1 00:00:00,120 --> 00:00:03,240 Speaker 1: We've got the Herald's mood of the boardroom, and in 2 00:00:03,279 --> 00:00:05,840 Speaker 1: a word, it's grim. Our business leaders are calling for 3 00:00:05,920 --> 00:00:08,880 Speaker 1: more bipartisanship when it comes to tax retirement and the 4 00:00:08,920 --> 00:00:12,080 Speaker 1: long term outlook for New Zealand. A big talking point 5 00:00:12,160 --> 00:00:15,440 Speaker 1: was Trump's tariffs, with CEO's confidence plummeting in light of 6 00:00:15,480 --> 00:00:18,799 Speaker 1: the president's aversion to free trade. Roger Patridge is the 7 00:00:18,800 --> 00:00:21,160 Speaker 1: co founder and chair of the New Zealand Initiative, and 8 00:00:21,200 --> 00:00:23,319 Speaker 1: he joins me now, good morning, Roger, thanks for your time. 9 00:00:24,000 --> 00:00:25,079 Speaker 2: Good morning, Francesca. 10 00:00:25,320 --> 00:00:27,440 Speaker 1: So if you could describe the mood of the boardroom 11 00:00:27,440 --> 00:00:29,000 Speaker 1: in one word, what would it be. 12 00:00:30,480 --> 00:00:33,159 Speaker 2: Well, I think grim is quite a good word. Troubled. 13 00:00:34,880 --> 00:00:41,440 Speaker 2: Everybody's are ware the economy's struggling, cost of livings high, 14 00:00:41,520 --> 00:00:44,519 Speaker 2: and the business communities looking for a clear direction from 15 00:00:44,520 --> 00:00:47,519 Speaker 2: the government and not feeling that they're quite delivering. 16 00:00:48,159 --> 00:00:51,760 Speaker 1: There's pretty much unanimous agreement that the economy isn't taking 17 00:00:51,760 --> 00:00:54,040 Speaker 1: off in the ways that we were promised. What are 18 00:00:54,040 --> 00:00:55,640 Speaker 1: those key issues holding us back? 19 00:00:56,680 --> 00:00:58,720 Speaker 2: Well, one of the big issues is the extent of 20 00:00:58,760 --> 00:01:02,920 Speaker 2: government spending. That's meant that it's taken longer for interest 21 00:01:03,000 --> 00:01:08,960 Speaker 2: rates to come down and with interest rates high productive 22 00:01:09,000 --> 00:01:13,000 Speaker 2: activity has not rebounded in the way you'd hope after 23 00:01:13,040 --> 00:01:19,600 Speaker 2: a recession. I think the government underestimated the extent of 24 00:01:19,640 --> 00:01:25,560 Speaker 2: the problem they inherited from the last government, and underestimated 25 00:01:25,600 --> 00:01:28,479 Speaker 2: how much pain it was going to take and cause 26 00:01:28,520 --> 00:01:33,640 Speaker 2: to firms, workers and consumers. Probably should have managed expectations 27 00:01:33,640 --> 00:01:36,160 Speaker 2: better on how long it was going to take to 28 00:01:36,280 --> 00:01:37,200 Speaker 2: turn things around. 29 00:01:37,920 --> 00:01:42,039 Speaker 1: You've called for bipartisanship on our economic future. What's stopping 30 00:01:42,040 --> 00:01:44,119 Speaker 1: this progress? Is it the fringe parties? 31 00:01:45,319 --> 00:01:49,080 Speaker 2: No, I think it's worth We're always tempted to think 32 00:01:49,080 --> 00:01:51,680 Speaker 2: about what divides us politically, but it's worth thinking a 33 00:01:51,680 --> 00:01:55,440 Speaker 2: bit about how much we agree on and trying to 34 00:01:55,480 --> 00:01:58,480 Speaker 2: broaden the scope when you step back and think about 35 00:01:58,680 --> 00:02:01,400 Speaker 2: the issues that aren't so object to political flip flops 36 00:02:01,400 --> 00:02:06,200 Speaker 2: every time there's an election. We've got bipartisanship on free trade, 37 00:02:06,720 --> 00:02:11,760 Speaker 2: on an independent foreign