2. Question No. 2—FinanceCATHERINE WEDD (National—Tukituki) to the Minister of FinanceQuestion No. 2—Finance2. CATHERINE WEDD (National—Tukituki) to the Minister of Finance: What recent reports has she seen on the New Zealand economy?Hon Grant Robertson: That's not very original!Hon NICOLA WILLIS (Minister of Finance): It's going to be a whole lot better though. The reports I have seen confirm that our Government has inherited very challenging economic conditions. New Zealanders are struggling with a cost of living crisis and persistent inflation that has been outside of the Reserve Bank's target range for 2½ long years. The official cash rate is at its highest level in 15 years pushing mortgage interest rates over 7 percent. The Government books are in deficit and are burdened by more debt than at any point since 1995. Average tax rates for working people have risen and in the past year per capita growth completely stalled.Hon Grant Robertson: I think you should answer the question.NICOLA WILLIS: Mr Robertson it's time for policies that back growth and investment that reduce the tax burden on working people and that restore discipline to Government spending and that's exactly what our Government will do.Catherine Wedd: What state does the Pre-election Economic and Fiscal Update (PREFU) suggest the books are in?NICOLA WILLIS: Terrible shape. The Pre-election Economic and Fiscal Update showed that New Zealand is expected to run a deficit of $11.4 billion this year. Since 2017 growth in Government spending has vastly outstripped growth in revenue driving a very large deficit. Previous promises made by the outgoing Minister of Finance to reduce Government spending after the pandemic—those promises were broken with Government spending this financial year substantially higher than at any time during the pandemic including periods where large parts of the country were locked down and businesses forcibly closed. Having inherited strong surpluses in 2017 the previous Government delivered years of fiscal deterioration and our Government's job will be to deliver the necessary repair.Catherine Wedd: What reports has she seen on the outlook for Kiwi dairy farmers?NICOLA WILLIS: Well I know that that member and many of her constituents understand that farmers remain the backbone of this country and they finally have a Government that is committed to reducing the burden of regulation that was piled high by the previous one. Dairy farmers across the country will be pleased with the news today that Fonterra have increased their forecast farm-gate milk price by 25c to $7.50—better times ahead.Catherine Wedd: Has she—SPEAKER: Just wait till I actually call you if that's OK. So Catherine Wedd.Catherine Wedd: Oh thank you Mr Speaker. Has she seen the latest ANZ Business Outlook report and what does it indicate about the mood of the New Zealand business community?NICOLA WILLIS: Well yes I have and our Government might have inherited challenging economic conditions but clearly our election has given many reason for hope because ANZ's Business Outlook shows business confidence is already higher than at any point during the last Government's tenure. In fact it's at its highest level since March 2015. This is obviously an indictment on the last Government's disregard for the business community. But furthermore it is an endorsement of this Government's plan to bring costs down on business remove unnecessary regulation deliver tax relief and beat inflation. After years of stagnation under Labour there is a big job to do. For six years Kiwis have felt the pain as our country's economy has crawled along under the weight of a red-tape loving big spending big-tech taxing fiscally reckless Government and I am proud to say that we now have a Government that is committed to getting our economy back on its feet.Hon Kieran McAnulty: Point of order Mr Speaker. Just wondering if the Speakers' rulings that have been applied consistently over many years that Governments cannot ask themselves a question for the purpose of attacking the Opposition are still in place?SPEAKER: Yes that's quite right and I'll be more vigilant on future occasions.Hon Grant Robertson: Can the Minister tell the House what the projected net debt for New Zealand was in the PREFU that she mentioned in her supplementary question?NICOLA WILLIS: What I can tell the House is that debt has gone in New Zealand—Government debt has gone from $5.4 billion up to $100 billion.Hon Grant Robertson: Point of order Mr Speaker. I asked a specific question of the member. She clearly doesn't know the answer to that specific question. She's now using that question to attack the Opposition; that is against many Speakers' rulings in the past.SPEAKER: Well that may be something you anticipated but she's only less than 10 seconds into that answer. Hon Grant Robertson: Attacking.SPEAKER: Well I didn't take it as an attack so I'll ask the Minister in her answer not to make an attack on the Opposition. It's not appropriate; just stick to the facts. The facts always speak for themselves.NICOLA WILLIS: Net debt in the Pre-election Fiscal Update can be found in the Pre-election Fiscal Update and I wonder if the member paid as much attention to that figure when he was spending New Zealanders' hard-earned money with wild abandon as he is today in this House. And if only he had then we wouldn't be in a position where our debt as a country is higher as a proportion of our economy than at any point since 1995.Rt Hon Winston Peters: Could I ask the finance Minister as to whether or not all the recent economic and inflation evidence suggests that Labour on their own couldn't run a proverbial in a you-know-what?SPEAKER: No that's not a question—not a question.Rt Hon Winston Peters: That's a very present question.SPEAKER: It's an interesting question for you but not for the House.