3. Question No. 3—FinanceMILES ANDERSON (National—Waitaki) to the Minister of FinanceQuestion No. 3—Finance3. MILES ANDERSON (National—Waitaki) to the Minister of Finance: What reports has she received on the state of the New Zealand economy?Hon NICOLA WILLIS (Minister of Finance): Yesterday's half-year update showed that New Zealand faces a number of economic and fiscal challenges in particular the toxic combination of high inflation and interest rates a slowing economy and rising unemployment. But despite that challenging outlook confidence in the economy is returning. ANZ's Business Outlook shows business confidence is at the highest level since March 2015 and inflation expectations among businesses are the lowest in two years. We've got a lot more to do in the coming weeks and months but it's an early vote of confidence in our Government's plan to beat inflation and get New Zealand's economy back on track. Miles Anderson: How are Kiwis responding to the Government's first steps to rebuild the economy?Hon NICOLA WILLIS: ANZ's consumer confidence survey released earlier this week shows what ANZ described as A hint of Christmas cheer" as consumer confidence continues to bump up. In promising news inflation expectations fell below 4 percent to 3.9 percent the lowest level in three years. We are moving quickly to support the Reserve Bank in its fight to beat inflation reducing Government spending reducing costs on business and clearing out broken regulations so we can get this economy moving again. Miles Anderson: What economic challenges were revealed in the half-year update?Hon NICOLA WILLIS: Yesterday's half-year update showed that with the last Government having let inflation soar interest rates will have to remain higher for longer to get the inflation genie back in the bottle. That is tough news for Kiwis who are struggling with the cost of living and now facing big hikes in the cost of servicing their mortgage. Our Government knows New Zealanders are doing it tough and we also know the only way to get ahead is with a strong economy. Low inflation low interest rates and consistent economic growth—that's what Labour inherited in 2017 and it's what we'll be working hard to deliver again. Miles Anderson: What next steps is the Government taking to support Kiwis with the cost of living?Hon NICOLA WILLIS: Our Government is committed to delivering tax relief for hard-working New Zealanders. To support that commitment yesterday we announced $7.5 billion of savings—our first three weeks of work to restore fiscal sustainability. It is no surprise that for six years Kiwis didn't receive a cent of tax relief. When you have an addiction to spending you just can't afford to let New Zealanders keep more of what they earn. Our Government is setting out a new chapter cutting the waste delivering the basics and letting New Zealanders spend a bit more of their own hard-earned money. Hon Grant Robertson: Does she agree with National MP Miles Anderson who said "You would think if you were going to do tax cuts that they would be best to come in on 1 April wouldn't you at the beginning of the tax year so maybe they will be addressed in this mini-Budget. They'll need to be included anyway." and if not what message does she have for Mr Anderson?Hon NICOLA WILLIS: My message for Mr Anderson is: congratulations on winning your fine seat. You are going to be a fine representative and I believe you will be someone who will stand up for farmers the productive economy those who run tourism operations and those who create jobs and incomes in this country so keep up the good work.Hon Grant Robertson: Is Miles Anderson correct that any tax cuts should be addressed in the mini-Budget and why weren't they?Hon NICOLA WILLIS: I think Miles Anderson is correct that New Zealanders yesterday enjoyed learning that this Government in just three weeks has made a $7.5 billion downpayment on tax relief that we remain committed to delivering tax relief in July next year and I think New Zealanders are also of the view that while Grant Robertson is obsessed with the arcane details of IRD tax programmes actually we're a Government that's getting on with it."