November 10, 2025 • 7 mins
The Prime Minister has indicated trade talks with India are progressing well - and speculation claims both nations could have a trade deal by next year.
Trade Minister Todd McClay has been hosting Commerce Minister Piyush Goyal in Auckland for a fifth round of talks on a trade deal.
Finance Minister Nicola Willis won't disclose too much, but she says good progress is being made.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
With US now as Nicolaulus, the Finance Minister High Nicholer, Hi, Ever,
are we going to get an FTA with India in
the first half of next year?
Speaker 2 (00:08):
I am not going to get cut across the trade
ministers negotiating timeline. But they are pushing very hard and
there has been a heck of a lot of work
happening and they're making good progress.
Speaker 1 (00:18):
Okay, what are we going to do about these bank profits?
Speaker 2 (00:23):
Well, look, as I've said in the past, there's no
silver bullet to this one. Actually, what you want is
a more competitive banking sector, so that the banks are
offering better products and services at better prices to New Zealanders.
Because I think actually a lot of people get it.
It's okay for business to make a profit, but normally,
(00:44):
if you're seeing profits of this level, you'd expect there
to have been a breakthrough new innovation, or an incredible
new technology that they're brought to the market, or a
huge number of new customers have come on board. But
none of that's the case here. And I found it
reassuring this morning to even hear Mike Hosking acknowledge that
maybe I've got a point that more competition is needed,
(01:04):
and so that's why we've been progressing these detailed regulatory
reforms that the Commerce Commission proposed. None of it is
going to fix it overnight, but it's really important that
we get the settings right so that people can come
and eat the lunch of the big guys. They can
come in and cut away at their business because they're
big profits.
Speaker 1 (01:22):
Okay, so some of the problems, and you've identified this
yourself as the capital requirements in the proposals that you're
looking at the moment, do either of them reduce how
much capital they currently have to hold.
Speaker 2 (01:35):
Well, at the moment, they are going to have to
ramp up how much capital they hold into the future.
So the proposals that the Reserve Bank is consulting on
would ease that ramp up. So they would do that
in different ways. They would change the nature of the
capital that they need to hold, and they would make
New Zealand more aligned with other countries. We like to
(01:57):
compare ourselves with.
Speaker 1 (01:58):
Aligning ourselves the Australians, because apparently the Australian banks have
to hold less capital than we're requiring New Zealand banks
to hold.
Speaker 2 (02:06):
That is correct and that's partly because when international observers
look at New Zealand versus Australia, they think that New
Zealand is a riskier banking market and therefore our banks
should be required to hold more capital so that the
tax pay doesn't end up having to fund a bailout. Now,
there are arguments around how close we should be to Australia,
(02:26):
and that's part of what the Reserve Bank is consulting on.
Speaker 1 (02:28):
Do you think the Reserve Bank should consider dropping the
level because the only consideration at the moment from the
sounds of things, is increasing it.
Speaker 2 (02:36):
Well, I think that the Reserve Bank should ensure that
banks are holding the minimum level of capital required for
the system to be stable. And that's a balance.
Speaker 1 (02:46):
That's subjective, isn't it. I mean that is subjective because
Adrian wanted us to hold a whole lot more capital
than we are. So basically, if you're not prepared to
say yourself now, Nichola, if you're not prepared to say
that it should go backwards, then what you're accepting is
we will always play more in mortgages than Theustralians do.
Speaker 2 (03:01):
I'm accepting my role, Heather, which is under the way
our legislation works. The Reserve Bank is responsible for prudential
regulation making and decision making about where these rules sit.
What our legislation requires and what I, as the Minister
require is that they do what's needed for financial stability.
What I changed was I said to them, I also
(03:23):
want you to actually think about competition. And my remit
to them is really specific in asking them to think
a lot more about that and efficiency, and I think
that's partly what prompted them to review this. In the
absence of me being minister, I'm pretty sure they wouldn't
be reviewing it at all.
