July 16, 2024 • 7 mins
Covering the big business issues of the week.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
From the rugby field to the rotary shed. It's the
Country Sport Breakfast with Brian Kelly on gold Sport. Oh yeah,
is business is business?
Speaker 2 (00:13):
Get down the business, fellow Riley from a Partner's Morning Phil.
Speaker 1 (00:17):
There you go, Brian, I see, I see more bad
news for the buddy dairy industry. The powder prices down
again overnight, which is not great use to them.
Speaker 2 (00:27):
There was a little plus in the overnight really about
was zero point four percent or something pretty close to that.
So yeah, it's yeah, we'll be all right, we'll recover,
We'll be all right. Hey, I want to touch on
guess though, Reese reports, and I've got gas at home,
so this is concerning reports tell us that in a
few years we simply won't have enough gas to satisfy
(00:49):
the current demand. I mean, I thought we were supposed
to have the cheapest energy in the world. So that's
what I was taught as a kid. What's happening here?
Speaker 1 (00:59):
It wasn't it. You're old enough and I'm all my
sole enough, remember being taughtless. For one of the New
Zealand's great competitive advantage, as it was, we had the
cheapest energy prices in the world and Of course, that
led to a bunch of investment in big plant and
big equipment and big factories like t Y and new
Cel and OG and cow around some one at a
(01:20):
time when energy prices allow, and these companies came to
New Zealand and invested for the long run future of
New Zealand based on that idea that we would have
low energy prices. And look at us now. Not only
do we have high energy prices compared to competitive economies,
but we've also been being told by the gas regulator
and others that for a couple of years and they're
not too distant future, in the next five we're not
going to have enough gas to go around. Now, that
(01:42):
doesn't mean you won't be able to turn your gas
going on, because what will happen is the the energy
companies will import I suspect liquified natural gas from offshore,
which is incredibly expensive to do. So how what got
us to this point? And part of it, I think
more recently is the last Labor government's banning of of
oil and gas exploration. Because as Malie as our big guests,
(02:04):
you're starting to run low and starting to exhaust itself.
There needed to be new discoveries, and of course they
didn't happen, and now you're seeing the impact of that
and many of those big businesses that are massive contributors
to New Zealand's economy, particularly in the regions many of
your stents will know them. They're saying, well, this is
ridiculously we're losing money hand over fist because of the
high energy prices and the last time has just been
(02:26):
nothing about that, just didn't seem to care. So you know,
we're now reaping the price of some of that, and
I really think it's time for the government to have
a look at that and say, well, what do we
need to do to make sure that we can retain
these businesses in New Zealand, because they guess can't keep
on losing money forever. So really a shocking statistic the
other day to say, not only energy prices rising, but
look we're not going to have enough guests to go
around for a few years, only for a few years
(02:47):
as they as they do some work on those gas yields.
But that's ridiculous, isn't it that we've got ourselves to
this position in New Zealand when we once had the
promise of being the cheapest energy in the world and
that was going to lead to new business development and
so just bad news really and bad all around in
terms of government policy on it.
Speaker 2 (03:05):
They're not as big white horse though, and said you know,
we're going to get back in and reinvest in the
energy field, hasn't he Ah.
Speaker 1 (03:10):
The problem with that is you need long uncertainty to
invest in oil and gas expiration and anything else for
that matter very much. Actually, and incoming Labor government are
incoming Labor Greens to Partumara government then said well we're
going to ban it again. Well hopeless, you're not going
to get that kind of investment. So the government's trying
to work out how they can give coration companies some
certainty around that, and it's just not easy to do.
(03:31):
But I really hope that Labor in particular will reconsiderate
stance on gas because of the fact that these businesses
are massive employers. They are very important to rural and
regional New Zealand and to New Zealand overall. And if
you're going to say energy prices are just going to
get ridiculously high, well they can't survive with a certainy
way grow in New Zealand. They'll go and then somewhere else.
