1. Question No. 1—FinanceDAN BIDOIS (National—Northcote) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. DAN BIDOIS (National—Northcote) to the Minister of Finance: What recent reports has she seen on the cost of living?Hon NICOLA WILLIS (Minister of Finance): Last week Stats New Zealand released the Consumers Price Index for the final quarter of last year. This showed that inflation was 4.7 percent in the year to December. While that is an improvement on the 5.6 percent inflation in September it is still far too high. What is really striking is when one looks over a longer time frame: the Stats NZ figures show for example that over the last three years prices have risen a total of 19 percent. That 19 percent in only three years represents a cost of living crisis that has eroded the real value of people's incomes and savings and has made their lives much more expensive.Dan Bidois: Is New Zealand's inflation rate being driven by overseas factors?Hon NICOLA WILLIS: To some extent yes—Hon Grant Robertson: Judith Collins just said yes.Hon NICOLA WILLIS: —but to a greater extent no.Hon Grant Robertson: Oh you'd better tell Judith.Hon NICOLA WILLIS: Mr Robertson should listen because I think he'll learn something. Inflation is influenced by global disruptions that raise the price of imports. Right now for example supply chains are under considerable strain from the Red Sea attacks and the Panama drought. But global factors are not the main contributors to inflation. The Stats NZ figures from last week show that tradables inflation covering goods and services that are imported or that compete with foreign goods has dropped significantly. On the other hand non-tradables inflation has stayed stubbornly high. So domestic factors rather than global factors are playing the greatest role in driving inflation right now.Dan Bidois: What has the Government been doing to help bring down inflation?Hon NICOLA WILLIS: Last year the Government introduced legislation which this House passed to bring back a single mandate for monetary policy—that mandate is price stability. Having a single price stability mandate has served New Zealand well since its introduction more than 30 years ago and the experiment of the last five years of having a dual mandate failed spectacularly. This Government went back to a single mandate to ensure that monetary policy decision makers and those observing them have no doubt that busting inflation is our goal and that they are to have an unerring focus on achieving price stability. Dan Bidois: What else is the Government doing to help with the cost of living?Hon NICOLA WILLIS: The Government's 100-day plan contains a number of measures to help New Zealanders hit by large increases in the cost of living. Nothing—Hon Grant Robertson: Nothing—that's right!Hon NICOLA WILLIS: Well nothing can instantly make up for a 19 percent increase in costs but New Zealanders will welcome measures such as cancelling fuel tax increases for the remainder of this term and removing the Auckland regional fuel tax. They will also appreciate the steps our Government is taking to ensure maximum value for every taxpayer dollar spent. Later this year Kiwis can also look forward to a personal income tax reduction that will put more money in their back pocket.