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September 30, 2025 • 11 mins

The Prime Minister discusses the government’s energy package, the overhaul of the earthquake-prone building system, lower interest rates, and why he thinks farmers are more positive. Plus, he mourns the loss of broadcaster and popular psychologist Nigel Latta, who died at 58, following a battle with cancer.

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Speaker 1 (00:00):
Rrime Minister Christopher Luxen joins us. Now, welcome, Prime Minister.
I hope I haven't interrupted you on your way to
a certain game of cricket or anything like that.

Speaker 2 (00:07):
By chance you haven't hamish. But see, it's going to
be quite a competition that one, isn't It's.

Speaker 1 (00:12):
Going to be, yeah, and I'm looking forward to it.
Feels a funny time of year to be cracking into it.
But that's all good. Hey. Look the government's energy package
out this morning, an announcement hot off the press boosting
energy supply competition. What does this mean for the sort
of the I guess the Danny Wurker farmer or the
Ti happy mother of five.

Speaker 2 (00:32):
Yeah. Look, I mean, in the country that's got lots
of natural resources, we shouldn't have an energy challenge, right,
but yet we have. And that's because the last lot
to that oil and gas band and as a result,
that scared off a lot of investors and as a
result they stopped exploring gas. And as a result, when
we have dry years, we really need to lean on
gas and ugree some coal as well. So we want

(00:53):
to make sure we've got affordable, abundant electricity and what
we're doing is saying, yep, we're going to double the
amount of renewables, and we've done a lot of things
on con senting to speed all that up. And there's
a heap of electricity coming into the market through renewables,
which is fantastic, But even so in that last fifteen
percent that we need, which will still be gas for
many decades ahead, we've got to encourage people to explore

(01:13):
for gas. We've got a whole bunch of centers around
that we're going to look at actually even importing gas.
And so the push came to shove. We've got abundant
electricity and gas available, and we're also just saying to
the energy companies that, look, you may need to invest
in what's called firming or therm or electricity, and actually
we're going to maintain our shareholding in these Gen Taylor companies,

(01:34):
but we actually if you want to raise more money
to make those investments in that capital, we will support
you in doing that, and we will make that equivalent
investments as well to support you with that and maintain
our shareholding. So there's just a number of technical things,
but what we're trying to do here is really clean
up the mess that we were left with, which is
in a country like New Zealand, we shouldn't have an
energy crisis or challenge, and we've got to get these

(01:55):
things set up right for the long term so we
don't end up closing down businesses which we want to
keep going in New Zealand.

Speaker 1 (02:03):
End of the day, well when the monthly bill paying
day comes, when do you expect that we'll hope that
this might make an impact.

Speaker 2 (02:10):
Yeah, Look, I don't know. I mean that will ultimately
be determined by the electricity companies, but we're doing everything
we can to put down a pressure on prices into
what's called flatten the forward curves, meaning that basically because
there's always this risk of a flat year, that actually
is what spikes and drives electricity prices up, and we've
got to do everything we can to put that downward

(02:32):
pressure on and then that reflects ultimately through the consumers.
But yeah, I can't I mean that that will be
ultimately determined by them. But I'm doing everything we can
as a government to get the settings right, to get
the framework right, to make as much investment as possible,
to turn on as much supply as we possibly can
interfect some of those structural problems that we've had with
thermal or firming electricity.

Speaker 1 (02:53):
Okay, you've been pushing pretty hard in terms of a
bipartisan arrangement for gas exploration chipping away you could say
at that without any luck.

