Episode Transcript
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Speaker 1 (00:00):
The Prime Minister is whether it's ahead of his departure
(00:02):
to China. Good morning to you, So just quickly chick
the boxes. So China, you want specifically what.
Speaker 2 (00:08):
If anything, I want to broaden out the trade relationship
and that focus particularly on red meat, tourism and education.
Otherwise you know, primary industries going gangbusters, tourisms actually coming
right across the country, but we've got challenges in China
and Australia to get those numbers back. So a big
focus on those two things.
Speaker 1 (00:24):
How delicate is the dance given all that's happening in
the Indo Pacific and the Americans.
Speaker 2 (00:29):
Yeah, look, I mean you know, as I've talked to
Prison Premier le in prison she before, you know, there's
huge areas of cooperation and this relationship is of important one,
long standing, vital, all that good stuff mature. But also
we do have differences and we raise them and so
we'll talk about those differences and eviably around different issues
in the region and around the world. Frames.
Speaker 1 (00:45):
So it's a large delegation that goes will deals be signed?
Speaker 2 (00:48):
Yeah? Absolutely, you know, there's some good work that's been
going on in advance. You've seen us announced yesterday around
some visa changes to make that those Chinese visits in
Australia much easier to come over to New Zealand. So
there's there'll be a series of eleven or twelve announcements.
Speaker 1 (01:01):
Did I or dare I sueduce that it was several
months ago I did raise the Chinese situation with you
and that we might want to be a little more
friendly towards the visa applications.
Speaker 2 (01:09):
You know, you are such the oracle, the oracle of
war or whatever.
Speaker 1 (01:13):
I'm just I'm just practical, and I'm just wondering why
it takes you so long to do that sort.
Speaker 2 (01:17):
Of because and then so if you think about the
package we announced yesterday, we're saying, look, we don't want
to have to get your translation of your forms certified,
which is what was happening before. We've got some dedicated
support going to travel agents up there. We're simplifying the
web sort of stuff that is needed. But most important,
we're saying, look, there's a hell of a lot of
Chinese visitors that come from Australia. They knew both countries
at the same time. Why would we put them through
(01:39):
a whole process again? If it's good enough for Australia,
like we saw in the Cricket World Cup when I
was actually in New Zealand, that was a that was
the first time we did that joint sort of transtastment,
sort of visa type approach. So look, it's just common sense, right,
and it's about packaging it up, getting it done and
with there's more stuff to do. We'll continue to do.
Speaker 1 (01:55):
In Europe anything tangible or not.
Speaker 2 (01:57):
Two things really, one is to sort of reinforce the
trade side. You know, we've had a billion dollars extra
of exports to the EU since the FTA came into
effect last year. It's up twenty eight percent. Our expert
is on a good job. So it's about bilateral speed
dating with all these leaders in one place. And then
also as part of the IP four which is the
end of Pacific for Japan career austraight in New Zealand,
(02:20):
it's about understanding insights from Europe Atlantic region and the
relevancy to Indo Pacific and how that deals with that.
So on defense and security bits as well.
Speaker 1 (02:29):
We need all of that because the manufacturing read that
came out on Friday has now gone backwards of all
the things that was going well, and last week was
a good week I thought for the country for all
sorts of reasons. But the manufacturing has been expanding now
it isn't.
Speaker 2 (02:44):
Yeah, why not? Well, it's been spluttering as a way
I described it to our guys.
Speaker 1 (02:48):
But it's at least been expansionary. Yeah, it has been.
Speaker 2 (02:51):
But I think things like investment boost will help a lot,
you know, as people start to think about tipping capital, plant,
capital equipment into the manufacturing or advanced manufacturing that's going
on the country. That's been well received. Actually up and
down the country. I've been into a lot of small
manufacturing businesses who planned to buy a different machinery that
often is much more productive than what they've got. So
let's hope that that works really well. And then continuing
(03:13):
to expand market access. So that's sort of two things
we can do for them.
Speaker 1 (03:16):
Okay, twenty seven thousand people more are on a benefit
in May. That once again is not a good read
for the economy. What's happening.
