Hāpai te Hauora report of the Petitions Committee on the petition of Hayley Liu. SPEAKER: No bills have been introduced. ORAL QUESTIONS QUESTIONS TO MINISTERS Question No. 1—Finance 1. INGRID LEARY (Labour—Taieri) to the Minister of Finance: What are the priorities for Budget 2023? Hon GRANT ROBERTSON (Minister of Finance): Budget 2023 has been put together under another set of challenging circumstances, including cost of living pressures, extreme weather events, and a difficult global environment. The Government has four priorities in tomorrow's Budget as we navigate a pathway through this testing time. They are supporting New Zealanders with the cost of living, delivering the services New Zealanders rely on, recovery and resilience, and fiscal sustainability. Budgets are always a balancing act. Budget 2023 recognises that we need to look after people while at the same time moving back to a more sustainable fiscal position after the emergency spending required to get us through COVID. Ingrid Leary: How is the Government meeting its priorities in Budget 2023? Hon GRANT ROBERTSON: Budget 2023 is striking a careful balance to support New Zealanders with the costs they are facing in the here and now while charting a course for a more productive and resilient economy. We are carefully considering our spending and have made trade-offs to keep our balanced approach. The ongoing costs of the recovery from weather events will be met within Budget allowances. This means we have put responding to the cyclone ahead of some other areas Ministers would have liked to focus on. Budget 2023 will continue to invest in essential public services and building a resilient infrastructure network while carefully managing our resources to ensure the long-term sustainability of our economy. Ingrid Leary: What has the Government announced to support the priorities in Budget 2023? Hon GRANT ROBERTSON: The Government has already announced a $1 billion flood and cyclone recovery package as part of Budget 2023. It covers issues such as rebuilding roads, rails, and schools, and also support for mental health, while preparing for future events with a big investment in flood protection measures. These investments will help ease the pressure on local communities already struggling with the cost of living from having to foot the full recovery build. We're partnering with local government to make sure cost isn't a barrier to getting recovery work done, and the package adds to the $800 million already provided in support. Ingrid Leary: What other announcements have been made to support the priorities in Budget 2023? Hon GRANT ROBERTSON: One announcement that has been made in advance of the Budget is that we will be continuing to invest in addressing climate change. Budget 2023 will support funding for emissions reductions, with a $300 million boost to New Zealand Green Investment Finance Ltd (NZGIF) to develop low-carbon projects, drive down emissions, and create jobs. This takes the NZGIF's pool of capital to $700 million, making it one of the largest direct investors in New Zealand focused on climate change. Budget 2023 is a wellbeing Budget. It is about doing the right thing by New Zealanders facing cost of living pressures but also looking ahead to what we need to do to deliver higher-wage jobs with low emissions and economic security for all. Question No. 2—Prime Minister 2. CHRISTOPHER LUXON (Leader of the Opposition) to the Prime Minister: Is he satisfied with the outcomes taxpayers are getting from the increase in Government spending from $76 billion in 2017 to $129 billion in the current financial year? Rt Hon CHRIS HIPKINS (Prime Minister): Yes, particularly the following: 70,000 fewer children in poverty than when we took office; record levels of R & D expenditure incentivised by the R & D tax credit; an economy that's added 22,000 new jobs in the first three months of this year and average hourly wages rising by 7.6 percent; unemployment that's been below 4 percent for seven consecutive quarters—a feat National didn't achieve in even one quarter; a 61 percent increase in the number of apprentices in a 2.5-year period; Pharmac providing 75 new medicines and widening the access to 137 different treatments; nearly 3,000 more teachers and an increase in the maximum base salary rate for secondary teachers of nearly 20 percent—twice the increase that they got under the nine years of National; reduced class sizes in years four to eight; 10,000 more children receiving specialist learning support than when we took office; 1,300 more classrooms; 63 million free, healthy school lunches that have been served to our children; reversing National's cuts to the childcare assistance; 2.8 million New Zealanders now having access to primary mental health care; the reduced cost of seeing a doctor through the extension of low-cost doctors visits to children under the age of 14; more than 4,000 more nurses; 20 percent more doctors; graduate nurse salaries increasing 35 percent since 2017; a 50 percent increase in road maintenance funding, repairing more than 54,000 potholes. The list could go on. Christopher Luxon: So why, despite spending $5 billion on education, are only half of our children going to school regularly, and why has academic achievement gone backwards? Rt Hon CHRIS HIPKINS: First of all, I think the member needs to be careful when he talks about regular attendance measures, given that the regular attendance measures last year were severely impacted by the number of children at home because they had to be because they were isolating with COVID-19. In terms of the most recent performance measures in terms of student achievement, he could refer to the Programme for International Student Assessment study, for example—that refers to 15-year-olds who did their formative years of schooling when they get their foundation literacy and numeracy skills during the reign of national standards. Christopher Luxon: Why, despite spending $12.6 billion more on health, has every single