Hayes Joanne: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeHayes Joanne: Questions for Oral Answer — Questions to Ministers[Sitting date: 17 April 2014. Volume:698;Page:17436. Text is incorporated into the Bound Volume.]2.JOANNE HAYES (National) to theMinister of Finance: What reports has he received on recent trends in the cost of living for New Zealanders?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: Yesterday Statistics New Zealand released the Consumers Price Index and noted that it increased by 0.3 percent in the March quarter and by 1.5 percent in the year. This was slightly below expectations and a very significant improvement on cost of living increases that peaked at more than 5 percent in late 2008 just before this Government gained office. Prices for package holidays vegetables breads meat and poultry all fell in the March quarter. As the Opposition finance spokesman helpfully pointed out yesterday the good news for families is that—excluding excise tax increases on cigarettes and tobacco—there was actually no overall cost of living increase in the March quarter. So if you do not smoke there was no cost of living increase at all in the 3 months to March.Joanne Hayes: How do prices over the last 12 months compare with average cost of living increases in the 9 years to 2008?Hon STEVEN JOYCE: The 1.5 percent increase in the cost of living over the last year compares with an average of 3.1 percent of annual increases every year in the 9 years to the end of 2008. The price of food increased 0.8 percent in the last 12 months—that is 0.8 percent for the price of food—compared with a 4 percent average annual increase between 1999 and 2008. Within this fruit and vegetables actually fell in cost by 1.7 percent in the last year compared with a 6 percent average yearly increase under the previous Government. Meat and fish were up 0.6 percent in the last year against 5 percent a year under that Government. Petrol increased 0.3 percent in the last 12 months compared with a 7.6 percent average annual increase under Labour. And importantly the price of electricity which is often talked about is up 2.9 percent in the last 12 months compared with a 7.1 percent average annual increase under Labour. We see much the same pattern comparing the 9 years to 2008 with the 5 years and one quarter that has followed.Joanne Hayes: How does the cost of living compare with recent wage increases?Hon STEVEN JOYCE: Quite well over the past 2 years. Over the past 2 years as the economy has continued to pick up the average full-time wage has increased from $51700 a year to $54700 a year—an increase of $3000. Average weekly wages increased 2.8 percent in 2013. This compares with a 1.6 percent increase in the cost of living over the same period. Wages are expected to grow 2.8 percent in 2014 3.5 percent in 2015 and about 4.7 percent in 2016 driven by higher labour demand and a continuing fall in unemployment. All these figures are significantly in excess of expected inflation over the same period.Joanne Hayes: What recent reports has the Minister received confirming that the growing economy is delivering benefits to New Zealand households and businesses?Hon STEVEN JOYCE: Although of course we welcome reports of a growing economy what is important for families is more jobs and higher incomes. Looking ahead Treasury’s preliminary Budget forecast shows that the average wage will rise to around $62200 a year in 4 years’ time—an increase of a further $7500 by 2018. This adds up to an average wage increase of around $10500 or around 20 percent over a 6-year period compared with forecast inflation over the same period of around 12 percent. So the message is clear. Good fiscal management is helping to deliver higher wages and a lower cost of living for New Zealanders.