3. Question No. 3—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 3—Finance3. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: What advice if any has he received about how much more interest each year someone with a $700000 mortgage would be required to pay on a renewed mortgage today compared to the start of last year and what impact does he expect rising interest rates will have on the cost of living?Hon GRANT ROBERTSON (Minister of Finance): In answer to the first part of the member's question it may surprise her to know that I do not receive advice about such hypothetical examples with no parameters set out on the characteristics of the mortgage in question such as the level of the mortgage at the start of last year the parameters the mortgage had at the start of the last year—for example whether it might have been a three-year term or on a floating rate whether the principal payments were being made over 18 months or what the split might be between the principal and interest payments at any specific point in time—and what interest rates were at each point in time. In response to the second part of the question as I have said many times there is no doubt that the global inflation spike currently being experienced is putting pressure on households in a number of ways and one of those will be the impact of rising interest rates. Independent central banks around the world are increasing rates. Higher interest rates do mean that the cost of borrowing is higher and this will feed through to the economy in a number of different ways. I expect that the effects may be similar to when the official cash rate rose under the previous National Government in 2010 and 2014.Nicola Willis: Has he had advice on how many New Zealand mortgage holders will face a degree of financial stress in the next year as a result of rapidly rising interest rates?Hon GRANT ROBERTSON: What advice I have receive—and the member will have seen this in the public arena as well—is that around half of New Zealanders who have mortgages would expect to be needing to re-fix them over the next year. Not all of those people will suffer financial stress as a result but all New Zealanders are suffering the pressure of the global inflation spike. It's the reason why we've stepped in to support New Zealanders through things like our 1 April package and the cost of living payment—all things the National Party continues to oppose.Nicola Willis: Can he confirm that New Zealanders have not experienced such a rapid increase in interest rates since the official cash rate came into being?Hon GRANT ROBERTSON: Well what I can confirm is that in 2010 and 2014 the official cash rate was increased under the previous Government. I can say that in 2014 it went from 2.5 percent in March of that year to 3.5 percent by late July. The member also knows that those are decisions taken by the Reserve Bank of New Zealand (RBNZ) independently.Nicola Willis: Is he aware that a New Zealander with a floating $700000 mortgage from ANZ in New Zealand currently pays $296 more per week in interest than someone with the same mortgage in Australia and can he explain why that is?Hon GRANT ROBERTSON: There will be many different reasons for that and at the risk of trying the Speaker's patience going through all of the different elements of what makes up a reason—David Seymour: Oh come on.Hon GRANT ROBERTSON: —for someone's mortgage payments we have discussed—SPEAKER: Well Mr Seymour says that the member should do it so the member can.Hon GRANT ROBERTSON: As we've discussed a number—I thank the member—of times in this House the impacts of the global pandemic and indeed of the global inflation spike will be felt at different times in different countries.Nicola Willis: Is he concerned that mortgage interest rates are now exceeding commercial test rates which according to the RBNZ were between 5.5 and 6.5 and if so can he tell the House how many mortgage holders are expected to come under significant financial pressure in the coming months?Hon GRANT ROBERTSON: As I said in my earlier answer we understand on this side of the House that the increase in inflation around the world is now being responded to by central banks independently lifting the official cash rate. That is what is happening in New Zealand. If the member is advocating a policy where she or some other person controls what the official cash rate is that is an interesting idea and one that harks back to another time. On this side of the House we understand the role of monetary policy. We also understand the role of fiscal policy to support New Zealanders through this time and all we've heard from the National Party is opposition to the support we're providing to New Zealand households.Nicola Willis: Why is the Minister unable to confirm how many New Zealanders will face significant financial stress as a result of the fastest rise in the official cash rate—SPEAKER: Order! I'm going to invite the member to rephrase the question.Nicola Willis: Well will the Minister finally take this opportunity to name the number of New Zealanders who will face significant financial stress in the next year as a result of the fastest increase in the official cash rate in New Zealand's history and if he will not name that number can we expect him to continue—SPEAKER: Order! Nicola Willis: —with the see no evil—SPEAKER: Order! Order! The member's gone away from areas that the—the basis of a supplementary question has to be somewhere in the first part of it. We have to get to something which is the Minister's responsibility and that number is not his responsibility.Nicola Willis: Point of order Mr Speaker.SPEAKER: Well I hope the member's not going to argue with me because we'll end up with a problem.Nicola Willis: Well Minister I would point out that what I asked—SPEAKER: I'm not a Minister any more.Nicola Willis: Sorry Mr Speaker. My question was about whether or not the Minister would seek advice. Now the advice he seeks or doesn't seek is absolutely his responsibility. Now he can say that he doesn't wish to seek that advice; that's fine. I'd like—SPEAKER: No no. Nicola Willis: —him to confirm that. SPEAKER: No—sorry. The member's question was very narrow around the advice sought and it was how much more interest each year someone—it was one person. There was nothing about how many people.Nicola Willis: But—speaking to the point of order—SPEAKER: No no—no more. The member can ask another supplementary if she wants to.David Seymour: Point of order Mr Speaker. Frequently in question time the Minister is asked questions by the Labour side about economic conditions and frequently he takes credit for all sorts of things to do with terms of trade GDP and so on. Surely someone on this side of the House can ask about the effects of interest rates on households and the bills they have to pay. How is one possible and the other not? SPEAKER: Well of course they can—of course they can. All they have to do is get the primary question right.Hon Michael Woodhouse: Point of order Mr Speaker. The consideration that you need to make is whether or not the question was in order. Now it certainly related to the primary question that's on notice. It's perfectly legitimate for the Minister to say I have no ministerial responsibility for that aspect of the question." but to rule it out anticipating that I think is detracting from the exchange—SPEAKER: OK all right. Hon Michael Woodhouse: —in question time.SPEAKER: No—thank you. I've had enough of this. There's going to be no more there. The member knows that it is part of the Speaker's role to make a judgment about whether a Minister has responsibility for a question. The member knows that very well—he's been a Minister. He's seen it happen on lots and lots of occasions. Nicola Willis: Will the Minister now confirm that he has not sought advice about the number of New Zealanders who will face significant financial stress in the coming year as a result of the fastest increase in the official cash rate in New Zealand's history? Hon GRANT ROBERTSON: I get—SPEAKER: I will allow the Minister to answer even though it was a neat attempt that didn't make it. Hon GRANT ROBERTSON: —advice from a range of sources about the impact of the global inflation shock on New Zealanders. The Reserve Bank publishes regular material on the stability of New Zealand's financial system. What that material shows us is that New Zealand has a robust financial system. There will be individual households who will suffer stress as the result of interest rates going up. This Government is prepared to support them."