6. Question No. 6—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 6—Finance6. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Does he consider the Government has done enough to alleviate the cost of living crisis facing New Zealanders and will he rule out measures to provide them income tax relief in the upcoming Budget?Hon GRANT ROBERTSON (Minister of Finance): As I've said in this House on a number of occasions the Government is extremely conscious of the impact that the global energy crisis and supply chain constraints is having on households and in particular those households that are the most vulnerable to increases in food and petrol prices. That is why building on the support that we have provided through COVID we have cut fuel excise duty by 25c a litre and halved the cost of public transport. We've introduced a raft of measures to increase income support including family tax credit changes childcare assistance student allowances and main benefits and we've also lifted the minimum wage. We're very aware that this remains a difficult period for many New Zealanders and the Government will continue to work on ways that we can improve the economic security of New Zealand against these sorts of global shocks. In answer to the second part of the question times like this require all political parties to think about what their priorities are and to make difficult decisions about where resources should be directed. We do not agree that tax cuts that favour those who earn the most are the priority right now and we are not alone in this view with the IMF saying during their recent assessment of the New Zealand economy that now was not the time for major tax changes.Nicola Willis: Why is it that despite a record Budget spend-up and another year of debt and deficits he still can't find room for tax relief for the squeezed middle?Hon GRANT ROBERTSON: On this side of the House our focus is on making sure that we support New Zealanders through this difficult time. The households that are the most affected by inflation rises and peaks in prices of petrol and food are those that we've been focused on with the support we put through on 1 April and by making sure that all New Zealanders can benefit from the cuts in the fuel excise duty. We always have to get a balance right here. There's no free lunch. If we want good quality public services we have to keep investing in them and we saw the damage done when the last National Government was in office and failed to invest in them.Nicola Willis: Does he believe a family receiving an average household income is too rich to deserve income tax relief?Hon GRANT ROBERTSON: What I believe is that all households in New Zealand deserve quality public services—a good health system schools housing and making sure we have transport routes in place—and yes we will continue to support all households through for example the cut in fuel excise duty and also through the halving of the cost of public transport.Hon Chris Hipkins: Has the Minister of Finance received any advice that suggests the squeezed middle starts at an earning bracket of $180000 a year?Hon GRANT ROBERTSON: No I haven't seen that advice. But remarkably what I have seen is a proposal that would see those earning more than $180000 a year getting thousands of dollars of tax cuts but someone earning $40000 a year getting $2 a week. That doesn't seem to me like a good use of the Government's resources or indeed good for the most New Zealanders.Nicola Willis: How much more income tax did the Crown collect in the 2021 fiscal year compared with the 2017 fiscal year?Hon GRANT ROBERTSON: The member knows that if she wants an answer to a detailed question like that—Nicola Willis: Oh he doesn't know.Hon GRANT ROBERTSON: —she should put it down in writing. SPEAKER: Order! Order! That's the end of it. A further supplementary?Nicola Willis: Can he confirm that data released by Stats NZ today shows that no matter how you measure it costs faced by New Zealanders are rising faster than wages meaning Kiwis are going backwards in real terms?Hon GRANT ROBERTSON: What we saw today from Statistics New Zealand was that there was a 4.8 percent increase in annual average earnings over that year. That is less than the current annual inflation. This is the only year in the forecast period where that is true and it was not true in the period building up to this. Under the Labour Government we have made sure that New Zealanders' wages have continued to lift. We currently have a global inflation spike. That is a struggle and we are supporting New Zealanders through it. What I do note is that whenever we come to this House with measures that actually lift the incomes of low and middle income people like the minimum wage like fair pay agreements like the 1 April changes the National Party oppose them. On this side of the House we're actually doing something to support low and middle income New Zealanders.Nicola Willis: What does the global energy crisis have to do with the biggest increase in annual average rents in New Zealand records?Hon GRANT ROBERTSON: The global energy crisis is part of the inflation story. Another part of the inflation story is the cost of housing which is built on the fact that building supplies being imported into New Zealand are indeed rising I think 18 percent in the last numbers—far in excess of the other causes of rising housing prices.Nicola Willis: Why won't he simply give some of the additional $14 billion he's collected in income tax back to New Zealanders by inflation-adjusting tax thresholds?Hon GRANT ROBERTSON: On this side of the House we know the damage that can be done when a Government doesn't invest in the health system so that we have sewage leaking down the walls of hospitals. We know the damage that's done if we done if we don't fix school buildings so that children are learning in cold damp environments. It is always about getting the balance right and on this side of the House we believe that part of getting the balance right is investing in public services and supporting those on low and middle incomes. What is not getting the balance right is giving tax cuts to people who earn more than $180000 so they'll be thousands of dollars better off while someone on the minimum wage is about two bucks better off. That isn't fair. That isn't a good use of resources.