4. Question No. 4—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 4—Finance4. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: What impact if any is the rising cost of living and rising interest rates having on New Zealanders and their families?Hon GRANT ROBERTSON (Minister of Finance): The cost of living and associated impacts have been tough on many New Zealand families. These impacts will differ from person to person and family to family. That's why this Government has taken significant steps to continue helping them out. This includes the changes on 1 April that will assist 880000 pensioners who get a boost to their super including: 5000 veterans; 52000 students seeing an increase in their allowance or loan living costs; a quarter of a million workers receiving a wage rise as the minimum wage is increased to $22.70; and 345000 families better off through Working for Families. The year 2023 is a tough time for many New Zealand families but all of these are meaningful improvements which will help them and all of which the Opposition voted against.Nicola Willis: Has the Minister considered that a New Zealander with an average outstanding mortgage balance of $482000 who is re-fixing their mortgage this year to an interest rate roughly double what it was will need to find an extra $630 to service their mortgage every fortnight?Hon GRANT ROBERTSON: Circumstances will differ from case to case depending on the type of loan that's been taken out but absolutely; there are people who are re-fixing their mortgages for whom there is a significant additional cost. That's the reason why I am both proud of the things that we've done to support low and middle income families and also note that the average annual household income from wages and salaries increased by 8.7 percent in the year ending June 2022.Nicola Willis: Is he concerned that a growing number of New Zealanders are unable to meet their mortgage payments with those in arrears up 23 percent in the past year alone?Hon GRANT ROBERTSON: I'm always concerned about whether or not New Zealanders have got the resources they need to make ends meet. That's why I'm pleased that wages have been keeping up with inflation and why I'm pleased that the Government has put more resources into supporting New Zealand families.Nicola Willis: What is his explanation for why Australia's inflation and interest rates are lower than New Zealand's?Hon GRANT ROBERTSON: This has already been covered in the question—Hon Member: No it wasn't.Hon GRANT ROBERTSON: —answered by the Prime Minister—well it was—but clearly Australia's inflation rate actually peaked higher than New Zealand's. The economic cycle in Australia and New Zealand are in different places but New Zealand's economy is very well placed to deal with the situation we're in. I would note that as at December 2022 New Zealand had the 11th lowest inflation rate out of 38 OECD countries. That doesn't make it any easier for people who are facing increased costs but this is a global phenomenon.David Seymour: Does the Prime Minister think the explanation he just gave will satisfy 5000 nurses signing to work in Australia or the many patients missing them in their hospitals and GP clinics?Hon GRANT ROBERTSON: You better ask the Prime Minister that.David Seymour: Point of order Mr Speaker. I don't see how it's addressing a question to say that You should ask someone else that question." I mean if that's addressing a question then no one's going to have to answer anything.SPEAKER: When you go back and read Hansard you'll see why.Nicola Willis: Is he aware that in addition to Australia's inflation rate being lower than New Zealand's today it was also lower than New Zealand for nine out of 12 months last year; and isn't it an indictment on his economic management when two-thirds of small and medium sized businesses polled in the most recent business monitor by MYOB say they are "dissatisfied" with his Government's performance?Hon GRANT ROBERTSON: Well there's been a history of that particular monitor that the member might like to go over—Hon Paul Goldsmith: Yeah they don't like it.Hon GRANT ROBERTSON: —and have a look at relative performances. But Mr Goldsmith the only time I went in front was when you were the finance spokesperson. [Laughter]SPEAKER: Order! Silence please.Nicola Willis: Is he concerned by statements made by Standard & Poor's recently saying that New Zealand was "catching our attention" because of the "persistently weak and worsening current account position of the New Zealand sovereign particularly given that it has been quite weak the last year or two…" and the rating could come under pressure and what urgent steps is the Minister taking to address this?Hon GRANT ROBERTSON: What I would note—yes I did see those comments—is that New Zealand is one of the few countries that during the COVID period had our credit rating increased. We will always continue to monitor New Zealand's economy to ensure that we get the balance right. But I think you can see by the ratings that we have earned over recent years that New Zealand's economy is seen in the world as well managed.Hon Eugenie Sage: A point of order. Thank you. Mr Speaker. In Minister Parker's answer to my previous questions he said that I was part of the Government involved in releasing Revitalising the Gulf—Government action on the Sea Change Plan. That strategy in response to the Sea Change - Tai Timu Tai Pari Hauraki Gulf Marine Spatial Plan was released in June 2021. It was during the term of the current Government. SPEAKER: That's not really a point of order but however.David Seymour: Does the Minister accept that after-tax incomes grew by an average of 6.2 percent last year compared with inflation that grew at 7.2 percent and when will he do the obvious thing and cut taxes on working families so they can keep more of their own hard-earned money?Hon GRANT ROBERTSON: Well as I said in my earlier answer there's a number of ways that we can measure where people are at in terms of their income and the average annual household incomes from wages and salaries actually grew by 8.7 percent. When it comes to the second part of the question around the member's policy on tax cuts he's utterly entitled to those ideas. On this side of the House we know that it's important to keep a balance here and make sure we actually look after our low and middle income New Zealanders. I know the member doesn't think the people who earn the minimum wage count but we do.David Seymour: Does he accept that income taxes average 22 percent of all income earned up from 20 percent when he first became finance Minister and when will he do the obvious thing and cut taxes so families can keep more of their hard-earned money?Hon GRANT ROBERTSON: When it comes to the way we compare taxes I invite the member to take a look at the OECD's tax wedge which actually takes into account overall tax burden—in which situation New Zealand compares very well to the rest of the world. In answer to the second part of the question what I said before."