1 00:00:00,640 --> 00:00:02,760 Speaker 1: Hello, am I right in thinking you've actually got no 2 00:00:02,840 --> 00:00:05,240 Speaker 1: money because you've set aside one point three billion for 3 00:00:05,360 --> 00:00:07,800 Speaker 1: operating allowance, but you've already spent most of that on 4 00:00:07,840 --> 00:00:10,760 Speaker 1: health with the one point four billion promise last year, 5 00:00:11,160 --> 00:00:13,560 Speaker 1: plus with the Farmac money for the new medicine, So 6 00:00:13,600 --> 00:00:16,120 Speaker 1: you actually already in deficit, aren't you. 7 00:00:16,160 --> 00:00:18,880 Speaker 2: No, we've got plenty of money for the things we need, 8 00:00:18,960 --> 00:00:23,200 Speaker 2: which include health, which include education, which include defense, because 9 00:00:23,760 --> 00:00:27,600 Speaker 2: we've gone through the other tens of billions of dollars 10 00:00:27,600 --> 00:00:29,840 Speaker 2: of government spending that just goes on and on, and 11 00:00:29,840 --> 00:00:32,320 Speaker 2: we've reviewed it to say, what is no longer the 12 00:00:32,400 --> 00:00:35,159 Speaker 2: highest priority are the areas where we can make savings, 13 00:00:35,200 --> 00:00:37,519 Speaker 2: where we can shave things off, things that haven't delivered 14 00:00:37,520 --> 00:00:39,640 Speaker 2: what they said they would, so that we can take 15 00:00:39,680 --> 00:00:43,600 Speaker 2: those dollars and then invest them in today's priorities. Actually, 16 00:00:43,600 --> 00:00:46,640 Speaker 2: that's what should happen at every budget. Last budget we 17 00:00:46,680 --> 00:00:49,960 Speaker 2: did that, we found twenty three billion dollars worth of savings. 18 00:00:50,280 --> 00:00:52,559 Speaker 2: This budget, we've done that such that we're going to 19 00:00:52,560 --> 00:00:54,560 Speaker 2: be able to make the investments New Zealanders need to 20 00:00:54,600 --> 00:00:58,520 Speaker 2: see by reprioritizing from elsewhere, and that's going to stop 21 00:00:58,800 --> 00:01:02,080 Speaker 2: the borrowing get out of control. And that's really important 22 00:01:02,160 --> 00:01:02,959 Speaker 2: right now, Heather. 23 00:01:03,000 --> 00:01:04,800 Speaker 1: How much money have you managed to save? 24 00:01:06,000 --> 00:01:07,880 Speaker 2: Well, I'm not going to give you that figure today, 25 00:01:08,360 --> 00:01:11,160 Speaker 2: but we've saved enough that we now don't need to 26 00:01:11,319 --> 00:01:14,119 Speaker 2: spend as much extra cash and do as much extra 27 00:01:14,160 --> 00:01:17,200 Speaker 2: borrowing as would have been the case. And that means 28 00:01:17,240 --> 00:01:19,440 Speaker 2: that we're still on track to get the books back 29 00:01:19,440 --> 00:01:22,040 Speaker 2: in balance. Now after all of the Trump staff and 30 00:01:22,120 --> 00:01:25,520 Speaker 2: the global events that have been occurring. Treasury said to me, 31 00:01:26,080 --> 00:01:29,240 Speaker 2: if you stick to the old allowance, you won't get 32 00:01:29,240 --> 00:01:32,280 Speaker 2: the books back in balance within the forecast period. You'll 33 00:01:32,360 --> 00:01:35,760 Speaker 2: keep accumulating debt. And I don't think that would have 34 00:01:35,800 --> 00:01:38,600 Speaker 2: been responsible, because that is the kind of conditions that 35 00:01:38,600 --> 00:01:43,440 Speaker 2: makes New Zealand very economically unstable. It drives up inflation, interestrates, 36 00:01:43,480 --> 00:01:46,600 Speaker 2: and ultimately it's debt that our kids need to repay. 