Speaker 2 (03:03):
Yeah, I mean, look, I think it's really important. I mean,
it's all very easy to go out there in twenty
eighteen and say we're going to end oil and gas.
But the flip side was, if you're a big company
that's been down in New Zealand and you've got operations
all around the world, you basically send a signal back
to investors to say, look, we're not interested in your
money and your investment and expiration for gas and running

(03:24):
gas fields in New Zealand, and that as a results,
I'm asking Hipkins, and I've spoken about this publicly many
times and say, look, that should be a bipartisan thing.
That's a New Zealand thing, that's not a political thing.
We are going to need gas for decades ahead of us.
We should be encouraging those investors to come back into
the market to make sure that they can explore and
find gas and operate gas fields which we need. And

(03:47):
so it's a serious issue with some serious consequences for
all New Zealanders. And so I'm just asking him to say, Okay,
I'm spirited by partisanship, which we've reached out on education,
on public private partnerships, on infrastructure as a class at
where for less for the next ten years, just confirm
that the settings and the rules will change the same,
will stay the same, so that you don't actually have
investors who are trying to put hundreds of millions of

(04:09):
dollars into New zealand then having all those investments frustrated
by changing governments and changing policies.

Speaker 1 (04:16):
Are you having any luck or is it a dead duck?

Speaker 2 (04:19):
Well, I think we should. You know, they should be
focused on doing everything they can to keep the lights
on and keep prices low for lower, middle income working
New Zelanders and all of us. And so let's see
what they say, and I hope that they come to
just a sensible decision. But I've talked about it publicly.
I just wanted to formalize that and actually get a
formal response from Labor to say whether it's up for
that or not up for that?

Speaker 1 (04:41):
Right, the earthquake prone building systems classification overhaul. I mean
that seems like a speaking of sensible decisions and a
bit of a no brainer.

Speaker 2 (04:51):
Yeah, really common sensible stuff. You know, it was a
system that was set up with good intentions back and
back after the earthquakes, but actually in practice hasn't worked.
And you can go around to a number of towns,
whether you're in Mournsville or Fielding or Martin or lots
of different places I can think of. I've visited where
you've got derelict buildings because actually the cost of remediation

(05:11):
is greater than the cost of a building. As a result,
developers just owners end up just walking away from those buildings,
they cause more damage themselves. So we've got the balance
right here, which is we've got to protect human life,
make sure people are as safe as they possibly can be.
We're going to be much more specific on what type
of remediation is needed to certain types of buildings. And
then obviously, you know there's about eight billion dollars in

(05:33):
remediation and demolishing costs that we think we will save
these islanders. And of course that means that those building
owners can get on and spend that money and other
projects and which we want them to do so, creating
jobs and opportunities for tradings and others. So at the moment,
it's has been so much paralysis because you've got all
these vacant, derelict buildings that sitting there because the cost
of remediation is out of whack, and it turns out

(05:54):
the risk actually we're not managing the risk well as
to where the actual earthquakes so likely to happen and
what's low, medium, and high earthquake zones.

Speaker 1 (06:02):
Interesting you mentioned Fielding. I know, just along from Sue's
Redmain's office is a capital these beautiful old buildings and
they are sitting love they're elected, Yeah, and thinking I'm
even thinking like a little bit of a project apartment
sort of conversion to it because of the facade and
everything and the and what they're made of must be fantastic.
I mean, so yeah, yeah, the opportunity is great.

Speaker 2 (06:23):
Yeah, hey much. I mean the thing is that, you know,
in the past, it's been like you've got to totally
retrofit that whole building so that that existing building is
at the same standard as a brand new building built today.
So all new buildings obviously got to meet the building
code going forward, from here, which is great and it's
a it's a good standard, but actually what you might
need to do there is actually, for example, secure the facade.
You know, that's so that actually the risk there is

(06:44):
actually the facade crumbles and actually those bricks fall onto
potential pedestrian and in an earthquake scenario on the footpath.
So if you've secured that facade, that may be what
you need to be able to do. You might do
a targeted retrofit. You might listened to register the building
on a register so that we've got some visible of it,
but not actually need to do remediation. So there's a
series of just I think, just very common sense work.

(07:05):
We had broad discussion with engineers, with building owners, with
the public, with earthquake experts, all those kinds of things.
So I think it's just really sensible work that has
taking place. Now.

Speaker 1 (07:18):
The next sort of talked about ACRCAT in my other
world with Tremaine's real estate. You know, some people say, hey, miss,
you'd love that it's going to a business or boom,
But at the end of the day, we just don't
want to see property madness, do we. I mean, I
hope there's some more sort of. I don't know. I
hope there's some more common sense around lower interest rates.
Should that.

