5. Question No. 5—FinanceANDREW BAYLY (National—Port Waikato) to the Minister of FinanceQuestion No. 5—Finance5. ANDREW BAYLY (National—Port Waikato) to the Minister of Finance: What advice if any has he received on the economic impacts of recent higher energy prices and the economic consequences of power outages?Hon GRANT ROBERTSON (Minister of Finance): I have received advice from the Treasury and the Ministry of Business Innovation and Employment (MBIE) that this year wholesale electricity prices have been higher than normal and that this could have economic impacts particularly for the small number of energy consumers exposed to spot prices. The advice also included that over the longer term if wholesale prices return to their long-term averages it is unlikely that there will be long-term impacts on energy consumers. With regard to the second part of the member's question on the question of outages given the event referred to in the House today occurred only last night I have not received specific advice on the economic consequences of that. Regarding economic impacts it is worth noting that unemployment has fallen to its pre-COVID level of 4 percent while employment is growing. Data also shows that economic activity in New Zealand has returned to where it was pre-COVID levels. Andrew Bayly: How can New Zealand businesses dependent on wholesale electricity manage their operations when faced with a 56000 percent increase in prices that have gone from $373 per megawatt hour to $211000 per megawatt hour as happened yesterday afternoon?Hon GRANT ROBERTSON: The example the member gives was for a very brief moment last evening and I do understand that for the majority of those involved they would be unaffected by that. I also understand that the scarcity pricing provisions in the electricity industry participation code had been triggered and so the actual final prices would end up being much lower than those provisionally traded figures the member has quoted.Andrew Bayly: How can he say that this Government is doing its best for the economy when average monthly wholesale electricity prices have increased from $60 per megawatt hour in the six months prior to Labour coming to office to $260 per megawatt hour in the last six months a 330 percent increase—SPEAKER: Order! The member's question is finished.Hon GRANT ROBERTSON: A large number of New Zealand's major users hedge and so they make sure they stay ahead of the market in that regard. And in answer to the member's question I refer him back to my primary answer. Yes there were issues earlier in the year when we were facing a dry hydrological year but through that period of time the New Zealand economy is now operating at a level above where we were pre-COVID. Unemployment is at 4 percent and employment rates are increasing. Once again the New Zealand economy has shown its resilience through challenging times. The member might choose to celebrate that.Andrew Bayly: As the finance Minister of a Labour Government is he satisfied he has done enough to prevent businesses like Tasman pulp and paper or the Methanex Waitara plant from closing due to runaway costs of energy?Hon GRANT ROBERTSON: As the Minister of Finance in a Labour Government I am extremely proud of the fact that the New Zealand economy is now operating above where it was before COVID came along that people are going into work. There are always challenges within an economic environment and the New Zealand economy and businesses in it have shown their resilience.Andrew Bayly: What certainty can he provide to businesses that we will see wholesale electricity prices return to the $60 per megawatt hour that existed prior to Labour taking office?Hon GRANT ROBERTSON: I am not going to speculate on the exact price but if the member is trying to make out that the spike that occurred for a very brief period last night is somehow or other reflective of where we're going to go the member knows that's not right. I do find it somewhat ironic that members opposite are asking about power struggles. I should take advice from them on that. [Interruption]SPEAKER: Order!Andrew Bayly: Does he agree that an economy plagued by rapidly escalating power prices and rolling power outages is making it harder for New Zealand businesses and consumers to get ahead?Hon GRANT ROBERTSON: The member needs to come back to the facts of what's happening in the New Zealand economy. That is that economic growth in New Zealand is back where it was pre-COVID levels that unemployment is at 4 percent that more people are in work that wages are rising. The New Zealand businesses that I talk to are getting on with the job. The member might want to do that too.