7. Question No. 7—FinanceHon SIMON BRIDGES (National—Tauranga) to the Minister of FinanceQuestion No. 7—Finance7. Hon SIMON BRIDGES (National—Tauranga) to the Minister of Finance: Does he accept that with inflation of 5.9 per cent and a wage rate increase of 2.6 per cent for 2021 real incomes for New Zealanders are going backwards; if so what will he do about it?Hon GRANT ROBERTSON (Minister of Finance): I do not accept the member's use of the labour cost index is an accurate reflection of how New Zealand's wages have risen and therefore I do not accept the conclusion that he draws. In fact under this Government average ordinary-time hourly earnings—money in people's pocket—has risen on average by 3.5 percent a year while inflation has averaged 2.2 percent a year.Hon Simon Bridges: Does he then accept the Council of Trade Unions survey of workers out at the end of last year which found that those who believe they are worse off is significantly higher now than the year before with 70 percent of workers saying their pay isn't keeping up with the cost of living?Hon GRANT ROBERTSON: I look forward to the member's ongoing endorsement of the Council of Trade Unions' statements which include such things as lifting the minimum wage an exercise that would help people meet increasing costs of living. I stand by the statistics I used in my primary answer.Hon Simon Bridges: Will he accept the findings of the Westpac McDermott Miller Employment Confidence Index again at the end of last year which found that more New Zealanders are pessimistic about the economic environment and report that their personal circumstances are worse than the year before for reasons including high inflation and rising interest rates?Hon GRANT ROBERTSON: I—and along with I imagine the member and everyone else in this House—understand the impact that COVID-19 has had on New Zealand and New Zealanders. That survey was taken at the end of a period of time where there were restrictions in the New Zealand economy that have been difficult for many people. But when we take a look at New Zealand's position overall economically we are doing well. Our very strong public health response has allowed the economy to rebound such that the biggest issue being raised is the issue around the capacity of the economy to be able to deal with the growth that we have.Hon Simon Bridges: When will he take action on the recommendation of the OECD in their report out last week where they say that the Government should Withdraw fiscal stimulus rapidly to reduce the burden of macroeconomic stabilisation on monetary policy." or in plain English stop spending so much to ease pressure on high inflation and rising interest rates?Hon GRANT ROBERTSON: The member will recall that we have made a decision under the COVID-19 Protection Framework that broad-based fiscal stimulus will not now take place. Unfortunately for the member a number of his colleagues are continuing to call for that.Hon Simon Bridges: What part of the OECD's call to "Withdraw fiscal stimulus" doesn't he understand?Hon GRANT ROBERTSON: I think the member might not have listened to my last answer. We have already said that across-the-board payments such as the wage subsidy wouldn't be paid out under the COVID-19 Protection Framework. I do note—I do note—that in the National Party's most recent plan they called for the wage subsidy to be available at level 2 of the old framework. So the member needs to sort out what he actually believes.Hon Stuart Nash: In terms of the state of global economic variables impacting on inflation what is he personally doing to solve congestion problems at US west coast ports reopen port cities in China closed down by the Chinese Government due to COVID or—SPEAKER: Order! The member will resume his seat.Hon Simon Bridges: Does he accept that it isn't simply the OECD that's calling for withdrawing fiscal stimulus but that as interest.co.nz has recently reported out "Bank economists are increasingly calling for the Government to start reining in spending to avoid fuelling higher inflation."?Hon GRANT ROBERTSON: As I've already said when it comes to across-the-board fiscal stimulus that decision has already been made. I can only take from the member's repeated questioning here that he believes that the Government should be cutting spending on things like health and our health response or the other business supports that we've given. The member needs to front up—what's he going to cut? Because he's going to cut some spending and it can't just be cameras on boats; it's got be to be something more so it'll be health or it'll be housing. That's what the member has to front up to."