2. Question No. 2—FinanceANNA LORCK (Labour—Tukituki) to the Minister of FinanceQuestion No. 2—Finance2. ANNA LORCK (Labour—Tukituki) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): The ANZ World Commodity Price Index rose a further 3.9 percent in March to a record high with broad-based gains once again led by dairy and aluminium. Dairy surged 7.6 percent compared with February as buyers snapped up limited supplies. Forestry rose 3.3 percent due to demand from China amidst supply restrictions there while horticulture was flat amid bad weather and shortages of labour. Meat and fibre eased as beef prices also eased—though they are still close to historic highs—while lamb prices edged up. All of this points to the fact that the primary sector is continuing to play an important role in supporting our economic recovery and rebuild. SPEAKER: Before I call a supplementary I just want an assurance from the Hon Mr Simpson that he didn't just breach photography rules in the House. Hon Scott Simpson: No Mr Speaker. SPEAKER: Thank you. The member didn't take a photo. OK thank you. Hon Scott Simpson: Fiddling on my phone though.SPEAKER: Sorry?Hon Scott Simpson: I was fiddling on my phone though. SPEAKER: Right. Admiring the person on his right as well. Anna Lorck: What constraints has he seen on the primary sector supporting the economy? Hon GRANT ROBERTSON: The global economic environment remains volatile with shipping costs continuing to remain elevated due to delays particularly at Chinese ports. The ANZ Commodity Price Index report said that the Baltic Dry Index—an important measure of shipping costs—lifted 15.5 percent during March while the Harper Petersen world container index hit record levels. New Zealand continues to face ongoing supply constraints due to the pandemic exacerbated by these cost increases. We will be continuing to support our primary sector and exporters through the uncertain times that we're in by making sure that goods can get in and out of New Zealand—in particular through our airfreight subsidy scheme. The support through that scheme has so far enabled more than 13200 flights carrying over 250000 tonnes of airfreight worth more than $20 billion.Anna Lorck: What other reports has he seen on the economy?Hon GRANT ROBERTSON: Statistics New Zealand today released the food price index for March. It does show prices rose 0.7 percent in March compared with the previous month and after removing regular seasonal impacts food prices rose 0.4 percent. For the year prices rose 7.6 percent the largest increase since July 2011 when prices rose 7.9 percent. Rising food prices are a global phenomenon—for example the United States reported overnight that food prices rose 1 percent in March 2022 compared with the previous month and 8.8 percent for the year. The environment continues to remain volatile with the ongoing COVID-19 disruptions and Russia's invasion of Ukraine pushing up prices. We acknowledge that the rising cost of living is a crisis for some New Zealanders and that's why we have supported low and middle income earners through reductions in their fuel bills and income increases. These are measures that can make a difference to households rather than unfocused tax cuts favoured by the Opposition that would benefit those earning over $180000 the most.Nicola Willis: Does the Minister seriously expect New Zealanders to believe that domestic policy settings have not contributed to the soaring cost of Kiwi-grown fruit and vegetables up 18 percent in the past year alone?Hon GRANT ROBERTSON: I'm not sure if the member is aware but in order for goods to get from where they are grown to the places where they are sold it requires them to go on something called transport and that unfortunately has seen significant cost increases particularly due to the price of fuel.Nicola Willis: Would the Minister care to mansplain further— SPEAKER: Order! Order! End of question. I should have ruled the first question out. The member knows that. I've been pretty lenient with her over time but I think now she's in a senior position she must stay within Standing Orders. The Minister does not have responsibility for the first part of that question. Hon Michael Wood: Does the Minister believe that domestic and international airlines would have been able to stand on their own two feet without the Maintaining International Air Connectivity scheme? Hon GRANT ROBERTSON: Well I believe that all airlines have benefited significantly from the international air connectivity scheme. In terms of New Zealand obviously the Government has stepped in to support Air New Zealand. It's certainly true that subsidies are important sometimes to keep transport going. I'm not sure if that applies to the supply of black Mercedes to drive across the road but I'll find that out.