health measure of performance—including emergency department wait times, specialist wait times, and immunisations—got worse? Rt Hon CHRIS HIPKINS: The member might like to forget the fact that we've had a global pandemic that has put our health system under significant pressure, but, actually, it does reflect the rundown state of the health system when we became the Government and the work that we have had to do to fix that. For example, we have had a shortage of doctors—we have had shortages in the health workforce that we have been focused on turning around. Christopher Luxon: Why, despite spending $2.3 billion more on law and order, is violent crime up 33 percent, retail crime up 103 percent, and it's quite OK to have a ram raid every 15 hours in this country now? Rt Hon CHRIS HIPKINS: Ram raids are a disgrace and they are absolutely not acceptable. That's why we're backing the police to tackle that; it's why we're putting 1,800 extra police on the beat, and if the ratio of police to population hadn't declined as it did under National, perhaps we wouldn't have inherited such a bad situation. Christopher Luxon: How is it possible that, despite widespread worker shortages, there are almost 50,000 more people on jobseeker unemployment benefit and there are 36,000 more kids growing up in benefit-dependent homes? Rt Hon CHRIS HIPKINS: The member chooses to ignore the fact that we've got record numbers of people in employment, when he's talking about unemployment numbers. We have record numbers of people in employment. It's no wonder that Nicola Willis is doing so well in Auckland business circles. Christopher Luxon: Does he stand by his Government's decision to spend $51 million on a cancelled bike bridge, over $70 million on light rail that will never be built, and tens of millions of dollars reducing speed limits to literally slow Kiwis down? Rt Hon CHRIS HIPKINS: I note that the member refers to all things where money has been spent in order to explain how he's going to pay for his future spending commitments. Is he going to go and ask for that money back again? He still hasn't outlined how he is going to pay for any of the commitments that he has made, where the National Party seems to think you can both increase spending and decrease spending at the same time. Christopher Luxon: Is it acceptable that his Government is spending a billion dollars more each and every week, and yet delivering lower immunisation rates, longer health wait times, higher rents, more kids in benefit-dependent homes, and fewer kids going to school regularly? Rt Hon CHRIS HIPKINS: I note that one of the biggest drivers of increases in Government spending have been increased wages—money that is being spent on people. I want to know, from his public comments, why he does not regard teachers, nurses, police, and firefighters as everyday New Zealanders. Why does he not think that those people who go to work every day in the service of New Zealand are not everyday New Zealanders? Christopher Luxon: When will he finally understand that just spending more money doesn't mean anything if outcomes keep going backwards and life keeps getting harder for Kiwis? Rt Hon CHRIS HIPKINS: The member clearly didn't listen to the primary answer I gave to the question. He might not like to hear the evidence of the change that that spending is making to the lives of New Zealanders. The 70,000 fewer kids who are living in poverty under this Government don't think that that's a waste of money, like he seems to think. David Seymour: Why can't the Prime Minister defend his Government's record on healthcare waiting lists, school attendance, or safety on the streets without mentioning the word "COVID"? Rt Hon CHRIS HIPKINS: I'm pleased the member raised the issue of healthcare waiting lists, because, as a local member of Parliament, I recall the number of constituents who came into my office with a letter that said they had been referred by their GP to get a first specialist assessment, but because the waiting lists required that people who were put on the waiting list had to be seen within six months and the waiting list was full, they simply couldn't be put on the waiting list in the first place. Unlike the tactics employed by the previous Government that stopped people getting on to the waiting list in the first place, we are actually focused on making sure people get the healthcare that they deserve. David Seymour: Is the Prime Minister aware that the number of operations actually taking place across the healthcare system has plummeted in recent years, and does that mean this Government's real innovation is to start being honest that people aren't going to get an operation under them? Rt Hon CHRIS HIPKINS: We have to acknowledge the fact that our healthcare workforce on the front lines were the people that experienced some of the worst effects of COVID-19. They were more exposed to COVID-19 last year when it arrived into the country, and probably a greater proportion of them ended up being at home. That did have a disruptive effect on the overall health system. I think we should be grateful to our health workforce for the fact that they were on the front lines of the COVID-19 response. We should acknowledge that, rather than trying to pretend, as the member does now, that the global pandemic never happened. Question No. 3—Māori Crown Relations: Te Arawhiti 3. ARENA WILLIAMS (Labour—Manurewa) to the Minister for Māori Crown Relations: Te Arawhiti: What recent announcement has the Government made regarding Matariki celebrations? Hon KELVIN DAVIS (Minister for Māori Crown Relations: Te Arawhiti): Last week, the Government launched a Matariki karakia booklet. It's the dark sky century in Takapō/Lake Tekapo. The Matariki booklet contains karakia for each of the nine stars of Matariki, and will be distributed across the country to kura and communities as Aotearoa continues to embrace the occasion. [Interruption] SPEAKER: Order! I'm on my feet. Be quiet. Simeon Brown will stand and withdraw and