1. Question No. 1—FinanceDAVID MacLEOD (National—New Plymouth) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. DAVID MacLEOD (National—New Plymouth) to the Minister of Finance: What reports has she seen on the cost of living?Hon NICOLA WILLIS (Minister of Finance): I have seen many reports that show New Zealanders have experienced major cost of living pressures in recent years. Since 2017 there has been cumulative inflation of 24.6 percent with annual inflation peaking at 7.3 percent—the highest rate of inflation in more than 30 years. The latest data shows inflation remains high at 5.6 percent and so it is clear that the Government has plenty of work to do. We know Kiwis are doing it tough after six years of economic mismanagement which is why we are moving quickly to rebuild the economy for all New Zealanders.Rt Hon Chris Hipkins: Come on Mr Speaker. You said that this wasn't going to be allowed. SPEAKER: That's quite true but in this case the question stopped pretty abruptly when a look went in a certain direction and that will continue.David MacLeod: What specific cost of living pressures have New Zealanders faced?Hon NICOLA WILLIS: Food and rent are big pressures Kiwis face and the cost of both has soared in recent years. Since 2017 food prices have increased by 29.3 percent above the overall rate of inflation. Over the same period average rents have increased by $180 per week—a 45 percent increase. It is no surprise that Kiwis feel like they're falling behind when the cost of basics like food and rent have increased so much. That's why this Government is taking action to rebuild the economy so hard-working Kiwis can get ahead.David MacLeod: How has the rise in the cost of living impacted interest rates?Hon NICOLA WILLIS: In response to rampant inflation the official cash rate has risen to 5.5 percent much higher than the 1.75 percent inherited by the last Government in 2017. The effect of that significant tightening in monetary policy is a significant lift in mortgage interest rates putting more pressure on Kiwis who are already struggling to pay the bills. It is a good reminder that there is no free lunch from rampant Government spending; it just leads to higher taxes more debt and as so many Kiwis are facing right now higher interest rates.David MacLeod: What plans does the Government have to support Kiwis struggling with the cost of living?Hon NICOLA WILLIS: Beating inflation is this Government's top priority which is why we are moving quickly to bring inflation down. We're restoring the Reserve Bank's single focus on inflation. We're reducing costs on businesses by cancelling the ute tax. We're clearing away broken regulations like the previous Government's Resource Management Act replacement. And next year we will be delivering tax relief for hard-working Kiwis struggling with the cost of living so they can keep more of what they earn.Hon Grant Robertson: Is the latest OECD economic outlook on New Zealand correct when they said that we should not have tax cuts if we want to counter inflation and improve the cost of living?Hon NICOLA WILLIS: No because New Zealanders have been overtaxed by a Government that oversaw rampant spending increases and their bank accounts have been eroded not only by inflation but also by higher average tax rates and they have elected a Government that's going to let them keep more of what they earn.Chlöe Swarbrick: Has she read IRD and Treasury's research which shows that the wealthiest families in this country pay less than half the effective tax rate of teachers nurses emergency and essential workers and the average New Zealander?Hon NICOLA WILLIS: I disagree with the member's interpretation of research issued by the IRD.Chlöe Swarbrick: Why is her Government repealing under urgency public reporting on the fairness of our tax system and pushing ahead with trickle-down tax cuts that disproportionately increase the burden on lower-income New Zealanders? [Interruption]SPEAKER: Just a moment. There will eventually be a consequence for speaking while someone is asking a question. Just as people don't like answers at times some people don't like the questions. Do not speak while someone's asking a question.Hon NICOLA WILLIS: The newly elected Government is not of the view that reporting on things and publishing glossy documents actually meaningfully changes people's lives for the better as the past Government conclusively proved over six years of bureaucracy report writing and printing.