Mahuta NanaiaHon NANAIA MAHUTA (Minister of Foreign Affairs): The saying Think global act local" is certainly true for me. Foreign affairs and local government urges one to focus the mind on issues ranging from rural water supplies for our most isolated communities to harnessing the potential of our young people growing the Māori economy while addressing the most pressing concerns beyond our borders—from climate change to the war in Ukraine to the impacts of a global pandemic. So much of what we experience is driven by global factors.Europe is entering unchartered waters this winter with energy prices 10 times higher than before Russia's war on Ukraine. Globally diesel prices increased 74 percent in the last year. Some expect inflation in the UK to reach 18 percent in the first quarter of 2023 the highest level for the UK since 1976. US inflation is at its highest in a generation and there are fears of entrenchment. The Chinese economy is slowing with growth below 4 percent and they're still focused on a COVID elimination strategy that sees more than 40 cities in lockdown. Declining orders from China and Hong Kong are causing concern across the rest of Asia. Over in Australia the global downturn could have a significant impact on the economy of our closest partner.Here at home we're not immune to global impacts on our economy. Our inflation though below the OECD average has caused a significant cost of living crisis for New Zealanders and hardship for many. It has required high levels of Government support and we've stepped up with the cost of living payment for low and middle income earners fuel excise cuts of 25 cents per litre to help people fill up the petrol tank and get to work and school and we're working with the supermarket sector so that Kiwis can pay a fair price at the checkout. In addition to that we've increased Working for Families superannuation the student allowance and main benefits from April of this year. In infrastructure we're moving after decades of neglect—exposed by councils the Auditor-General health authorities and others—that has resulted in toxic brown water spilling out of household taps. We're strengthening the foundations our economy is built on especially in infrastructure through our waters reform.The one thing we cannot afford to lose sight of is the infrastructure deficit that we face. We're confronting challenges because we have an economic advantage and a Government philosophy that is in many cases unique to New Zealand. The economy is nearly 5 percent bigger than before the start of the pandemic—similar to Australia and ahead of the US the EU the UK and Canada. Since July 2020 more than 200000 New Zealanders have taken up free apprenticeships or trades training. We're backing Māori and Pacific aspirations. Our Māori and Pacific economies contain massive massive potential. By realising the potential of Māori-owned land and training our rangatahi through initiatives like Mana in Mahi and the cadetship programme we're ensuring all parts of the New Zealand economy have the same opportunities to grow.The state of the world is not cause for despair in totality. We need to remain optimistic as we come through one of the most difficult winters in memory. These are challenges but we can get through it. And it's important to ensure that we're investing where it matters: better health education mental health and housing. We're also preparing for what the world might throw at us at this very uncertain time. We're keeping a lid on debt and making important investments to deliver a high-wage low-emissions economy that provides greater security in the good times and the bad. New Zealand is well positioned to respond to the challenges ahead whether it be health and safety of our drinking water war or pandemics.Under the leadership of the Rt Hon Jacinda Ardern and our Minister of Finance Grant Robertson our Government has responded to a global pandemic where there was no rule book; responded to our climate change challenge and is focusing on the needs of the Pacific; and responded to conflict and crisis around the world to buffer the negative impacts—all the time balancing responsible economic management while caring for people. That's why there's cause for optimism. That's why we need to continue to move forward."