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 stand by his statement on the economy that the recovery is gaining momentum"; if so is he concerned that according to Westpac "household budgets are being squeezed in a way that they haven't been for decades"?Hon GRANT ROBERTSON (Minister of Finance): I do stand by my statement in its full and proper context: "The economy is bigger than before the pandemic unemployment is at a record low and exports are growing. The recovery is gaining momentum in the easing of restrictions and opening up to skilled workers and tourists will help businesses and the economy rebuild." With regard to the second part of the question I've stated on many occasions that the challenging situation that is being faced by many New Zealand households and businesses is a top priority for the Government. Indeed as I noted in the same statement that the member has quoted from in her question "2022 continues to be a challenging year for many New Zealanders facing the impact of global inflation and our resilience will continue to be tested." That is why the Government has taken a range of steps to support low and middle income earners in particular through this period through our 1 April package of increases to income support decreases to fuel excise duty and road user charges and half-price public transport. I'm well aware that these measures are only a contribution to the increased pressure that a lot of households are facing but they are consistent with the balanced approach that we have consistently sought in responding to COVID-19 which requires us to target support to where it is needed most while making sure that we don't make the problem of inflation any worse.Nicola Willis: How can he characterise the economy as gaining momentum when according to Westpac's confidence survey New Zealanders and their families are more pessimistic about the economy now than at any time since 1988?Hon GRANT ROBERTSON: As we've traversed in the House last week obviously at a time when New Zealanders look around the world and see inflation averaging in the OECD over 9 percent when they see the impact of COVID-19 on supply chains when they see the war in Ukraine of course that is going to have an impact on their confidence but I also note that Westpac in their recent report have said that while households will be affected differently demand in our economy is likely to remain resilient.Nicola Willis: Has he seen a report from ASB saying that households will be $15 billion worse off in the next 18 months because of rising prices and mortgage rates and if so how can he continue to claim the economy is gaining momentum?Hon GRANT ROBERTSON: Yes I have seen that report and in the following sentence it says "This looks reasonably manageable not least because it should be offset by strong growth in labour incomes over the coming 18 months."Nicola Willis: Well isn't it the case that real incomes are still declining with prices growing much faster than wages and can he explain to everyday New Zealanders why they should believe his assessment that the economy's recovery is continuing to gain momentum?Hon GRANT ROBERTSON: In answer to the second of those two questions because it's not just me. It is actually the OECD it is the International Monetary Fund it is Moody's it is Standard & Poor's all of whom have said—for example with Standard & Poor's New Zealand has weathered the COVID-19 pandemic better than most countries in terms of health fiscal and economic outcomes. We believe that New Zealand's relatively better management of the pandemic means that its credit metrics are in a good position to weather potential deteriorations. On this side of the House we know and understand the pressure that has gone on households. That's why we've targeted our support to those who need it most while the member continues to prefer tax cuts for the most wealthy New Zealanders.Nicola Willis: Does he agree with the Prime Minister's assessment that Grant Robertson is one of the factors that has contributed to the state of the New Zealand economy and if so does he with his characteristic modesty take responsibility for his role in delivering a cost-of-living crisis?Hon GRANT ROBERTSON: Of course I agree with the Prime Minister especially if she's praising me but on this side of the House we know that this is a difficult balancing act for households. We have as a country done well to get through COVID but we are not immune to what is happening in the rest of the world. New Zealanders know that they've got a Government that will support them and look after them just like we did in COVID. It seems now the member wants to rewrite history and wouldn't have put the support in that we did. We have to make sure as a country that we return to a stable fiscal position but we aren't going to do that through the cuts in services that would be required by the member's policies.Nicola Willis: Isn't it correct that the only two things gaining momentum under Labour are the number of New Zealanders going backwards and the Government's out-of-control spending?Hon GRANT ROBERTSON: Absolutely not. And with reference to the final comment by the member I think I'll just quote Brian Fallow from the weekend: "When Christopher Luxon and Nicola Willis peddle this line about out-of-control spending two explanations are possible. One is that they don't understand how Budgets are arrived at or the other is that they do but they disingenuously pretend not to in order to pander to the prejudices of their political base." I agree with Mr Fallow."