4. Question No. 4—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 4—Finance4. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Has he seen a report published by Westpac today stating Confidence among New Zealand households has plummeted dropping to its lowest levels since we began surveying consumers back in 1988" and does he believe that the Government's economic management approach is contributing to New Zealanders' growing pessimism about the economy?Hon GRANT ROBERTSON (Minister of Finance): Yes I have seen the report which contains a number of confidence measures. Regarding the headline confidence measures Westpac noted that confidence had only come close to these sorts of lows twice before—first during the recession in the early 1990s and then again during the global financial crisis in 2008-09. With regards to the second part of the question the Government's economic management approach has been endorsed by the likes of the IMF the OECD Standard & Poor's and Moody's in recent times. This is a tough time for many households and businesses but we believe we've got the balance in our approach about right.Nicola Willis: Is he concerned that unlike in other countries New Zealand consumer confidence is lower today than it was in the depths of the global financial crisis during the COVID lockdowns or during the recession of the 1990s?Hon GRANT ROBERTSON: As I said Westpac noted that confidence had only come close to these sorts of lows twice before—first during the recession in the early 1990s and then again during the global financial crisis in 2008-09. We're very well aware on this side of the House just how tough things are for many businesses and households at the moment and that's the reason why the Government has put so many resources into supporting particularly those in low and middle income households but also on businesses as we've gone through the COVID-19 pandemic.Nicola Willis: What is his explanation for why despite facing the same global economic challenges as New Zealand the Australian economy is growing faster than ours with lower inflation and interest rates and consumers who are far more confident about their economic prospects?Hon GRANT ROBERTSON: As we covered in the House last week or the week before last we know that different countries experience the impacts of a global slow-down at different times. I was in Australia towards the end of the last week. There is significant concern there about for example household energy costs along with the food prices that are being paid over there as well. New Zealand is in one of the better positions of countries across the world to be able to deal with this challenging economic environment because we have low unemployment we have low debt and we have had strong growth. New Zealand's prospects are good but this is a tough time for many people.Nicola Willis: Was he concerned to see New Zealand's collapse in our global economic competitiveness rankings accompanied by commentary highlighting low productivity labour shortages and short-term policy thinking?Hon GRANT ROBERTSON: I'm pleased the member's allowed me to return to the list I was reading out earlier on about the areas where New Zealand had improved. Just to recap that's real GDP growth real GDP growth per capita long-term growth in the labour force long-term unemployment coming down GDP per capita unemployment rate export of goods medium- and high-tech value-added goods and the unemployment rate to gender ratio. I do note that an area where the survey authors were concerned was the growth in Government subsidies. That means that if the National Party is agreeing with the survey authors they now no longer support the wage subsidy scheme that kept a million jobs going in New Zealand made sure that people stayed attached to their jobs and has unemployment at 3.2 percent. That's not what we heard from National at the time but if they want to flip-flop and change their tune that's up to them.David Seymour: Why didn't the Minister mention that in that world competitiveness index the headline figure for Government efficiency saw New Zealand fall 10 places from seventh in the world to 17th in the world over the five years that Labour have been in Government?Hon GRANT ROBERTSON: Because I look at the things that the Government is judged on—things like GDP growth unemployment GDP per capita and making sure that we actually keep people in work. We've had reports from the OECD the IMF Standard & Poor's and Moody's who have all said that the New Zealand economy is in relatively good shape. I know the member is a half-glass empty person. New Zealand has a resilient economy. These are tough times but we'll get through them.David Seymour: Why can't the Minister accept that the one part of that survey that he is truly able to influence—Government efficiency—is the part of the survey in which New Zealand dropped the most? Why can't he just accept that?Hon GRANT ROBERTSON: What I can accept is that the Government is responsible for real GDP growth being improved for the labour force long-term growth being improved for long-term unemployment being better and for GDP per capita being better. We know that these are tough times for many households and many businesses. We've put in place initiatives to make sure we support New Zealanders. Those have been opposed by the member and indeed by the National Party.Nicola Willis: Does the Minister agree with Westpac's Michael Gordon that Kiwis are being squeezed in a way that they haven't been for decades and does the Minister accept any responsibility whatsoever for the fact that under his Government New Zealanders are facing more financial pressure than ever before?Hon GRANT ROBERTSON: On many occasions in the House I have stood up and acknowledged that this is a very tough time for many New Zealand businesses and many New Zealand households. That's the reason why we have provided significant financial support to New Zealand households and businesses. For example we've lifted main benefit rates in 2020 2021 and 2022—each one of those opposed by the National Party. We've lifted the minimum wage—opposed by the National Party. The member might like to actually come up with some positive ideas instead of constantly going on and on about what's wrong in the economy rather than supporting New Zealanders to get through this difficult time."