Episode Transcript
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Speaker 1 (00:00):
Promos to Chrysto. But Luxen is back with us from holiday.
Good to see you. Good to see you too, Mike
out of ten, what's that the holiday?
Speaker 2 (00:07):
Oh?
Speaker 3 (00:07):
Well, time with Amanda fantastic, So I hadn't seen her
for a few months, so it was great to just
sort of sit and chat and reintroduce.
Speaker 1 (00:12):
Ourselves to each other fair enough too. And can I
say where you went doesn't matter where you went. You
went now into Hawaii.
Speaker 3 (00:18):
And I've got to tell you though, I don't you know,
you know, I talked about it before, but I reckon
America's on an economic downswing. They've got some real challenges
in that country. And you know, you come back home
and we're on an upswing and I.
Speaker 2 (00:28):
Believe we are good growth.
Speaker 1 (00:29):
And I don't want to say that in a political
sense because you're the Prime Minister, are sitting across from me,
but I do believe that we are on the right
track slowly.
Speaker 2 (00:36):
I look, Australia is not Australia, certainly not.
Speaker 3 (00:40):
I don't know whether you caught up with those latest numbers,
but we had fourteen percent growth and kiwis coming home
from Australia at the end of December for the full year.
Speaker 1 (00:46):
So I was watching the Australian property market at the
moment along with the taps, and I'd be doing the
same thing. Coupe and Cook two fairies that were named
while you were away by Winston Peters who thought there
might be some sort of frisson around a great well.
I couldn't agree more. Who literally names them? Who literally
does it? Is that a cabinet decision? Is that your decision?
Got I hope it's not a cabinet decision. If we're
(01:08):
making decisions on naming theories, we've got a bit of
a problem. There's a few bigger.
Speaker 2 (01:11):
Things to talk about this decision. Did you know that?
Speaker 3 (01:14):
That's what I didn't know that's what they're going to
be called. But I think they're great names. I mean,
I think they're fantastic. It celebrates New Zealand's maritime history.
They've got connections to the Cook straight, both of them.
I think it's fantastic. I mean think the most important
thing is that we're getting a solid solution in place,
because it is literally a state highway that we've got
to connect to islands with. And you know, after the
hell of a mess the labor left, you know, mismanaging
(01:35):
that project. We've got it all gripped up and I
think we've been good check.
Speaker 1 (01:39):
Speaking of the US, we were apparently standing by some
sort of tariff announcement. Are you aware of that on
the three one section three zero one?
Speaker 3 (01:47):
Yeah, I mean we're sort of We don't have any
any idea as to where it's going to go either
in terms of he's got this rolling mechanism now that
because he got overturned in the in the Supreme Court
with the tariff's piece, he's having to find other bits
of legislation to active fight them again and.
Speaker 2 (02:01):
Roll them over. So we'll see what we get to here.
Speaker 3 (02:03):
But I mean we've been anywhere between ten to fifteen
percent in recent last couple of years. We've actually grown
our business into the US. Regardless of all of that,
our exports are pretty smart at navigating all of that
and done a good job.
Speaker 1 (02:15):
Okay, New Zealand Switzerland as the next cab of the
pre trade rink. Do we have any sort of timeline
on that? No.
Speaker 3 (02:23):
I mean, basically, Todd, we've set out a national party
policy we want to do deals with seven other countries
essentially start those up in the next term Europe. There's
some infel countries that aren't part of the EU, Switzerland
being one THEFT countries as they're called, and so Todd
or host is something called the future of Investment, Trade
and Partnership. And off the back of that he's kicked
(02:44):
it off with the Swiss.
Speaker 2 (02:45):
Are we down to the rats and mice now?
Speaker 1 (02:46):
I mean, I know there's a billion and a half
two way, but are we down to We've done the
business with everyone that's really worth doing volume more.
Speaker 3 (02:55):
We've got about seventy percent of our trade and with
fta's at the moment, I mean, I think post the
recent round will lift it even further again, but no actionally, Mike,
I think there's quite a lot of opportunity. Even in
the current agreements. You get these things called non tariff
barriers where there's often go slow through customs or things
that end up and advertently adding costs to our exporters.
