1 00:00:00,120 --> 00:00:02,920 Speaker 1: Right now the Finance Minister Nicola willis minister. Good evening, 2 00:00:03,640 --> 00:00:06,240 Speaker 1: good evening, now the cook straight Fairies. We've got a 3 00:00:06,280 --> 00:00:09,000 Speaker 1: one week left on the countdown clock for Winston Peters. 4 00:00:09,119 --> 00:00:11,119 Speaker 1: Is there a solution in hand yet? Do you know? 5 00:00:11,960 --> 00:00:15,560 Speaker 2: Everything's progressing well? And announcements will be made shortly. 6 00:00:15,600 --> 00:00:18,160 Speaker 1: Which would indicate there's something to be announced. 7 00:00:18,760 --> 00:00:20,400 Speaker 2: There will be, there will indeed. 8 00:00:20,120 --> 00:00:23,520 Speaker 1: Be Oh okay, so where he's actually managed to do 9 00:00:23,600 --> 00:00:24,200 Speaker 1: a deal. 10 00:00:25,360 --> 00:00:28,800 Speaker 2: Well, Kebnet will make decisions and when we've made them, 11 00:00:28,800 --> 00:00:30,880 Speaker 2: we will announce them. But I can report to you 12 00:00:30,920 --> 00:00:33,000 Speaker 2: that everything is progressing well. 13 00:00:33,159 --> 00:00:37,840 Speaker 1: Okay. Interesting, So the talks were for obviously fruitful and 14 00:00:38,000 --> 00:00:39,879 Speaker 1: can okay, let me put it this way, because I 15 00:00:39,880 --> 00:00:43,479 Speaker 1: know you'll be tied up in riddles. Is it is 16 00:00:43,520 --> 00:00:45,959 Speaker 1: it your option that you'll be going with no? 17 00:00:46,360 --> 00:00:49,000 Speaker 2: Well? What New Zealanders have always wanted to know is 18 00:00:49,080 --> 00:00:52,600 Speaker 2: can you deliver the fairies by twenty twenty nine with 19 00:00:52,800 --> 00:00:56,280 Speaker 2: a more affordable budget that is more deliverable than the 20 00:00:56,320 --> 00:00:59,280 Speaker 2: last government. And the answer to both of those questions 21 00:00:59,400 --> 00:01:03,080 Speaker 2: is yes, and we will be making announcements that demonstrate 22 00:01:03,160 --> 00:01:08,200 Speaker 2: that in a week. When we make the announcements, run Okay. 23 00:01:07,760 --> 00:01:10,520 Speaker 1: Hey, Local Government New Zealand pushing back at the suggestion 24 00:01:10,680 --> 00:01:13,520 Speaker 1: of a cap on rates. Are you actually proposing one? 25 00:01:14,840 --> 00:01:17,240 Speaker 2: Well, we are progressing work on that because we make 26 00:01:17,280 --> 00:01:19,400 Speaker 2: no apologies to the fact that we're on the side 27 00:01:19,440 --> 00:01:22,119 Speaker 2: of rate payers, and ratepayers have had a guts full 28 00:01:22,280 --> 00:01:25,200 Speaker 2: with massive rate increases, and we're not going to let 29 00:01:25,520 --> 00:01:28,320 Speaker 2: local government completely off the hook. We're going to continue 30 00:01:28,400 --> 00:01:31,960 Speaker 2: to demand that they show more discipline in their spending 31 00:01:32,319 --> 00:01:34,399 Speaker 2: and we are looking at options for getting them to 32 00:01:34,480 --> 00:01:38,520 Speaker 2: focus the spending they do on the basics, on infrastructure, 33 00:01:38,920 --> 00:01:43,039 Speaker 2: on waste management, on those things rather than some of 34 00:01:43,080 --> 00:01:45,120 Speaker 2: the things that they have been funding. I mean, here 35 00:01:45,120 --> 00:01:48,640 Speaker 2: in Wellington, our council has literally been funding stand up 36 00:01:48,640 --> 00:01:53,720 Speaker 2: comedy sessions, interpretive dance shows and pirate punk plays. That's 37 00:01:53,800 --> 00:01:55,480 Speaker 2: not what your rates should be spent on. 38 00:01:55,680 --> 00:01:58,160 Speaker 1: You won't find that. You won't find anyone listening who 39 00:01:58,160 --> 00:02:00,920 Speaker 1: doesn't agree with you on that. But Local Government New 40 00:02:01,000 --> 00:02:04,600 Speaker 1: Zealand says it'll have a perverse impact on them if 41 00:02:04,680 --> 00:02:07,280 Speaker 1: you limit their rates. If you put a cap on rates, 42 00:02:07,320 --> 00:02:10,080 Speaker 1: their borrowing costs will go up. It'll actually make servicing 43 00:02:10,600 --> 00:02:12,560 Speaker 1: the much needed infrastructure even harder. 44 00:02:13,600 --> 00:02:16,560 Speaker 2: Well, we do want to make sure that councils are 45 00:02:16,680 --> 00:02:19,960 Speaker 2: able to fund the infrastructure needed to support growth. Of course, 46 00:02:20,000 --> 00:02:22,880 Speaker 2: government funds a lot of that directly, whether it's roads 47 00:02:22,960 --> 00:02:25,359 Speaker 2: or the contribution we make to local roads, but we're 48 00:02:25,400 --> 00:02:30,000 Speaker 2: also expanding the council's funding options away from rates. So 49 00:02:30,040 --> 00:02:34,000 Speaker 2: that's both things like the development levy system which we've announced, 50 00:02:34,040 --> 00:02:37,160 Speaker 2: which is about growth in housing areas paying for the 51 00:02:37,200 --> 00:02:40,840 Speaker 2: growth in infrastructure costs. But it's also by looking at 52 00:02:40,880 --> 00:02:44,200 Speaker 2: the borrowing limits, ensuring that the local government funding authority 53 00:02:44,240 --> 00:02:47,160 Speaker 2: is able to extend good terms of lending to local 54 00:02:47,160 --> 00:02:50,360 Speaker 2: government authorities who are having to invest in infrastructure for 55 00:02:50,400 --> 00:02:53,280 Speaker 2: the future. So we're looking at a number of funding mechanisms. 56 00:02:53,600 --> 00:02:56,440 Speaker 2: We don't think the full burden of all costs should 57 00:02:56,440 --> 00:02:58,880 Speaker 2: fall on ratepayers. There are a number of other ways 58 00:02:58,880 --> 00:03:04,040 Speaker 2: of funding some costs, like what like levees on developers 59 00:03:04,080 --> 00:03:06,840 Speaker 2: who are developing land for new housing that they can 60 00:03:06,880 --> 00:03:10,280 Speaker 2: help meet those costs and the eventual homeowners can help 61 00:03:10,320 --> 00:03:11,200 Speaker 2: meet those costs. 62 00:03:12,040 --> 00:03:14,840 Speaker 1: The Child Poverty Action Group, they've written your letter about 63 00:03:14,840 --> 00:03:17,240 Speaker 1: school lunches. When does the funding run out for that. 64 00:03:18,760 --> 00:03:21,079 Speaker 2: Not until the end of next year, so we are 65 00:03:21,200 --> 00:03:23,720 Speaker 2: in contracts that don't end until next year, and we 66 00:03:23,760 --> 00:03:26,200 Speaker 2: won't be leaving those contractors off the hook. We want 67 00:03:26,200 --> 00:03:30,640 Speaker 2: to see them deliver what they promised to the schools involved, 68 00:03:30,720 --> 00:03:32,960 Speaker 2: and we want to get value for that money. The 69 00:03:33,000 --> 00:03:35,520 Speaker 2: other thing that the Child Poverty Action Group have forgotten 70 00:03:35,960 --> 00:03:38,680 Speaker 2: is that by making the savings that we did, we 71 00:03:38,680 --> 00:03:42,240 Speaker 2: were able to extend a food lunch, a food program 72 00:03:42,320 --> 00:03:47,040 Speaker 2: to ten thousand