The last time I looked at the Labor Party was
(03:52):
all about jobs, and it's the jobs that will be
lost if you get to that point. I'm not suggesting
we're about to, but as time goes on, this investment
will occur in the facilities. So it's just not a
good lock. So I can get some sort of political stability,
I think not though. As a matter of fact, I
think the left ideology around not one in gas in
any form is going to be dominant.
Speaker 2 (04:14):
Yeah, I think you're right. US Federal Reserve. I want
to touch on that. That's saying inflation fall, which might
mean interest rate cuts in the US quite soon. Is
that good news for us?
Speaker 1 (04:24):
Well, it's good news for us in the sense that
the world's major economy reducing interest rates like it would
likely to boost economic growth there, and also suggests that
if that economic growth goes on that our own recovery
bearing among the US is a massive market for US,
including you know, one of our biggest markets for agriculture,
despite the fact we've got no FDA with them. If
their economy is going better, then it's likely that we
(04:45):
will go better as well. Because we'll be able to
sell more to them. But one of the reasons I
was wanting to talk about that this morning was the
timing of that rate cap is going to be interesting
because it could well be that the Federal Reserve will
reduce interest rates in around September, and you've got a
US president election in November, so right in the middle
of that hyper election season, it could be that the
Federal Reserve will be dropping interest rates. That can only
(05:07):
be good for the incumbenence case Biden and I don't
think it will change it's a big argument to say
it might change things, but it will certainly be a
very positive thing if it does happen, for him to
be able to say to the public, lock, my economic
management is leading to lower interest rates. And so you know,
it's really interesting. So that those who think the events
of the weekend cemented the wind for Trump, I think
(05:28):
that that may well be right. It was a tragic
thing that happened, a terrible thing. But you know, there's
a long way to go to the selection, and lots
more can happen. Lots more water flows under the bridge here,
including economic news like that which might sway a few
voters as well, yeah.
Speaker 2 (05:41):
Thank you right. And finally, a recent Treasury report on
artificial intelligence suggests that New Zealand is lagging on uptake
and not reaping the benefits of a eye quickly enough.
What do you make of it?
Speaker 1 (05:53):
It's an interesting report that it demonstrates that New Zealand
business has often struggled it to get to get good
far at these brand new technologies that are coming along.
Artificial intelligence a game changer really for business productivity and
a game changer for all sorts of things that these
large language models can make it much easier to do
even quite complex jobs accounting, legal jobs and so on,
(06:16):
and can really improve customer service a huge amount. So
the fact that New Zealand businesses and the New Zealan
government by the way, are lagging an uptaker is a
bit of sad news. And I'm heartened a bit by
Minister due to Colin saying she wants to really push
along AI but it's important we get on this get
on this track fast. I'm told by colleagues yesterday that
Australia is likely to be similarly a lagged to us,
(06:39):
So you know, maybe we won't feel so bad about
that because the Australians are similar to us. But it
does demonstrate that when these new technologies come along and
these others coming right behind AI, that businesses need to
really jump on board them and experiment with them and
see what see what can be done. On my own business,
I wouldn't wander stand the first thing about it, but
my young people are using it a lot and I
(07:00):
need the benefits from it in terms of productivity, even
in my little business. And so you know, we really
need to get direct together at the business community, and
so what can we do to really drag out the
benefits of these new technologies because otherwise we'll just get
poorer than our neighbors again faster because of the lack
of uptack.
Speaker 2 (07:17):
You need to get the younger ones at I'm Duke
Partners to give you some lessons, mate.
Speaker 1 (07:21):
That's right, Well they do. I mean I didn't get
on with it, that's all. I don't know how to
turn my computer on, mate, so they tell me, they
tell me what to do. Ver enough.
Speaker 2 (07:31):
Hey, nice to chat, Phil, have a great week, have
a great week.
Speaker 1 (07:34):
Cheers be cap.
Speaker 2 (07:35):
That's fellow Riley from Armed Duke Partners.
