6. Question No. 6—FinanceHon SIMON BRIDGES (National—Tauranga) (remote) to the Minister of FinanceQuestion No. 6—Finance6. Hon SIMON BRIDGES (National—Tauranga) (remote) to the Minister of Finance: Does he stand by his statement yesterday that it's a challenging period for many households"; if so will he use a portion of his operating allowance in Budget 2022 for tax relief?Hon GRANT ROBERTSON (Minister of Finance): In answer to the first part of the question yes I continue to acknowledge that many households are feeling under greater financial pressure as we work through this period of elevated inflation. In answer to the second part of the question I would firstly note the member's agreement that the operating allowances for Budget 2022 are at an appropriate level after he has spent the first part of this year demanding that the allowances be reduced. I do stand by my statement that global inflationary pressures recently exacerbated by the Russian invasion of Ukraine mean this is a challenging period. In terms of using the Budget 2022 allowances to help address some of this pressure I am pleased to inform the member that we have done just that through a pre-commitment that funds the family tax credit increases the Prime Minister and Minister Sepuloni announced late last year. From 1 April this year 346000 families will be better off by an average of $20 per week as a result. I would also point out to the member that the billions of dollars of policies his leader has announced do not just affect Budget 2022; they still have to be paid for in future Budgets which do not have the one-off increase in Budget allowances that we have this year. What this means is it would wipe out all of the Budget 2024 new-spending allowance which the member would have to explain if he ever ended up in that position.Hon Simon Bridges: Shouldn't meaningful tax relief for wage earners be an urgent priority when inflation is running at 5.9 percent and wage growth at only 2.6 percent so that on average New Zealanders' real wages are going backwards right now?Hon GRANT ROBERTSON: The issue for the member is what constitutes meaningful tax changes when we have got a worker getting $2 as a result of the changes that the member is replacing. I repeat what I said in my answer to an earlier oral question: there are no easy decisions when you're in Government; it is always a matter of balancing different needs. It is important that we support people through increases in the cost of living at the same time as investing in health education housing and other essential items.Hon Simon Bridges: Is the Minister really telling us that we're not giving out too much or proposing to but also that our policies cost too much? And if $1.7 billion is wrong what does he say the true cost of tax indexation in the first three income tax brackets actually is?Hon GRANT ROBERTSON: No what I am saying is that the unfocused untargeted approach that the member is promoting—that would benefit those on the highest incomes—is not the appropriate approach to be taking now and what I am also saying is that the kind of tax changes proposed by the member's leader do not just stop in Budget 2022; they carry on and on the numbers given out by the member's leader on the weekend would wipe out the entire new operating allowance for Budget 2024 meaning there would be no money to spend on health education or housing that is new.Hon Simon Bridges: Shouldn't meaningful tax reform for workers be on his agenda today given that his Government's minimum wage changes on 1 April will mean that someone on the minimum wage who works 44 hours a week is set to face a marginal tax rate of 30c in the dollar and many believe we're in a cost—SPEAKER: Order! Order! Two legs to supplementaries not three or four.Hon GRANT ROBERTSON: As I said this Government has made the decision on behalf of New Zealanders to get a balance in our approach to the Budget. That means supporting people for example through the family tax credit changes that will put money into their pockets whilst at the same time knowing that we have to continue to invest in health in education and in housing. What the Opposition is proposing will mean tax cuts that effectively make inequality worse that mean congestion in Auckland will get worse and that mean it will be harder for first-home buyers. That's their decision but that is not one the Government is taking.SPEAKER: Further supplementary?Hon Simon Bridges: I apologise Mr Speaker. I appreciate I was meant to do that through the system. Why can't just a portion of the upcoming Budget's historic $6 billion in new spending go on tax relief to hurting New Zealanders as the cost of living crisis continues to worsen?Hon GRANT ROBERTSON: I'm not sure if the member heard what I said in my primary answer but Budget 2022 does indeed change family tax credits so that people in New Zealand—346000 families—will be significantly better off. The Government has chosen to take a focused approach to supporting those on low and middle incomes to get through this period of time whilst continuing to invest in health in education and in housing. The member can't have it both ways. He needs to explain what he would cut if he were to go ahead with the tax polices his leader announced on Sunday.Hon Simon Bridges: Is the real reason he won't prioritise tax relief because he believes he spends Kiwi workers' money better than they do and why won't he trust Kiwi families to make good decisions with their own money?Hon GRANT ROBERTSON: No the reason we are doing this is that on this side of the House we understand that when Governments are faced with difficult choices our job is to make sure that we look not only to the short term to support those on low and middle incomes through this period of increased prices but also to continue to invest in the health and the education and the housing sectors. The member's party completely failed to do the latter when they were last in office and we're still making up for it now.Hon Chris Hipkins: Does the Minister of Finance believe that a tax cut package that gave a Cabinet Minister a $5500 to $6000 a year tax cut while the people cleaning that Minister's office only got less than a cup of coffee a week from their tax cut would make a meaningful contribution to the rising cost of living?Hon GRANT ROBERTSON: It would be demonstrably unfair and unjust that that would be the case. It is also unfocused and untargeted at a time when the Government needs to strike a careful balance between keeping debt in check making sure we support those in need and investing in long-term issues."