policy. We've had by partisanship and 38 00:02:11,800 --> 00:02:14,080 Speaker 2: probably still do on the need for a broad based 39 00:02:14,120 --> 00:02:18,280 Speaker 2: tax system with a clean GST. We don't have a 40 00:02:18,320 --> 00:02:20,920 Speaker 2: successive governments tinkling this talk of it every now and then, 41 00:02:20,960 --> 00:02:24,160 Speaker 2: not tinkering with our GSD. But it's the envy of 42 00:02:24,200 --> 00:02:27,280 Speaker 2: the world. It's a very efficient tax. We've had cross 43 00:02:27,320 --> 00:02:30,280 Speaker 2: party support for more than three decades on treaty settlements 44 00:02:30,320 --> 00:02:34,000 Speaker 2: and cross party support on climate change. So there's a 45 00:02:34,040 --> 00:02:36,560 Speaker 2: lot that unites us, and I think that's a strength 46 00:02:36,600 --> 00:02:39,960 Speaker 2: of our political system. One of the challenges is to 47 00:02:39,960 --> 00:02:45,680 Speaker 2: broaden that out. We've had bipartisan support for a prudent 48 00:02:45,760 --> 00:02:48,400 Speaker 2: fiscal policy and low levels of debt, keeping debt at 49 00:02:48,440 --> 00:02:52,120 Speaker 2: around twenty percent of GST our GDP, and that lasted 50 00:02:52,240 --> 00:02:56,560 Speaker 2: until the pandemic, and then the trading wheels came off. 51 00:02:56,840 --> 00:03:00,800 Speaker 2: The spending constraints came off with both parties. So I 52 00:03:00,800 --> 00:03:06,840 Speaker 2: think we should think about the important areas where we 53 00:03:06,880 --> 00:03:11,919 Speaker 2: can agree politically on issues like retirement savings, infrastructure pipeline. 54 00:03:12,320 --> 00:03:15,160 Speaker 2: There are a whole host of policy areas just crying 55 00:03:15,160 --> 00:03:16,280 Speaker 2: out for certainty. 56 00:03:16,919 --> 00:03:19,280 Speaker 1: A lot of feedback about Trump's tariffs and the impact 57 00:03:19,280 --> 00:03:22,160 Speaker 1: that's had on confidence. Trump did what he said he 58 00:03:22,200 --> 00:03:23,720 Speaker 1: was going to do. Should we have been more prepared 59 00:03:23,720 --> 00:03:25,360 Speaker 1: for the reality of these tariffs. 60 00:03:26,560 --> 00:03:30,720 Speaker 2: I think people were misled globally about what Trump term 61 00:03:30,880 --> 00:03:33,080 Speaker 2: two was going to look like. Trump said an awful 62 00:03:33,120 --> 00:03:36,040 Speaker 2: lot of things before term one, which he didn't do, 63 00:03:37,080 --> 00:03:40,400 Speaker 2: and I think people thought he might have been messing 64 00:03:41,520 --> 00:03:45,080 Speaker 2: with America and the world more than he actually was, 65 00:03:46,560 --> 00:03:51,320 Speaker 2: so we weren't alone in not taking what he said 66 00:03:51,400 --> 00:03:52,480 Speaker 2: at face value. 67 00:03:52,760 --> 00:03:54,480 Speaker 1: There we go and really quickly, Roger, do you think 68 00:03:54,520 --> 00:03:56,120 Speaker 1: the Prime Minister will be happy with his ranking? 69 00:03:57,160 --> 00:04:01,080 Speaker 2: He won't be happy. No, it's it's for him. It's 70 00:04:01,080 --> 00:04:02,640 Speaker 2: definitely work in progress. 71 00:04:03,000 --> 00:04:05,080 Speaker 1: Thank you so much. Really appreciate your time this morning. 72 00:04:05,160 --> 00:04:06,400 Speaker 1: That was Roger Patridge. 73 00:04:07,600 --> 00:04:10,600 Speaker 2: For more from Early Edition with Ryan Bridge. Listen live 74 00:04:10,720 --> 00:04:13,720 Speaker 2: to News Talks it'd be from five am weekdays, or 75 00:04:13,760 --> 00:04:15,680 Speaker 2: follow the podcast on iHeartRadio.