3. Question No. 3—FinanceHon SIMON BRIDGES (National—Tauranga) to the Minister of FinanceQuestion No. 3—Finance3. 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 made. In particular I stand by my statements that global pressures including supply chain issues and higher oil prices are contributing to higher inflation with the Consumers Price Index growth forecast today by the Treasury to peak in the first quarter of next year before falling across 2022. I also stand by our actions to support low-income New Zealanders at this time including by lifting their incomes through lifts to benefit rates and the minimum wage. I look forward to the member's new-found enthusiasm for that.Hon Simon Bridges: Does he accept that inflation is as Cameron Bagrie says a thief that steals savings reduces purchasing power and pressures firms' margins." and if so when will he rein in his inflationary spending and address the big rises in costs we're seeing right now?Hon GRANT ROBERTSON: The member fundamentally misunderstands the situation that New Zealand is in. If he goes back to the Budget when inflation was tracking at a level that was within the Reserve Bank's target range and looks at the spending that the Government has done since then that spending that extra spending of $10 billion has been $7 billion of support for businesses and workers and $2.8 billion worth of support for the health system. If the member is opposing the additional support that we provided to businesses and workers and the health system he is free to do that; it hasn't been what his colleagues have been saying.Hon Simon Bridges: Does he accept taking core Crown expenses to $128 billion next year—68 percent more than when he first became finance Minister—in an already hot economy will raise inflation and really hurt Kiwis?Hon GRANT ROBERTSON: No. What I do accept is that core Crown expenses are up at 35 percent now in response to a crisis—interestingly enough the same level they were when the previous National Government responded through to the Canterbury earthquakes—and then they come down across the forecast period to 30 percent and stay steady at 30 percent. Those core Crown expenses are the things that pay for our health system that pay for our education system that pay to build State houses—the National Party don't like doing that but we know that that is our responsibility.Hon Simon Bridges: Does he accept his spending is currently contributing to 9.4 percent rent inflation 28 percent building supplies—SPEAKER: Two questions.Hon Simon Bridges: —30 percent housing—SPEAKER: Three questions.Hon Simon Bridges: —9 percent fruit and veges—I could go on—SPEAKER: You can't.Hon Simon Bridges: —and that this has seriously increased spending next year will make things even worse?Hon GRANT ROBERTSON: No I do not accept the latter part of the member's question. What I do accept is that global supply chain issues are putting pressure on things like building supplies and on food prices. I presume that the member is now proposing some form of Muldoonist price freeze. Well again that's up to the member if that's what he wants to propose.Hon Simon Bridges: Does he understand that with inflation set to go to 5.6 percent next year from 4.9 percent currently and wages not set to grow that fast we are in a cost of living crisis for Kiwis and he really needs to move on it?Hon GRANT ROBERTSON: What I know is that wages outstripped inflation going into this period of the COVID era and that the Treasury is forecasting that that inflation rate will peak in the first quarter of next year and then by the end of next year wages will outstrip inflation. I'm not going to be lectured by the National Party about wages because this is a party that has consistently opposed everything that this Government has done to increase New Zealand's wages. Mr Bridges you also have to remember that each time one of your colleagues decides to stand up and ask the Government to spend more money—Nicola Willis on housing or Matt Doocey on mental health—you've said "No. No more spending."Hon Chris Hipkins: Can the Minister of Finance confirm that one of the drivers of an increase in spending in areas like health and education has been long overdue pay increases for people like nurses and teachers and teacher-aides and some of our lowest paid public servants?SPEAKER: No. No the member's not going to because colleagues of the member interjected during the question."