2. JOHN KEY (Leader of the Opposition) Link to this
to the Prime Minister
Does she stand by her statement that “Our job in Government has been to stop New Zealand running the race to the bottom, and to aim for the top.”?
When the Prime Minister referred to stopping “New Zealand running the race to the bottom” is she aware that the record under her Government is New Zealand falling further in OECD per capita incomes, record low productivity growth rates, the massive drop in housing affordability, collapsing business consumer investor confidence, and the list goes on, and if she does think it is the role of her Government to stop these things, why has she spent the last 9 years in office doing next to nothing about it?
Rt Hon HELEN CLARK Link to this
What I am aware of is that the IMF predicts that New Zealand will continue to grow faster than the United States economy and that of the whole European zone, as it has over the past 8 years. I am fascinated that the member chose to talk about productivity, because I am informed that last year labour productivity growth on an economy-wide output per hour worked basis rose to a 7-year high.
When the Prime Minister referred to aiming “for the top”, is she aware that the record under her Government is that interest rates have doubled, fuel and food prices are now rising faster than inflation, a record number of New Zealanders are leaving—79,000 last year—our current account deficit has been rising and is extremely large, household debt has nearly doubled to $168 billion under her watch, and if she does think it is the role of her Government to stop these things, why has she spent the last 9 years in Government doing next to nothing about it?
Rt Hon HELEN CLARK Link to this
I am also aware that household wealth has risen considerably and that average household income has increased by 25 percent in real terms. When I talk about “running the race for the top”, unlike that member, I do not, of course, mean doubling the amount of money spent on private education.
Well, the member is the one who went to a private school. I am just trying to help him out. We are here to help. Vote National, and Government members will be able to sing karaoke any time they like, I am sure! Is any Minister in her Government—any one of them—spending any time worrying about the economy and things that matter to New Zealanders, or are they just a bit too busy engaging in low-grade personal attacks on me?
Rt Hon HELEN CLARK Link to this
I think there is probably a one-word response to that question: diddums.
Hon Peter DunneWith regard to the previous question, where in the so-called race to the top does the Prime Minister rate the business tax cuts introduced from 1 April this year as a direct consequence of the confidence and supply agreement with United Future, which were the first such business tax cuts in two decades?
Rt Hon HELEN CLARK Link to this
I thank the member for his question because I think those business tax cuts are very significant. I am conscious they were made pursuant to a confidence and supply agreement with United Future when we undertook to work together on those issues. Those cuts have been made in the expectation—
Rt Hon Winston PetersRt Hon HELEN CLARK Link to this
—that they will help the further growth and development of our economy, and made also with support from New Zealand First.
Hon Jim AndertonHas the Prime Minister received any reports that the largest single investment in research and development in the New Zealand primary sector economy of up to $2,000 million was named “a gimmick” by anybody in this House?
Rt Hon HELEN CLARK Link to this
I am aware that the largest single investment in research and development in our country’s history has been opposed by the National Party, as it opposed the business tax cuts, Working for Families, cheaper doctors’ fees, 20 hours’ free early childhood education, and many other measures that help both businesses and the ordinary hard-working Kiwi family.
Has the Prime Minister seen the latest copy of North and South, which shows that middle-income households are now rationing milk to their children—for income reasons, I might add, rather than weight reasons—and does she think that if her Government had bothered to cut taxes for those families who were not eligible for Working for Families they would in fact now be able to give their children the milk they need; if she does think that that would have helped, why have those families had to wait 9 years for a tax cut?
Rt Hon HELEN CLARK Link to this
I cannot say that I have read that particular magazine, but I know that those families have certainly benefited from our Government’s commitments to lower doctors’ fees. They have also benefited from a prudent approach to running the economy, unlike that member’s policy of borrowing for tax cuts, which most people think is just plain crazy because it would put up their mortgage interest rates.
Is the Prime Minister telling New Zealanders that under her Government this is as good as it gets, in which case does she need them to tell her that they are paying double the interest rates under Labour, that they cannot afford to fill up their car or go to the supermarket checkout, and that they are going without, and why does the Prime Minister not do something about those people rather than creating songs on Saturday nights?
Rt Hon HELEN CLARK Link to this
Nothing could be more evidence that that member is happy to dish it out but he cannot take it. What I know is that average household income is up 25 percent in real terms under a Labour Government, but there are families who are squeezed, and there is no way that this Labour Government will borrow for tax cuts, like John Key would, because that would put up people’s mortgages.
Hon Dr Michael Cullen Link to this
Has the Prime Minister seen any reports suggesting that the best way of dealing with families who cannot afford the price of milk, which is set internationally, is to double the assistance to private schools?
Rt Hon HELEN CLARK Link to this
I have indeed heard that Mr Key has a policy of doubling funding for private schools. I give this commitment: the first priority of a Labour-led Government is our public and integrated schools.