apologise. Simeon Brown: I withdraw and apologise. Hon KELVIN DAVIS: Can I start again? It contains karakia—and maybe Simeon Brown needs a few karakia to help him out with his problems—for each of the nine stars of Matariki, and will be distributed across the country to kura and communities as Aotearoa continues to embrace the occasion. Christopher Luxon: All the big issues being done. Hon KELVIN DAVIS: And it's great to see that the Leader of the Opposition embraces Matariki. The booklet presents the karakia in a way that is accessible for whānau and communities wishing to conduct their own Matariki ceremonies this year. Ninety-eight percent of New Zealanders have heard of Matariki, and 87 percent have an understanding of what Matariki is about. Obviously, there's the 13 percent that don't have an understanding of what Matariki is about. I think that's incredible, and this booklet will help cement the occasion and build on the success of last year. Arena Williams: What is the significance of the booklet which was used in the proceedings of Parliament's Māori Affairs Committee today? Hon KELVIN DAVIS: Last year, the inaugural Matariki public holiday was officially launched through a Whāngai i te Hautapu ceremony at Te Papa Tongarewa—or Te Papa, to you guys. Te Arawhiti worked with the chief advisor mātauranga Matariki Professor Rangi Mātāmua around the gifting of the karakia that were recited during the ceremony at Te Papa. The karakia in the booklet were penned by Sir Pou Temara and Professor Mātāmua. This is an invaluable resource that they have gifted to Aotearoa New Zealand, and helps to make some of the mātauranga Māori underpinning Matariki accessible to us all. Arena Williams: How will the booklet help New Zealanders celebrate Matariki? [Interruption] Hon KELVIN DAVIS: I can see the enthusiasm from "Negative National". The job now is to embed the day into our calendar while ensuring it remains grounded in mātauranga Maori and upholds the key principles and values associated with Matariki. Nearly half of New Zealanders have said they would like to do more to celebrate Matariki in 2023, and this booklet will help them to do just that. This booklet, along with a range of other resources, is free to access online, making Matariki an occasion truly everyone can commemorate. Arena Williams: What kind of engagement did New Zealanders have with Matariki last year? Hon KELVIN DAVIS: Last year, New Zealanders wholeheartedly—wholeheartedly—embraced Matariki. Let me share some insights with the House. Just over half of the country did something to celebrate Matariki last year, with the most popular activity being viewing the Matariki cluster—385,000 New Zealanders tuned into the live broadcast last year; Matariki content received 4.4 million views across social media platforms. The potential economic benefits for the domestic tourism industry have been estimated at up to $160 million. Matariki is a time to commemorate a uniquely New Zealand public holiday. Together, we can all embed the occasion for years and generations to come. Question No. 4—Finance 4. CHLÖE SWARBRICK (Green—Auckland Central) to the Minister of Finance: Does he agree with Labour MP Grant Robertson, who said in 2014, "We will ensure that all New Zealanders get a fair go by reforming monetary policy and by ensuring that everybody pays their fair share with a tax policy where higher-income earners actually pay their tax and actually pay their fair share"; if so, is that what we can expect tomorrow? Hon GRANT ROBERTSON (Minister of Finance): I do agree with the earlier quote from the then young, handsome Labour Party associate spokesperson for arts, culture, and heritage. I also agree with the spirited, youthful optimism with which that comment was made. However, I would note that my full quote includes reference to a capital gains tax, which was Labour Party policy at the time, that has already been ruled out for this Budget by both me and the Prime Minister. In terms of what we can expect tomorrow, we can expect that the sun will rise, that there will be a Budget, and that the National Party's response will be written by artificial intelligence. Chlöe Swarbrick: How does the Minister of Finance reconcile retaining a tax system that his own Government's research has proven privileges the wealthy few with the 2014 statement of Grant Robertson, Labour MP, that—and I quote—"We will be a Government that puts people at the centre of the economy. Not speculators, not big interests, not the wealthy few,"? Hon GRANT ROBERTSON: I do believe that our Government has made significant progress, including through the tax system in increasing the top rate, but also making changes, which I know are widely popular in the House, around interest deductibility, for example, for speculators and investors. We have made good progress on making our system fairer. Chlöe Swarbrick: Does he believe that Governments make considered, deliberate choices on revenue and spending settings and, if so, is it that choosing not to fairly tax the wealthy—who currently pay less than half the effective tax rate of the average New Zealander—is a considered and deliberate choice for the Government? Hon GRANT ROBERTSON: As the Prime Minister and myself have indicated in the build-up to the Budget, it is correct that, in the economic circumstances that we are in at this time, we do not believe that major tax changes are appropriate. We have made the tax reform that we promised to make at the 2020 election; future policies are for political parties to make. Chlöe Swarbrick: Will his Government then choose to end poverty in tomorrow's Budget by reforming Working for Families and raising benefits so that no children in this country go without? Hon GRANT ROBERTSON: I am extremely proud of the record of this Government when it comes to lifting children out of poverty: 77,000 people, as the Prime Minister has indicated. I'm also extremely proud of the increases that we have made to Working for Families over the time that we have