1 00:00:00,280 --> 00:00:03,640 Speaker 1: Aukland Mayor Wayne Brown is pushing for direct flights from 2 00:00:03,720 --> 00:00:06,920 Speaker 1: Auckland to sal Polo and Brazil. He reckons if we 3 00:00:07,000 --> 00:00:08,799 Speaker 1: do this, it means we could tap into trade between 4 00:00:08,880 --> 00:00:11,000 Speaker 1: China and Brazil, which is worth nearly five hundred billion 5 00:00:11,039 --> 00:00:14,000 Speaker 1: dollars a year. Chris Nixon is ends it ie as 6 00:00:14,040 --> 00:00:18,360 Speaker 1: principal economist. He Chris good afternoon, crazy idea or not. 7 00:00:19,440 --> 00:00:21,239 Speaker 2: Oh, I don't think it's a crazy idea. I think 8 00:00:21,239 --> 00:00:24,440 Speaker 2: it's quite a good idea. I mean, given the mayhem 9 00:00:24,480 --> 00:00:26,680 Speaker 2: which is happening in the United States at the moment, 10 00:00:26,920 --> 00:00:31,400 Speaker 2: and they're incoherent economic policies, we've got to be innovative 11 00:00:31,560 --> 00:00:35,080 Speaker 2: and we've we've got to take the lead on these projects. 12 00:00:35,280 --> 00:00:38,320 Speaker 1: Okay, So if the trade between China and Brazil is 13 00:00:38,360 --> 00:00:41,320 Speaker 1: worth that much, and he reckons we tap into one 14 00:00:41,360 --> 00:00:44,000 Speaker 1: percent of it, we could double the GDP of Auckland. 15 00:00:44,200 --> 00:00:46,839 Speaker 1: But how would a flight tap into one percent of it? 16 00:00:48,080 --> 00:00:52,240 Speaker 2: Well, I think firstly, it's not just about China, it's 17 00:00:52,280 --> 00:00:56,560 Speaker 2: about ACIM, it's about East Asia, and it's about China, 18 00:00:57,640 --> 00:01:00,840 Speaker 2: and so I think that's the first thing. The second 19 00:01:00,880 --> 00:01:06,000 Speaker 2: thing is that goods like e commerce goods are starting 20 00:01:06,040 --> 00:01:13,840 Speaker 2: to really go ballistic in places like Brazil, Argentina, Chile, Peru, 21 00:01:14,560 --> 00:01:19,880 Speaker 2: and so therefore there is an opportunity here to connect 22 00:01:20,680 --> 00:01:26,959 Speaker 2: the Asian and East Asia and China with South America 23 00:01:27,000 --> 00:01:30,759 Speaker 2: through New Zealand, and I think that's the key issue. 24 00:01:31,000 --> 00:01:32,959 Speaker 1: But how are we making the money? Are we making 25 00:01:32,959 --> 00:01:35,080 Speaker 1: money of people jumping off the plane for a bit 26 00:01:35,080 --> 00:01:36,160 Speaker 1: of a stop in Auckland or what. 27 00:01:37,160 --> 00:01:40,200 Speaker 2: Well, one of the things is that IATA has done 28 00:01:40,240 --> 00:01:44,720 Speaker 2: some work around this and they would argue that a 29 00:01:44,840 --> 00:01:51,559 Speaker 2: one percent increase in connectivity will increase trade by six 30 00:01:51,600 --> 00:01:57,919 Speaker 2: point three percent. So it's the point that we need 31 00:01:57,960 --> 00:02:03,080 Speaker 2: the connectivity to drive trade. Now, you know, the trade 32 00:02:03,160 --> 00:02:07,000 Speaker 2: could be an e commerce, it could be in tourism, 33 00:02:07,480 --> 00:02:12,360 Speaker 2: it could be an education export export. We don't really know. 34 00:02:13,280 --> 00:02:17,079 Speaker 2: But the point is if you have the connectivity, then 35 00:02:17,160 --> 00:02:20,960 Speaker 2: you see the opportunities. So that's why I like Wayne 36 00:02:21,040 --> 00:02:24,320 Speaker 2: Brown's enthusiasm. He's come to a bit late, but you 37 00:02:24,360 --> 00:02:25,520 Speaker 2: know it's good that he's here. 38 00:02:25,680 --> 00:02:27,119 Speaker 1: Why do you say he's come to it a bit late. 39 00:02:27,840 --> 00:02:30,839 Speaker 2: Well, I wrote this report in twenty and twenty one, 40 00:02:31,080 --> 00:02:36,000 Speaker 2: so that's that's three years, three years ago. But the 41 00:02:36,120 --> 00:02:40,320 Speaker 2: point is he's here and he's making these noises, and 42 00:02:40,639 --> 00:02:42,519 Speaker 2: I think they are the right noises to make. 43 00:02:42,880 --> 00:02:45,680 Speaker 1: So the thing is, though, I think we've only got 44 00:02:45,720 --> 00:02:47,760 Speaker 1: one flight between Auckland and South America. 45 00:02:48,040 --> 00:02:50,480 Speaker 2: That's the problem, is it Chile. Is that where it 46 00:02:50,520 --> 00:02:53,679 Speaker 2: goes it's yes, it's Latin, and it goes from San 47 00:02:53,720 --> 00:02:56,640 Speaker 2: Diego to Auckland and then on to Melbourne. 48 00:02:56,720 --> 00:02:59,320 Speaker 1: And then also we had the Buenos Aidou's flight, which 49 00:02:59,360 --> 00:03:01,280 Speaker 1: in New Zealand was doing in that absence candidate. So 50 00:03:01,320 --> 00:03:03,240 Speaker 1: that suggests it just doesn't work for the airlines. 51 00:03:04,360 --> 00:03:09,160 Speaker 2: Well, I think that's possibly right, But I think there's 52 00:03:09,200 --> 00:03:14,800 Speaker 2: an opportunity here. And the opportunity that presents itself is 53 00:03:14,880 --> 00:03:19,280 Speaker 2: around e commerce, it is around tourism. We've got to 54 00:03:19,320 --> 00:03:22,280 Speaker 2: sort our setting, our regulatory settings out around those things, 55 00:03:22,320 --> 00:03:27,160 Speaker 2: by the way, But if those things happen and we 56 00:03:27,320 --> 00:03:32,560 Speaker 2: design rules that around the way businesses operate, not the 57 00:03:32,560 --> 00:03:35,720 Speaker 2: way we think they operate, then I think we've got 58 00:03:35,760 --> 00:03:36,480 Speaker 2: a chance here. 59 00:03:37,240 --> 00:03:39,200 Speaker 1: Chris, interesting stuff, Thanks very much for talking us through. 60 00:03:39,240 --> 00:03:42,000 Speaker 1: That's Chris Nixon, principal economist. It ends in iea. So 61 00:03:42,040 --> 00:03:43,920 Speaker 1: there you go. Wild idea turns out to be like 62 00:03:44,440 --> 00:03:48,200 Speaker 1: maybe a wildly good Idea. For more from Heather Duplessy 63 00:03:48,240 --> 00:03:51,080 Speaker 1: Allen Drive, listen live to news talks that'd be from 64 00:03:51,120 --> 00:03:54,760 Speaker 1: four pm weekdays, or follow the podcast on iHeartRadio