Azaria Howell: Newstalk ZB political reporter on what the recent GDP figures say about the economy

New reports show the economy is worse off than previously thought and it's sparked debate about what - or who - is to blame.

GDP data shows the economy shrunk 0.9 percent in the June quarter - a more significant dip than the 0.3 percent forecast by the Reserve Bank and similar figures from most economists.

Newstalk ZB political reporter Azaria Howell says economic conservatives are calling for a bigger reduction in spending, while Labour has called for the whole Government to resign.

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Sunday Session podcast with Francesca Rudkin
from News Talks.

Speaker 2 (00:11):
EDB Politics Time Now News TALKSP political reporter Azaria Howell
is with me. Good morning, Azaria, Good morning. So, as
I mentioned earlier on the GDP stats, we're we're great
for the government this week. How damaging is this for
Willis and Luxon and what's the reaction being.

Speaker 3 (00:29):
Yes, starting off with a bit of a gloomy story,
a tough economics showing. I mean GDP figures out late
last week showed an economic depth of zero point nine
percent in the June quarter. That's much more significant than
what was expected the Reserve Bank of the country, the
Central Bank predicted I believe a zero point three percent dip.
So this has been a lot more significant than what

(00:52):
we were sort of thinking we might see. The Ministry
of Finance, Nikola Willis, is also facing some pressure, but
this pressure is coming from more economic conservatives. So first
of all, Act Party founder and former Finance Minis Sir
Roger Douglas is calling for her to resign in the
interests of the country. Now, those are some strong words,

(01:13):
essentially wanting the Minister of Finance to go harder on
slashing wasteful spending. Also another form of Finance Minister Ruth
Richardson is weighing in on this. She's not calling on
Nikola Willis to resign, essentially, she is calling for an
economic reset plan for further reductions in public service spending
as well as a look at superannuation. So there has

(01:35):
been some criticism from I suppose the economic conservatives there
now later leader Chris Hopkins is also weighed in on
this one, really taking a shot at the government. So
in a recent press conference which I was at, Chris
Hopkins said, and I quote, the entire government should resign,
not just Nikola Willis, all of them.

Speaker 2 (01:56):
But that sounds out of his mind, Asariah.

Speaker 3 (01:58):
Yeah, I mean, I mean there were these questions obviously
from Roger Douglas, should Nikola Willis go? Chris Hopkins take
the chance to really have a crack at all of
them at once, But that's coming from the other political side,
the leader of the opposition. Essentially, they're saying a different
take to what those economic conservatives are saying. Chris Hopkins

(02:19):
is saying the government's cut too much. Jobs are being lost,
So there's some criticism on both sides of this one here.
But the government has responded. They're saying it's inherited a recession. Meanwhile,
Labor is suggesting the government's full of excuses. Also, the
government is confident that the current quarter will turn around.
I mean we're looking at data from the June quarter.

(02:42):
Potentially the current quarter might have a better showing. Also,
this came out when the US tariffs rather were being
announced and when that was a major topic. So there's
a bit more uncertainty at the time, but it seems
pretty certain that not the entire government are going to
have to resign due to this.

Speaker 2 (03:04):
Azaria Winston Peters is traveling to New York today as
the UN turns eighty. He's also going to attend the
Two State Solution conference. Are we expecting him to make
an announcement regarding New Zealand's position over Palestine at the
UN this week or is he still in the process
of finalizing that.

Speaker 3 (03:23):
Yeah, so New Zealand is finalizing its position on recognizing
a state of Palestine. That decision is expected soon, potentially
not tomorrow, but in the next week or so is
when we're expecting it. So the Minister of Foreign Affairs
Winston Peters, as you say, he's been traveling to New
York for the UN Leaders Week that's ahead of the
United Nations General Assembly, and on the agenda, the big

(03:47):
talking point a discussion then a vote on a formal
recognition of a Palestinian state. Now this comes after France, Australia, Canada,
a number of countries have signaled their intent to support that.
Back home, there's been some cabinet discussions but no final
position take and yet on the matter, there's been a

(04:07):
bit of talking between the three coalition parties, ACT, National
and New Zealand. First they've agreed to come to one
final position on the matter, but it's caused a bit
of tension in the coalition. The ACT Leader, David Seymour
has said that we should essentially not recognize a state
that's holding hostages, that referencing har Maas. Now that is

(04:28):
despite the Prime Minister previously saying any future governance arrangement
would not include ha Maas. So Winston Peters responded to
Seymour recently suggesting he broke an agreement. So that has
been quite a big talking point in terms of back home,
but the actual decision it will be made by Winston
Peters in New York. We're expecting that, and he will

(04:49):
be speaking to other countries about their views on this,
and really wherever New Zealand lands on this, it will
be a big deal and it will be a big
talking point. But we have seen other countries signal their intent.
I mean this has just come out in the last
few minutes I've been talking to you. UK Prime Minister
Kiir Starmer is set to announce that the UK will

(05:09):
recognize a Palestinian state and that is coming in the
next sort of day or so, so a lot of
movement in this space.

Speaker 2 (05:16):
Azariah, thank you so much for your time this morning.
As always, that was Azaria Hull Newstalks. He'd be political reporter. Yes,
Winston Peters, he is leaving today. He'll return to New
Zealand on Tuesday, the thirtieth of September, so I presume
before then we will have an idea about the decision
that's been made.

Speaker 1 (05:31):
For more from the Sunday session with Francesca Rudkin. Listen
live to news Talks he'd be from nine am Sunday,
or follow the podcast on iHeartRadio.