And there's probably a billion dollars worth of stuff we
(03:16):
can take out of that alone. We've taken nine hundred million,
I think out in the last couple of years just
by making sure we smooth those those those agreements. But
look at countries like Bangladesh, And essentially what's happening is
two thirds of the middle class are going to be
in the Indo Pacific region. By the end of the decade,
two thirds of the economic activity is going to be
at our part of the world. So the countries like
(03:36):
like the bangladeshes of the world that have large Indonesias,
that have large populations, you know, we've still got huge
amounts of growth to realize out of these places.
Speaker 1 (03:44):
Were you home in time yesterday to watch Peter's speech?
Speaker 3 (03:47):
No, I saw some heart. I saw some headlines on it,
or read some commentary on it. Okay, well, I watched
the whole thing for what it for wherever, very patient man,
for what it's worth.
Speaker 2 (03:57):
Was it seven hours twenty or how did it go?
Quite lengthy?
Speaker 1 (04:01):
The funny thing is he claimed that he's getting the
money as an idea.
Speaker 2 (04:04):
Do you like it or not?
Speaker 3 (04:06):
I think it's deeply ironic. I mean New Zealand first
Labor and the Greens are the guys that killed oil
and gas. Let's be honest about it. They stood up
on stage, We're just cinder Ar Durnam, Meghan Woods and
they killed it. And so it's a lovely idea. But
the point is it's just somewhat deeply ironic coming from
New Zealand. First, given the other guys that support the
oil and gas man having said that, we do need
(04:27):
to make sure we've got firming capacity in the country,
and we're already doing it. You know, we've got two
hundred million dollars we've set aside to try and co
invest with private investors. But we need private investors to
come to the market. And at the end of the day,
these guys killed it. They seen a chilling effect through
those investors and why would you move hundreds and millions
of dollars into New Zealand. So we'll keep trying, but
it's bloody hard because the well he.
Speaker 1 (04:47):
Said afterwards, he said, he said that the money is
coming from the Future Fund. I thought the Future Fund
was a labor is the labor idea, it is the
future on the laborer who has his own version I
think New Zealand.
Speaker 2 (04:57):
Okay, so that hasn't started yet. But the problem with.
Speaker 3 (04:59):
The Future Fund idea years that I've seen is that
if you know, if you're looking at an idea, like
the Singaporeans have this thing called Tamasi right this, you
know and you know this and they but since the
seventies they've swapped assets in and out of that that
vehicle of that as you know, of that entity. Both
Labor and He's on first don't want to sell anything.
So I mean the point is you've got to recycle
things and say, if you're getting a negative return or
(05:19):
a two percent return, I'm switching that stock. You know
that that investment up to something else, and you've got
to be and that's what the Singaporeans have done. So
and the future fund issue with Labor, if that's their
idea is you know, frankly, you know what happens all
the dividends which fund a lot of our health and
education and other things as well. So it's all a
bit man.
Speaker 1 (05:36):
The two hundred million that you've got set aside, the
skin and the game thing for oil and gas exploration,
Is anyone taking that up?
Speaker 3 (05:41):
Not no, not that I'm aware of. We've got some others.
We've got some people that are wanting to do deeper
exploration and sort of in very early stages of wanting
to do exploration, there was.
Speaker 2 (05:50):
A West Australian company.
Speaker 1 (05:52):
I think that the West Australian from that have applied
and then you put it into the three month competitive.
Speaker 3 (05:56):
Correct, but when no one else has taken up the moment,
we're trying to facilitate as much as we can. But
look to be honest, when you go kell oil and
gas like they did, and New Zealand first was part
of it, and they got to front that and they
got to own that. The reality is you seen if
you're sitting in Canada and you've got hundreds of billion,
millions of dollars worth of assets, you got one hundred
and ninety five countries with lots of options, and New
Zealand and the Deep South Pacific says to you, we
(06:18):
don't want your money anymore. That's been a very damaging
thing out there. So we will keep trying the thing.
I don't whether you saw, but last week the Meridian
CEO said, actually the action that the intervention we made
around LNG.
Speaker 2 (06:31):
Importocity, if you go look at that forward.
Speaker 3 (06:33):
Pricing, as I kept saying at the time, you know
that has really helped. And it's good that he's saying
that will result in low prices next year and it
better happened.
Speaker 1 (06:41):
It will have see what he actually said, was the
generation's going down. That's good, but retail isn't. The levees aren't,
the GST isn't transition. So my bill at home, yeah,
doesn't change.
Speaker 3 (06:54):
He's saying about commercial customers peace because of wholesale prices,
which is good, and that's great because they lost those
wholesale guys have been struggling, you know, crossing.
