7. Question No. 7—FinanceCHLÖE SWARBRICK (Green—Auckland Central) to the Minister of FinanceQuestion No. 7—Finance7. CHLÖE SWARBRICK (Green—Auckland Central) to the Minister of Finance: What reports if any has he seen on the impacts of monetary and fiscal policy throughout the COVID-19 pandemic on the distribution of wealth in this country?Hon GRANT ROBERTSON (Minister of Finance): I've seen a range of reports on the impact of economic policy measures on wealth inequality some of these from the time and some with the benefit of hindsight. Throughout the crisis we took the approach to prioritise those who were the most vulnerable and tend to disproportionately bear the cost of an economic shock. That's why we lifted main income benefits three times we lifted the minimum wage and we doubled the winter energy payment. The wage subsidy scheme was designed not just to provide cash flow and confidence to businesses but to keep New Zealanders in their jobs. I appreciate that the member may disagree with some of the decisions that were taken and some of the outcomes that have occurred since then. A decision that we would do less in response to a one-in-100-year shock would have meant accepting a greater risk that lower-income people would have suffered through the pandemic. I would never claim that our economic response was perfect—or our health response for that matter—but I am proud of the way in which we have supported households and businesses through a period of intense uncertainty. I'm proud of the way that New Zealanders have continued to manage the ongoing supply side impacts of the pandemic and I'm proud that for example the Māori unemployment rate which reached almost 15 percent after the global financial crisis is now at 5.5 percent.Chlöe Swarbrick: Did he accept the conclusions of Treasury advice received in 2020 that large-scale asset purchase measures could raise asset prices more directly than conventional monetary policy creating wealth inequality"; if so what actions did he take to minimise the risk once unconventional monetary policy was used by the Reserve Bank?Hon GRANT ROBERTSON: As you would expect in the advice that was provided the pros and the cons of any issue or any particular policy approach are listed off. I think it's important to remember the problem that the monetary policy response was trying to address. We had bond markets that were beginning to look like they would be in free-fall. We had the potential of a significant credit crunch. There was a role for monetary policy and unfortunately conventional monetary policy tools were not in a position to be able to be used.Chlöe Swarbrick: Does he think ordinary New Zealanders are justified in feeling angry that over the course of the COVID-19 pandemic the wealthiest New Zealanders grew $872 billion richer according to 2021 analysis by economist Bernard Hickey?Hon GRANT ROBERTSON: I've obviously read Mr Hickey's analysis and I have a great deal of respect for him. However I don't think that quite captures where that support went because the wage subsidy scheme was designed specifically to ensure that people stayed in work. While it was paid to businesses it played a very important part in making sure that New Zealanders kept their jobs.Chlöe Swarbrick: Does he consider it fair that ordinary New Zealanders are currently watching their purchasing power go backwards while foreign-owned banks as supported by the Reserve Bank rake in excessive profits; if not what fiscal options is he considering to redress the balance and provide support to vulnerable people?Hon GRANT ROBERTSON: I think I have an expectation as I think most New Zealanders would that we don't see parts of the economy or actors within the economy use their market power to take advantage of consumers and we've already been addressing those sorts of issues—for example in the supermarket sector. What I would also say however is that the stability of the banking system has served New Zealanders particularly well during times of crisis such as COVID-19. But I do understand the spirit of the question that the member is asking.Chlöe Swarbrick: Does he stand by his statement "we're saying 'we have your backs' through the measures we have in place including the wage subsidy and working capital support alongside the banks." and in the context of the COVID-19 support; if he does does the Government now have the backs of those worst-off or those who made unearned and excessive profits?Hon GRANT ROBERTSON: In respect of the first part of the question yes."