children in early childhood centers who were 73 00:03:47,040 --> 00:03:50,480 Speaker 2: particularly in need of nutrition, and we were able to 74 00:03:50,800 --> 00:03:54,320 Speaker 2: deliver an increase in working for family support to many 75 00:03:54,800 --> 00:03:59,320 Speaker 2: low income family So every dollar has multiple uses run so. 76 00:03:59,240 --> 00:04:02,240 Speaker 1: That the basically though no funding running out till the 77 00:04:02,320 --> 00:04:04,400 Speaker 1: end of next year, so no decisions about whether to 78 00:04:04,520 --> 00:04:07,119 Speaker 1: either cut or to extend or whatever would be made 79 00:04:07,440 --> 00:04:10,680 Speaker 1: anytime soon. You continue continuing is. 80 00:04:11,360 --> 00:04:14,880 Speaker 2: Yeah, continuing with the status quo about driving the contractor 81 00:04:14,960 --> 00:04:17,560 Speaker 2: to deliver. That should be our focus on. Behalf of 82 00:04:17,600 --> 00:04:18,320 Speaker 2: text path. 83 00:04:18,240 --> 00:04:20,880 Speaker 1: Very good as it should now. The Australian Supermarket inquirer, 84 00:04:21,320 --> 00:04:22,880 Speaker 1: I don't know whether you caught up with this, but 85 00:04:23,000 --> 00:04:25,360 Speaker 1: the agrible C if I got that round the right 86 00:04:25,360 --> 00:04:29,400 Speaker 1: way or it's c triple a over the aguablecy. So 87 00:04:29,640 --> 00:04:32,599 Speaker 1: they basically came out and said things aren't as great 88 00:04:32,680 --> 00:04:34,360 Speaker 1: as we think they are. You know, we look at 89 00:04:34,360 --> 00:04:37,720 Speaker 1: Australia supermarket operation and think, oh, well, isn't that lovely. 90 00:04:37,720 --> 00:04:40,039 Speaker 1: Everything's so cheap over there. They came out and said, actually, 91 00:04:40,600 --> 00:04:45,280 Speaker 1: it's quite uncompetitive, it's overly profitable. It's not perfect over 92 00:04:45,320 --> 00:04:45,880 Speaker 1: there either. 93 00:04:46,960 --> 00:04:50,279 Speaker 2: No, it's not. And in particular, they've identified something we 94 00:04:50,440 --> 00:04:54,279 Speaker 2: have identified, which is that there are real barriers to 95 00:04:54,360 --> 00:04:58,760 Speaker 2: a large scale new entrant. And the point is that 96 00:04:58,800 --> 00:05:02,479 Speaker 2: it's good having a a niche grocery provider open, but 97 00:05:02,600 --> 00:05:05,920 Speaker 2: unless you get someone who's opening up multiple stores, it's 98 00:05:05,960 --> 00:05:09,599 Speaker 2: hard to get that competition impact. So that's something I've 99 00:05:09,600 --> 00:05:11,800 Speaker 2: been engaging with a range of smaller players and that's 100 00:05:11,839 --> 00:05:15,159 Speaker 2: something i've ideentified and it's clear to me that the 101 00:05:15,200 --> 00:05:17,560 Speaker 2: government will need to take further action in this space. 102 00:05:18,200 --> 00:05:20,599 Speaker 2: Cabinet has made some decisions here and we will be 103 00:05:20,680 --> 00:05:22,520 Speaker 2: making announcements in the next. 104 00:05:22,279 --> 00:05:26,400 Speaker 1: Week about super So that's about land Banking. 105 00:05:26,720 --> 00:05:29,919 Speaker 2: About our next steps to encourage more competition in the 106 00:05:29,960 --> 00:05:31,000 Speaker 2: supermarket sector. 107 00:05:31,320 --> 00:05:34,960 Speaker 1: Problem is the more I mean, you will never make 108 00:05:35,040 --> 00:05:37,320 Speaker 1: more profit out of a supermarket in New Zealand than 109 00:05:37,360 --> 00:05:38,119 Speaker 1: you do right now. 110 00:05:39,160 --> 00:05:42,880 Speaker 2: So it's a super profitable sector and so it's coming 111 00:05:42,920 --> 00:05:44,279 Speaker 2: at the expense of consumers. 