Speaker 2 (03:23):
No, that's not good in terms of well we've really
dealt with We're trying to get spending under control, which
gets inflation down, gets interest rates down, gets economy growing.
That's good. But the last but the legs as the unemployment, that.
Speaker 1 (03:36):
Part fell apart. So your theory was you've got your
spending under control to a degree, inflation is down to
a degree. Were this point now stuck?
Speaker 2 (03:45):
Well, no, we run out of part.
Speaker 1 (03:46):
I can't see where the economy is growing outside of
deary and for you know, all that stuff we talked
about last week, we now appear to be that theory
that April May was a problem, but hang on the
latter part of twenty five will be fine. Doesn't see
much real or was it once did?
Speaker 2 (04:01):
Yeah, I mean we always knew unemployments the last bit
that has to come right after those first four bits.
And so yeah, we've been forecasting that it will peak
in the middle of the year and then start to
trend down on the back half of the year, which
is as the economy continues to grow. But like to
say to you, look it is going game buses. You know,
you come out of the primary industries and you look
at you know, double digit growth set. It has been amazing.
(04:22):
Tourism is coming back. Yes, we're pulling up the Australia
and the Chinese numbers.
Speaker 1 (04:26):
That's what this is about, is it really coming back
at eighty six percent? Eighty six percent? Stuck at eighty
six percent.
Speaker 2 (04:31):
But what I mean is that we've got you know,
we've got growth in the American market, the Indian market,
and tourism. Yes, Australia and China are the two that
we're working, but even the Australians starting to move forward.
China is a big chance. This week it's been at
sixty percent, so we've already got to step that up.
And then I think, you know, things like the investment boost,
you know, and low inflation, lower interest rates, all of
that is going to encourage people at to invest. Yes,
(04:52):
there's uncertainty in the world and that's been a bit
of a concern for people in April with the tariff announcements,
but you know, post the budget at the end of May,
I think, you know, we've got some things that actually
catalyze that growth.
Speaker 1 (05:02):
Do the Reserve Bank need and I know they're independent,
I get all that, But do the Reserve Bank need
to do some more if we're stuck in the middle
of the year, do they need to do some more
than because they're sitting there going, oh, we're in the
band we're okay, Well, I mean we're not.
Speaker 2 (05:16):
Yeah, Well, we'll inflations in the band. They will bounce
around a bit, but it's got to stay under three percent,
which is where it needs to be, and they'll make
that assessment as to whether there's further rate cuts to come.
I mean, you know, we should be keep you doing
everything can to keep it down with pressure on rates,
and that'll be their call.
Speaker 1 (05:32):
Okay, Two things I learned last week. One was the
public service. You've only cut two thousand people. For all
that noise of you hoeing through the public service, you've
lost two thousand people out of sixty four thousand.
Speaker 2 (05:45):
Yeah, so you're doing a couple of things there. One is,
if the trend had continued, you'd have eight thousand more.
So we've actually stopped that, and we've actually stopped that,
We've pulled it back. There's a net two thousand you're right,
that have come out of the system. But the bigger
issue is, which is what we've talked about, is actually
taking the resources we've got and making sure it's damn
well focused on the frontline and also delivering better outcomes.
(06:06):
So if you want to go hire seven hundred more
corrections officers. That's what we've done. If you want to
go hire more ird folk to go after tax avoidance,
which we know there's huge return there, then that's a
good thing. Ots had problems in the youth justice facilities.
We've put more resources into that. So when we've been
saying we're investing in frontline services to focus on delivering outcomes,
that's where that's it's a bit of shuffling of back
(06:28):
office to front.
Speaker 1 (06:29):
So you would defend it two thousand as fined as
long as the efficiency is better. In the efficiency more
to do.
Speaker 2 (06:33):
But the way to get the performance right and to
get the organization's right size is to focus them very
clearly on what they have to deliver. And they should
be large service organizations that think of the public of
New Zealand as customers and they should be crystal clear.
If you look at what Simeon's done on healthcare, we're
really cranking in to say we want outcomes and results
and I'm going to lead you into that.
