Episode Transcript
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Speaker 1 (00:09):
You're listening to a podcast from News Talks EDB. Follow
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Speaker 2 (00:24):
Rewrap there and welcome to the Rewrap for Tuesday. All
the best that's from the My costing Breakfast on News
Talks EDB in a sillier package, I am green Heart
and today are they public service cuts or just public
service improvements? We'll dig into this shortly. More brilliant award
(00:46):
winning ideas to shake up the way we do superannuation
in this country. What is a maori kiwi fruit? And
does any were still do or have they ever done?
Free refills at the drinks machine? But before any of
that Reserve Bank day tomorrow, can you contain yourselves.
Speaker 3 (01:06):
Now as regards tomorrow. We'll be spending time on this
tomorrow because it's critically important. It affects every single one
of us Reserve bank cash rate Christian hawksby penultimate time out?
Do you think you'll dress differently for it? Where do
you go from the Reserve Bank? Where's Christian going? Do
you reckon anyway? Because it's one of those things do
(01:27):
you leave when you apply for the job and you
say you applied for the job and I thought that
was interesting because the last time he was out publicly,
somebody quite rightly said have you applied for the job,
And instead of going well, look that's a private matter
and we'll leave that for another day, he went, yes,
I have. And so the moment you've said that and
acknowledged that publicly, then obviously we all know you applied
(01:48):
for the job and you didn't get the job. Why
do you leave? Is it because you're frustrated and thought
one they made a mistaken or you were just going
to leave anyway if you didn't get the job, because
you got bigger ficient frails where anyway? So penultimate tomorrow,
four of the seven economists, the major economists ASB Westpac,
Quey Bank, and in for metrics say fifty the BNZA
and Z the n Z I eera twenty five. So
(02:08):
we don't have consensus. We have consensus there's a cut coming,
but we don't have consensus on fifty or twenty five.
And the arguments for and against the fifty equally balanced.
In other words, can you mount something reasonably decent to
say it should be fifty, Yes, you can. Can you
mount something reasonably distant to say, look, hold on that
(02:29):
all this stuff that we've talked to flowing through into
the economy will arrive eventually. Therefore, you don't want to
overcook it and have to retract it at a later day.
Yes you can. So she's a finely And somebody talked
about and I thought the most interesting thing about it
was what they called sticker shock. So, in other words,
since last time they have been taking a pounding the
(02:50):
Monetary Policy Committee. And remember they had a four to
two vote, two for fifty. So those two go back
if they had any gonads, They go back into the
room and go, hey, idiots, I told you wouldn't they
get a bit tense behind the room, behind the closed doors,
and so do they have sticker shock? In other words,
go bugger, we blew it, and therefore we need to
(03:14):
go fifty, when really they may not need to, which
brings us to Adrian and four hundred and sixteen, one
hundred and twenty dollars. And the problem with this is
twofold one, the main blok who wrote the check quickly gone.
Main bloker got the check gone. And then you asked
(03:34):
the Prime Minister yesterday what about it? And he goes, well,
it's not nothing to do with me. E they're independent.
What do you do? No, it's so once again no
one gets held to account. So some guy comes in
on a million plus he was on one point one
eighty two let's call it one point two is on
one point two million. He did what he did to
the economy, packed a big sad, stamped his feet. They
were about to sack him, and then he said, thanks
(03:58):
very much, four hundred and sixteen thousand dollars. I'll see
you in the cook Islands. No one held to account.
Speaker 2 (04:02):
You know when Mike says it affects every single one
of us. At the risk of doing a humble brag,
I don't have a mortgage anymore, which only because I'm
very old and I've been paying for one for a
long time, and I'm married to somebody who makes a
lot of money. She's been paying as well, and so
(04:27):
we've finished doing that. So really the only way to
fix us is that it's hard to get money that
you save in the bank to make much interest. So
I guess he's right that technically it does affect me.
