4. Question No. 4—Prime MinisterBROOKE VAN VELDEN (Deputy Leader—ACT) to the Acting Prime MinisterQuestion No. 4—Prime Minister4. BROOKE VAN VELDEN (Deputy Leader—ACT) to the Acting Prime Minister: Does he consider that New Zealand is a worse country for young working New Zealanders struggling to pay bills than it was a year ago; if not does he acknowledge that rents mortgages petrol and grocery prices have increased from a year ago?Hon CHRIS HIPKINS (Leader of the House) on behalf of the Acting Prime Minister: In answer to the first part of the question the Government has been clear that New Zealand's economy is facing an extremely tough time as global inflation pressures caused by the war in Ukraine the Omicron outbreak and COVID-19 supply chain disruptions push up prices around the globe and here in New Zealand. OECD inflation is averaging 9.2 percent to April and that is having an impact here in New Zealand. In answer to the second part of the question yes. Households are facing an extremely tough time due to the impact of these global inflationary pressures. That's why the Government will continue to support young New Zealanders through targeted policies like the cost of living payment half-price public transport $25 increase a week to student allowances and a reduction in fuel excise duty whilst we continue to invest in infrastructure education and health services that young New Zealanders rely on. As we covered in the House last week in the midst of tough economic times globally we are well placed. Unemployment is at record lows and we are in a strong financial position. The easing of border restrictions and opening up to skilled workers and tourists will also help businesses and the economy rebuild.Brooke van Velden: What are the improvements that outweigh rents increasing by $40 per week in one year under this Government?Hon CHRIS HIPKINS: As I mentioned before the Government is very focused on supporting New Zealanders through the increased cost of living and that includes things like raising the incomes of some of the lowest-paid and lowest-income New Zealanders things like lifting the minimum wage things like ensuring that student allowances have been increased—these things will have an impact as will the winter energy payment and the cost of living payment. But there is no direct one-for-one there.Brooke van Velden: Is a recent report from Deloitte showing that 45 percent of all New Zealand millennials expect the overall economic situation in New Zealand to worsen—up from 28 percent last year and higher than millennials internationally—a reflection of New Zealanders' decreasing trust in this Government's handling of the economy; if not why not?Hon CHRIS HIPKINS: No. As I indicated in my answer to a previous question from another Opposition member we are seeing an overall downward trend in consumer confidence and in people's optimism about the future at the moment. That is not surprising when you consider the challenges that New Zealanders are facing around the rising cost of living and of course the fact that the global pandemic and the winter flu season is having a very significant impact at the moment.Brooke van Velden: How are young working Kiwis better off this year in comparison to last year considering new research by economics consultancy Infometrics has found that 2022 is the worst year to be a first-home buyer since 1957 due to house price inflation caused by this Government's policies?Hon CHRIS HIPKINS: I say to those young New Zealanders who are affected by the spiralling cost of housing that they have a Government that is committed to addressing the underlying causes of that. For nine years we had a Government that wasn't focused on building houses and it denied there was a housing crisis. Our Government acknowledged when we became the Government that we have a housing crisis in New Zealand. That's not something that you turn around overnight.Brooke van Velden: Does the Government consider its borrowing and spending has pushed up the price of everything and might just push young working New Zealanders to leave the country?Hon CHRIS HIPKINS: The biggest driver of inflation is global inflation. In fact New Zealand's inflation rate is running below the OECD average.