37 00:01:46,680 --> 00:01:49,240 Speaker 2: So we've stuck to the strategy and been responsible. 38 00:01:49,320 --> 00:01:51,440 Speaker 1: You haven't saved enough to get us into surplus, have you. 39 00:01:52,680 --> 00:01:57,000 Speaker 2: We are forecasting at this point a very small surplus 40 00:01:57,160 --> 00:01:59,360 Speaker 2: in twenty twenty nine. 41 00:02:00,160 --> 00:02:02,800 Speaker 1: Managing to cut some of the spending by doing means 42 00:02:02,840 --> 00:02:06,680 Speaker 1: testing of things like best start payments, winter energy payments, 43 00:02:06,760 --> 00:02:08,000 Speaker 1: can we save a contributions. 44 00:02:08,720 --> 00:02:11,720 Speaker 2: Well, we've stuck to our coalition commitments and those are 45 00:02:11,720 --> 00:02:17,519 Speaker 2: spelt out clearly. So, for example, the Prime Minister confirmed 46 00:02:17,520 --> 00:02:20,320 Speaker 2: that he wouldn't be doing anything with the winter energy payment, 47 00:02:20,440 --> 00:02:24,000 Speaker 2: so there have been some guardrails around what we've looked at, 48 00:02:24,520 --> 00:02:28,560 Speaker 2: and we've asked ourselves these two questions. One is this 49 00:02:28,680 --> 00:02:32,760 Speaker 2: worth borrowing to pay for? Two? Are we absolutely certain 50 00:02:32,840 --> 00:02:35,720 Speaker 2: these dollars couldn't be invested for more impact and our 51 00:02:35,760 --> 00:02:39,640 Speaker 2: health service and our schools and supporting businesses to grow 52 00:02:39,919 --> 00:02:42,920 Speaker 2: and targeted cost of living relief? So those questions have 53 00:02:43,040 --> 00:02:44,680 Speaker 2: informed our savings decisions. 54 00:02:44,720 --> 00:02:47,840 Speaker 1: Any means testing at all being introduced. 55 00:02:48,000 --> 00:02:50,120 Speaker 2: Well, you'll have to wait and see at the budgets 56 00:02:50,480 --> 00:02:54,560 Speaker 2: savings we're delivering. We've been really careful to make sure 57 00:02:54,680 --> 00:02:58,920 Speaker 2: that the proposals we're putting forward are fair and are affordable, 58 00:02:59,200 --> 00:02:59,880 Speaker 2: and they'll all meet that. 59 00:03:00,240 --> 00:03:02,840 Speaker 1: So that's a yes, isn't it. There will be means testing. 60 00:03:03,440 --> 00:03:06,560 Speaker 2: Well, of course, we have means testing across government right now, 61 00:03:06,600 --> 00:03:11,000 Speaker 2: which is basically that people on much highering comes often 62 00:03:11,040 --> 00:03:14,560 Speaker 2: don't need as much support as people on lower incomes 63 00:03:14,800 --> 00:03:18,760 Speaker 2: and people on hiringcomes. Of course, aren't eligible for all 64 00:03:18,800 --> 00:03:21,240 Speaker 2: of the same supports as lower income New Zealanders are. 65 00:03:22,400 --> 00:03:24,799 Speaker 1: Is there any tweaks to the emissions trading scheme at all? 66 00:03:27,600 --> 00:03:30,720 Speaker 2: That is not something that is in the budget. 67 00:03:31,320 --> 00:03:32,239 Speaker 1: Okay, Nicholas, thank you. 68 00:03:32,440 --> 00:03:34,079 Speaker 2: Now we're playing the rule and role out game. 69 00:03:34,200 --> 00:03:35,680 Speaker 1: Well and I will stop it immediately. 70 00:03:36,600 --> 00:03:36,880 Speaker 2: Thanks. 71 00:03:37,360 --> 00:03:39,280 Speaker 1: Thank you very much for your time. Appreciate it. 72 00:03:40,000 --> 00:03:43,400 Speaker 2: Thank you for more from Hither duplessy Ellen Drive. 73 00:03:43,600 --> 00:03:47,000 Speaker 1: Listen live to news talks it'd be from four pm weekdays, 74 00:03:47,120 --> 00:03:49,320 Speaker 1: or follow the podcast on iHeartRadio.