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Speaker 1: The Prime Minister is with us. Very good morning to you, Mike.

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Speaker 1: How are you? I'm extremely well. A couple of quickies

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Speaker 1: if you wouldn't mind indo your last week? Did we

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Speaker 1: make progress of things good? Are we going to get

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Speaker 1: across the line and win? Yeah?

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Speaker 2: Things are going on a good momentum, positive, constructive. Minister

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Speaker 2: Goyel coming down here when he's probably most in demand

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Speaker 2: sort of man and trade around the world. And then

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Speaker 2: Todd McClay will go to India this week as well.

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Speaker 2: So we're making good progress. There's some tough negotiations going on,

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Speaker 2: as you could imagine, but we're very committed to getting

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Speaker 2: it done good.

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Speaker 1: As talking to Katie over the weekend, we we surmised

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Speaker 1: that it was this last Saturday, this previous Saturday, will

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Speaker 1: be the election next year? Was that Your guess is

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Speaker 1: that you get early November sex or seventh of November.

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Speaker 2: We can't come out and announce it earlier in the

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Speaker 2: new year.

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Speaker 1: You reckon? But I mean tradition right, any thought at all?

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Speaker 1: Are you going to No, I'll do that over summer,

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Speaker 1: none whatsoever. I'll but do you go as long as possible?

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Speaker 1: Would you? We'll see that's what we'll let were to

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Speaker 1: go early. You're not going to You're not going to

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Speaker 1: call a snap election, are you now? Yeah? Did you

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Speaker 1: read the boot Camp report.

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Speaker 2: I haven't had a chance to read it fully, but

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Speaker 2: I know what's going, what's been going.

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Speaker 1: What would your summation of it be?

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Speaker 2: Yeah, look, good effort, some good things that work really

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Speaker 2: well in the residential components. In fact, we'd like to

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Speaker 2: put more of that stuff into the broader youth justice facilities.

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Speaker 2: Some real challenges when the kids came out and went

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Speaker 2: into the community again. And now we've got our yso

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Speaker 2: legislation coming through. We'll actually have a new cohort starting

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Speaker 2: up in the boot camps earlier in the new year,

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Speaker 2: and we hope to sort of perfect it. But at

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Speaker 2: the end of the day, I'm going to keep trying

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Speaker 2: these things because actually the message we've sent young people

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Speaker 2: is that youth offending is down sixteen percent, RAM raids

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Speaker 2: are down eighty five percent, and this is an important

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Speaker 2: element of it.

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Speaker 1: So here's the reason I raised this one. It was

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Speaker 1: I read the summation of it and it seemed to

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Speaker 1: have the good and the bad and bits and pieces

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Speaker 1: in the world, and so that's what I would have

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Speaker 1: expected Radio New Zealand's headline was implementation of boot camp rushed.

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Speaker 1: Report concludes that that is not the conclusion though, is it.

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Speaker 1: It's mentioned, but it's not the conclusion.

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Speaker 2: No, the conclusion is I think, you know, there were

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Speaker 2: some parts that worked well, some parts that need to

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Speaker 2: be improved, but it's an important element. And the bigger

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Speaker 2: point is that when did you last see serious youth

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Speaker 2: a fending down sixteen percent in this country?

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Speaker 1: Exactly? So my concern again is that this is a

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Speaker 1: state funded organization that is showing a level of bias

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Speaker 1: that I would be concerned about. Are you concerned about that?

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Speaker 1: Because if I saw the headline as a punter in

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Speaker 1: New Zealand, I go right, government waste of money.

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Speaker 2: Yet again, Mike, if I got bent out of shap

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Speaker 2: every time I have a negative headline from the good.

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Speaker 1: Stuff the government, it's not a negative headline, it's a

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Speaker 1: false negative headline. And that's the key to it.

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Speaker 2: That's a question for people in media if you had

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Speaker 2: a media watch organization, would be a good discussion to

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Speaker 2: have with them. For me, I've got to get on

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Speaker 2: and actually get youth offending down.

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Speaker 1: Okay, do you from summation of the report, though, is

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Speaker 1: there enough because the criticism was that you're spending quite

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Speaker 1: a lot on it bang for buck. Is there enough

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Speaker 1: good in there to justify? I think there is.

