5. Question No. 5—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 5—Finance5. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Does he stand by his statement that we will enter a period of more targeted spending" and does he consider that Government spending in the past six months should have been more targeted?Hon GRANT ROBERTSON (Minister of Finance): I stand by the full statement including the context surrounding it: "As we move to implement our plan future investments will obviously not be at the same scale as during COVID. As with all of you with the emergency COVID response behind us now we will enter a period of more targeted spending. This tighter period will require some tough choices. At a broad level my focus will continue to be on making sure New Zealand maintains responsible debt levels and ensuring our path back to surplus. This must not be done through austerity cuts to spending. These would do more damage than any problem we are trying to solve." To answer the second part of the member's question our spending has been targeted to deal with the conditions New Zealand has been experiencing. Our initial COVID response was broad-based and supported by the Opposition for example more than $20 billion in wage subsidies and other business supports and more than $10 billion extra for health. More recently the Government has continued to support businesses through the Omicron outbreak with more than $2 billion of support for businesses since the start of March. This of course sits alongside support for households such as by reducing fuel excise duty introducing the cost of living payment and the other 1 April income support increases.Nicola Willis: Does the Minister consider the cost of living payment scheme was targeted when official documents revealed it was so badly designed that 6629 people received it despite explicitly advising the IRD of their overseas address?Hon GRANT ROBERTSON: The policy that we put in place was to make sure that those who earn less than $70000 were supported. That was something that the member and others across the House urged us to do and we have done that. This is a payment that has not ever happened before in New Zealand's history and the Inland Revenue Department continues to work to refine its delivery.Nicola Willis: Can he confirm he received advice from the Ministry of Business Innovation and Employment on 12 April and 26 May warning against a proposed new KiwiSaver tax saying it would reduce retirement savings and was his choice to press ahead with that tax regardless an example of the sort of tough choice we can come to expect from him?Hon GRANT ROBERTSON: As has been covered in this House over the last period of time the member is mischaracterising the decision. The decision was taken by Cabinet. It was one that was taken on the basis of advice from a range of different Government agencies.Nicola Willis: Why did the Minister recommend that Cabinet progress a KiwiSaver tax and was it because he was very tempted by the additional $250 million in annual revenue it would bring in allowing him to continue his lavish spending?Hon GRANT ROBERTSON: Again the member mischaracterises the policy proposal that was put forward. It was designed to create a level playing field when it came to managed funds and how GST was treated with them. The Government obviously upon reflection—given the reaction of some of those who would have benefited from it who no longer wanted the playing field levelled—decided not to go ahead with the proposal."