Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Prime ministers.
Speaker 2 (00:00):
It's good to see you come into your studio to
have our regular conversation with Yes.
Speaker 1 (00:05):
No worries I've got. It's always as thrill to have
you here.
Speaker 2 (00:10):
Have you got a letter to all the listeners? He
just said that with so much insincerity.
Speaker 1 (00:15):
Have you got a letter from Trump yet? On what
looks to be an increasing number over ten percent on terrace?
Speaker 2 (00:21):
No, we haven't, No, we haven't. I mean, actually, I
think we're in good position. I think we've managed it
as well as can be expected. There's no doubt about it.
The whole situation has caused a lot of chaos in
the global economy because it's created a lot of uncertainty
and that's never good for business and for economics. But
having said that, our ten percents, you know, we're no
less off than any other country. It's the lowest rate
(00:42):
we can get. And more importantly, Mike, I spend quite
a lot of time with our exporters into the US,
whether it's been zespri on Kiwi fruit, the red meat guys.
We do a little bit of dairy there, we do
a lot of wine in there, and they're actually going
really great.
Speaker 1 (00:57):
Okay. The reason I ask is you said the letters
to the small countries will go out any day now
and it's above ten. If it's above ten, do we
do anything about it.
Speaker 2 (01:07):
We want to make sure we're no worse off than
any other country as our starting point. And when we've
spoken with you know, their trade commissioner, the trade secretary
over there, you know, Todd mcclay's had really good dialogue
with them, and the view has been they've got other
bigger fish to fry. And for us, yep, we don't
like tariffs. Yes, we don't think it's good for the
global economy, as evidenced by what we've seen in April
(01:28):
May around the world. But actually for us, we're navigating
it pretty well.
Speaker 1 (01:32):
Okay, So you've cut into the public service and yet
I read a rung A Tameriki is spending two million
dollars a year plus on communication stuff. How is this possible?
Speaker 2 (01:40):
Yep? Funny you say that or someone raised that with
me at all? No, no, No, What I mean is
there are there's an awful lot of comms people in
the government service and we've been trying to get you say,
get rid of the back office, make sure you put
the resources in the front line. We've done that job,
I think, not perfectly. But actually there's been a lot
of that that's happened. You know. You think about the
twenty three billion last year, the twenty one billion this
(02:02):
year of redeployment of resources to the front line.
Speaker 1 (02:05):
But why don't you just sack them?
Speaker 2 (02:07):
Well, I mean, we're putting the pressure back on CEOs
to say, you've got these goals to deliver for us
as a government. How you organize your resourcess some to you,
but we're going to hold you accountable for.
Speaker 1 (02:17):
So as of March, they've employed two media advisers, they've
got two communications advisors, they've got two senior media advisors,
six senior communications advised as a chief media advisor and
a manager of organizational communications. Do you know what any
of that means? No?
Speaker 2 (02:29):
I don't, And that sounds like a complete and I
so not where we want those reasons.
Speaker 1 (02:32):
But you're in charge of them. And this is o
rang of Tamariki, who couldn't get out of their own
way if their life depended on it.
Speaker 2 (02:37):
And I hear it. It's a classic of what we
don't want seeing happen.
Speaker 1 (02:41):
No, that is true. I also read while I'm on holiday.
More than half of your two hundred and fifty seven
million dollar loan book for the Provincial Growth Fund is
at risk of impairmental default. Are you worried about that?
Speaker 2 (02:52):
Well, again, I mean we've got obviously, Shan James has
got a one point two billion dollar regional infrastructure fund.
There's some really good examples where those investments are making it.
It's those regional communities. There are some that are challenged
for sure, but you know, we take it on a
case by case base.
Speaker 1 (03:06):
But was that just free lolly handed out under a
different administration to anyone who had their handout, and all
of a sudden we look at the case and we go, oh, whoops,
they might default?
Speaker 2 (03:13):
Well, I think, and all I can't talk to the past.
What I can talk to about is the deal that
we have now, which is to make sure we're doing
largely capital investment, which is you know what's important where
those where those organizations or businesses need actually some capital injection.
That's what Shane's been focused on with this version of
the Regional Infrastructure.
Speaker 1 (03:31):
The fact that fifty four percent, though a look risky,
doesn't bother you.
Speaker 2 (03:36):
Well, it was obviously a concern, but we expect him
to be making sure that actually those businesses are actually
getting on top of it and not just and actually
building better businesses as a result of that capital injection.
Speaker 1 (03:47):
I also read while I'm on holiday that L and G.
You remember the promise you made on L and G
I think was Simming and Brown made on L and
G that when we had the crisis last year on power,
that would get some L and G into the country.