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Speaker 2: One of the big takeaways was the community stuff and

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Speaker 2: the support we were able to give those kids when

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Speaker 2: they're in re residential was really fantastic. We'd like to

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Speaker 2: extend that residential, I suspect, but there are principles in

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Speaker 2: the way and that support that we give those kids

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Speaker 2: that we should build into the youth justice facilities permanently anyway,

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Speaker 2: and so that's where we've oftenly got to get to.

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Speaker 2: But it's one element, and what I'm proud about is

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Speaker 2: genuinely the fact that it's down sixteen percent, which is fantastic.

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Speaker 1: The Cooks I wonder if Peter's is wrong. Peter's has

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Speaker 1: long argued friendship counts. I don't think it does, does

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Speaker 1: it well?

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Speaker 2: The issue here is we're good with the Cook Islands.

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Speaker 2: People love them fantastic, but we're very frustrated with the

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Speaker 2: Cook Islands government.

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Speaker 1: Is the government or Brown?

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Speaker 2: It's primose to Brown and his government. He represents that government.

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Speaker 2: I mean, we have an issue, which is that we

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Speaker 2: have a responsibility constitutionally for the defense and security of

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Speaker 2: the realm, which includes you know, the Cooks is one

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Speaker 2: of the realm countries. We provide budget money to them

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Speaker 2: on the basis of trust. Our trust has been broken.

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Speaker 2: We want that restored.

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Speaker 1: Yeah, but it's not going to be That's my point.

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Speaker 1: We all know, and I don't think anyone disputes the

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Speaker 1: Cooks are in the wrong here, but thirty million clearly

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Speaker 1: accounts for nothing. He couldn't give a monkeys.

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Speaker 2: Well, let's find out.

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Speaker 1: I mean, well we are finding out.

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Speaker 2: Well, we've escalated it, and so we want those officials

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Speaker 2: working together to get those give us the mitigations that

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Speaker 2: we want and the trust are restored.

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Speaker 1: Okay, was yesterday on the myth just a Sunday announcement

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Speaker 1: because I can't work out what the problem is. Myth

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Speaker 1: myths not new, The boy was not new. The problems

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Speaker 1: aren't new. I mean, why a shifted.

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Speaker 2: I mean one is you've had a doubling of meth consumption.

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Speaker 2: Maybe other drugs are down. Myths up because it's cheap,

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Speaker 2: but relative to the rest of the world, myth in

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Speaker 2: New Zealand is expensive. We're up against now big Mexican

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Speaker 2: drug cartels that are actually sending boat submarines into.

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Speaker 1: The Pacific, but none that's new.

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Speaker 2: Well, well, it suddenly has changed a lot from what

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Speaker 2: I would understand what it was five years ago versus

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Speaker 2: where we sit today in the last two years, and

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Speaker 2: it needed a serious response. That's why I tasked those

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Speaker 2: ministers in March to say, look, we've got to do

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Speaker 2: something different. In addition to everything else that's going on,

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Speaker 2: there are some things that we can do differently about

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Speaker 2: getting working with our partners. I mean, if you talk

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Speaker 2: to the Prime Minister of Somemr as I did last week,

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Speaker 2: you know it was a new prime minister, very much

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Speaker 2: on his agenda. Tong is concerned, Fiji's concerned, Australia's concerned,

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Speaker 2: We're concer and so we've got to work together on that.

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Speaker 1: One of the things we've held off on doing until

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Speaker 1: we saw what happened in Australia. I'm assuming you're aware

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Speaker 1: of this, the under sixteen social media band, the tech

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Speaker 1: company's acquiesced. So will we go forward with that now?

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Speaker 2: Yes, we will. We're going to go forward with that.

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Speaker 2: We'll have a version and put some legislation in place

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Speaker 2: before the election.

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Speaker 1: The local content subsidy are they acquiesced on last week

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Speaker 1: in Australia as well? So your Netflix is going to

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Speaker 1: pay ten percent of their income and they're going to

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Speaker 1: make local production. Can we do that here? Now? Is

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Speaker 1: something that Goldsmith will look at? Is he still looking

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Speaker 1: at He does a lot of looking that guy.

