5. Question No. 5—FinanceNICOLA WILLIS (Deputy Leader—National) (remote) to the Minister of FinanceQuestion No. 5—Finance5. NICOLA WILLIS (Deputy Leader—National) (remote) to the Minister of Finance: Is he concerned to see ANZ's Business Outlook survey showing business confidence at its lowest since April 2020 and does he agree with the BNZ that the economy's wheels are beginning to fall off"?Hon GRANT ROBERTSON (Minister of Finance): Talofa lava. I have seen the latest ANZ Business Outlook survey which does indeed show that firms are concerned about the economic outlook but it also notes that employment and investment intentions are holding up relatively well. The business confidence indicator is an assessment of mood but has tended to be an unreliable forward indicator of economic performance; better measures include employment figures and job ads both of which have remained positive. As to the second part of the question as I have acknowledged many times in this House 2022 is a tough year and is a volatile and uncertain environment for businesses and households. Global growth has been revised downwards due to the Ukraine war supply chain disruptions and key trading hubs like China in the ongoing pandemic. BNZ's economists note that these global factors are contributing to much of the negativity among business. However New Zealand finds itself in a strong position as we deal with these challenges including having record low unemployment a growing economy high export returns substantially lower debt than the countries that we compare ourselves against and triple A credit ratings from Standard and Poor's and Moody's.Nicola Willis: Is he concerned that plummeting business confidence reduced economic growth forecasts and record-high inflation mean New Zealanders' living standards will go backwards this year?Hon GRANT ROBERTSON: As I've said on a number of occasions we are concerned about the impact of rising global inflation coming off the back of the COVID pandemic on households and on businesses. It's the reason why we've stepped up to support households in a targeted way and it's the reason why we will continue to support businesses through this difficult period.Nicola Willis: Did he see a BBC report with comments from a New Zealander named Harmony who has moved her family to Australia saying "You can't make a living in New Zealand. There is no living. You just go backwards." and how many more New Zealanders does he expect will depart New Zealand this year in search of a way out of the cost of living crisis?Hon GRANT ROBERTSON: In answer to the question: no but what I can say is that New Zealand is among all countries in the world dealing with spikes in global inflation. In New Zealand we have one of the strongest economies in the world that has come through COVID well with low unemployment and there are good prospects in New Zealand.Nicola Willis: Isn't Harmony correct to say New Zealanders are going backwards when under Labour prices are rising faster than wages and incomes aren't keeping up with basic household costs?Hon GRANT ROBERTSON: What we do know is that wages have run in front of inflation in the period leading up to this year and in 2023 they will again run ahead. In 2022 it is a very difficult and challenging year and it is the reason why we have supported New Zealanders through the cost of living both with the package on 1 April and the cost of living payment and measures such as increasing the minimum wage—which the National Party oppose.Nicola Willis: Well does he continue to believe his big-spending high-regulation approach to the economy is working when ASB reports that "The general explosion in costs supply problems difficulties sourcing staff and squeezed profitability are all combining to push business sentiment to extremely depressed levels."?Hon GRANT ROBERTSON: As we've traversed many many times this is a global phenomenon of inflation coming off the back of a global pandemic. What New Zealanders know is that we came through COVID better than most and in fact the ASB themselves said in the report that was released yesterday "The economy has weathered the Omicron outbreak with far less disruption than COVID outbreaks caused in 2020 and 2021." It is tough going for many businesses and households at the moment; that is why the Government is backing them.Nicola Willis: Well what responsibility if any does he take for failing to create confidence in this country's economic prospects and does he understand that Kiwis don't want his excuses they just want to see a credible path out of the cost of living crisis not one that leads to Australia?Hon GRANT ROBERTSON: What the New Zealanders are seeing from this Government is support through the cost of living pressures that they're facing with a cost of living payment with the fuel excise duty being cut by 25c with the half-price public transport with the 1 April package that's lifted incomes with the winter energy payment. These are all practical things that we can do here in New Zealand along with the announced reform to supermarkets to make sure that people are paying fairer prices. They're practical things that this Government is doing to support New Zealanders through these cost of living pressures."