So at last we've got the report on that turns
out to be too expo did he well, a little
bit quicker than he might have.
Speaker 2 (04:04):
Well, I mean the thing on electricity is that the
biggest thing we've done is actually get a strategic coal
reserve and there at the.
Speaker 1 (04:09):
Back round and I get all that. But you see
that ALI and G was an answer. It turns out
it isn't.
Speaker 2 (04:15):
Yeah, well, something we're still considering, still exploring. Yeah, no,
because actually, in terms of continuity, if push comes to
shove and we've actually you know, not been able to
liver the ultracy in the way we want to, we
want to have all avenues open as possible. But you're right, gas,
you know, aling importation is actually probably the more expensive form,
and that's why it comes back to coal. And rather uniquely,
(04:36):
this is a country that's decided to make the transition
from domestic gas to important coal, which is insane precisely
because we killed all in gas in ce A.
Speaker 1 (04:45):
Are you actually going to this report that came or
got made public yesterday, Are you going to do anything
about it?
Speaker 2 (04:51):
We are you are when in the next few months,
are you going to blow it up? Everything's on the table,
because genuinely, there's nothing more important th getting o kids
well educated. I speak to a lot of parents, teachers, principles.
They have really serious concerns about NCAA and the danger
as you can go through an exercise where you reassured
that you're getting well educated because you're getting different getting
(05:14):
through the NCAA system. But the thing for me and
for the parents and teachers that I run into is,
are our kids at fifteen sixteen as well educated as
their counterparts in Australia or Canada or Ireland or something
else we went to. We can't. There's got to be
globally comparable. And secondarity, are we actually teaching them the
basics and giving them a core educational program that actually
sets them up. Weal for working life, and you know,
(05:37):
there is a heap of high paying jobs out there
in the world, and the biggest thing that will impact
the New Zealand economy is actually our ability for our
talent through education to be able to access those high
paid jobs. How are we going to build a four
lane freeway from Auckland to funger A if we don't
actually have kids who can do maths and some reading.
And that's We've got some real challenges though.
Speaker 1 (05:55):
Okay, so it will be announced this year, yes, will
it be changed next year, In years into the future,
it'll be.
Speaker 2 (06:04):
I'll let I mean in fairness, Eric is saying, look,
there's a real problem, and I fully agree her and
I've talked about this even in opposition. We've worked our
way through, initially around the primary and intermediate age with
the structured literacy, structure, mathematics, you know, and all that stuff.
Now we want to take on the NCAA and the
secondary school piece, and so we where everything's on the
table because we want a high quality qualification.
Speaker 1 (06:26):
But is it profound The change that's coming could well
be yep, okay, yep.
Speaker 2 (06:32):
The I'm not I'm not, I'm not limiting that conversation right,
because actually it is really important that when we lift
this lit up and we say it's not working and
it's not not what delivering for us, we've got to
be able to be prepared to look at everything first principles.
Speaker 1 (06:45):
Is John Key right the interest rates to one hundred
basis points too high? Well, he's a former.
Speaker 2 (06:50):
Prome minister can go out there and comment as he wishes.
I sadly, as current Prime minister, I can't because, as
you know, the independence of the Reserve Bank. All I
can do is control the that I can control, which
is the fiscal side of things. The Reserve Bank controls
the monetary policy, but that means making sure the spending
is appropriate, that we're doing everything we can to get
inflation down. So the conditions are right for interest.
Speaker 1 (07:11):
But here's your problem. If they're right today and it's
two point nine, that's close enough to three in the
band to be a problem, the RB will come back
already did a week ago, and they'll probably do it
next month and go yeah, No, broadly speaking, things are okay.
It's in the band. We're not doing anything. Meantime, the
rest of New Zealand screaming at you because you're the boss.
You're going the economy is not right, Well, now I
(07:32):
need something better. It becomes your problem, whether it.
Speaker 2 (07:35):
Is I'm not following or not. And I'm working really
hard in the eighty months to try and fix an
economy that's been through three years of a recession.
Speaker 1 (07:41):
Yeah, but the bits I can't fix though. I mean,
if your insurance is up twenty percent and your counsel's
up nineteen percent, there's nothing you can do about that
apart from jaw bone it, which you have been doing,
but it doesn't to what effect.
Speaker 2 (07:53):
Yeah, but I think you know what I can do
is I can make sure that government spending isn't contributing
to rising domestic inflation right there. Year they'll be imported,
but personally, you know, we want to see inflation will
bounce around. There's no doubt about it. It's got to
be within the one to three percent band. It can't
be at seven and a half where it was under
labor And as a result US prawling the inflation down
has actually led to two point twenty five bases points
(08:15):
coming out of the interest rates. And just to give
you a feel for it, I think there's something like
fifty billion dollars worth of mortgage money that's about to
cycle through it.
