1 00:00:00,640 --> 00:00:02,360 Speaker 1: Looks like a lot of the tax payer money that's 2 00:00:02,360 --> 00:00:05,080 Speaker 1: gone into Shane Jones's various provincial growth funds may be 3 00:00:05,200 --> 00:00:07,800 Speaker 1: gone forever. The entity that lends money out for the 4 00:00:07,800 --> 00:00:09,960 Speaker 1: Provincial Growth Fund in the new version, which is called 5 00:00:09,960 --> 00:00:13,280 Speaker 1: the Regional Infrastructure Fund, worries that more than half of 6 00:00:13,280 --> 00:00:15,400 Speaker 1: its loan book is either in default or at risk 7 00:00:15,440 --> 00:00:17,239 Speaker 1: of going into default. The loan book is worth four 8 00:00:17,280 --> 00:00:20,079 Speaker 1: hundred and thirty three million dollars in total. Shane Jones 9 00:00:20,120 --> 00:00:21,919 Speaker 1: is the Minister responsible and with us now, Hi. 10 00:00:21,880 --> 00:00:24,720 Speaker 2: Shane, good afternoon, folks. 11 00:00:25,120 --> 00:00:27,200 Speaker 1: Doesn't this prove we shouldn't put money into things that 12 00:00:27,240 --> 00:00:28,720 Speaker 1: commercial businesses won't touch. 13 00:00:29,800 --> 00:00:33,159 Speaker 2: Well, the first fact that's been overlooked here is of 14 00:00:33,240 --> 00:00:36,840 Speaker 2: the four hundred and thirty three million, about twenty five 15 00:00:37,000 --> 00:00:41,199 Speaker 2: million is in peril, not too different from what the 16 00:00:41,280 --> 00:00:45,479 Speaker 2: commercial banks are dealing with as we speak at this moment. 17 00:00:45,560 --> 00:00:48,760 Speaker 2: But your deeper question is should the Crown do any 18 00:00:48,760 --> 00:00:51,400 Speaker 2: of this in any manner of form? You see, we 19 00:00:51,440 --> 00:00:54,840 Speaker 2: belong to New Zealand first, and when Winston hold on counter. 20 00:00:54,840 --> 00:00:57,120 Speaker 1: Changes before you move on though, you're talking about loan 21 00:00:57,200 --> 00:01:01,120 Speaker 1: impairents impairments, right, twenty eight million the notes now recorded 22 00:01:01,160 --> 00:01:04,520 Speaker 1: that more than half of Crown regional holdings four hundred 23 00:01:04,560 --> 00:01:06,840 Speaker 1: and thirty three million dollar loan book is considered at 24 00:01:07,000 --> 00:01:09,560 Speaker 1: risk of or currently is in default. 25 00:01:10,800 --> 00:01:14,040 Speaker 2: So that is an accountancy treatment which is quite different 26 00:01:14,200 --> 00:01:17,920 Speaker 2: than the actual amount of money that the officials have 27 00:01:18,080 --> 00:01:21,480 Speaker 2: identified that may be impaired to such a state it 28 00:01:21,520 --> 00:01:25,679 Speaker 2: has to be written off. So what the article refers 29 00:01:25,720 --> 00:01:31,160 Speaker 2: to is a pretty sloppy analysis of what's actually happening 30 00:01:31,200 --> 00:01:33,560 Speaker 2: on the ground. But I can't walk away from that. 31 00:01:33,680 --> 00:01:36,080 Speaker 2: I can't change that. Do you want to deal with 32 00:01:36,120 --> 00:01:38,360 Speaker 2: the fundamental question that you asked me as why as 33 00:01:38,360 --> 00:01:41,600 Speaker 2: the crown during any of this? Yeah, well, so when 34 00:01:41,680 --> 00:01:44,120 Speaker 2: New Zealand first came and and formed the first government 35 00:01:44,160 --> 00:01:47,440 Speaker 2: back in twenty seventeen, we identified there are a bunch 36 00:01:47,480 --> 00:01:50,200 Speaker 2: of areas around New Zealand, in regions where there will 37 00:01:50,240 --> 00:01:55,960 Speaker 2: never be a market solution, whether it's a portugy constantly 38 00:01:56,720 --> 00:02:00,680 Speaker 2: burdened by all sorts of dysfunctionalism. So we may call 39 00:02:01,360 --> 00:02:04,560 Speaker 2: as a key part of why we're in politics to 40 00:02:04,720 --> 00:02:08,079 Speaker 2: ensure rather than the state just paying millions and millions 41 00:02:08,120 --> 00:02:11,600 Speaker 2: of the toll, that we've worked with local investors and 42 00:02:11,639 --> 00:02:16,760 Speaker 2: create enterprises. Now those enterprises have endured through COVID, just 43 00:02:16,800 --> 00:02:18,760 Speaker 2: as a whole lot of people have gone broke over 44 00:02:18,760 --> 00:02:22,000 Speaker 2: the last couple of years. And