6. Question No. 6—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 6—Finance6. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: Does he share concerns about New Zealand's economic outlook expressed by BNZ that business confidence is shattered uncertainty is very high and leading indicators of growth are weak"; if so how does he think these factors will affect New Zealand households over the next 12 months?Hon GRANT ROBERTSON (Minister of Finance): I do have concerns about the impacts of COVID-related global supply chain disruptions the effects of the war in Ukraine on global supply chain and services and resulting price increases. This is shared by the BNZ who said in their commentary on the Quarterly Survey of Business Opinion that "The pressures faced by business are all supply side." In answer to the second part of the question we certainly do acknowledge that many Kiwi households are facing a tough time and if we are realistic this is likely to continue through the second part of the first half of this year. That's why however it is positive that the BNZ has said that wages would also head higher which will support Kiwi households. The Government is doing what we can to give households certainty that what we will do to support them will continue—for example we've said that we have cut public transport fares in half instead of increasing them to the tune of $630 million as suggested by the Leader of the Opposition and it's also why we're targeting income support to low and middle income families instead of giving thousands of dollars of tax cuts for those on the top rate.Nicola Willis: Does he agree with the Reserve Bank's monetary policy committee who today stated: "Consumer confidence has been declining as domestic price pressures are outpacing nominal household income growth." and will he now admit that the cost of living is growing faster than New Zealanders' incomes?Hon GRANT ROBERTSON: The Reserve Bank is reflecting what all New Zealanders know: that at this particular time in 2022 it is tough for many households in terms of rising prices. I would note that in respect of the second part of the member's question the half-yearly update forecast from the Treasury indicates that 2022 is the only year in the forecast period in which inflation will outstrip wages.Nicola Willis: What will he do to restore economic confidence of middle-income New Zealand households squeezed by soaring costs and now facing rising mortgage rates with the biggest increase to the official cash rate in 22 years?Hon GRANT ROBERTSON: What this Government will do is continue the balanced approach that we've had of making sure that we keep debt low compared to other countries around the world; that we invest heavily in the things that those New Zealanders rely on such as a strong public health system good quality schools and making sure we have good quality transport networks right around New Zealand. And what we won't do is claim that we're going to be able to reduce debt at the same time as promising massive increases. I'm struggling to keep up at the moment with the member's party's promises but as far as I can tell it means more spending in areas like mental health in defence in transport but at the same time promising to cut taxes and lower debt—it's the Bermuda Triangle that National is still trapped in.Nicola Willis: Does he agree with the statement by the Reserve Bank's monetary policy committee that in discussing the underlying influences on higher domestic inflation "both international and domestic factors were important" or is the finance Minister the one person in New Zealand who doesn't think his policy decisions have an impact on inflation?Hon GRANT ROBERTSON: As was traversed in the question by the member's leader different policies implemented by different Governments will have an impact. If a Government were to adopt untargeted tax cuts that favour the most wealthy in New Zealand that will have a significant impact. On this side of the House we believe that we do have to continue to invest in our health system in our education system while making sure we keep a balance. The Reserve Bank has its job to do; the Government will keep doing its job."