5. Question No. 5—FinanceDAVID SEYMOUR (Leader—ACT) to the Minister of FinanceQuestion No. 5—FinanceDAVID SEYMOUR (Leader—ACT): Thank you Mr Speaker. My question—SPEAKER: Order! Mr Goldsmith be quiet.David Seymour: Point of order. Mr Speaker I wonder if you'd consider awarding the ACT Party an extra supplementary question for that interruption.SPEAKER: I will consider it.David Seymour: Thank you. Your consideration is appreciated.5. DAVID SEYMOUR (Leader—ACT) to the Minister of Finance: What was core Crown tax revenue forecast to be for the financial year to June 2021 in the 2020 Pre-election Economic and Fiscal Update and how much tax revenue was actually collected for that year?Hon GRANT ROBERTSON (Minister of Finance): As the 2020 Pre-election Economic and Fiscal Update (PREFU) outlines in its very first paragraph it was set against the backdrop of continued uncertainty about New Zealand's economic outlook due to the COVID-19 pandemic where Treasury in the PREFU warned the effects of COVID-19 on the economy were expected to be more persistent than before and as such had lowered its nominal GDP forecast compared to Budget 2020. PREFU included a forecast for core Crown tax revenue in the year to June 2021 of $84.660 billion or 28 percent of nominal GDP which forecast at the PREFU to be $32.9 billion at 30 June 2021. PREFU also forecast net debt to be 43 percent of GDP at 30 June 2021 or $130.2 billion in nominal terms. I have good news for the member: New Zealand's economy was stronger in the June 2021 year than forecast in the PREFU. Nominal GDP was reported at $339.7 billion for the year to June 2021. As a result of the stronger economy which led to higher business profits more people in work and higher wages tax revenue in the year to June 2021 was $98 billion or 28.8 percent of GDP. This also meant lower net debt at 30.1 percent of GDP—that's $102 billion versus the $130 billion forecast at PREFU.SPEAKER: Before the member asks a supplementary I have given consideration to his request. I will grant it by transferring one question from the National Party to ACT. Supplementary question—David Seymour: Squid Game!Chris Bishop: Point of order Mr Speaker. Can I ask why you have decided to take one supplementary off National and give it to the ACT Party? Mr Goldsmith I think basically laughed—momentarily—at the start of a question. That is not out of order.SPEAKER: I was actually considering whether it should be one or two and I have decided to be lenient.David Seymour: So did the Minister's answer mean he expected $84 billion and he got $98 billion meaning he ended up with $14 billion more tax than he'd expected?Hon GRANT ROBERTSON: That's the Treasury's forecast in the Pre-election Economic and Fiscal Update and so yes there were $14 billion more. As I noted in the primary answer it was a reasonably volatile and uncertain time in the global economy.David Seymour: What happened to the extra $14 billion of tax he didn't expect to collect? Or does he just not trust Treasury's forecasts?Hon GRANT ROBERTSON: No. Although a number of things happened but one of the main outcomes was lower net debt as I noted in my primary answer.David Seymour: How is it possible that the Government can suddenly find itself with an additional $14 billion and not be able to afford a single cent to cut income taxes for households that are being squeezed from every direction and do not benefit from the various benefit increases and other transfers the Government seems so obsessed with?Hon GRANT ROBERTSON: We've traversed this ground a number of times in the House. There are many different priorities that fall on the Government particularly in the period that we're covering through the member's question. As we dealt with the end of the Delta outbreak as we dealt with further COVID costs and as we invested as we need to do in long-term issues like health and education and in housing.David Seymour: Is not the real reason for the Government's tax windfall that inflation also took off beyond the Treasury's forecasts being 3.3 percent in the year to last June instead of the 1.2 percent that was forecast pushing up the price of everything with the Government profiting $14 billion from the cost of living crisis.Hon GRANT ROBERTSON: No doubt inflation has been a factor in this. I would also note that the Government not only when there's an inflationary environment takes more money in but we have many more outgoings as well as a result of inflation increasing. While the member's on that topic though I do note that the PREFU forecast wage growth of 0.9 percent but it turned out to be 4 percent so wages grew during that period.David Seymour: Does the Minister accept that inflation is giving more and more taxes to the Government but the Government is not prepared to give anything back by letting New Zealanders keep more of their own money when they're squeezed from every direction?Hon GRANT ROBERTSON: As again we've covered in this House we recognise the significant impact of the cost of living increases on New Zealanders and it's the reason why we have added a packaged on 1 April that has seen a significant lift in the incomes of low and middle income New Zealanders.David Seymour: If the Government gets another happy surprise for itself of greater tax revenue than forecast in this financial year might it finally be able to let those hard-working families squeezed from every direction keep just a little bit more of the money that they earn?Hon GRANT ROBERTSON: Obviously I will never pre-empt future Budget decisions let alone one using the member's dates that would be in Budget 2023. What I can say is that on this side of the House we'll continue to focus on a balanced approach. That means yes we try to keep debt low. That means yes we try to make sure that we're investing in the long-term things that New Zealanders need. Those New Zealanders he's referring to deserve a health system that means that they get good quality healthcare wherever they are in New Zealand. They deserve for their children to be in classrooms that are warm and dry. They deserve to know that there will be good public transport and roading networks right across New Zealand. Those things don't come for free either.David Seymour: How can the Minister explain the massive growth in tax revenue and his refusal to cut taxes by talking about health and education when on the same figures total health and education expenditure was actually less than forecast?Hon GRANT ROBERTSON: Well I do think it is important that the member remembers that if we look at the most up-to-date forecast with the Half Year Economic and Fiscal Update core Crown tax revenue will be below 30 percent of GDP across the forecast period. That is around about where it has been for a number of years. On this side of the House I think we understand that there has to be a balance when you put a Budget together. Just saying that you're going to spend more but cut taxes and reduce debt does not add up and that is the problem for the Opposition at the moment.