we have worked with 45 00:02:22,200 --> 00:02:25,360 Speaker 2: the investors, with the owners of these enterprises, and I 46 00:02:25,400 --> 00:02:28,920 Speaker 2: think that given there's only ten percent according to my officials, 47 00:02:28,919 --> 00:02:33,200 Speaker 2: that're genuinely at peeril quite apart from accountancy standards, we 48 00:02:33,240 --> 00:02:38,320 Speaker 2: shouldn't overlook Heather. New Zealand first sees a role for 49 00:02:38,480 --> 00:02:42,560 Speaker 2: the state in this type of things. I mean, Cabinet 50 00:02:42,600 --> 00:02:44,920 Speaker 2: just signed off on a significant amount of money going 51 00:02:44,960 --> 00:02:50,239 Speaker 2: to a nuclear initiative led by a young physicist who 52 00:02:50,280 --> 00:02:53,480 Speaker 2: wants to keep it in New Zealand. We have just 53 00:02:53,720 --> 00:02:56,639 Speaker 2: finished not that long ago, committing one hundred and fifty 54 00:02:56,680 --> 00:03:00,520 Speaker 2: million dollars with private enterprise to save the plan through 55 00:03:00,680 --> 00:03:03,640 Speaker 2: some climate initiative of stopping the cows from belching. 56 00:03:03,800 --> 00:03:06,520 Speaker 1: Okay, but so Shane, at the heart of this, what 57 00:03:06,560 --> 00:03:09,400 Speaker 1: you're saying is that if you can see that business 58 00:03:09,440 --> 00:03:11,200 Speaker 1: is going to fall over and communities are going to 59 00:03:11,240 --> 00:03:14,000 Speaker 1: go on the doll you think it's worth basically subsidizing 60 00:03:14,040 --> 00:03:16,919 Speaker 1: their employment in things that would not work in the market. 61 00:03:17,000 --> 00:03:19,160 Speaker 1: You put some government money in so they stay and work. 62 00:03:20,919 --> 00:03:24,799 Speaker 2: So The track record in New Zealand First has whether 63 00:03:24,840 --> 00:03:29,240 Speaker 2: it's infrastructure in co Edo, whether it's building a wharf 64 00:03:29,960 --> 00:03:33,120 Speaker 2: in a Podo Key, whether it's kiwifruit on Mildi Land, 65 00:03:33,680 --> 00:03:37,040 Speaker 2: whether it's the vegetable growers and gisbone. One of the 66 00:03:37,160 --> 00:03:40,680 Speaker 2: key features of New Zealand First is ensuring those areas 67 00:03:40,720 --> 00:03:46,480 Speaker 2: aren't bypassed or neglected because WESPEC can't fit it into. 68 00:03:46,480 --> 00:03:50,240 Speaker 1: A long How long do you prop up small towns 69 00:03:50,280 --> 00:03:53,120 Speaker 1: with government money instead of letting the market dictate that 70 00:03:53,120 --> 00:03:55,200 Speaker 1: those businesses have to fall over and those people have 71 00:03:55,240 --> 00:03:58,000 Speaker 1: to move to larger areas and find work there. How 72 00:03:58,000 --> 00:03:59,480 Speaker 1: many decades, how many generations? 73 00:04:00,280 --> 00:04:03,320 Speaker 2: And so you ask a fundamental question there, what sort 74 00:04:03,320 --> 00:04:06,000 Speaker 2: of country do you want to run? Do you want 75 00:04:06,040 --> 00:04:10,080 Speaker 2: everything turned into some sort of American rust belt where 76 00:04:10,120 --> 00:04:14,360 Speaker 2: people have no hope for no future. New Zealand First exists, 77 00:04:15,200 --> 00:04:18,880 Speaker 2: amongst other reasons, to ensure that all parts of the 78 00:04:18,920 --> 00:04:22,120 Speaker 2: four winds of New Zealand have an opportunity and wear 79 00:04:22,160 --> 00:04:24,640 Speaker 2: the crown. Remember, we're a four hundred and forty billion 80 00:04:24,720 --> 00:04:27,880 Speaker 2: dollar economy and we're talking about twenty five million dollars 81 00:04:27,920 --> 00:04:29,960 Speaker 2: and I think people need to put that into perspective. 82 00:04:30,560 --> 00:04:32,440 Speaker 1: All right, Shane, thank you for coming on the show. 83 00:04:32,440 --> 00:04:35,040 Speaker 1: It's wonderful to have you on and at such late notice. 84 00:04:35,040 --> 00:04:35,600 Speaker 2: I appreciate it. 85 00:04:35,640 --> 00:04:39,680 Speaker 1: Shane Jones, minister responsible for those funds. For more from 86 00:04:39,760 --> 00:04:43,080 Speaker 1: Heather Duplessy Allen Drive. Listen live to news Talks the'd 87 00:04:43,080 --> 00:04:47,160 Speaker 1: be from four pm weekdays, or follow the podcast on iHeartRadio.