Speaker 1 (06:53):
Well that was the other thing I learned last week
and I don't know why I didn't know, but we
had a surgeon on who is this public private thing?
And you're putting you know a lot more Operation thousand
sixesperation testic brilliant, and I'm thinking, what's the shot? I'm
asking this guy, what's the ideological problem that people have
with putting? You know, who cares? We And that's fine exactly.
I said, well, what's going wrong in health? He says, well,
anything that looks like it's going past four o'clock operationally
(07:15):
in the gets pulled. Did you realize that they're looking
at me? Is this operation going past four o'clock? Is it?
We'll probably delay that till tomorrow. What's that about?
Speaker 2 (07:24):
Well, I don't know. I mean, I don't know how
they organize their schedules. I thought a lot of doctors
did everything in the morning and did their rounds in
the afternoon to check on How this doesn't concern you
if that's true, Well, what concerns me is just that
you've had a twin yellop when labor came to pout,
and they don't want me bashing up on the other guys.
But there was a thousand people that were waiting for
elective surgeries. Now that when we came to power, this
twenty seven thousand, so it got worse, right by twenty seven,
(07:45):
and then you get this ideological conversation about, oh, you
can't use resource that's sitting there in the private hospital system. Well,
the private hospital system is very efficient at doing knees
and hips and cataracts and hernias and all that stuff.
So Simeon very coming on as a new minister, I said, right,
I'm going to do I think nine thousand, six hundred
extra elective surgeries. He's done ninety percent of it in
the private hospital system. And why wouldn't we use that
(08:06):
capacy Because when you're lying on your bed looking up
at the ceiling, you don't really care. But it's got
done in private. We pay for it anyway.
Speaker 1 (08:12):
Imagine how many more you could do if the public
health system didn't start wrapping up at four o'clock.
Speaker 2 (08:16):
Well that may be true, So I'm sure if that's true,
we'll find out about it.
Speaker 1 (08:20):
Other thing was my tech guy was round at my
house on Friday fixing some stuff.
Speaker 2 (08:24):
They restart Mike and any screen of death was it.
Speaker 1 (08:28):
And he said to me, he said, why do we
still have ten days sickly? And I thought that's quite
a good question. Why do we have ten doos sickly?
Speaker 2 (08:36):
Yeah? Well, there's some changes coming through on workplace relationship.
Speaker 1 (08:40):
You go, So we had five sick days until just
decided we needed ten correct for COVID. COVID is now
can we agree that it's gone? Yes, And DeFore we
might need to do something about sickly.
Speaker 2 (08:51):
We might need to might need to do things about
pro rataing sick leave as well, because you know, people
who were on part time contracts are getting full time
ten day equivalency. So Brooke van Velden's working through some
of those. When we're getting an announcement on that I
can't do.
Speaker 1 (09:06):
This to be every frequent, I'm sorry to hold you
to account. My sincere, my sincere apologies. I just thought
you were running the place.
Speaker 2 (09:12):
There will be. I just can't remember the date off
the top of my head.
Speaker 1 (09:15):
So an announcement, but I sick leave is coming from Brooklyn,
There'll be.
Speaker 2 (09:19):
There was a whole bunch of workplace relations stuff as
you've started to see, there's also stuff on health and
safety and in the mix and there is like yeah,
sick leave and stuff.
Speaker 1 (09:27):
Yeah, fantastic, have a good trip to China. Will are
you going to join us next week?
Speaker 2 (09:30):
You know, I am so committed. I'll be there at
one am in the morning, and.
Speaker 1 (09:35):
I think will be this time next week.
Speaker 2 (09:37):
Will think I'll be in Belgium. There you're going.
Speaker 1 (09:40):
I'll be it's teen to nine at night. You'll be
just going out for a little a period of teeth.
You'll be able to go as the call, no worries
at all.
Speaker 2 (09:46):
Yeah, that's this commitment from me. All right, I'll be here.
Speaker 1 (09:49):
You'll get any nice to see your Prime Minister, Christopher Luxen.
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