Speaker 1 (03:41):
Hey, do you know when the Maui gasfield is closing?
Speaker 2 (03:44):
No? I do not.
Speaker 1 (03:46):
Nobody's told you descend the next year.
Speaker 2 (03:49):
No, I haven't been advised of that. I actually don't
take part in cabinet decisions relating to that in adherence
with the case.
Speaker 1 (03:56):
Oh, of course, because you've got some disclaimers there.
Speaker 2 (04:00):
Under that. Yeah, we kept Cabinet office rules and I
apply them in this case.
Speaker 1 (04:04):
I hadn't thought about that. Are you worried about this though?
If the Mali gas field closes and the method ex closes,
that's a big loss, isn't it.
Speaker 2 (04:11):
Well, this was a huge motivator behind the government's energy reforms,
is that we're looking ahead to a future where we
need to make sure we can keep the lights on
and in the absence of being able to have gas
and coal, you've got a big problem. So that's why
Huntley now has a big coal mountain outside it, because
actually you need something to spark the lights on, and
(04:33):
you need to make sure that that electricity is increasingly affordable,
not unaffordable.
Speaker 1 (04:37):
Hey listen on the Cox, the leader of the opposition
said there says this needs to basically be handled by
their prime minister and our prime ministers sitting down with
each other. We prepared to do that.
Speaker 2 (04:47):
Well, those discussions are ongoing. I think there's been some
reporting sort of suggesting that they're on ice. That's not
the case that I understand. There's still constructive discussions happening
between the two governments, and we are still continuing a
lot of assistance to the Cook Islands, about thirty five
million in direct support for Cook Island projects. What's on
pause is the direct budget payments. It's a reluctant decision
(05:12):
and we are continuing to progress those discussions and we'll
obviously do that through all the appropriate channels.
Speaker 1 (05:18):
Okay, and what about the Prime Minister, because it seems
like it's a Mark Brown v Winnie Pee thing.
Speaker 2 (05:23):
Well, I don't see it that way. I actually think
it goes to the trust between the Cook Islands and New.
Speaker 1 (05:30):
Zealand and Grinds and everybody in the year.
Speaker 2 (05:34):
I don't. Well, no, obviously Cook Island does belong very well. No,
it's a Cook Island's government issue in which they broke
down the level of trust between the governments and that
has been damaged because of the way they behaved in
relations to their security agreement with China. And that is
a policy issue rather than a personal issue.
Speaker 1 (05:55):
Okay, Hey, when are you going to announce what assets
you want to say after the next election.
Speaker 2 (06:02):
Well, we've ruled out assets sales during this term of
government as a consequence of our coalition agreements. However, the
National Party will bring its own policies to the next
election Campaigny.
Speaker 1 (06:14):
So is it just going to be announcing the election campaign,
is it?
Speaker 2 (06:18):
Well, we continue to do the work that's necessary to
make sure we're managing our balance sheet of assets much
much better than has been the case in the past.
There tends to be a lot of focus on the
commercial assets, but let's remember we've also got hundreds of
billions of dollars worth of social assets, hospitals, schools, roads,
and our government and the National Party are very committed
(06:39):
to building more of those to allow for a growing population.
And so the question becomes, how do you fund those responsibly?
How do you make sure you can build the roads
and schools and the hospitals.
Speaker 1 (06:49):
Such a simple question, Nicla, it was such a simple question.
You're talking, well, I'm friendly. I'm friendly on this. I
think we need to sell assets. Is you know you
can just answer the question.
Speaker 2 (07:00):
Yeah, But you understand where I'm coming from, which is
I've got a carlos.
Speaker 1 (07:03):
Agree, You've got your lines.
Speaker 2 (07:05):
So that's pretty simple. And so when I'm talking to
you as the Finance minister, I have to abide by
my carlos agree. Otherwise I don't get the votes to
do what we need to do.