But I'm not overly gripped, you know what I'm saying.
And I wonder that might be true for a large
percentage of our audience. I hope, I guess shall we
(04:50):
just still sit there smugly tomorrow year. Let's do that.
Speaker 1 (04:53):
It's got a rewrap.
Speaker 2 (04:54):
Something else which may affect us even more is the
money that gets spent on the public service. The government's
obviously been looking to slice and dice. That doesn't necessarily
mean people out of work, or that the service that
you're getting from your particular privateccept is going to be
(05:16):
any worse. In fact, it might be better.
Speaker 3 (05:18):
So the headline, and this comes from government advice. Government
agencies warned large Crown Board fee hikes could impact services
and worse than cost pressures. So you go, oh my lord,
we're already type for money as it is our frontline services.
This came up in the Prime Minister's post cabinet press
conference yesterday. Somebody asked will essential services be cut?
Speaker 1 (05:35):
Now?
Speaker 3 (05:35):
What you're going to understand? And this is where the
media lacks a little bit of detailed nuance and subtlety
these days. There I suggest also some experience in professionalism
is you've got to understand how these things work. So
there is a pre election within the media to literally
reprint everything. A government agency, right, So in other words,
a government agency offers you a range of views. They'll
(05:56):
tell you something's brilliant, they'll tell you something's dreadful, and
they'll tell you several versions in between. And that is
for you as a minister to look at and just
be covered off to go, hmm, what are my options here?
That's all they're there for. I mean, they're not there
to tell you to do anything. Because you are the ministry,
you can do whatever you want.
Speaker 1 (06:11):
Now.
Speaker 3 (06:12):
Luckson's point was this, if you haven't been aware, they're
looking to increase the fees that they pay directors in
public entities, and they need to because the fees are
a joke and unless you pay something half decent, you're
not going to get anyone any good to do the job.
Now they're not paying anywhere clothes to commercial levels, but
nevertheless they want to make it a little bit better
(06:32):
than it has been now. Luxon made a very good
point yesterday which as far as I can work out,
no one's covert. So his point was this, you don't
need everyone gets alarmed or no, our essential service is
going to be cut. No, they're not. Because one of
the examples he gave yesterday was classrooms. So the Ministry
of Education has X number of dollars for classrooms, and
it used to be under the Labour government that a
(06:52):
classroom would cost on average one point two million dollars
per classroom, which seems an astonishing amount of money. Do
you know why because it was and they looked into
it and what they've got it down to was six
hundred thousand dollars a classroom. So they've got the same budget,
but they're getting twice as many classrooms. So can you
do more or with the same amount. So you've got
two different mentalities there. You've got the mentality that we've
(07:13):
got X number of dollars and therefore we must be
at peak spend. Therefore there is no more room. And
if you spend something on something else, therefore something else
Suffer's not true. You can spend the same amount of
money more efficiently. And that's the point he was making.
And that's the nuance subtly that you will get if
you watch the whole thing live as opposed to relying
(07:35):
on just the media. In other words, you become the media,
is what I'm saying.
Speaker 2 (07:39):
You know what I reckon makes things more efficient and
people more productive as you tell them they can go
home once they've finished all their work. Because that's how
I've done this job pre much as I started it now,
like twenty five years ago, twenty four years ago, who's counting.
And I've always had an arrangement basically that as long
(08:00):
as I get everything done, I can go home, and
anything that I can't do here, I can do at
home or advice. That's made me a very efficient person
because all I think I've said this before, all they
ever want to do is nothing. But I've never felt
like I can do nothing until I've done everything. Doesn't
(08:22):
everybody run their lives that way? A rewrap actually, speaking
of paying things off and having mortgages and buying houses
and all that sort of thing. Where what's the latest
with super and retirement saving and all that?
Speaker 3 (08:34):
Who knew the New Zealand Society of Actuaries would be
so useful Their Retirement Income Interest Group, Yes there is
a thing, has come up with what you can only
describe as a simple and yet effective idea around hopefully
sorting out our retirement nest egg dilemma once and for all.
