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 ANZ's view that Concern about the domestic economic outlook is rising and is the top factor constraining investment by quite some way" and is he concerned that the cost of living is growing faster in New Zealand than in Australia?Hon GRANT ROBERTSON (Minister of Finance): As I've said a number of times in the House I acknowledge that 2022 is a challenging year for New Zealand businesses and households. Forecasts of economic growth this year have been pared back but they do remain positive as New Zealand deals with Omicron Russia's invasion of Ukraine and the ongoing disruption of the pandemic on global supply chains. As I mentioned yesterday to the member we are in a strong position to be able to continue to support New Zealanders through this uncertainty. As to the second part of the question there are a wide range of reasons for why inflation is at a particular level in a particular country including at what stage of the pandemic each country is at. I would note that looking at the December quarter numbers the two countries' inflation rates are not dissimilar with New Zealand at 1.4 percent and Australia at 1.3 percent. Nicola Willis: Is he aware that inflation in New Zealand for the year ending December was 5.9 percent while for the same period in Australia it was 3.5 percent and has he seen a single forecast projecting New Zealand's inflation to be less in the coming year than it will be in Australia? Hon GRANT ROBERTSON: In answer to the first part of the question yes I am aware of that and I'm sure the member is also aware that inflation pressures are being felt all around the world and we recently had the United Kingdom Budget reflecting inflation projections of well over 7 percent. This is affecting people all over the world. It's the reason why this Government has a focus on making sure those the most affected by price rises—those on low and middle incomes—are supported rather than cutting the top tax rates so that those earning over $180000 would get the benefit as the member would prefer. Nicola Willis: Does he agree with ASB that New Zealand's inflation outlook is "worryingly high" and what steps if any is the Government taking to support monetary policy to keep a lid on New Zealand's soaring levels of inflation? Hon GRANT ROBERTSON: All New Zealanders will be concerned about rising prices and that's the reason why we've taken the initiatives that we have. I'm glad that the member references monetary policy there because that is indeed the role of the Reserve Bank to be able to make sure that we have price stability. Alongside that we will continue to operate a fiscal policy that is carefully balanced making sure that we invest in the long term making sure that we keep our debt levels under control and making sure that all New Zealanders get a fair go. If the member wants to talk about things that might add to inflation untargeted tax cuts that National is proposing that would benefit the highest income earners don't stand up very well. Nicola Willis: What is his explanation for rents rising faster than ever—up $50 a week in the past year alone—and is it seriously his position that international factors are to blame for this growth in a core component of New Zealanders' cost of living? Hon GRANT ROBERTSON: I'll give the member this. That's not all about international factors. That's about the fact that the National Party oversaw the sell-off of State houses and managed to build a hundred affordable houses over nine years. It's about supply; houses don't get built right away. On this side of the House we are now building houses at a faster rate than any Government since the 1970s trying to make up for the member's party's mistakes.Nicola Willis: Is it now the position of New Zealand's Minister of Finance that the reason our country has experienced record growth in rental costs is because five years ago some State houses were transferred from ownership by the Crown to ownership by community housing organisations?Hon GRANT ROBERTSON: Well actually that not very clever explanation doesn't wash. The National Party needs to own its records. They sold off State houses in the middle of a housing crisis. Nicola Willis: Why does he keep blaming COVID for New Zealand's poor economic performance when despite Australia currently experiencing a surge in cases consumer confidence surveys show Australians feel far more confident about their economic prospects than New Zealanders do?Hon GRANT ROBERTSON: The member might like to talk the New Zealand economy down but I invite her to read the IMF's report where they congratulated New Zealand not just on the way that we dealt with COVID from a health perspective but also from an economic perspective. We have 3.2 percent unemployment in New Zealand at the moment. We have debt levels that are lower than the countries we choose to compare ourselves with. We have a thriving export sector and we have good prospects for New Zealand. New Zealand's economy is in good shape to get through COVID-19.Nicola Willis: Why does the Minister keep congratulating himself for his economic approach of more taxes more regulation and more poorly executed spending when the cost of living is soaring and New Zealanders' confidence is collapsing?Hon GRANT ROBERTSON: The IMF congratulated New Zealand for its economic performance. That is a result of the hard work of businesses and of households right across New Zealand. New Zealanders can be extremely proud of what they have managed through COVID-19. Now we're in a strong position to be able to recover and rebuild from there.Rt Hon Jacinda Ardern: Can the Minister confirm reports that during January of this year Australia's consumer confidence plunged to levels not seen since 1992 as a result of a wave of Omicron similar of course to the experience New Zealand is having which we too will recover from?Hon GRANT ROBERTSON: Yes and as I said in my primary answer an impact on the economy is often comparable to where we are in the pandemic cycle. New Zealand is in the peak of our Omicron outbreak but we are extremely well positioned to be able to come out of this. What however would not help us is untargeted tax cuts that the National Party is proposing for people earning over $180000 a year or for that matter increasing expenditure on everything from—Hon Gerry Brownlee: Point of order. I seek leave for a snap debate forthwith so that the Deputy Prime Minister who has relied on his attacks on the National Party over the last week and a half can better explain his position and—SPEAKER: Order! Order! The member will resume his seat. The member knows that he may not interrupt an answer for that sort of approach. I suggest that if the member wants to seek leave for such a debate he could do one at the end of question time and it might well be granted. There's a general debate. [Interruption] Well I think the Minister was rudely interrupted and I'm going to let him start again.Hon GRANT ROBERTSON: Oh very good Mr Speaker. Yes as I said in my primary answer earlier on Australia and New Zealand are experiencing the pandemic at different times. In New Zealand's case we are in the middle of Omicron and it is having a major impact on us. What we do know though is that we are in a strong position to recover from that. We also know that the kind of approach being favoured by the National Party of tax cuts to those who earn more than $180000 while at the same time claiming that they're going to be increasing expenditure on health and defence and housing simply doesn't add up."