112 00:05:44,680 --> 00:05:47,279 Speaker 1: Yeah, I get it. But if we can't attract I 113 00:05:47,320 --> 00:05:51,320 Speaker 1: mean you're talking about more regulation. If we can't attract 114 00:05:51,839 --> 00:05:55,400 Speaker 1: an entrant with the most profit you'll ever make and 115 00:05:55,440 --> 00:05:57,640 Speaker 1: the lowest regulation, now, what hope do we have with 116 00:05:57,760 --> 00:05:59,320 Speaker 1: more regulation and less profit? 117 00:06:00,320 --> 00:06:04,480 Speaker 2: Your concern is precisely mine. I want to understand, and 118 00:06:05,000 --> 00:06:07,320 Speaker 2: the Government will have further announcements to make on this. 119 00:06:08,080 --> 00:06:12,400 Speaker 2: The structural market barriers that mean even a cashed up 120 00:06:12,440 --> 00:06:15,880 Speaker 2: investor looking to make profits goes, ooh, if you go 121 00:06:15,920 --> 00:06:17,919 Speaker 2: and invest in that sector in New Zealand, you're on 122 00:06:17,920 --> 00:06:21,000 Speaker 2: a hiding to nothing. And what the Australian report shows, 123 00:06:21,000 --> 00:06:22,960 Speaker 2: and what reports in New Zealand of Sean is that 124 00:06:23,000 --> 00:06:26,520 Speaker 2: there is such significant market power in the existing duopoly 125 00:06:27,080 --> 00:06:30,240 Speaker 2: that anyone wanting to enter our grocery sector goes that's 126 00:06:30,279 --> 00:06:32,920 Speaker 2: going to be a hard road and we need to 127 00:06:32,960 --> 00:06:35,840 Speaker 2: address that because if they're going to face predatory pricing, 128 00:06:35,920 --> 00:06:38,320 Speaker 2: if they're going to face problems that make them think 129 00:06:38,320 --> 00:06:40,520 Speaker 2: you just can't do it, I think we have an 130 00:06:40,560 --> 00:06:44,160 Speaker 2: obligation to New Zealand shoppers to do something about it. 131 00:06:44,279 --> 00:06:47,040 Speaker 1: All right, mister, anything else do you want to drop 132 00:06:47,120 --> 00:06:50,040 Speaker 1: or leak on this show. You have a habit of 133 00:06:50,120 --> 00:06:52,560 Speaker 1: giving us a little nugget every week. I don't feel 134 00:06:52,600 --> 00:06:54,360 Speaker 1: we've had sufficient nuggets yet. 135 00:06:55,200 --> 00:06:57,719 Speaker 2: This is a government with lots of nuggets. Today we've 136 00:06:57,720 --> 00:07:01,000 Speaker 2: announced Radical Resource Management Act reform that's going to make 137 00:07:01,000 --> 00:07:03,920 Speaker 2: it easier to build things in New Zealand. Very detailed 138 00:07:03,920 --> 00:07:06,080 Speaker 2: piece of work. And look that's been a massive head 139 00:07:06,080 --> 00:07:09,080 Speaker 2: one for our economy for many years and we're finally 140 00:07:09,120 --> 00:07:10,240 Speaker 2: the government who's going to fix it. 141 00:07:10,960 --> 00:07:13,800 Speaker 1: That's a no nugget nugget from Nicola Willis, the Finance Minister. 142 00:07:13,800 --> 00:07:15,680 Speaker 1: Thanks for coming on the show every Monday, as you do. 143 00:07:16,520 --> 00:07:19,680 Speaker 1: For more from Heather Duplessy, Allen Drive, listen live to 144 00:07:19,800 --> 00:07:22,840 Speaker 1: News Talks. It'd be from four pm weekdays, or follow 145 00:07:22,880 --> 00:07:24,640 Speaker 1: the podcast on iHeartRadio.