been in Government, the support that we have given to low and middle income New Zealanders as we've found our way through COVID. This is a Budget where we have had to strike a difficult balance, but it will continue to support the most vulnerable in our society. Chlöe Swarbrick: Will his Government choose to boost teachers', nurses', midwives', and emergency service workers' wages and conditions to rival Australia? Hon GRANT ROBERTSON: As I've said many times in the House, that's something that this Government has been working towards: to lift the wages of exactly those people. As we've stated before, there is a careful balance to be struck here. But I do take the member's overall point, which is, actually, there are choices to be made about what we invest in. It does not automatically occur that money goes into our education and our health system to support the people that she is talking about. We have made the choices in previous Budgets to invest there. There are other parties in this House who like to think it's some magic thing that that happens; it's not. It's because the Government chooses to invest in public services. Chlöe Swarbrick: Does the Minister acknowledge that all Budget decisions are therefore political choices, and is his Government's choice tomorrow whether to end poverty and commit now to the necessary radical climate action to keep us below 1.5 degrees Celsius of warming or continue tinkering? Hon GRANT ROBERTSON: I believe that all Budgets are about getting a balance between the many, many different things that are the responsibility of the Government, the many things that we want to do for the future of New Zealand. I am proud of what we've done over the last six years, facing, as we have COVID; facing, as we have, a difficult economic circumstance; and, now, an extreme weather event. All of those things factor into what we do in the Budget, but this will be another Budget from a Government that cares about people and invests in them. Question No. 5—Housing 5. HELEN WHITE (Labour) to the Minister of Housing: What action is the Government taking to increase the supply of public housing? Hon Dr MEGAN WOODS (Minister of Housing): The Government is undertaking the biggest State house building programme since the 1970s, adding more than 11,800 net new public homes since 2017, including over 9,000 brand new builds. To put this in perspective, of the public homes in New Zealand today, one in seven have been added in the last five years. This is a significant achievement when you consider that we have been building State houses since 1937. There is a continued focus on delivery in the regions, new build supply, and partnership with community housing providers, Māori, and iwi. We have made a good start, but we know there is more work to do. Helen White: How many of the Government's new public houses are in Rotorua? Hon Dr MEGAN WOODS: The Government has added 261 additional public homes in Rotorua since 2017. This is in stark contrast to if we compare the 2008 to 2017 period, where the number of Housing New Zealand houses fell by 42 places. I'm also happy to report that over 370 new homes are currently in the pipeline and due to be completed in the next few years. This is helped by innovative solutions like offsite manufacturing, where Kāinga Ora has delivered 25 homes in Ranolf Street and Malfroy Road and has another 42 public homes due for completion this year in Quartz Avenue. Helen White: How is Lower Hutt benefiting from the Government's new public homes? Hon Dr MEGAN WOODS: I am pleased to report that the Government is making good progress rebuilding public housing in Lower Hutt. We've delivered 215 new public houses in Lower Hutt over the past five years, and another 500 are in the pipeline. Under the previous Government, there was a net loss of 314 homes between 2008 and 2017. Over 650 Lower Hutt homes have also undergone the retrofit programme, improved to make them warmer and drier, with more planned to be retrofitted this financial year. Helen White: Why has there been an increase in delivery of public homes in regional New Zealand? Hon Dr MEGAN WOODS: Housing providers build public housing when it is financially viable to do so. Prior to 2018, funding for the Operating Supplement was only available in Auckland and capped at 50 percent of market rents. In order to increase delivery in regional New Zealand, we made changes to ensure that that Operating Supplement is available in all regions and is up to 100 percent in regional New Zealand. This means it is once again financially viable for both Kāinga Ora and our partners to build outside of our main centres. This has enabled delivery of new, warm, dry public homes in the likes of Nelson and Waimakariri, both with a 27 percent increase in public housing stock. Question No. 6—Finance 6. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Does he stand by his statement that savings and reprioritisations in Budget 2023 will, for the most part, go "toward funding agencies' existing cost pressures", and what steps, if any, will the Budget include to reduce cost pressures for everyday taxpayers? Hon GRANT ROBERTSON (Minister of Finance): For the first part of the question, yes, and for the second part of the question, the member will just have to wait one more sleep. Nicola Willis: Why is he more concerned with the cost pressures facing Government departments than he is with the cost pressures facing Kiwi households? Hon GRANT ROBERTSON: I'm absolutely not. I'm extremely concerned with making sure that we support New Zealanders to get through the cost of living crisis that we have. One of the ways that we do that is by making sure that there are public services available to support them through that—public services which the member, on her current policy, will not be able to afford to invest in. Nicola Willis: Have average effective tax rates paid by average-wage earners risen in the past six years, and, if so, by how much? Hon GRANT ROBERTSON: It is correct that, as