4. Question No. 4—FinanceHon SIMON BRIDGES (National—Tauranga) to the Minister of FinanceQuestion No. 4—Finance4. Hon SIMON BRIDGES (National—Tauranga) to the Minister of Finance: Does he stand by all of his statements and actions on inflation?Hon GRANT ROBERTSON (Minister of Finance): Yes in the context in which they were given and undertaken.Hon Simon Bridges: How could he tell me last week that the causes of inflation are driven largely by global issues" when last year domestic inflation grew at a rate of 5.3 percent—not far off the overall inflation rate—and by the end of the year the domestic components were growing faster and higher than the international parts?Hon GRANT ROBERTSON: Because for example the cost of building supplies—that has added to one of the issues that is regarded as non-tradables—is driven significantly by global factors in the supply chain. While the member might want to make those distinctions on an annual or quarterly basis if he wants to do quarterly then actually the rate overall is going down quarter by quarter.Hon Simon Bridges: Does he accept that a significant and growing chunk of inflation is domestic and if not is the ANZ wrong when it said recently "The domestic economy is … highly inflationary."?Hon GRANT ROBERTSON: What I accept is that there is a global supply chain issue that is driving some issues in the domestic economy. But if the member wants to provide other evidence of that viewpoint I could quote Westpac who said today talking about annual inflation "Much of this is a result of offshore factors including disruptions to global manufacturing chains and increases in international transport costs."Hon Simon Bridges: If it's so international how does he explain that just across the ditch Australia's inflation is 3.5 percent over 40 percent lower than ours right now?Hon GRANT ROBERTSON: If the member wants to get into the most recent statistics there he should look at the quarterly numbers which are 1.4 percent and 1.3 percent in the two countries concerned. Inflation is a global issue. I invite the member if he thinks that the Government is causing specifically inflation by specific spending decisions to tell us what they are because so far all we've had is cameras on boats.Hon Simon Bridges: Why last week wouldn't he accept some Government responsibility for the domestic component of inflation given that it's commonly accepted economics that higher public spending at a time when the economy is overheating is inflationary?Hon GRANT ROBERTSON: As I just said in my last answer if the member is saying that our spending on the health sector and in supporting New Zealanders through COVID19 is the cause of petrol prices going up then he's well outside of the mainstream of economics.Hon Simon Bridges: Given the growth in domestic inflation and warnings from the like of the OECD—reasonably conservative I would have thought—and many New Zealand economists why doesn't he listen to the likes of Cameron Bagrie who says "Now is not the time for a big spending 2022 Budget. It will only add to the excess demand and inflation."?Hon GRANT ROBERTSON: The Government will continue to invest in the long-term future of New Zealand because the reason we've ended up with an infrastructure deficit the reason we've ended up with a housing crisis is because that Government takes short-sighted approaches or do-nothing approaches. On this side of the House we want a functioning health system. I repeat for the member: if he wants to address these issues tell the New Zealand public what they're going to get cut. Will it be health will it be education will it be housing? We will continue to budget carefully but we're not taking the short-sighted approach of the Opposition."