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 agree with ANZ that it's clear that New Zealand has a serious home-grown domestic inflation problem that needs to be dealt with"; if so what steps if any other than temporary reductions to fuel excise and a temporary cost of living payment is he taking to deal with this problem?Hon GRANT ROBERTSON (Minister of Finance): In answer to the first part of the member's question it is worth noting this quote was in an article by ANZ saying that the June quarter's 7.3 annual inflation rate looks to be the peak in the current cycle. I do agree that our current inflation rate needs to be dealt with and that's why the Government at least supports an independent Reserve Bank which has the tools to deal with this just as every other central bank in the developed world is looking to do. To answer the second part of the member's question I thank her for her acknowledgment of the important role of the cuts to fuel excise duty and the cost of living payment for helping New Zealanders to deal with the current inflation spike. To bring the member up to date on some other steps—and at the risk of incurring the Speaker's wrath—we have introduced or are continuing an equivalent reduction in road-user charges; half-price public transport until 31 January next year and then permanently for community services card holders from 1 February; increases to Working for Families superannuation student allowances and main benefits which kicked in from 1 April on top of increases in earlier years; indexation of benefit payments to the average wage; working with the supermarket sector so that Kiwis finally get a fair—SPEAKER: Order! I am looking down at the lengths of what the member has in front of him and I think he's done enough.Nicola Willis: Does the Minister understand that the measures he's just outlined address the symptoms but not the causes of domestic inflation and what is he doing to address the surge in domestic non-tradeable and core inflation?Hon GRANT ROBERTSON: Just to take one example one of the things I mentioned was the work that we are doing in the supermarket sector. For too long across many Governments New Zealanders have paid too much for their food as a result of not having sufficient competition in the sector and not giving people a fair go in areas like the wholesale market. The Government—this Government—is addressing that.Nicola Willis: Does the Minister understand what non-tradeable core inflation is and if so could he explain why he thinks the prices of hairdressing and personal grooming services have increased by 6.1 percent in the past year and any relationship that has with the war in Ukraine?Hon GRANT ROBERTSON: Obviously for the member's benefit when we talk about non-tradeables and domestic they are not necessarily the same thing. We don't break non-tradeables down by their inputs for example. So if we were to take one example: building materials which significantly contribute to issues around housing within inflation 90 percent of the construction products that are used in New Zealand come in from offshore. Yet that is counted within non-tradeables.Nicola Willis: Would the Minister care to explain why rents have increased by the highest on record in the inflation series?Hon GRANT ROBERTSON: Well the member opposite might be able to help me with that which is the fact that houses weren't built under her Government's watch to the extent that we have had to play catch-up so that supply of rentals are simply not there. That is not to undermine the fact that many New Zealanders including those who rent are doing it tough at the moment and that's why this Government has been providing support to low and middle income New Zealanders rather than proposing tax cuts for the most wealthy.Nicola Willis: Has the Minister noted the stance of the incoming Australian Labor Government who have outlined $11.5 billion in budget reductions stating "[They cannot] throw money around and [...] be blind to the consequences." and when will he start applying some fiscal discipline in New Zealand?Hon GRANT ROBERTSON: In the Budget that the Government put down in May we outlined a path that would see expenditure as a percentage of GDP return to the long-run average of around 30 percent. It always takes a careful balance when putting a Budget like this together. What this side of the House won't be doing is claiming that we can—at the same time—cut taxes reduce debt and increase spending. Paul Goldsmith's Bermuda Triangle is alive and well in the National Party.Nicola Willis: Does he consider that the Reserve Bank's money-pumping decisions have in any way contributed to record-high inflation and if so why isn't he prepared to expose its decision making to independent scrutiny?Hon GRANT ROBERTSON: The Prime Minister has already covered this in answers that she gave earlier on. The Reserve Bank's decisions are already open to independent scrutiny on a very regular basis including by the member at the Finance and Expenditure Committee. What I can commit this side of the House to is respecting the independence of the Reserve Bank and also sticking by the position that we had on fiscal policy—unlike the member's party who are flip-flopping around and are now telling New Zealanders that should we ever God forbid end up in another pandemic situation they can't be relied on to support businesses and households.David Seymour: Point of order Mr Speaker. Just reflecting on Speaker's ruling 191-2 which you mentioned earlier it says you cannot as a Minister bring a political party into an answer when they have not been mentioned in the questioning. I'm wondering how Paul Goldsmith's Bermuda Triangle or any other of National's alleged policies were relevant in that answer. Is that not a breach of 191-2?SPEAKER: No it's not."