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Speaker 2: He's done a good job on myth just on Sunday

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Speaker 2: he has Why are you so skipped.

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Speaker 1: About the myth? Well, because it's not a new problem,

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Speaker 1: and it's like it's been going on for years. I'm

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Speaker 1: not saying it's not a serious problem. It's been going

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Speaker 1: on for years, and the problem is massive. And thirty

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Speaker 1: million dollars on a Sunday afternoon via press release doesn't

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Speaker 1: materially I mean what we should be asking is not

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Speaker 1: necessarily a faulty, but I mean we pay more in

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Speaker 1: this country for meth than any in the world. Yeah,

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Speaker 1: and the amounts doubled. Yeah, how stupid are we?

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Speaker 2: Yeah? I mean, come on, well, the fact is that

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Speaker 2: our prices in New Zealand have fallen, but they're still

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Speaker 2: seven to fifteen times high and they are in North America.

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Speaker 2: And that's why it's attractive for those international crime organizations

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Speaker 2: to move into this part of the world, which we

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Speaker 2: haven't seen before.

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Speaker 1: In the elegy. There's something about us though, doesn't it.

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Speaker 1: What's that in terms of New Zealand as a country. Well,

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Speaker 1: it may well do. But the point is that it's

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Speaker 1: a problem. It's impacting individuals, families and communities and we've

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Speaker 1: got to try something anyway. Any Way, back to Goldsmith

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Speaker 1: so the local subsidy. They also in Australia last week

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Speaker 1: announced a journalist fund as well. All I'm asking is

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Speaker 1: that was stuff we were waiting on to see if

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Speaker 1: it was going to work in Australia. Appears to be

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Speaker 1: going to work in Australia. So as a result, will

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Speaker 1: we now push forward on those three things?

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Speaker 2: I suspect here we wanted to progress those things.

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Speaker 1: Yep, okay, good. Renny Ian says we are not going

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Speaker 1: to grow our way out of this. We need to

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Speaker 1: sell some stuff.

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Speaker 2: You're talking about the report about asset sales from Terstry

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Speaker 2: last week.

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Speaker 1: Yeah.

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Speaker 2: Look, I mean I think well, first and for most

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Speaker 2: I've said we're not going to do asset sales as term.

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Speaker 2: We've got an election policy to develop for twenty six

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Speaker 2: I think your points are fair one, which is and

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Speaker 2: the reports a good challenge, which is Actually I think

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Speaker 2: we need to have quite a mature conversation about assets

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Speaker 2: in New Zealand. I think it's been a very simplistic

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Speaker 2: one of you either flog them off or you keep them.

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Speaker 2: But you and I don't have the same cars that

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Speaker 2: we had when we first started, and we don't keep

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Speaker 2: our assets forever. And actually, when you look at what

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Speaker 2: savior funds do or super funds do, they rotate assets

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Speaker 2: through a portfolio, you know we should be thinking about

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Speaker 2: whether that's the right thing for us to be doing too.

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Speaker 1: How would we do that? Because in looking at the list,

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Speaker 1: I mean the roads, the hospitals, the national parks. That's

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Speaker 1: not real as far as I can work out, correct

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Speaker 1: me if I'm wrong, But he in New Zealanders Gen

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Speaker 1: Taylor's are kwei railers, kwei bankers, TV and Z. Although

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Speaker 1: it's not worth anything, is yeah? Is that where you look? Yeah?

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Speaker 2: I mean, first and foremost, I don't think our government

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Speaker 2: agencies do a very good job of managing their assets

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Speaker 2: in general. In fact, we're the fourth worst and the

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Speaker 2: OECD and running an asset management fifty percent of our

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Speaker 2: most capital intentsive agencies haven't had asset management plans, which

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Speaker 2: means they don't even know what they own and where

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Speaker 2: the assets actually are. But if you look at something

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Speaker 2: like PAMU, which is a whole bunch of farmland that

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Speaker 2: the government owns and runs.

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Speaker 1: Why do we do that?

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Speaker 2: Because like for the next out to what twenty thirty one,

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Speaker 2: we're going to have high prices for protein and red meat.