What we need, they argue, and they're right, a single
framework for consistent discussion of what would be an adequate
(08:57):
retirement income now, their point being the various boffins who
produce numbers like a million dollars, It means nothing. It's
like inflation around food. The other day the latest stats
came out on food. Food prices were up five percent?
Are they not really? I mean if you counted all
the food they were maybe, But we don't buy all
the food. We buy our food, and our food might
end up more or less, buy a lot or buy
(09:18):
a little. So when they tell you you need, for example,
a million dollars to retire, will you know? You might?
But you might not. So what's the point there isn't one.
So to their idea, work backwards. What is it you
want by way of a figure, and then you link
it to what you were Now that's not hard a
You might decide you need a little bit less than
what you currently earn, given you won't be commuting, or
(09:38):
you might not be having afterwork drinks. You might decide
you want the same or more whatever. So what you
need to do to say that we'll give you what
you earn by way of a wage today? Now, if
we all talk about that the same way. At least
the figure or the goal becomes clear or at least
a bit clearer now their example at the four percent
and four percent, which is what we're about to move
to for Kiwi Saber, they've come up with this calculation.
(10:00):
If you work from your early twenties, earn a median income,
invest in a balance fund, you will end up at
about seventy five percent of what you currently earn. Is
that what you want? Do you want more? Do you
want less? Whatever? At least you know where you are.
Of course, the other question you could ask is does
anyone pay attention to any of this anyway? Is part
of the problem around retirement savings and costs, the simple
fact that we put it off, pretend it's years away.
(10:22):
Until then we panic if things haven't worked out. The
answers have always been there, but it's been confused by
the myriad of so called experts, all with their own
special recipe for success. But the actuaries might have cracked
it simple and consistent.
Speaker 2 (10:37):
Like most good ideas, I keep looking it up every
time I hear the word actuary, and then I keep
forgetting what it is. How many kids out there want
to be an actuary when they grow up. That's one
of those jobs, isn't it. It's it doesn't really fall
under the sort of the firemen, policeman, nurse doctor category?
Does it? Rewrap right and as never ending fight against
(11:03):
PC gone mad, Mike Hosking has found something else that
he thinks is ethnically biased and he wants it to
be unbiased.
Speaker 3 (11:11):
Turns out I didn't know this that we sell mari
kiwifruit as in Kiwi fruit as grown by people who
happen to be mari, and in that is part of
our ongoing problem with rapes. I would have thought now
whether a kiwi fruit has been grown by someone who
happens to be Mari, I wouldn't have thought it was
even a thing any more than a kiwi fruit that
happens to have been grown by, Oh, I don't know,
a woman, or a family, or an immigrant family or
(11:33):
anyone else. The differentiating feature of kiwi fruit, especially in
our export markets, is in fact it's from New Zealand,
which is why we have what they call a single
desk system. Under the system, the New Zealand story is
it's the only story. It avoids confusion more from New
Zealand growers competing with each other or undercutting each other
in the international market. A small nation at the bottom
(11:55):
of the world cannot afford to be sending mixed messages.
Also goes the thinking, and as far as I can
work out, the thinking has and is working really well
with our industry. It's now multi billion dollar success story
and continuing to get larger each season. Except it turns
out that as part of our agreements there is a
maor carve out a special race based exception. Did you
know this? I didn't now, making this slightly confusing, I
(12:16):
guess is the possible idea that a cultural link to
an export from a country light New Zealand might make
a difference or off as some sort of alternative narrative
if you're looking for market cut through. I don't know.
But that aside some simple questions, why do we have
a single desk approach? Except when we don't When it
comes to race, Why does race or what does race
have to do with growing anything? The product's no different.