From the rugby field to the rotary shed. It's the
Country Sport Breakfast with Brian Kelly on gold Sport. Oh yeah,
is business is business?
Speaker 2 (00:13):
Get down the business, fellow Riley from a Partner's Morning Phil.
Speaker 1 (00:17):
There you go, Brian, I see, I see more bad
news for the buddy dairy industry. The powder prices down
again overnight, which is not great use to them.
Speaker 2 (00:27):
There was a little plus in the overnight really about
was zero point four percent or something pretty close to that.
So yeah, it's yeah, we'll be all right, we'll recover,
We'll be all right. Hey, I want to touch on
guess though, Reese reports, and I've got gas at home,
so this is concerning reports tell us that in a
few years we simply won't have enough gas to satisfy
(00:49):
the current demand. I mean, I thought we were supposed
to have the cheapest energy in the world. So that's
what I was taught as a kid. What's happening here?
Speaker 1 (00:59):
It wasn't it. You're old enough and I'm all my
sole enough, remember being taughtless. For one of the New
Zealand's great competitive advantage, as it was, we had the
cheapest energy prices in the world and Of course, that
led to a bunch of investment in big plant and
big equipment and big factories like t Y and new
Cel and OG and cow around some one at a
(01:20):
time when energy prices allow, and these companies came to
New Zealand and invested for the long run future of
New Zealand based on that idea that we would have
low energy prices. And look at us now. Not only
do we have high energy prices compared to competitive economies,
but we've also been being told by the gas regulator
and others that for a couple of years and they're
not too distant future, in the next five we're not
going to have enough gas to go around. Now, that
(01:42):
doesn't mean you won't be able to turn your gas
going on, because what will happen is the the energy
companies will import I suspect liquified natural gas from offshore,
which is incredibly expensive to do. So how what got
us to this point? And part of it, I think
more recently is the last Labor government's banning of of
oil and gas exploration. Because as Malie as our big guests,
(02:04):
you're starting to run low and starting to exhaust itself.
There needed to be new discoveries, and of course they
didn't happen, and now you're seeing the impact of that
and many of those big businesses that are massive contributors
to New Zealand's economy, particularly in the regions many of
your stents will know them. They're saying, well, this is
ridiculously we're losing money hand over fist because of the
high energy prices and the last time has just been
(02:26):
nothing about that, just didn't seem to care. So you know,
we're now reaping the price of some of that, and
I really think it's time for the government to have
a look at that and say, well, what do we
need to do to make sure that we can retain
these businesses in New Zealand, because they guess can't keep
on losing money forever. So really a shocking statistic the
other day to say, not only energy prices rising, but
look we're not going to have enough guests to go
around for a few years, only for a few years
(02:47):
as they as they do some work on those gas yields.
But that's ridiculous, isn't it that we've got ourselves to
this position in New Zealand when we once had the
promise of being the cheapest energy in the world and
that was going to lead to new business development and
so just bad news really and bad all around in
terms of government policy on it.
Speaker 2 (03:05):
They're not as big white horse though, and said you know,
we're going to get back in and reinvest in the
energy field, hasn't he Ah.
Speaker 1 (03:10):
The problem with that is you need long uncertainty to
invest in oil and gas expiration and anything else for
that matter very much. Actually, and incoming Labor government are
incoming Labor Greens to Partumara government then said well we're
going to ban it again. Well hopeless, you're not going
to get that kind of investment. So the government's trying
to work out how they can give coration companies some
certainty around that, and it's just not easy to do.
(03:31):
But I really hope that Labor in particular will reconsiderate
stance on gas because of the fact that these businesses
are massive employers. They are very important to rural and
regional New Zealand and to New Zealand overall. And if
you're going to say energy prices are just going to
get ridiculously high, well they can't survive with a certainy
way grow in New Zealand. They'll go and then somewhere else.