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Speaker 2: We're pretty bad I imagined as a government run farm

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Speaker 2: relative to other farmers doing that job much better, And

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Speaker 2: that could give young farmers an opportunity to get into

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Speaker 2: some land. So then you'd say, the money that we

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Speaker 2: get out of that might be better spent building out

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Speaker 2: a road that actually ends up creating a whole bunch

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Speaker 2: of economic How.

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Speaker 1: On that track do you go though? That's I mean,

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Speaker 1: Palm is probably your best example, But you go down

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Speaker 1: to Jim Taylor's the politics gets in play, doesn't it. Yeah,

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Speaker 1: there will be a.

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Speaker 2: Whole bunch of politics, But I think I'd like to

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Speaker 2: keep it a level up and have a principled conversation

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Speaker 2: because reckon, you can do that well.

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Speaker 1: I'd like to.

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Speaker 2: Try because I think you know, when you look at Tamasak,

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Speaker 2: which you know, Labor had a policy a couple of

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Speaker 2: weeks ago on what they call their Future Fund where

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Speaker 2: they said, we're going to put all these assets together

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Speaker 2: in a B and a bucket, but then they're not

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Speaker 2: going to rotate or recycle the assets. Well to mark success,

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Speaker 2: is it from nineteen seventy four, I think it was

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Speaker 2: to today They've cycled assets in and out of that

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Speaker 2: portfolio in much the same way as super Fund does

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Speaker 2: or key We say that, do you.

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Speaker 1: Agree with the I just don't want to get into

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Speaker 1: this clickbake discussion about who he's going to see l

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Speaker 1: assets because this is too important for this is really

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Speaker 1: broadly speaking correct though.

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Speaker 2: I think it's a good challenge. I think there is

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Speaker 2: a lot that we can do around government efficiencies. For sure,

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Speaker 2: we've got a hell of a long way to go

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Speaker 2: still there. I think we can grow the economy quickly.

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Speaker 2: But I think this is a legitimate, good conversation for

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Speaker 2: us to have. But it needs to be more mature

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Speaker 2: than what we've had in the past, which is it

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Speaker 2: does become political really quickly. It becomes very emotive very quickly.

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Speaker 2: But there is genuine case for if you look at

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Speaker 2: the success stories of Singapore and other places, you know,

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Speaker 2: recycling assets so that actually the New Zealand taxpayer gets

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Speaker 2: money from assets that then is deployed to another asset

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Speaker 2: that actually creates value for them, that is more useful

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Speaker 2: for them. That's good. And as I said, it's like

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Speaker 2: I was thinking about it this morning. It's like no

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Speaker 2: different from you know, I used to have a nineteen

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Speaker 2: sixty two Riley off. I don't own it anymore, you know,

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Speaker 2: so you track, you know, you don't own your assets forever.

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Speaker 1: Good to see you. You're not seeing anything big this week?

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Speaker 1: Well you got anything? You're on the bubble this week

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Speaker 1: and you know this, don't you know this? Can I

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Speaker 1: just give you one small piece of advice and in

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Speaker 1: question time hardened up when they asked you last week

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Speaker 1: about that homeless thing. Yeah, I saw it was only

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Speaker 1: a review to make that moment, but I own it

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Speaker 1: and answer the question. Well, I have owned it because

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Speaker 1: I'm very afterwards at the time, you know. But the

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Speaker 1: question I was asked is am I banning homelessness? Passing

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Speaker 1: the laws and technically technical? So here's the question you

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Speaker 1: asked me. You know, I'm not we haven't passed a

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Speaker 1: law on that. We haven't discussed it, but i'll tell

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Speaker 1: you what we do. Downtown Auckland's bugget and time, Minister.

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Speaker 1: I'm going to clean it up and we're going to

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Speaker 1: start next week. Sit back down, hipkins, I'm in charge.

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Speaker 1: That's that's where you're going with that. Thank you for

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Speaker 1: the one. I won't take it all. Leave it for

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Speaker 1: more from the Mike Asking Breakfast. Listen live to news talks.

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Speaker 1: It'd be from six am weekdays, or follow the podcast

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Speaker 1: on iHeartRadio