5. Question No. 5—FinanceHon SIMON BRIDGES (National—Tauranga) (remote) to the Minister of FinanceQuestion No. 5—Finance5. Hon SIMON BRIDGES (National—Tauranga) (remote) to the Minister of Finance: Does he agree that New Zealand has a cost of living crisis; if not why?Hon GRANT ROBERTSON (Minister of Finance): I acknowledge that there is considerable pressure on household budgets at the moment from inflation caused largely by global factors. I don't agree with the member's characterisation. What the world is experiencing what forecasters are telling us is a spike in headline inflation primarily driven by global issues like supply chain disruptions as ports are closed due to COVID-19 and from global oil prices which has now been exacerbated by the Russian invasion of Ukraine. It's worth noting that quarterly inflation was lower in the December quarter compared to September at 1.4 percent compared to 2.2 percent and is projected by the Reserve Bank to continue trending downwards. This sees annual Consumers Price Index (CPI) inflation peaking in the March quarter and then falling across 2022 and 2023.Hon Simon Bridges: Does he agree with the Prime Minister as reported by Newshub on the cost of living that While things are bad now they are expected to improve soon."?Hon GRANT ROBERTSON: As I just said to the member the forecasts from the Reserve Bank and others are that inflation will peak in the March quarter and then fall across 2022 and 2023. That does not in any way undermine the fact that for many households it is tough when there are rising prices. That's why this side of the House has supported those on low and middle incomes with things such as increases to benefits and the minimum wage—opposed by the National Party.Hon Simon Bridges: On what basis does he expect New Zealand's cost of living crisis to improve soon?Hon GRANT ROBERTSON: On the basis of a number of forecasts that indicate that while inflation will spike up and is spiking up there will be a reduction in that over the course of 2022 and 2023.Hon Simon Bridges: With banks predicting inflation may go to 7 percent or higher and the Reserve Bank signalling consistent interest rate hikes over the next couple of years isn't the chance of New Zealand's cost of living crisis improving soon very low?Hon GRANT ROBERTSON: As I've said now three times in my answers the forecasts that we have from the Reserve Bank and the Treasury are to see that the CPI inflation will begin falling across 2022 and 2023. No one is underestimating that this is a challenging period for many households and indeed for New Zealand when we are faced with the global supply chain constraints that we are and the rising cost of oil. What a Government can do in the face of this is look after the most vulnerable our low and middle income earners. That is what the Government is doing. Also a Government that has overseen wage increases outstripping inflation in the period leading up to this time. This Government stands by our record in that regard.Hon Simon Bridges: Given rents are up $140 food prices more than 13 percent petrol is hitting $3 a litre the real wages are now going backwards under his Government's watch don't New Zealanders need meaningful tax relief at Budget 2022?Hon GRANT ROBERTSON: What New Zealanders need is a Government that has the consistency to look after them to make sure that we invest in supporting those on low and middle incomes to make sure we see jobs created so that the way that people have money in their pockets is through wages and higher wages. The kind of proposals that the member is supporting not only will be inflationary right now but they also will mean that we underinvest again in health and education as he did the last time he was in office.Hon Simon Bridges: In light of the upcoming Budget's historic $6 billion in new spending why can't a portion of it go on tax relief to hurting New Zealanders as the cost of living crisis continues to worsen?Hon GRANT ROBERTSON: The problem that the member has is that his proposal's not just about this Budget because his leader said on the weekend that this approach that they want to take to taxation will now continue into future Budgets which means it has to be priced in there which means there will be further cuts in public services or higher debt. The member is falling into the same trap of his predecessors. He can't have all three things happening at once—taxes going down debt going down and spending staying the same or going up. And I would note the member has spent several weeks telling me that I shouldn't have a $6 billion one-off operating allowance in Budget 2022. And now he wants to spend all of it. He should try to be a bit more consistent."