Speaker 1 (07:14):
Thank you, Nicola, look after yourself. We're talk to you
again next week, Nicolai's Finance Minister. For more from Hither
Duplessy Allen Drive listen live to news talks. It'd be
from four pm weekdays or follow the podcast on iHeartRadio,
With US now as Nicolaulus, the Finance Minister High Nicholer, Hi, Ever,
are we going to get an FTA with India in
the first half of next year?
Speaker 2 (00:08):
I am not going to get cut across the trade
ministers negotiating timeline. But they are pushing very hard and
there has been a heck of a lot of work
happening and they're making good progress.
Speaker 1 (00:18):
Okay, what are we going to do about these bank profits?
Speaker 2 (00:23):
Well, look, as I've said in the past, there's no
silver bullet to this one. Actually, what you want is
a more competitive banking sector, so that the banks are
offering better products and services at better prices to New Zealanders.
Because I think actually a lot of people get it.
It's okay for business to make a profit, but normally,
(00:44):
if you're seeing profits of this level, you'd expect there
to have been a breakthrough new innovation, or an incredible
new technology that they're brought to the market, or a
huge number of new customers have come on board. But
none of that's the case here. And I found it
reassuring this morning to even hear Mike Hosking acknowledge that
maybe I've got a point that more competition is needed,
(01:04):
and so that's why we've been progressing these detailed regulatory
reforms that the Commerce Commission proposed. None of it is
going to fix it overnight, but it's really important that
we get the settings right so that people can come
and eat the lunch of the big guys. They can
come in and cut away at their business because they're
big profits.
Speaker 1 (01:22):
Okay, so some of the problems, and you've identified this
yourself as the capital requirements in the proposals that you're
looking at the moment, do either of them reduce how
much capital they currently have to hold.
Speaker 2 (01:35):
Well, at the moment, they are going to have to
ramp up how much capital they hold into the future.
So the proposals that the Reserve Bank is consulting on
would ease that ramp up. So they would do that
in different ways. They would change the nature of the
capital that they need to hold, and they would make
New Zealand more aligned with other countries. We like to
(01:57):
compare ourselves with.
Speaker 1 (01:58):
Aligning ourselves the Australians, because apparently the Australian banks have
to hold less capital than we're requiring New Zealand banks
to hold.
Speaker 2 (02:06):
That is correct and that's partly because when international observers
look at New Zealand versus Australia, they think that New
Zealand is a riskier banking market and therefore our banks
should be required to hold more capital so that the
tax pay doesn't end up having to fund a bailout. Now,
there are arguments around how close we should be to Australia,
(02:26):
and that's part of what the Reserve Bank is consulting on.
Speaker 1 (02:28):
Do you think the Reserve Bank should consider dropping the
level because the only consideration at the moment from the
sounds of things, is increasing it.
Speaker 2 (02:36):
Well, I think that the Reserve Bank should ensure that
banks are holding the minimum level of capital required for
the system to be stable. And that's a balance.
Speaker 1 (02:46):
That's subjective, isn't it. I mean that is subjective because
Adrian wanted us to hold a whole lot more capital
than we are. So basically, if you're not prepared to
say yourself now, Nichola, if you're not prepared to say
that it should go backwards, then what you're accepting is
we will always play more in mortgages than Theustralians do.
Speaker 2 (03:01):
I'm accepting my role, Heather, which is under the way
our legislation works. The Reserve Bank is responsible for prudential
regulation making and decision making about where these rules sit.
What our legislation requires and what I, as the Minister
require is that they do what's needed for financial stability.
What I changed was I said to them, I also
(03:23):
want you to actually think about competition. And my remit
to them is really specific in asking them to think
a lot more about that and efficiency, and I think
that's partly what prompted them to review this. In the
absence of me being minister, I'm pretty sure they wouldn't
be reviewing it at all.
Speaker 1 (03:41):
Hey, do you know when the Maui gasfield is closing?
Speaker 2 (03:44):
No? I do not.
Speaker 1 (03:46):
Nobody's told you descend the next year.