The last time I looked at the Labor Party was
(03:52):
all about jobs, and it's the jobs that will be
lost if you get to that point. I'm not suggesting
we're about to, but as time goes on, this investment
will occur in the facilities. So it's just not a
good lock. So I can get some sort of political stability,
I think not though. As a matter of fact, I
think the left ideology around not one in gas in
any form is going to be dominant.
Speaker 2 (04:14):
Yeah, I think you're right. US Federal Reserve. I want
to touch on that. That's saying inflation fall, which might
mean interest rate cuts in the US quite soon. Is
that good news for us?
Speaker 1 (04:24):
Well, it's good news for us in the sense that
the world's major economy reducing interest rates like it would
likely to boost economic growth there, and also suggests that
if that economic growth goes on that our own recovery
bearing among the US is a massive market for US,
including you know, one of our biggest markets for agriculture,
despite the fact we've got no FDA with them. If
their economy is going better, then it's likely that we
(04:45):
will go better as well. Because we'll be able to
sell more to them. But one of the reasons I
was wanting to talk about that this morning was the
timing of that rate cap is going to be interesting
because it could well be that the Federal Reserve will
reduce interest rates in around September, and you've got a
US president election in November, so right in the middle
of that hyper election season, it could be that the
Federal Reserve will be dropping interest rates. That can only
(05:07):
be good for the incumbenence case Biden and I don't
think it will change it's a big argument to say
it might change things, but it will certainly be a
very positive thing if it does happen, for him to
be able to say to the public, lock, my economic
management is leading to lower interest rates. And so you know,
it's really interesting. So that those who think the events
of the weekend cemented the wind for Trump, I think
(05:28):
that that may well be right. It was a tragic
thing that happened, a terrible thing. But you know, there's
a long way to go to the selection, and lots
more can happen. Lots more water flows under the bridge here,
including economic news like that which might sway a few
voters as well, yeah.
Speaker 2 (05:41):
Thank you right. And finally, a recent Treasury report on
artificial intelligence suggests that New Zealand is lagging on uptake
and not reaping the benefits of a eye quickly enough.
What do you make of it?
Speaker 1 (05:53):
It's an interesting report that it demonstrates that New Zealand
business has often struggled it to get to get good
far at these brand new technologies that are coming along.
Artificial intelligence a game changer really for business productivity and
a game changer for all sorts of things that these
large language models can make it much easier to do
even quite complex jobs accounting, legal jobs and so on,
(06:16):
and can really improve customer service a huge amount. So
the fact that New Zealand businesses and the New Zealan
government by the way, are lagging an uptaker is a
bit of sad news. And I'm heartened a bit by
Minister due to Colin saying she wants to really push
along AI but it's important we get on this get
on this track fast. I'm told by colleagues yesterday that
Australia is likely to be similarly a lagged to us,
(06:39):
So you know, maybe we won't feel so bad about
that because the Australians are similar to us. But it
does demonstrate that when these new technologies come along and
these others coming right behind AI, that businesses need to
really jump on board them and experiment with them and
see what see what can be done. On my own business,
I wouldn't wander stand the first thing about it, but
my young people are using it a lot and I
(07:00):
need the benefits from it in terms of productivity, even
in my little business. And so you know, we really
need to get direct together at the business community, and
so what can we do to really drag out the
benefits of these new technologies because otherwise we'll just get
poorer than our neighbors again faster because of the lack
of uptack.
Speaker 2 (07:17):
You need to get the younger ones at I'm Duke
Partners to give you some lessons, mate.
Speaker 1 (07:21):
That's right, Well they do. I mean I didn't get
on with it, that's all. I don't know how to
turn my computer on, mate, so they tell me, they
tell me what to do. Ver enough.
Speaker 2 (07:31):
Hey, nice to chat, Phil, have a great week, have
a great week.
Speaker 1 (07:34):
Cheers be cap.
Speaker 2 (07:35):
That's fellow Riley from Armed Duke Partners.
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