1 00:00:00,280 --> 00:00:03,000 Speaker 1: Right now though, it is time to get you across 2 00:00:03,279 --> 00:00:05,480 Speaker 1: what's happening with the Finance Minister. Nicola Willis is with 3 00:00:05,559 --> 00:00:09,600 Speaker 1: us live from Wellington. Minister, good evening, good evening, Ron, 4 00:00:09,840 --> 00:00:11,200 Speaker 1: Great to have you on the show. I want to start. 5 00:00:11,200 --> 00:00:12,879 Speaker 1: There's obviously a lot to talk to you about the 6 00:00:12,960 --> 00:00:16,439 Speaker 1: kiwibank changes, the ComCom report more generally, but let's start 7 00:00:16,440 --> 00:00:19,720 Speaker 1: with the poll for our listeners. The latest one News 8 00:00:19,720 --> 00:00:22,720 Speaker 1: Comma Brunton Pole has National steady on thirty seven percent, 9 00:00:22,840 --> 00:00:25,480 Speaker 1: Labor steady on twenty nine, Greens down two on ten, 10 00:00:25,600 --> 00:00:29,040 Speaker 1: the Maori Party to Party Maori is up three on 11 00:00:29,160 --> 00:00:32,760 Speaker 1: seven percent. What do you think, Deputy prime Minister, what 12 00:00:32,760 --> 00:00:34,680 Speaker 1: does this tell us about sentiment out there? 13 00:00:35,360 --> 00:00:37,760 Speaker 2: Well, thanks for the promotion. I'm not the Deputy prime minister, 14 00:00:37,840 --> 00:00:40,760 Speaker 2: but i'll go taking me from you. Look, I think 15 00:00:40,800 --> 00:00:43,640 Speaker 2: that New Zealanders want to see the government focused on 16 00:00:43,680 --> 00:00:45,800 Speaker 2: the things that affect them and their families, which is 17 00:00:45,880 --> 00:00:48,959 Speaker 2: right now. It's the economy, it's jobs, it's incomes, it's 18 00:00:49,000 --> 00:00:51,479 Speaker 2: the cost of loving. It's also that they want to 19 00:00:51,479 --> 00:00:54,520 Speaker 2: see good education services, they want to see law and order, restored, 20 00:00:54,840 --> 00:00:58,920 Speaker 2: health services and yes there's been a significant debate about 21 00:00:59,040 --> 00:01:02,440 Speaker 2: the Treaty Principalle bill, And yes there are some voters 22 00:01:03,000 --> 00:01:05,840 Speaker 2: who have shifted, but ultimately, as you see, the lead 23 00:01:05,920 --> 00:01:09,200 Speaker 2: party and the government, the National Party is holding its vote. 24 00:01:09,319 --> 00:01:12,679 Speaker 1: The taxpayer Union Caurier Pole, not so rosy for you. 25 00:01:12,680 --> 00:01:18,080 Speaker 1: You lost four point six points to the act Party. Yeah, 26 00:01:18,319 --> 00:01:20,679 Speaker 1: strategy seems to be working. Now he's stealing your votes. 27 00:01:21,319 --> 00:01:24,520 Speaker 2: Well, looks as I say, there's a range of polls 28 00:01:24,560 --> 00:01:26,960 Speaker 2: out there. We don't try and pay too much attention 29 00:01:27,040 --> 00:01:30,480 Speaker 2: to any particular poll. We look at the trend over time, 30 00:01:30,560 --> 00:01:32,679 Speaker 2: of course, to be aware of what New Zealanders are 31 00:01:32,760 --> 00:01:35,920 Speaker 2: thinking and saying, we listen to them. And what I'm 32 00:01:35,959 --> 00:01:38,600 Speaker 2: hearing in the communities that I've been in is that 33 00:01:38,640 --> 00:01:43,080 Speaker 2: they want us really focused on the economy, on education, 34 00:01:43,360 --> 00:01:46,199 Speaker 2: on health, on making sure our police have the support 35 00:01:46,240 --> 00:01:47,560 Speaker 2: they need. And that's what we're focused on. 36 00:01:47,840 --> 00:01:51,680 Speaker 1: With Kiwibank. You've gone for the option of potentially an 37 00:01:51,680 --> 00:01:54,080 Speaker 1: IPO down the track, but at the moment five hundred 38 00:01:54,080 --> 00:01:57,400 Speaker 1: million dollars lent needed from investors, your keep, we save 39 00:01:57,400 --> 00:02:00,200 Speaker 1: the funds, etc. Why not go the full IPO. 40 00:02:01,600 --> 00:02:04,400 Speaker 2: For two reasons. One can we bank themselves have said 41 00:02:04,400 --> 00:02:06,280 Speaker 2: to us. We're not going to be ready for that 42 00:02:06,720 --> 00:02:09,720 Speaker 2: until around twenty twenty eight because they're in the midst 43 00:02:09,760 --> 00:02:14,160 Speaker 2: of a big digital transformation, an investment, and they think 44 00:02:14,200 --> 00:02:16,680 Speaker 2: that they'll be better placed for a public offering once 45 00:02:16,720 --> 00:02:20,079 Speaker 2: that is complete. Second reason is that we've said that's 46 00:02:20,120 --> 00:02:21,920 Speaker 2: not something we'll do in this term of government, but 47 00:02:22,000 --> 00:02:23,960 Speaker 2: it is something that could happen in a future government. 