4. Question No. 4—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 4—Finance4. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Does he agree with Kiwibank economist Jarrod Kerr that wage growth is not keeping up with the rapid rise in living costs"; if not why not?Hon GRANT ROBERTSON (Minister of Finance): As I've said a number of times in this House I agree that the current cost of living increases driven by what Mr Kerr classes as "offshore-originated inflation" are putting significant pressure on New Zealand households. In terms of wage growth I would note that average wage growth under Labour has been greater than Consumers Price Index inflation meaning Kiwis are better off now than they previously were. But we do acknowledge that there is significant pressure. That's why we've taken action to buffer the impact of fuel prices on households and have brought in a range of measures to support those on low and middle incomes—a far better policy than untargeted tax cuts that disproportionately benefit those on the highest incomes as favoured by the member.Nicola Willis: Well can he confirm that in the past year New Zealand's non-tradable inflation—that is price increases for those goods and services whose prices are largely determined here in New Zealand rather than by international markets—soared to 5.3 percent in the December quarter and does he accept that Government decisions have an impact on inflation?Hon GRANT ROBERTSON: Those are indeed the numbers that the member quotes but I'd invite her to turn the page over in the Kiwibank report that she used in her original question and see this slide that is entitled "offshore-originated inflation" and it talks about Russia's invasion of Ukraine petrol price impacts lockdowns in China and other supply chain issues—offshore-originated inflation.Nicola Willis: Why does he continue to reject any responsibility for New Zealand's worsening economic conditions when a Kantar survey released today shows half of small businesses see Government leadership as a top reason for their lack of confidence in our local economy?Hon GRANT ROBERTSON: I refer the member to Xero's small business survey data—data on the basis of a survey of small businesses—which revealed rising wages and jobs in the small business sector as released last week. There is no doubt a number of small businesses have done it tough in New Zealand over the past couple of years. It's one of the reasons why the Government has supported them to the tune of around $24 billion worth of support.Nicola Willis: Well is he concerned that a Kantar survey of small and medium businesses shows the majority of small to medium sized enterprise owners and managers say they are dissatisfied with the performance of the Government over the past 12 months and does he intend to change anything in response to their concerns?Hon GRANT ROBERTSON: We always listen to small businesses and work closely with them to support them as we have over the course of the last couple of years. What I do know is that in New Zealand small businesses have received a greater degree of support than they have in other countries around the world and that small businesses are getting on with the job now looking forward to tourists returning looking forward to more overseas labour being available to them.Nicola Willis: Does the Minister agree with BNZ's assessment today that business confidence is shattered uncertainty is very high and leading indicators of growth are weak and if so what will he be doing to reduce pressure on the generators of wealth in New Zealand's economy?Hon GRANT ROBERTSON: In answer to the first set of those questions yes there is a very difficult period of time facing New Zealanders at the moment. What I'll do is make sure that the Government continues to put pressure as the rest of the international community is on the Russian Government to make sure that we end the invasion of Ukraine which is causing massive oil price increases. I'll make sure that we continue to support our exporters as we have done throughout COVID-19 by making sure that imports and exports get in and out of New Zealand through our air freight subsidy scheme. I'll make sure that the Small Business Cashflow Scheme continues to be available and that people take up the top-up where that's necessary. On this side of the House we're very proud of our record in supporting New Zealand households and businesses through COVID-19 which actually means we're in one of the strongest positions in the world to deal with the challenges of 2022."