a result of inflation, that has occurred. It has occurred differently for different taxpayers, obviously, but, at an overall level, the Government is in receipt—I believe, last year, I think it was about $600 million more as a result of that. Equally, the tax take's increased significantly more than that because more New Zealanders are in work, more New Zealanders are earning more, and companies in New Zealand are making more money. The Government is making sure that we deliver to New Zealanders for a very difficult period of time. That includes paying for essential public services. I'm sure the member will have heard in Auckland business circles that those people also want to make sure we invest in public services. Nicola Willis: Isn't it true that New Zealanders are being hit by higher tax rates, higher prices, higher interest rates, and yet he still refuses to adjust their tax? Hon GRANT ROBERTSON: The economic conditions that New Zealanders are in today are a result of many different factors, which the member knows. We also know that it is the responsibility of the Government, as we have shown over the last five years, to support New Zealanders through difficult periods of time. I'm proud of the Government's record in doing that; it does require a difficult balancing act. The member will know from the conversations she's been having with Auckland business leaders that they too understand that. Nicola Willis: Is he aware that Auckland business leaders are concerned that the economy is going downhill fast—[Interruption] SPEAKER: Order! Order! Silence, please. I ask the member to ask it again. Nicola Willis: —that New Zealand has the biggest current account deficit in the developed world, he's run the books into the red, inflation's out of control, and interest rates have climbed higher and faster than in our history? Hon GRANT ROBERTSON: I do spend a bit of my time with Auckland business leaders—possibly not quite as much as the member does—and they have expressed some concerns to me. One of those concerns was about the leadership of the National Party—I do admit that. I presume that's the same concern they expressed to the member. Nicola Willis: Which result does he think best characterises his wellbeing approach: New Zealanders having to wait longer for health services, increasing violent crime, the longest State house waiting list on records, thousands of children growing up in motel rooms, or New Zealanders enduring a prolonged cost of living crisis for two years? Hon GRANT ROBERTSON: I think the things that best reflect our wellbeing approach are the fact that 77,000 children have been lifted out of poverty, that we have built more than 10,000 public houses, that we've increased Pharmac's funding by 43 percent, that we've extended free and low cost doctor's visits to children under 14, that we've expanded school-based health services to over 96,170 students, to the fact that we've had 745,000 sessions for mental health within general practice sites. I think our wellbeing approach is shown by the winter energy payment, the Best Start payment. I think it's shown by the lifts we've made to the family tax credit, that we've made to main benefits. I think it's shown by the free trade agreements we've signed that are helping deliver jobs. I think it's shown by the 62 percent increase that we've seen in new entry to specialist practice for nurses, occupational therapy in social workers. I think it's shown by the doubling of Pacific scholarships that we've had in our time in office. I think it's shown by the extension of Mana Ake across different regions of New Zealand. I think it's shown by what we've done through the Warmer Kiwi Homes programme—this insulated more than 100,000 homes. There are numerous examples. Nicola Willis: Does the finance Minister appreciate that, while he can stand there reading out a long list, the reality for everyday New Zealanders, who others in this Parliament are in touch with, is a prolonged cost of living crisis, real wages going backwards, mortgage payments that in many cases have doubled, a struggling economy, and a bleak outlook—that that is what his economic policies have delivered? Hon GRANT ROBERTSON: I absolutely understand and appreciate what New Zealanders are going through, but the negative mind-set of the National Party means they don't appreciate the hard work New Zealanders have done to get us through COVID, and the fact that there is a Government that stands alongside those New Zealanders and doesn't run them down. Question No. 7—Digital Economy and Communications 7. NAISI CHEN (Labour) to the Minister for the Digital Economy and Communications: What recent announcements has the Government made on expanding provincial connectivity? Hon GINNY ANDERSEN (Minister for the Digital Economy and Communications): It was my pleasure to announce, last Friday, that the Government has struck a significant deal with major telecommunications networks to speed up the roll-out of 5G to regional towns right across New Zealand. Through these agreements, Spark, 2degrees, and One NZ, with 55 rural and regional towns, will receive expedited 5G services, to help with economic growth and recovery for our provinces. This is in exchange for long-term access to 3.5 GHz band, allowing these companies to operate their 5G networks nationwide. From Ōāmaru to Ōtorohanga, Motueka to Murupara, this deal means that 5G connectivity is one step closer for more New Zealanders. Naisi Chen: Why did the Government choose not to auction this spectrum? Hon GINNY ANDERSEN: It's very simple: we had something the networks wanted—radio spectrum—and they had something we wanted—faster roll-out of 5G to provinces. That puts us in a unique position to negotiate an allocation and hit two birds with one stone. In exchange for commitments made by the major network operators, the Government will provide each of the three major operators with sufficient spectrum to operate their 5G networks nationwide. That's great news no matter where you are: Te