Source: New Zealand Parliament – Hansard
Question No. 4—Finance
4. Hon SIMON BRIDGES (National—Tauranga) (remote) to the Minister of Finance: Does he agree that “Families across Aotearoa are struggling to make ends meet as the cost of living rises, and they are being made to make tough calls over the basics”, as stated in RNZ’s report Whānau across Aotearoa struggle with basics as costs rise yesterday; and if not, why not?
Hon GRANT ROBERTSON (Minister of Finance): I continue to acknowledge that New Zealand families are facing significant financial pressure right now from inflation, which is being driven by global factors including the impact of the Russian invasion of Ukraine. The Government has invested in supporting low and middle income New Zealanders through the pandemic and the elevated levels of inflation that are being experienced. As I’ve already mentioned in the House, we’re taking action through Budget 2022 to address some of this pressure, including through the family tax credit, which would see $20 per week on average for more than 340,000 families. I would note to the member that his party’s proposals would do very little for the people of Kaikohe who are mentioned in this story in his question, giving the one-third of them who are on $30,000 a year or less $2.15 per week while giving MPs in this House nearly 10 times that amount.
Hon Simon Bridges: What does he say to Jeanette, quoted in the RNZ story as “feeling the pinch” and whose partner has had to leave his remote Northland forestry job because they can no longer afford the rising petrol costs so that their family of four is now relying on the benefit and who says, “it’s just too hard at the moment.”?
Hon GRANT ROBERTSON: As I said, I say to Jeanette and all other New Zealanders we understand that it is tough at the moment with the increasing cost of living that we are seeing. That is the reason why this Government has committed to supporting people like Jeanette and her family through increases to things like the family tax credit—also in a situation now where we have one of the lowest unemployment rates in the world. I also note that while I want to see Jeanette and her family back in work, while they are on the benefit they are benefiting from increases that this Government put in place in 2020, 2021, and 2022—all of which [Interruption]—all of which were opposed by the member and his party.
Debbie Ngarewa-Packer (remote): Does the Minister accept there is a cost of living crisis and that it is considerably worse for Māori in Aotearoa; and, if not, why not?
Hon GRANT ROBERTSON: As I’ve said, I accept that there is considerable pressure on family and household budgets at the moment as a result of the inflation that we are seeing. We also know that Māori are overrepresented in lower-income households in New Zealand and that is one of the reasons why we stand proudly by our record of supporting Māori whānau because we have consistently lifted the rates of income support, we have lifted the minimum wage, and we are increasing the family tax credit—all of which will provide significant money in the pockets of families, far more than $2.15 per week as the Opposition would have it.
Debbie Ngarewa-Packer: Is the Minister concerned about the impact of the cost of living crisis on child poverty when the latest child poverty rates show Māori, Pacific, and disabled tamariki and their whānau are unchanged in the last three years and still experiencing the same material hardship?
Hon GRANT ROBERTSON: What we do know from the child poverty statistics we’re seeing is that we’ve seen significant progress on all nine of the indicators that are included within the Child Poverty Reduction Act, we’re seeing significant progress most recently in reducing the number of children in material hardship. We will continue to invest here; the job is most definitely not done. The way that we do that is to continue to support low and middle income households through the changes that we’ve made. Doing tax cuts that would provide significant benefit to the highest-income earners is not the answer to improving child poverty.
Hon Simon Bridges: With all the support the Minister speaks so much about, what does he say to pensioner Timi who sells sausages on the side of the street in Kaikohe and is quoted in the RNZ story I’ve already referred to saying that the cost of selling them has gone up from $1 so that “People can’t even afford a $2 sausage,”?
Hon GRANT ROBERTSON: What I would say to that person is that they would not be better off with an Opposition that gives $20 a week to the highest-income earners, that’s not prepared to support the initiatives that this Government has put forward to lift the incomes of low and middle income New Zealanders. I’m sure that gentleman knows that the priorities of this Government are to work in his favour; not the Opposition—not the Opposition—who favour those on the highest incomes.
Hon Simon Bridges: How can he speak so incredibly confidently and what does he say to the family man quoted by Newshub who, visiting a foodbank for the first time despite having a good job—quote—”I feel sad because this isn’t a place I ever expected to be in my life. I have a decent job. I’m a department manager at a big box retailer. Now I’m in a position where I’m accepting food from strangers to feed my family. I’m embarrassed.”