48 00:02:24,480 --> 00:02:27,520 Speaker 1: Are you leaving is that a further threat to the 49 00:02:27,520 --> 00:02:29,160 Speaker 1: big banks? 50 00:02:29,680 --> 00:02:33,040 Speaker 2: Well, I'm not interested in threatening the big banks. 51 00:02:33,120 --> 00:02:36,800 Speaker 1: I'm interested it's been fair. That's exactly what you did today. 52 00:02:37,800 --> 00:02:40,239 Speaker 2: Well, can I tell you what my end goal is here? 53 00:02:40,680 --> 00:02:44,480 Speaker 2: My end goal is I want more competitive banking services 54 00:02:44,480 --> 00:02:47,960 Speaker 2: for New Zealanders. That means fearer prices, that means a 55 00:02:48,200 --> 00:02:51,320 Speaker 2: more innovative services, that means a better range of services. 56 00:02:51,320 --> 00:02:54,720 Speaker 2: And what the Commerce Commission and others have said is 57 00:02:54,760 --> 00:02:58,280 Speaker 2: we lack robust competition in our banking sector, which means 58 00:02:58,280 --> 00:03:01,320 Speaker 2: that New Zealand bank uses missing out on some of 59 00:03:01,320 --> 00:03:03,760 Speaker 2: the benefits people over the Ditch get and people in 60 00:03:03,800 --> 00:03:06,840 Speaker 2: other countries around the world get. So what my end 61 00:03:06,880 --> 00:03:09,519 Speaker 2: goal is, let's make sure keywi Is get a fairer 62 00:03:09,560 --> 00:03:12,120 Speaker 2: deal and on the way through. Yep, that's going to 63 00:03:12,160 --> 00:03:15,160 Speaker 2: involve some disruption to the major banks, and I'm putting 64 00:03:15,200 --> 00:03:18,280 Speaker 2: it to them. They have every opportunity to do better, 65 00:03:18,760 --> 00:03:21,639 Speaker 2: so they can do that today, and I'm asking them 66 00:03:21,680 --> 00:03:22,079 Speaker 2: to do that. 67 00:03:23,200 --> 00:03:25,480 Speaker 1: Yeah, I've heard you say, what exactly are you asking 68 00:03:25,520 --> 00:03:26,400 Speaker 1: them to do today? 69 00:03:27,480 --> 00:03:30,440 Speaker 2: Well, the Comments Commission highlighted a few major areas that 70 00:03:30,480 --> 00:03:33,680 Speaker 2: they expect the industry to move in. One getting on 71 00:03:33,800 --> 00:03:36,520 Speaker 2: with open banking so that there can be a greater 72 00:03:36,640 --> 00:03:41,320 Speaker 2: range of financial services offered. Two making sure it's easier 73 00:03:41,360 --> 00:03:44,760 Speaker 2: for people to switch banks by improving that service that 74 00:03:44,880 --> 00:03:48,040 Speaker 2: currently exists but isn't as effective as it could be. 75 00:03:48,400 --> 00:03:51,840 Speaker 2: Three by making it easier for customers to compare home 76 00:03:51,920 --> 00:03:54,760 Speaker 2: loan offers. So that's just three examples from the Commerce 77 00:03:54,760 --> 00:03:57,680 Speaker 2: Commission reports. Those are all things the industry have expressed 78 00:03:57,720 --> 00:04:00,240 Speaker 2: to me they're keen to do. Well, I'm just saying, great, 79 00:04:00,400 --> 00:04:01,120 Speaker 2: get on with it. 80 00:04:01,080 --> 00:04:03,000 Speaker 1: Okay, by when when will this be done? By? 81 00:04:03,960 --> 00:04:07,400 Speaker 2: Well, we're watching closely. The Comments Commission is monitoring the activity. 