3. Question No. 3—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 3—Finance3. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Does he agree with the statement from Westpac that the picture for borrowers is set to become a lot tougher over the coming year" and what advice has he received if any on the impact this will have on New Zealand households?Hon GRANT ROBERTSON (Minister of Finance): To answer the first part of the question that would depend on the situation facing each borrower. And indeed Westpac themselves said that in the same report that the member is quoting from: "The impact of those rate rises will feel very different for households across the country." I do acknowledge the global inflation spike which we are not immune from in New Zealand is causing interest rates to rise around the world including in New Zealand and that is putting pressure on households. To answer the second part of the member's question there are a wide range of views including those held by Westpac regarding the economic situation we're facing. How such sentiment is set to influence economic outcomes including for houses is debatable. Given the deteriorating sentiment including that which the member has asked about I have been seeking advice on how to help particularly low to middle income households to get through this period. That is of course why we have invested in lifting benefits increasing childcare support lifting the minimum wage increasing the family tax credit cutting fuel excise and more.Nicola Willis: Can he confirm that a family with a mortgage of $500000 refixing from an interest rate of 3 percent on to 6 percent—as many many families will have to do in the coming months—will be paying $15000 more each year in interest costs?Hon GRANT ROBERTSON: It is absolutely true that those people who were able to fix mortgages when interest rates were very low will be facing a significant increase when they come to refix their mortgages. That is a product of the Reserve Bank doing its job to bring inflation back down. I repeat something I've said for the member numerous times in this House: this is a global phenomenon. New Zealand finds itself in a position where we have the 10th lowest inflation rate in the OECD. Everyone is dealing with the same problem. We are continuing to support New Zealand households through this.Nicola Willis: Does he recall during the last election campaign the Labour finance spokesperson talking at length about how the Government's leadership had led to a strong economy and why is it that some people are prepared to take the credit for what the economy is doing when it suits them and not when New Zealanders are facing tough times?Hon GRANT ROBERTSON: I will take responsibility for the position that New Zealand finds itself in today with respect to the Government's policy. That is a position where we have 3.3 percent unemployment one of the lowest levels of unemployment we have ever seen; a position where we have one of the lowest levels of public debt in the world; a position where our economy is 4.8 percent bigger than it was before COVID; and a position where average hourly wages have gone ahead of inflation. It has been a tough period for many New Zealand households over the last couple of years and I stand by the record of this Government.Nicola Willis: How will the host of statistics the Minister just recited help the family trying to find $15000 to service their mortgage?Hon GRANT ROBERTSON: I'm not sure because the member's colleagues were shouting that she heard me say that average hourly earnings in New Zealand have been going ahead of inflation in recent times the lifts to the minimum wage the lifts to the family tax credit the lifts to childcare assistance—all things that will help New Zealanders through this period of time and for the most part all things opposed by the National Party.Nicola Willis: So do we take it from the Minister's answer that his message to families struggling with the burden of extreme mortgage-servicing costs is "Don't complain. Labour's funding lots of subsidies. We've done some policies so it's not our fault."?Hon GRANT ROBERTSON: My message is the same message I gave earlier in this question time: that we understand that there is an impact on many New Zealand households. It is tough for many New Zealand households; that's why we've been helping them. I also say to those households that they cannot look to the Opposition benches for any comfort given the priority over there is tax cuts for the wealthiest New Zealanders.Nicola Willis: What does he say to Stephen who wrote to me asking "Where does the extra money needed come from? Our mortgage would now make the Sherriff of Nottingham blush."; and when if ever will that Minister take responsibility for his role in getting the cost of living and interest rates under control?Hon GRANT ROBERTSON: What I say to that person is just as we have done for the last 2½ years we will continue to support New Zealanders through tough times. We won't flip-flop on policy we won't change our mind about how we deal with important issues and we won't have two or three policy hui a week and then have no policy ideas to give to the New Zealand public.David Seymour: Is the Minister of Finance aware that ANZ bank have upgraded their two-year forecast for the official cash rate eight times since February 2021 from 0.25 percent then to 5 percent now—it's all coming through in people's mortgage payments—and if he is aware does he intend to make any change in policy direction so that people can see the end of these increases?Hon GRANT ROBERTSON: As the member well knows price stability or the control of inflation is at the core of the Reserve Bank's mandate. They are doing what they do in order to deal with that. On this side of the House we're making sure that we support people through targeted support to make sure it goes to the people who desperately need it unlike parties opposite who would propose across-the-board tax cuts focused on the most wealthy.David Seymour: Is the Minister of Finance seriously saying that tax cuts offered by a party like ACT that would give $2300 extra in the pocket to a nurse in the middle of their career earning $70000 is just "tax cuts focused on the most wealthy" or is it that in Grant Robertson's Labour $70000 is the most wealthy?Hon GRANT ROBERTSON: It's very very interesting—Don Brash was both the leader of the National Party and the leader of the ACT Party and he has most recently said that now is absolutely not the time for tax cuts. I appreciate that the member might want to out - Don Brash Don Brash; that isn't what we're going to do."