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 think New Zealanders suffering a cost of living crisis should pay more tax and why won't he rule out introducing a new tax to help pay for the Cyclone Gabrielle clean-up?Hon GRANT ROBERTSON (Minister of Finance): I acknowledge that low and middle income New Zealanders are doing it tough right now with cost of living pressures and that's why the Government has put in place a range of support for them to be able to help meet the cost of living. No decisions have been taken to change any tax settings further than what the Government has already done. I do think that New Zealanders in this position should continue to be supported by the Government through this time. In light of the fact that we have had just the third ever national state of emergency declared in New Zealand's history and that many people's homes livelihoods businesses and lives have been devastated it is the responsible thing to do to take the time to consider the options for how we will pay for the Government's share of the recovery.Nicola Willis: Why is the Minister's first port of call to fund the rebuild another new tax and not dumping pet political projects like the $30 billion light rail commitment?Hon GRANT ROBERTSON: In answer to the first part of the member's question it's not. In answer to the second part of the question as discussed at the Finance and Expenditure Committee earlier today there are a range of options for how to finance the future contribution that the Government will need to make. The responsible thing for a Government to do is to be able to work through those options while we work out just how big the bill will be.Nicola Willis: Does he stand by his commitment in 2021 that Labour's policy was clear that we would not introduce any new taxes."?Hon GRANT ROBERTSON: As I said in my earlier answer no decisions have been taken to do anything other than the tax policy that the Government has. However what responsible Governments do in this situation is assess options. For instance Bill English on 4 March 2011 received a report entitled Funding the Earthquake Recovery: Levies and Other Potential Funding Options which begins "This report responds to your request for advice on options for funding the earthquake recovery including a dedicated earthquake levy." It's a pity the member doesn't share the responsible approach of her former boss.Nicola Willis: Isn't it an indictment on the Minister's economic management that faced with the rebuild following a natural disaster he won't rule out smashing Kiwis with a new tax something the previous Government did not do following the Canterbury or Kaikōura earthquakes?Hon GRANT ROBERTSON: As I note on 4 March just a week or two after the Canterbury earthquakes the then finance Minister Bill English got advice on whether or not there should be a levy. As I have already stated today we have not taken decisions. We are in exactly the same position of assessing the scale and working out how the Government will pay for it. It is what a responsible Government would do. It's what Bill English did. Clearly the member is not in that category.Nicola Willis: How can he possibly justify speculating about new taxes when New Zealanders up and down the country are feeling anxious and squeezed by the prolonged cost of living crisis which today has seen interest rates rise yet again for the 10th time in 18 months?Hon GRANT ROBERTSON: As I said in my primary answer I am acutely aware of the cost of living pressures that are facing particularly low and middle income households. That is the reason why this Government has stepped up time and time again to support those people through increases to the family tax credit through the cost of living payment to the increases we've made to main benefits to the winter energy payment—every single one of those opposed by the National Party.Nicola Willis: How much higher does he think New Zealanders' mortgage rates might climb following today's lift in the official cash rate and does he agree that this is not the time to impose yet another new tax on an already fragile economy?Hon GRANT ROBERTSON: What I think this is the time for is for the Government to work through the full cost of a significant natural disaster that has impacted many regions of New Zealand. What I think is that as Bill English did we should assess all of the options that are in front of us. There are people out there today who are cleaning away the silt out of their houses and out of their businesses. They want to know that New Zealanders have a Government that takes that seriously—doesn't turn it into cheap political point-scoring but actually assesses the options in front of us.Nicola Willis: Has he been advised how many New Zealanders will move from a mortgage with a 2 or 3 percent interest rate to a mortgage with a 6 or 7 percent interest rate over the next six months and is it really his position that in this environment they should be braving a tax hike as well?Hon GRANT ROBERTSON: In answer to the second part of that question I repeat all of the answers that I have given: no decisions have been taken on that but just as a previous Government—which the member was very close to—assessed their options we are assessing our options. Our balance sheet is strong; we have the ability to use the fiscal headroom. We will look at reprioritisation and we will assess other options. It would be irresponsible to do otherwise and I can't understand why the member is so committed to trashing Bill English's legacy.Nicola Willis: Why won't the Minister just rule it out and is it the case that instead of smashing Kiwis with a new tax he could comfortably repay the rebuild of the East Coast if the Government simply scrapped their own political pet projects like Auckland light rail?Hon GRANT ROBERTSON: I don't know how the member knows what the cost of rebuilding the East Coast of the North Island the Hawke's Bay Northland Coromandel Auckland the Wairarapa and the Tararua regions and all those affected are. That is the very work that is under way right now. What we've done is stepped up with more than $350 million immediately to support that. There will be more support and we'll take the responsible approach of working out how best to pay for that as previous Governments have done.Nicola Willis: More taxes on their way!SPEAKER: Order!"