82 00:04:07,440 --> 00:04:09,320 Speaker 2: And my message today was why not do it now? 83 00:04:10,560 --> 00:04:14,640 Speaker 1: Well, good question. Let's talk about the latest OECD report 84 00:04:14,680 --> 00:04:17,280 Speaker 1: because this is this is from last week. But it's 85 00:04:17,360 --> 00:04:19,680 Speaker 1: it's painting a pretty bleak picture about the state of 86 00:04:19,720 --> 00:04:22,920 Speaker 1: our economy at the moment. With you know GDP zero 87 00:04:22,920 --> 00:04:25,680 Speaker 1: point six percent next year, though we're still only getting 88 00:04:25,720 --> 00:04:27,880 Speaker 1: to one point four, not getting to north of two 89 00:04:27,960 --> 00:04:31,800 Speaker 1: until twenty twenty six. Underlying momentum is weak. You know, 90 00:04:31,839 --> 00:04:36,520 Speaker 1: we're relying still on importing our migrants who are actually 91 00:04:36,600 --> 00:04:38,320 Speaker 1: turning their noses up at us now a little bit 92 00:04:38,520 --> 00:04:42,719 Speaker 1: in terms of inflows versus outflows. When when does the 93 00:04:42,800 --> 00:04:47,720 Speaker 1: National Party say, actually, this is we're taking accountability for 94 00:04:47,760 --> 00:04:50,440 Speaker 1: this now, Well. 95 00:04:50,120 --> 00:04:53,160 Speaker 2: We are taking accountability for fixing the things we said 96 00:04:53,200 --> 00:04:55,520 Speaker 2: we would. We said step one, you've got to get 97 00:04:55,560 --> 00:04:58,640 Speaker 2: inflation under control. You've got to get interest rates coming down, 98 00:04:58,680 --> 00:05:00,560 Speaker 2: You've got to work to get your books back com balance. 99 00:05:00,560 --> 00:05:02,839 Speaker 2: We've been delivering progress on those fronts, and in fact 100 00:05:02,880 --> 00:05:06,200 Speaker 2: the OECD and their report endorse that and say, look, 101 00:05:06,200 --> 00:05:09,600 Speaker 2: you're doing the right thing by being more sensible about 102 00:05:09,640 --> 00:05:12,040 Speaker 2: the way that you're spending money. The next thing is 103 00:05:12,160 --> 00:05:15,120 Speaker 2: we have to move every lever we can to make 104 00:05:15,160 --> 00:05:18,240 Speaker 2: this a more productive economy that can grow faster. You're 105 00:05:18,279 --> 00:05:21,839 Speaker 2: seeing us do that and our education reforms focusing on 106 00:05:21,920 --> 00:05:24,919 Speaker 2: the basics and making sure that we've got those fast 107 00:05:24,960 --> 00:05:28,200 Speaker 2: track projects up and running so that they're not mired 108 00:05:28,360 --> 00:05:32,400 Speaker 2: in red tape, complexity and delay. By reducing regulation and 109 00:05:32,520 --> 00:05:34,760 Speaker 2: other areas of the economy, from the Building Act to 110 00:05:34,800 --> 00:05:38,480 Speaker 2: the Consumer and Credit Finance Act. You're seeing us consolidate 111 00:05:38,920 --> 00:05:43,240 Speaker 2: our overseas trade agreements with the new arrangements with the 112 00:05:43,480 --> 00:05:46,240 Speaker 2: United Arab Emirates and the GCC. We've got to keep 113 00:05:46,240 --> 00:05:49,000 Speaker 2: doing those things, and no one says any one of 114 00:05:49,040 --> 00:05:52,320 Speaker 2: those things will deliver a bigger growth number overnight, but 115 00:05:52,480 --> 00:05:55,479 Speaker 2: collectively you've got to keep pushing your foot down to 116 00:05:55,520 --> 00:05:57,800 Speaker 2: the medal. And this is a government that is. 117 00:05:58,400 --> 00:06:00,560 Speaker 1: Your surplus is going to have to be laid again. 118 00:06:00,600 --> 00:06:03,760 Speaker 1: You've got the half early fiscal update next week and 119 00:06:03,800 --> 00:06:05,960 Speaker 1: you're widely I mean, I've spoken to you about this before. 120 00:06:06,000 --> 00:06:08,520 Speaker 1: You've basically said, without saying it, that you're going to 121 00:06:08,520 --> 00:06:11,240 Speaker 1: have to push a surplace out again to those further 122 00:06:11,440 --> 00:06:13,320 Speaker 1: on the right than you, and you've just lost four 123 00:06:13,320 --> 00:06:15,960 Speaker 1: and a half points to them who say, actually, you 124 00:06:16,040 --> 00:06:18,520 Speaker 1: should be going harder with the cuts, You should be 125 00:06:18,560 --> 00:06:21,360 Speaker 1: getting back to surplus when you promise to you'll just 126 00:06:21,640 --> 00:06:25,520 Speaker 1: labor light. What do you say, well, I just reject that. 127 00:06:25,640 --> 00:06:29,720 Speaker 2: Now first budget we delivered twenty three billion dollars worth 128 00:06:29,760 --> 