(12:37):
It's not growing differently, it's not a different variety. It
just happens the person growing the fruit wants their race
distinguished from another person growing the same fruit who isn't
of the same race. It makes literally no sense. And
in any given market anywhere in the world, the key
we fruit you pick up will not be bought or
sold because of the age, the height, the gender, or
the race of the grower. It will be bought and
sold on origin and quality. See a bay of plenty
(13:00):
asks esprey for a regional carve out to a free trade,
a free trade it will go nowhere for obvious reasons.
Why is race an exception? Does race make a difference
to the amount of fruit, any fruit, or any product
we sell to anyone anywhere? And if the answers know,
why is it allowed to be a thing?
Speaker 2 (13:16):
And Kiwi fruit essentially Chinese? Because there were Chinese gooseberries initially,
weren't they? Where have I got? Haven't been checked their passports?
I suppose it's a re rap.
Speaker 1 (13:30):
Right.
Speaker 2 (13:30):
We're going to finish up pouring ourselves a nice cold one, no,
not alcohol, soft drink. We got into a bit of
a discussion today because apparently in Nando's in the UK anyway,
you can get free refills. They're the soft drink machine,
(13:52):
you know, but only the zero sugar ones because it's
against the rules.
Speaker 3 (13:58):
Otherwise, as usual, we bipened up a can of worms.
So you start texting saying, Burger King does the free refills?
Chatchbt disagrees with you, So I don't know who to believe.
I personally with the listener over chat choobyt chat chibt.
The more I use it seems to be increasingly suspect
to me. I ended up googling what cars I have
driven over the years because that came up the other day.
(14:21):
You type, I typed and something completely different, and it
came up with possible questions to ask what cars does
my costing drive? And I thought, well, that's an interesting
question a lot and they were all wrong.
Speaker 2 (14:33):
So literally I had just sitting at home googling yourself
giggling themself.
Speaker 3 (14:37):
Well, anyway, so where was I? Burger King says you're
telling me yes, chat Schoobyt says, no, Pizzahart special events does.
I don't know what pizza art special events are. Do
you have to go to Pizza Ut for a special event?
I guess so Better Burger apparently does, But that's no
use because Better Burger is only an Auckland tower. Are
in Christ? You so it's not national. Sam's trying to
convince me that Costco does, even though they're not a restaurant.
(14:58):
They've got a tiny reir restaurant with meat balls and
hot dogs and you know, into maami beans and free
refills apparently and Carl's Junior, but only at some locations,
which seems grossly unfair.
Speaker 2 (15:10):
Yeah. I mean we did discuss that. Just because they've
got a drinks found him that you fill your own
drink at doesn't necessarily mean allowed to go back for seconds, thirds,
or fourth.
Speaker 3 (15:18):
But with some of the people I employed, would they care.
They'd see you walking back and go, oh, that guy's.
Speaker 2 (15:22):
Got no nobody cares.
Speaker 3 (15:25):
I don't think we're any further ahead. Mike Hosking confusing
the nation every morning. I mean, that's how it works, isn't.
Speaker 1 (15:31):
Yeah.
Speaker 2 (15:32):
Yeah, Whether people do that and or whether they're allowed
to do that, it's two difficult things. I remember. It's
definitely happens in the States. There's no question about that,
because I remember when I was part of the New
Zealand Secondary Students Choir and we went to the Pacific
Basin Coral Festival in Hawaii and it was blown away.
(15:56):
That did you know, you just go anywhere where you
bought food, there was a soda machine and you could
get cool stuff like Doctor Pepper and root Bear and
have as much as that is your life, which we did.
I wonder we couldn't get to sleep. I thought it
was just the excitement of the performance. But now I
look back, I think we've got to go. I think
(16:19):
we've got a gold a festival. Pretty good choir. I
am Glenn Hart B two. In case you're wondering, that's right.
Used to have a very low voice. It's sort of
it's got higher as I've got older for some reason.
And we'll see you back here again with this annoying
whiny voice tomorrow.
Speaker 1 (16:44):
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