Awamutu, Te Aroha, Taumarunui, or Te Puke. Naisi Chen: What else does this deal include? Hon GINNY ANDERSEN: The Interim Māori Spectrum Commission will receive 100 MHz of spectrum, in line with the previous agreement achieved with Māori. They will manage this spectrum on behalf of all Māori, ensuring equitable access and the benefits of 5G technology. To support rural connectivity, Spark, One NZ, and 2degrees will each contribute $24 million to the Government between 2023 and 2025. This funding will be utilised by the Rural Connectivity Group to expand mobile coverage into rural areas that would not have been otherwise commercially viable, bringing mobile blackspots down and ensuring a comprehensive coverage. That's more good news from Greymouth to Greytown. Naisi Chen: How does this build on existing initiatives? Hon GINNY ANDERSEN: This Government has continued to invest in connectivity for all of New Zealand. The agreement builds upon previous Government investment, including the allocation of $60 million from Budget 2022 for rural connectivity improvements. Additionally, $47 million has been invested in rural capacity upgrades, which began in February of last year. With fibre and wireless now covering almost all New Zealanders, we know New Zealanders are getting connected faster in regions like Waitara, Wellsford, Wairoa, or any of the 42 towns I haven't already mentioned. Question No. 8—Revenue 8. Hon MEKA WHAITIRI (Ikaroa-Rāwhiti) to the Minister of Revenue: Does he stand by his recent statement, "We have hard data confirming fundamental unfairness in our tax system"; if so, what specific policies, if any, has he proposed to Cabinet to address unfairness in the tax system? Hon DAVID PARKER (Minister of Revenue): In response to the first part of the member's question, yes. For the first time ever, we have concrete data that indisputably shows that the effective tax rate paid by middle-income New Zealanders is much, much higher than that paid by our wealthiest citizens. Recent research from Inland Revenue has shone a light on the wealth, income, and tax paid by 311 of New Zealand's high-wealth individuals, their life partners, and dependent children. They had an average of $276 million of net assets totalling $85 billion for that group. The study showed that 93 percent of that group's income comes from investment returns and that their effective tax rate, including the GST they pay in their expenditure, was 9.5 percent. In response to the second part of the member's question, as always, Cabinet discussions are confidential. Hon Meka Whaitiri: What is he doing to respond to the recent report, which estimates $7 billion per year is being stolen from Aotearoa taxpayers in tax evasion and tax avoidance enabled by a tax system that allows the rich to evade tax, further placing the burden on wage and salary earners? Hon DAVID PARKER: The study didn't show that there was illegal behaviour by anyone; it just showed that the incidence of taxation falls much more on people who earn their living from their labour and wages and salaries than it does on those who earn their money by returns on investments. Hon Meka Whaitiri: Will he significantly raise the budget of the Serious Fraud Office to enable them to properly investigate white-collar criminals who use lawyers, bankers, and accountants to get around paying their fair share of tax; if not, why not? Hon DAVID PARKER: As I said, there is no evidence of illegal behaviour here on any great scale. But what the study does show was that it is necessary for Inland Revenue to have the proper powers to investigate who's paying what in the tax system, and this report shines a light on what we think are unfairnesses. Hon Meka Whaitiri: Point of order, Mr Speaker. Mr Speaker, the question was: would the Government invest in the Serious Fraud Office? I don't think the Minister came anywhere near. SPEAKER: It was definitely addressed. Question No. 9—Commerce and Consumer Affairs 9. DAN ROSEWARNE (Labour) to the Minister of Commerce and Consumer Affairs: What progress can he report on the work he is doing on the pricing of groceries? Hon Dr DUNCAN WEBB (Minister of Commerce and Consumer Affairs): Heaps is what we can do; what we have done. We're taking actions to get Kiwis the best possible deal for their groceries at the checkout. This follows the market study into groceries that showed super-profits being made by the New Zealand supermarket duopoly. We are letting the little guys buy from the supermarket warehouses, putting an end to anti-competitive land agreements that shut competitors out; making a code for how supermarkets must deal with suppliers; and establishing a groceries commissioner as a permanent watchdog for the sector. And more: last week we closed consultation on a new unit pricing requirement. This will empower shoppers to compare the prices of similar products much more easily, helping Kiwis get the best out of their budget. Dan Rosewarne: How does unit pricing work? Hon Dr DUNCAN WEBB: Unit pricing helps consumers choose the best deal for their needs by comparing value and price. It's particularly helpful where products are sold in different sized packaging and by different brands. New rules will require supermarkets and other large grocery retailers to clearly and consistently display the price per unit of product so they can be compared more easily. For example, the price per 100 grams or by litre. Dan Rosewarne: Will unit pricing bring prices down? Hon Dr DUNCAN WEBB: Yes. Hon Member: How? Hon Dr DUNCAN WEBB: Funny you should ask that. We know that consumers exercising more power with their product choices is likely to have an impact on the prices themselves. That's because it keeps supermarkets and their suppliers in check on any prices that might be confusing or unfair. It makes prices more transparent, including price hikes. Unit pricing stimulates different brands to compete on value. That's great for New Zealanders. Dan Rosewarne: What can Kiwis expect to see in the difference in