Speaker 2 (03:49):
No, I haven't been advised of that. I actually don't
take part in cabinet decisions relating to that in adherence
with the case.
Speaker 1 (03:56):
Oh, of course, because you've got some disclaimers there.
Speaker 2 (04:00):
Under that. Yeah, we kept Cabinet office rules and I
apply them in this case.
Speaker 1 (04:04):
I hadn't thought about that. Are you worried about this though?
If the Mali gas field closes and the method ex closes,
that's a big loss, isn't it.
Speaker 2 (04:11):
Well, this was a huge motivator behind the government's energy reforms,
is that we're looking ahead to a future where we
need to make sure we can keep the lights on
and in the absence of being able to have gas
and coal, you've got a big problem. So that's why
Huntley now has a big coal mountain outside it, because
actually you need something to spark the lights on, and
(04:33):
you need to make sure that that electricity is increasingly affordable,
not unaffordable.
Speaker 1 (04:37):
Hey listen on the Cox, the leader of the opposition
said there says this needs to basically be handled by
their prime minister and our prime ministers sitting down with
each other. We prepared to do that.
Speaker 2 (04:47):
Well, those discussions are ongoing. I think there's been some
reporting sort of suggesting that they're on ice. That's not
the case that I understand. There's still constructive discussions happening
between the two governments, and we are still continuing a
lot of assistance to the Cook Islands, about thirty five
million in direct support for Cook Island projects. What's on
pause is the direct budget payments. It's a reluctant decision
(05:12):
and we are continuing to progress those discussions and we'll
obviously do that through all the appropriate channels.
Speaker 1 (05:18):
Okay, and what about the Prime Minister, because it seems
like it's a Mark Brown v Winnie Pee thing.
Speaker 2 (05:23):
Well, I don't see it that way. I actually think
it goes to the trust between the Cook Islands and New.
Speaker 1 (05:30):
Zealand and Grinds and everybody in the year.
Speaker 2 (05:34):
I don't. Well, no, obviously Cook Island does belong very well. No,
it's a Cook Island's government issue in which they broke
down the level of trust between the governments and that
has been damaged because of the way they behaved in
relations to their security agreement with China. And that is
a policy issue rather than a personal issue.
Speaker 1 (05:55):
Okay, Hey, when are you going to announce what assets
you want to say after the next election.
Speaker 2 (06:02):
Well, we've ruled out assets sales during this term of
government as a consequence of our coalition agreements. However, the
National Party will bring its own policies to the next
election Campaigny.
Speaker 1 (06:14):
So is it just going to be announcing the election campaign,
is it?
Speaker 2 (06:18):
Well, we continue to do the work that's necessary to
make sure we're managing our balance sheet of assets much
much better than has been the case in the past.
There tends to be a lot of focus on the
commercial assets, but let's remember we've also got hundreds of
billions of dollars worth of social assets, hospitals, schools, roads,
and our government and the National Party are very committed
(06:39):
to building more of those to allow for a growing population.
And so the question becomes, how do you fund those responsibly?
How do you make sure you can build the roads
and schools and the hospitals.
Speaker 1 (06:49):
Such a simple question, Nicla, it was such a simple question.
You're talking, well, I'm friendly. I'm friendly on this. I
think we need to sell assets. Is you know you
can just answer the question.
Speaker 2 (07:00):
Yeah, But you understand where I'm coming from, which is
I've got a carlos.
Speaker 1 (07:03):
Agree, You've got your lines.
Speaker 2 (07:05):
So that's pretty simple. And so when I'm talking to
you as the Finance minister, I have to abide by
my carlos agree. Otherwise I don't get the votes to
do what we need to do.
Speaker 1 (07:14):
Thank you, Nicola, look after yourself. We're talk to you
again next week, Nicolai's Finance Minister. For more from Hither
Duplessy Allen Drive listen live to news talks. It'd be
from four pm weekdays or follow the podcast on iHeartRadio,
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