Speaker 1 (08:23):
But I'm not arguing with you. What I'm saying is, yeah,
my mortgage is down, Praise the Lord. But hang on,
there's my insurance bill and there's my rates. I'm no
better off.
Speaker 2 (08:32):
Well. I think that the challenges are for New Zealanders
right now still doing it tough, is that you've had
three years of really high levels of inflation and prices
are high. The good news as wages are increasing faster
than inflation under our government, which is a good thing.
We want to continue to expeend a.
Speaker 1 (08:46):
Lot of inflations. At two point nine percent, it won't.
Speaker 2 (08:48):
Be well, but so far that's been the case that
there hasn't been the case in the previous period of
time under previous government. But you're right, I mean people
are still dealing tough with rates, which is a challenge.
That is why we want to do about rates caps. Ultimately,
we've got to be able to talk about food prices.
As you know, Nicholas doing some good work.
Speaker 1 (09:05):
You're getting me upset of now because she's off to
fon Tierra this week to meet who Miles and what
you're going to talk to Miles about. Talk about the
price of butter. I can tell you why the price
of butter is the price of butter. And I don't
know why we have a finance MINISTERY doesn't know how
butters we get the international price for butter. We should
celebrate this.
Speaker 2 (09:23):
Correct, So let me just speak. First of all, Fonterra
requested the meeting. She's she says, that's how well she'll
talk to them about. Also a supermarket review because she
wants to talk to major supplies around what's going on there.
She's also acknowledged you know that the reality is dairy
prices are determined globally. As you know, the benefit of
farming at the moment on fire and doing really well
is because we've actually got a high global dairy price
(09:45):
and that's what we end up to drive something.
Speaker 1 (09:47):
Give you some advice for Nikola, and I've tried to
give it to her and she doesn't want it. Here's
here's the thing. You got to stop talking about it.
If you want to fix the banks, fix them, do something.
If you want to fix the supermarkets, do it. Stop
about it, stop having meetings, do it.
Speaker 2 (10:00):
I just say to you, I know what's happening behind
the scenes on supermarkets. Tell and I will tell you
when we're ready to tell you. But the bottom line is,
i'd say she's working incredibly hard and time.
Speaker 1 (10:08):
I'm sure she's working hard, but until you see the results,
So are you going to do something profound with the supermarkets?
Speaker 2 (10:13):
And the next few months she'll come out and talk
about what we're going to.
Speaker 1 (10:16):
Do there, So you've already decided what you're going to do.
Speaker 2 (10:18):
Know, there's the ongoing work that she's doing and it's
not ready for us to come forward with just yet.
And I want to get ahead of her on that work.
But I'm just saying to your thing, it's she's I
know what she's doing behind the scenes, and she's exhausting
all options to make sure I get accomplished in that supermarket sector.
Speaker 1 (10:32):
I took too long for a holiday. I took two
weeks off.
Speaker 2 (10:35):
I noticed you were here last week when I came back.
Speaker 1 (10:37):
As a mistake. Yeah, I think holidays are overrated, and
I think for those.
Speaker 2 (10:41):
Is the man that when do you shut up shop
here like November one and you come back March. I
came back and then you give me grief about the
parliamentary cycle.
Speaker 1 (10:48):
I came back in January, and I'm sticking here in January.
Speaker 2 (10:52):
It was February, wasn't it February?
Speaker 1 (10:54):
Barely February. It was barely February. But I think people
who enjoy their work shouldn't take holidays as a general.
Have you thought about this as a policy. If you
like your work, you don't take a holiday.
Speaker 2 (11:05):
I gotta be honest. Every time I take a couple
of days off, I get sick. So it's sort of
I come back to the same conclusion, which is we
should have you find on your holiday last week that
that was plenty five days. Yeah, that's pretty good.
Speaker 1 (11:15):
Yeah, that's an arche.
Speaker 2 (11:16):
Manage for that. I got a lot, a lot on
my plate that I want.
Speaker 1 (11:18):
To diet him straight. We've just covered some of it.
Speaker 2 (11:20):
Yeah, you give me a work list every week exactly
before go get hold.
Speaker 1 (11:23):
It's nice to see you.
Speaker 2 (11:24):
For more from the Mic Asking Breakfast, listen live to
news talks.
Speaker 1 (11:28):
It'd be from six am weekdays, or follow the podcast
on iHeartRadio.