Source: New Zealand Parliament – Hansard
Question No. 2—Prime Minister
2. Rt Hon CHRIS HIPKINS (Leader of the Opposition) to the Prime Minister: Does he stand by all his Government’s statements and actions?
Rt Hon CHRISTOPHER LUXON (Prime Minister): Yes, and especially our actions to get on top of inflation. This morning Stats New Zealand confirmed that inflation fell to 2.2 percent in the September quarter, the lowest rate in more than 3½ years, and it is clear that our plan, our economic plan, is working, which is why under our Government we’re getting on top of inflation fast. Just before the election last year, Treasury picked that inflation would have only fallen to 3.1 percent by this time and wouldn’t have reached 2.2 percent until the end of next year. And that’s despite all the scaremongering from the Opposition that fully funded tax relief, which Labour didn’t support, for supporting working families with the cost of living would actually push inflation higher. It didn’t do that. But, instead, our economic plan is delivering lower inflation, lower interest rates, two interest rate cuts in 10 months versus, I think, six or seven increases over the last six years. Importantly, what we’re seeing is that the foundations for economic growth to get New Zealand back on track are in place.
Rt Hon Chris Hipkins: Why did his Government cut funding for apprenticeships in critical infrastructure sectors when apprentice numbers are already in decline, compounding the skills shortages in the trades sector?
Rt Hon CHRISTOPHER LUXON: Well, what I’d say to the member is the Apprenticeship Boost was actually another case of Labour leaving behind another fiscal cliff. We’ve made funding for Apprenticeship Boost permanent so the programme wouldn’t expire like it would under Labour and, at the same time, we’re targeting it at the skills that we need.
Rt Hon Chris Hipkins: Why has he and his Government cut funding for apprenticeships in areas such as pipeline construction, bitumen resurfacing, road construction and maintenance, and drinking and waste-water treatment when this country is facing major challenges in those areas and this will only exacerbate skill shortages?
Rt Hon CHRISTOPHER LUXON: Well, we have to make sure we are spending money carefully. That’s what we do on the side of the House; we don’t waste money. That’s only a very small proportion of those that are actually using Apprenticeship Boost, and what I’d say to you is that we are making sure that we’ve got support for the skills we need like building and agriculture and manufacturing, forestry, food, and hospitality.
Rt Hon Chris Hipkins: Why was providing over $200 million in tax breaks to the tobacco company Philip Morris more important to his Government than keeping people in apprenticeships?
SPEAKER: Just a moment. I think there’s a word there that probably shouldn’t have been in it. Do you want to ask that question again.
Hon Member: What’s that?
SPEAKER: I think you referred to the entity belonging to someone, which it didn’t. So just ask the question again.
Rt Hon Chris Hipkins: Why was providing over $200 million in tax breaks to companies like Philip Morris, the country’s largest supplier of cigarettes, more important to his Government than keeping people in apprenticeships?
Rt Hon CHRISTOPHER LUXON: Well, I reject the characterisation of that question. What I would say to that member is that on this side of the House we are very committed to lowering daily smoking rates. We are determined to deliver on Smokefree 2025 and we’re going to make alternatives available. Also what I’d say is, with respect to the so-called tax that he talks about, what we’ve done is make sure Treasury is conservatively estimating the loss of excise tax by any shift that happens to an alternative product other than cigarettes.
Rt Hon Winston Peters: Prime Minister, how often have you met someone whose logic is that when the tax on cigarettes go up, as it did December last year, it somehow is a concession to some business?
Rt Hon CHRISTOPHER LUXON: It’s just prudent to actually set money aside. And for the most extreme scenario, if we get a shift from cigarettes to alternative products—that’s what we’re accounting for.
Rt Hon Chris Hipkins: Why should the construction sector have trust in his Government when they are cutting apprenticeships and, in their first 10 months in power, they have spent their time gutting school building programmes, shelving State housing projects, cancelling major infrastructure projects, and leaving the industry staring down a pipeline that’s looking more like an empty barrel?
Rt Hon CHRISTOPHER LUXON: Again, what you see is you see a business confidence at a 10-year high. Why is that? Because they know this is a Government dealing with and improving the economic fundamentals. We are making sure there is financial discipline and no wasteful spending. We’re making sure that inflation now, for the first time in 3½ years, is within the band. Interest rates cuts are coming down; confidence is up. That leads to economic growth and people in work.
Rt Hon Chris Hipkins: If things are so good for the building and construction sector, why are there 10,000 fewer people employed in the building and construction sector now than there were the day he became Prime Minister?
Rt Hon CHRISTOPHER LUXON: Because this economy is dealing with the lag effects of woeful economic mismanagement by that member and his former Government. What is good news is that consents are up 2 percent; the Infrastructure Commission’s latest pipeline estimates a total of over 6,000 projects—$147 billion worth; and the Transport Government policy statement put in $33 billion for the next three years. If the member cares a lot about it, I look forward to his support of our fast-track legislation, because that was a great idea from David Parker. We’ve built on it; there’s 149 fantastic projects: 55,000 potential new homes, 30 percent increase in electricity generation, and 180 kilometres of new roads, rail, and public transport.
Rt Hon Chris Hipkins: Why won’t he admit that his Government doesn’t care about the damage it causes to New Zealand’s infrastructure, workforce, and economy, as long as his favourite pet projects like tax breaks for landlords and tobacco companies get billions of dollars that could so desperately be spent elsewhere?
Rt Hon CHRISTOPHER LUXON: Aww, it’s a terribly sad day for the Leader of the Opposition. We have good news, which is we have inflation in the bands, we’ve delivered income tax relief for low and middle income working New Zealanders—people the Labour Party used to care about but don’t any more—we’ve got fast-track legislation sitting there, and he refuses to support it. Come on board, do something positive.