their grocery bills? Hon Dr DUNCAN WEBB: The super-profits in the grocery sector have been many years in the making, and that is why we take bold, concerted, and consistent action. We're committed to see that work in the many steps we're taking. We expect unit pricing to be immediately helpful to Kiwis on tight budgets, and also helpful over time for everyone wanting to see their supermarket brands competing on value. We know budgets are tight right now, but we're here to back Kiwi consumers to get the best deal possible whatever it takes—not like the ACT Party and their National Party mates. David Seymour: How much is 2 litres of milk and a loaf of bread? Hon Dr DUNCAN WEBB: Well, Mr Seymour, I depends where you go. If you go to the Warehouse you can get 2 litres of milk for $3. The same milk is $3.50 at the supermarket, but if you buy Meadow Fresh, it's about $5.70. So my message to you is: "Shop around." Question No. 10—Education 10. ERICA STANFORD (National—East Coast Bays) to the Minister of Education: Does she stand by all her statements and actions? Hon JAN TINETTI (Minister of Education): Yes, in the context in which they were given. Erica Stanford: Are the Progress in International Reading Literacy Study (PIRLS) reading results released last night, showing New Zealand's score in reading has fallen to its lowest ever, consistent with her statement in this House that "progress has remained constant" since 2017—meaning no significant change has been shown? Hon JAN TINETTI: The member continues to be fixated on generating a negative story, but the facts are much more promising. New Zealand's year 5 students' performance is above the international mean in this international assessment of reading literacy. In PIRLS 2021, New Zealand recorded an average reading literacy score of 521, which is significantly higher than the international average of 500 and consistent with our score in PIRLS 2016. But that doesn't mean there isn't more work to. Erica Stanford: Why is it that under her Government, according to these PIRLS reading results released last night, the results of the lowest quartile of our students are performing much worse than the lowest quartile of students who rank much lower than New Zealand? Hon JAN TINETTI: We've always been very open about the fact that there is a big discrepancy in our reading achievement—it is not new. The difference this time is that this Government is doing something about it. Erica Stanford: Given these results, why is it that the young people who are most disadvantaged in New Zealand, who stand to benefit the most from being able to read, aren't on track to benefit from a good education to break cycles of intergenerational poverty under her Government? Hon JAN TINETTI: This Government is doing something about lifting achievement levels in this country. We have introduced the common practice model, which is the work that we're doing that will come into play from 2024, and it will lift reading and literacy achievement levels in this country. But, first and foremost, this Government has acted on lifting achievement levels by getting rid of national standards, we have put in place a literacy plan to lift literacy teaching and learning, we have implemented progress steps to indicate essential time-sensitive aspects of literacy at each phase of learning, we have funded tutoring sessions for secondary school students whose learning was impacted by COVID-19, we've rolled out the Better Start Literacy Approach, and we have introduced ready to read phonics. We know that there is way more to do. We know that these result indicate action, and that's exactly what this Government is doing. Erica Stanford: Can she explain how these international PIRLS reading results for our lowest quartile of students doesn't just confirm that this Government is failing our most disadvantaged students, where less than a third of decile 1 students attend school regularly and only 10 percent of decile 1 students can pass a basic literacy and numeracy NCEA assessment? Hon JAN TINETTI: As I've said in this House before, that is part of a pilot programme. I disagree with that speaker. SPEAKER: Question No. 11—oh, a further supplementary, sorry. Erica Stanford: Final question, Mr Speaker. To the Minister: can she explain how 70 percent of New Zealanders surveyed do not believe her Government has done enough to address failing literacy and numeracy results, despite all of the previous answers she's given us today? Hon JAN TINETTI: I know that that member is very, very interested in poll results, but New Zealanders can be assured that the Government is taking urgent action to address maths and literacy, and I absolutely acknowledge that there is more to do. The results won't turn around overnight, but we have laid the foundations by investing heavily in medium to long term curriculum development that is evidence-based and world leading. This is on the back of little investment in the previous years prior to that. Rt Hon Chris Hipkins: Does the Minister believe that the decision taken by the previous Government to make it easier for secondary school students to achieve the literacy and numeracy requirements of NCEA improved or diminished literacy and numeracy levels in New Zealand? SPEAKER: Order! Order! I found that really difficult to hear. There were interjections through it, and now you're—[Interruption] I'm on my feet. I'm about to make a ruling. I'm ruling that question out of order. Question No. 11—Health 11. BROOKE van VELDEN (Deputy Leader—ACT) to the Minister of Health: Is she confident that New Zealanders are able to see their GP when they need to, or enrol with a GP at all? Hon Dr AYESHA VERRALL (Minister of Health): I am advised that in New Zealand, as of 1 May 2023, 4,882,883 individuals—or approximately 94 percent of the population—are enrolled in general practices. There are also a number of initiatives under way to address the pressures on GPs and improve access to primary care: improving providing alternative avenues to