Hon GRANT ROBERTSON: What I would say is that this side of the House understands that right at the moment, we have a significant increase in the cost of living that is affecting many families. It’s the reason why we’re lifting the family tax credit to give $20 per week on average to 340,000 families. It’s the reason why we’ve supported the lifting of the minimum wage. It’s the reason why we’ve supported increases in income support and BestStart and a range of other initiatives. All of those things have been opposed by the member and his party. The crocodile tears he’s crying now do not ring true.
Debbie Ngarewa-Packer: Does the Minister accept that, in light of the recent Commerce Commission report, the Government must support independent supermarkets, including Māori, to help lower the cost of groceries; if not, why not?
Hon GRANT ROBERTSON: Well, as the member will know, the Government has received the report of the Commerce Commission. We believe that there are some initiatives in there that will be important in lowering the costs that people face when they go to the supermarket. Dr David Clark, in responding, has also said that the Government is prepared to go further than what is in the report if it does not achieve the goals of lowering those costs and supporting people in the cost of living
Debbie Ngarewa-Packer: Will the Minister recommend to Cabinet that, in light of the cost of living crisis, the minimum wage is immediately increased to $25 per hour and that it is tagged to increases in the cost of living, given that some people are working two or three jobs and still can’t pay their bills?
Hon GRANT ROBERTSON: We have, most recently, increased the minimum wage by $1.20, taking it up to a level that is getting closer and closer to what is known as the living wage. We will continue to increase the minimum wage to support New Zealanders. I do note that those in the Opposition who are currently out there making opportunistic statements, like the member asking me this question today, have consistently opposed minimum wage increases.
Hon Simon Bridges: In light of that, what does he say to Tāmati Coffey, bar owner of Rotorua, quoted by RNZ, “I noticed when I went to last fill up my petrol tank and last went supermarket shopping, yeah, I’d say that we were in really, really tough times. I wouldn’t say it’s happened overnight. This has been a crisis [for a while] – I’d also say it’s a bit of an inequity crisis that’s going on as well between those that have and those that don’t. It’s a pretty serious thing.”
Hon GRANT ROBERTSON: As I’ve said in this House consistently—[Interruption]
DEPUTY SPEAKER: Order! Do you want to hear the answer?
Hon GRANT ROBERTSON: As I’ve said in this House consistently—[Interruption] Shall I carry on, Mr Speaker?
DEPUTY SPEAKER: Well, it’s really not worth answering if members are going to behave like that. So the Hon Simon Bridges has asked the question, he deserves an answer.
Hon GRANT ROBERTSON: What I would say is what I’ve said consistently in this House: that it is tough for a number of families now. Mr Coffey references the concept of inequality and inequity, and on this side of the House, that’s why we’ve increased benefits consistently—opposed by every member over there. That’s why we’ve increased the minimum wage—opposed by every member over there. So while they sit here today and shout and yell across the House, they know they have opposed all of the measures that would address that inequality.
Hon Simon Bridges: Are Labour considering meaningful tax reductions and providing relief to New Zealanders, given Tāmati Coffey’s comments to RNZ yesterday, that “taking the GST off fruit and vegetables is something that’s been raised with me locally amongst my local Labour members, so it’s something that I wouldn’t mind seeing us have another go at. I’ll have to talk to more than just the leader [about it], to quite a few people actually that I engage with.”
Hon GRANT ROBERTSON: What I would say is that we have meaningful tax reform coming in Budget 2022 through the family tax credit that will deliver $20 per week on average to those families—far more meaningful than the member’s proposal of $2.15 per week, which would be taking over from the $20 per week for those low and middle income families and instead putting $20 per week in the pockets of the highest income earners.
Hon Simon Bridges: Don’t Jeanette’s, Timi’s, Tāmati Coffey’s, and others’ experiences show that we have a cost of living crisis in our country and that New Zealanders need meaningful tax relief in Budget 2022?
Hon GRANT ROBERTSON: If the member opposite thinks $2.15 per week is meaningful for those households when he would be taking away $20 per week from those who are getting the family tax credit, when he would be undermining our health, our education, our housing systems by all of those things, then he has got his priorities completely wrong. On this side of the House, we will continue to support New Zealanders with the increasing costs they’re facing.