Speaker 1 (07:04):
A lot of the councils, I assume you're aware of.
So counsels at the moment are rushing to do deals
with locally we right before you change the law. Could
you not have seen them coming? Seymour says he'll retrospectively
kill them.
Speaker 2 (07:19):
Will you.
Speaker 3 (07:20):
Well, it's a big problem. It's completely disingenuous the councils
to actually go do agreements that are legally binding under
old legislation when they know there's a new one coming.
So you know, Chris Bishop's taking advice on that. Here
something to say about it, very very soon, but mean
soon today, this week, very soon. With what's the advice
legal advice you're going to No, it's important that if
(07:40):
you're going to make an intervention, which is that you
actual clearly want to do it once it right I don't.
Speaker 1 (07:48):
So you're going to retrospectively look to kill this or
do something that prevents them from doing these wills before
you're doing it.
Speaker 3 (07:53):
Correct, I mean there has to be some intervention because
essentially you can't. I think it's I think it's completely
disingenuous governments to go off and do that.
Speaker 1 (08:01):
Do you do it retrospectively because Canterbury is the one
at the moment that's about to but there are several
who have.
Speaker 3 (08:07):
Yes, No, I'm aware there's some that have and some
that haven't, and some of their own process. All I'm
just saying to you is we know it's a problem.
We think it's deeply disingenuous and cynical. There's a new
piece of legislation coming called the RMA Reform Laws, which
are coming in place in the next couple of months.
You should do it on the back of once you know.
Speaker 1 (08:23):
Where you are with the new law, so you can
do something abound and will we will look at our
options and we'll have something say about it very soon.
So you clearly looked at more than New York bets.
You know what you're going to do. Well, we've got
that look on your face. I can tell the look
on it. I can tell the look on you.
Speaker 3 (08:36):
People can't see the look on the face on radio.
Speaker 2 (08:38):
No, no, can's being filmed. It's the world Wide Web.
Speaker 1 (08:42):
Mate, They're looking at you now and there's so you
are going to do something about it problem.
Speaker 2 (08:46):
We'll have something to say about it very soon. Okay.
Speaker 1 (08:48):
Elbow last week talked about AI. Why aren't we talking
more about AI and data centers and having some sort
of something law around them.
Speaker 3 (08:56):
Yeah, Look, I mean I think on data centers, the
key thing is that any how they require there has
to be additional right, They've actually got to generate unique supply.
You don't want them ripping into the New Zealand supply
of electricity and therefore cranking up prices for retail customers.
But I just if I take a step back on
a broader point, AI for New Zealand is a hugely
positive thing, and actually there's been quite a negative narrative
(09:19):
around AI now for a number of years. When I
look at what other governments are doing, for example, and
how they run their public service, there's a huge opportunity
for us to do that much better. Obviously, a big
part of that is data center investments. We have plenty
of land, we have plenty of water, we have good
temperate climates. But obviously any investment in data centers has
got to be able to bring additional generation to our system.
(09:39):
We can't have it taking away from the current system.
So that's sort of so there is thinking about those
frameworks that we've got underway.
Speaker 1 (09:45):
I chat GBT the other day the sitting days left
in Parliament this year.
Speaker 2 (09:48):
It says ten? Is that correct?
Speaker 3 (09:50):
This comes from a man who's just had what seven
weeks holiday in New York or something whatever.
Speaker 1 (09:55):
I'm looking at.
Speaker 2 (09:55):
This is my calendar. I was looking at it.
Speaker 1 (09:58):
I I was looking at the things you've got left
to do legislats speak.
Speaker 2 (10:01):
But you've got ten sitting days left? Is that? Would
that be great? You're rising in September.
Speaker 3 (10:06):
We're rising with com Parliament. Listen on September twenty four. Right,
We've got I think we've got three sitting blocks going
between now and then, so three week one.
Speaker 2 (10:13):
Now, we did some.
Speaker 3 (10:14):
Urgencies, you know, just before the last recess, and we
may have to use some more agencies as well. We've
got some big things to get done.
Speaker 2 (10:20):
You will get it done. Oh absolutely, yeah.
Speaker 3 (10:23):
I mean we've been I mean, this is a government's
probably more legislation I think since the early eighties than
any other governments, and we've got a it's a lot
of planes to land in sequence and in the legislative agenda.
But there's a lot to get done.
Speaker 2 (10:35):
Okay.
Speaker 1 (10:36):
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