good care, providing staff and funding for general practices, and increasing the number of general practitioners practising in New Zealand. We know there are challenges in the primary care sector and there is always more work to do, and we're getting on with the job. Brooke van Velden: What are the consequences of New Zealand having only one GP for every 820 people, compared to Australia having one GP for every 575 people? Hon Dr AYESHA VERRALL: It is important that we improve access to primary care, and one of the goals of the health reforms is to re-orientate ourselves in that direction. There are a number of initiatives under way to that end after the pandemic. That includes making sure that we have our immigration settings right to get general practitioners, including working with the Medical Council to see regulation for overseas-trained doctors to train directly in primary care, raising the number of general practice training positions, and making sure that those general practice registrars are appropriately remunerated for their training. Brooke van Velden: What does she say to people who find it unacceptable that GP capitation levels increased by only 3 percent last year, when inflation increased by 7 percent? Hon Dr AYESHA VERRALL: Well, I say to those people that if you want to see the track record of Government funding for primary care, then that party over there supported a Government that raised primary care funding by 1.2 percent. This Government is offering a 5 percent increase to primary care this year, the highest ever. I know general practitioners are far too smart to buy the empty promises of the ACT Party. Brooke van Velden: Will her Government commit to adopting ACT's policy of increasing GP capitation levels by 13 percent, enough to subsidise an additional 2.5 million extra GP visits, to ensure accessible healthcare for everyday Kiwis, and if not, why not? Hon Dr AYESHA VERRALL: I believe we've covered the major creditability gap with a party that has only supported a Government that led to a 1.2 percent annual increase in funding for primary care, compared to the increases we are and have overseen. Brooke van Velden: Has the Minister raised an increase to GP capitation with the Minister of Finance, and if not, why not? Hon Dr AYESHA VERRALL: I have a number of discussions with the Minister of Finance of this Government's vision for an inclusive, accessible, and successful primary care sector. Brooke van Velden: Point of order. It was a very specific question: has she discussed an increase to GP capitation levels with the Minister of Finance? She did not address that question. SPEAKER: Yes, she did. Question No. 12—Police 12. Hon MARK MITCHELL (National—Whangaparāoa) to the Minister of Police: Does she stand by her statement, "It is my view that New Zealanders feel safer"; if so, why? Hon GINNY ANDERSEN (Minister of Police): Thank you, Mr Speaker. For the third time, I stand by my full statement, that it is my view that New Zealanders feel safer with a Government on track to deliver 1,800 extra police. As the Minister of Police, I remain committed to making New Zealanders feel safer through the actions this Government is taking, including the delivery of 1,800 additional police, the roll-out of the Tactical Response Model, and also establishing a firearms registry. Hon Mark Mitchell: How can she say that New Zealanders feel safer when the Government's firearms prohibition orders (FPOs) have only been used twice in nine months? Hon GINNY ANDERSEN: The reality of a firearms prohibition order is when it is issued, it is done at sentencing by a judge. It is a tool that this Government developed in legislation to enable the judiciary to enable an extra tool. I find it rich from that member when they talked about and read Cabinet papers about firearm prohibition orders for nine years and failed to deliver one. Hon Mark Mitchell: Why did the Government vote down firearms prohibition orders that the Opposition brought to the House? Hon GINNY ANDERSEN: This Government brought a fit for purpose bill that did not breach the New Zealand Bill of Rights Act and we passed that legislation, and it's now enacted. Hon Mark Mitchell: Why did the Government bring a bill to this House that has only been used twice in nine months with a rising incidence of gang members carrying firearms and using them? Hon GINNY ANDERSEN: I would like to talk the member through the process of a firearms prohibition order so he understands how the court process works. The orders empower judges to prohibit anyone convicted of a firearms related offence and other offences, including murder and serious violent offences, from accessing or using guns. Following a full police investigation, police charge a defendant with a qualifying offence. The defendant appears in court. The ordinary prosecution process takes place. Due to the nature of criminal proceedings, there is no one-size-fits-all model for what the prosecution process or for what the qualifying offence looks like. The defendant then either pleads or is found guilty of the qualifying offence, and they will appear for sentencing in respect of that offence, at which time the court may make an FPO as part of the sentencing process. Hon Mark Mitchell: Why did the Government pass a weak bill when they were warned by the Police Association that if they did, it wouldn't be used, and nine months later it's been used twice? Hon GINNY ANDERSEN: I'd be wary of quoting the Police Association given that member's current stance on the firearms registry. The current bill passed and enacted by this Government provides the courts with a good tool that is utilised to enable those dangerous people who have access to firearms to have prohibition orders put over them, just as the firearms registry, when live, will do the same process. Hon Stuart Nash: Is the Minister aware of any party in this House that voted against Government legislation that made it harder for gangs to get firearms— SPEAKER: No—order! That's out of order.