00:06:34,480 Speaker 2: of savings beyond what Labor had even contemplated. I do 129 00:06:34,560 --> 00:06:37,880 Speaker 2: have some bottom lines though. For me. I want to 130 00:06:37,960 --> 00:06:41,920 Speaker 2: ensure that we continue to deliver good frontline services, and yes, 131 00:06:42,000 --> 00:06:45,960 Speaker 2: that means more money for schools, more money for the police, 132 00:06:46,240 --> 00:06:48,680 Speaker 2: more money for the health system, and I don't apologize 133 00:06:48,680 --> 00:06:51,200 Speaker 2: for that. I also want to ensure we continue to 134 00:06:51,200 --> 00:06:53,760 Speaker 2: have a social safety net so that those who do 135 00:06:53,880 --> 00:06:57,559 Speaker 2: become unemployed can look to have some support, but also 136 00:06:58,080 --> 00:07:01,240 Speaker 2: that we expect them back into work and have services 137 00:07:01,240 --> 00:07:05,440 Speaker 2: to prompt that. So it is about striking the right balance. Ultimately, 138 00:07:05,480 --> 00:07:07,760 Speaker 2: I think the thing we can all agree on across 139 00:07:07,800 --> 00:07:11,559 Speaker 2: the political spectrum is if you want more choices about 140 00:07:11,680 --> 00:07:13,760 Speaker 2: jobs and comes and what you spend money on, you 141 00:07:13,880 --> 00:07:17,120 Speaker 2: need a wealthier economy. And that's why we're so focused 142 00:07:17,480 --> 00:07:20,640 Speaker 2: on rebuilding the economy so it grows faster and we 143 00:07:20,680 --> 00:07:22,640 Speaker 2: can have better choices and future budgets. 144 00:07:22,840 --> 00:07:25,480 Speaker 1: Right just before you're hugging the center well and truly 145 00:07:25,480 --> 00:07:27,840 Speaker 1: there which I can't blame you, that's what your big 146 00:07:27,840 --> 00:07:31,000 Speaker 1: parties have got to do, Minister. Just before you go 147 00:07:31,280 --> 00:07:33,680 Speaker 1: the fairies. So is it tomorrow we get the announcement 148 00:07:33,680 --> 00:07:34,280 Speaker 1: on Wednesday? 149 00:07:35,120 --> 00:07:36,880 Speaker 2: You will get an announcement this week. 150 00:07:37,360 --> 00:07:40,720 Speaker 1: Oh we hang on Winston, it had to be by Wednesday. 151 00:07:40,800 --> 00:07:42,840 Speaker 1: So it has to be oither tomorrow or Wednesday, doesn't it. 152 00:07:43,520 --> 00:07:44,840 Speaker 2: He did, and he's a man of his word. 153 00:07:45,000 --> 00:07:48,120 Speaker 1: Okay. And will they have trains on them? 154 00:07:49,040 --> 00:07:51,640 Speaker 2: Yes, they will be rail compatible. That has always been 155 00:07:52,080 --> 00:07:55,040 Speaker 2: a really important driver for the Cabinet that the connection 156 00:07:55,120 --> 00:07:58,320 Speaker 2: across the Cook Strait needs to be one that allows 157 00:07:58,400 --> 00:08:01,600 Speaker 2: freight to travel from from the North to South Island. 158 00:08:01,880 --> 00:08:05,280 Speaker 2: There are ryan a number of ways of achieving Yeah. 159 00:08:05,480 --> 00:08:08,520 Speaker 1: So not necessarily the train's going on the ferry, but 160 00:08:08,760 --> 00:08:10,840 Speaker 1: just the freight from the trains going on the ferry 161 00:08:10,880 --> 00:08:11,840 Speaker 1: and then back on to rail. 162 00:08:12,720 --> 00:08:15,360 Speaker 2: Look, there are going to be a range of questions 163 00:08:15,360 --> 00:08:18,640 Speaker 2: that I look forward to answering later this week. It's 164 00:08:18,680 --> 00:08:20,480 Speaker 2: going to be a big announcement and I think New 165 00:08:20,560 --> 00:08:23,440 Speaker 2: Zealanders will get confidence from that announcement that we've taken 166 00:08:23,480 --> 00:08:27,160 Speaker 2: prudent steps to secure safe, reliable ferry crossings into the future. 167 00:08:27,560 --> 00:08:29,440 Speaker 1: Minister, Thank you very much for your time. Much appreciated. 168 00:08:29,520 --> 00:08:33,160 Speaker 1: Nicola Willis the Finance Ministers for more from Hither Duplessy 169 00:08:33,160 --> 00:08:36,000 Speaker 1: Alan Drive, Listen live to news talks it'd be from 170 00:08:36,080 --> 00:08:39,679 Speaker 1: four pm weekdays, or follow the podcast on iHeartRadio