Speaker 2 (07:38):
Yeah, Look, I think you're seeing a government that sort
of says, look, you can't have what we had at
the beginning of twenty twenty two, which is we had
a thirty percent increase in house prices in a single year,
right that everyone knows across the Zellen that is unsustainable. Equally,
and interest rates are coming down because inflation's coming down
because we're getting a grip on spending, which is what
was driving the reverse of that under labor. So look,

(08:00):
I mean the good news is even if you were
there today, the reality is that forty two percent of
New Zealanders are refixing or refinancing their mortgages within the
next six months. And if you've got an average mortgage
of five hundred thousand dollars, that could be up to
six hundred and sixty dollars a month. You know that
you're actually engine back in your back pocket with those
lower interest rates. So look, you know, as you've heard

(08:20):
economists and projecting, we have two more rate cut down Christmas,
and so as to what they'll be, that'll be up
to the Reserve bank. But you know that's important and
already I just you know, you're seeing the benefits of
falling interest rates, falling inflation. Certainly, you know what's happening
in the rural communities. Our primary industry sectors having record years.

(08:40):
You know, places like christ Church, South Island, they have
plenty doing well. Our real challenges are sitting still, as
I say, in a two speed recovery, sitting in allcond
and we've got to make sure we get all compiled up.
And that's coming, and it will come as those interest
rates are transmitted through to people who have their money
to spend back in the economy.

Speaker 1 (08:57):
Prime Minson. When you're getting around the country, around the
train apps and at the fielding sale yards, I'm seeing,
you know, lamb turning into Hogg. It's selling for two
hundred and ninety two dollars. A farmer's smiling a bit
more and moaning a little less.

Speaker 2 (09:09):
Yeah, well, farmer confidence is the highest it's been since
ithing twenty seventeen, so over the last ten years. So
that's really fantastic. We know farmers are doing well. We've
got I think dairies up thirteen percent, we've got read
meat up eight or nine percent. We've got horticulture up
nineteen percent, even walls having in better years than it's
had in recent time. So you know, all across the
board you're seeing it too well. You're seeing Fonterra with

(09:31):
good payouts, return of the consumer brands business farmers will
oftenly come back through to shareholders as well and farmers,
so all of that's good. We've got investment boost out
there to try and get farmers to spend more on
plant capital equipment as they get those returns coming through.
The profitability outlooks for farmers that are profitable as the
highest it's been in a long time, so you know,

(09:52):
for ten years or so. So you know that all
of that says that you know, that's why the rural community,
as as I've always said, is the backbone of the
gil An economy. It's the ones that powering us out
of the recession again. And all our exports are going
gangbusters around the world, particularly from primary industry, but also
in services and technology and other things as well. So yeah,
I know, it's been a very difficult, very tough time.

(10:13):
We've had to take our medicine to deal with economic
vandalism and mess that we were left with. But we're
cleaning that up, sorting that out, and now we've got
to see our recovery start to come through in Auckland
and Wellington and other parts of the economy, and that's
starting to happen.

Speaker 1 (10:30):
And finally, Prime Minister, the last but by no means
least sad news today and iconic New Zealand are passing
away Nigel Letter at just the age of fifty eight,
somebody who made our lives more interesting and certainly made us.

Speaker 2 (10:39):
Think, yeah, look, I mean that's really sad news. I
just said that too, and I just think, you know,
incredible guy. Actually I watched some of the TV specials
Amanda and I read his books I'm Raising Kids and teenagers,
and he just had a different way of expressing things
that were sort of sensible and actually you may and
provoking you to think about some things by differently. And

(11:00):
so yeah, that's a real loss for what I think
is a great New Zealander. It was assures he's respected
by everybody, and yeah, it's really sad news.

Speaker 1 (11:10):
Absolutely it's Prime Minister Christopher Luxon, thank you very much
for joining us on the country.

Speaker 2 (11:14):
Appreciate it, hay much. Have a great week, See mate too.

Speaker 1 (11:16):
Cheers
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