1 00:00:00,120 --> 00:00:02,320 Speaker 1: Right. We've spoken to Erica Stamford about this. The government 2 00:00:02,360 --> 00:00:05,480 Speaker 1: is shoveling money out the door to classrooms to get 3 00:00:05,480 --> 00:00:08,440 Speaker 1: them fixed up. They're old, they're moldy, and they're broken, 4 00:00:08,640 --> 00:00:11,640 Speaker 1: and they will have that money hopefully in these school's 5 00:00:11,720 --> 00:00:15,280 Speaker 1: pockets today, tomorrow, sometime this week if they need it. 6 00:00:15,920 --> 00:00:18,160 Speaker 1: Niicola Willis is the Finance minister with us now Minister, 7 00:00:18,200 --> 00:00:22,040 Speaker 1: good evening, good evening, Ryn will we see more announcements 8 00:00:22,120 --> 00:00:24,160 Speaker 1: like this of accelerated funding. 9 00:00:25,239 --> 00:00:28,480 Speaker 2: We've given a very clear message to all ministers. We've 10 00:00:28,480 --> 00:00:32,480 Speaker 2: allocated billions of dollars of extra funding for infrastructure over 11 00:00:32,520 --> 00:00:36,040 Speaker 2: our past two budgets. We don't want it sitting around 12 00:00:36,080 --> 00:00:39,920 Speaker 2: in government bank accounts. We want it resulting in signed contracts, 13 00:00:40,120 --> 00:00:44,000 Speaker 2: spades in the ground, high vis and jobs. So the 14 00:00:44,040 --> 00:00:48,120 Speaker 2: instruction to all government ministers has been make sure you 15 00:00:48,120 --> 00:00:50,559 Speaker 2: know where your maintenance contracts are at, where those construction 16 00:00:50,640 --> 00:00:52,680 Speaker 2: projects are aut get them out the door. 17 00:00:53,159 --> 00:00:56,200 Speaker 1: Are you have you got any other examples that you 18 00:00:56,920 --> 00:00:59,160 Speaker 1: think you can point to where we'll get more money 19 00:00:59,160 --> 00:00:59,640 Speaker 1: out the door. 20 00:01:00,400 --> 00:01:02,280 Speaker 2: Well, you've seen that from us, that we've got the 21 00:01:02,400 --> 00:01:06,560 Speaker 2: seven billion dollars worth of projects underway or happening before Christmas. 22 00:01:06,560 --> 00:01:10,600 Speaker 2: So that's across transport projects. So yesterday we had the 23 00:01:10,600 --> 00:01:14,320 Speaker 2: big announcement in the hut of the Mailing interchange. Tomorrow 24 00:01:14,360 --> 00:01:17,679 Speaker 2: the Utucky to Live in Highway will get started. Are 25 00:01:17,720 --> 00:01:20,960 Speaker 2: you also seeing that in health where we've already announced 26 00:01:20,959 --> 00:01:24,200 Speaker 2: the contracting arrangements for the expansion of the emergency room 27 00:01:24,280 --> 00:01:28,200 Speaker 2: at Wellington Hospital, the signing of that contract with Dunedin Hospital, 28 00:01:28,480 --> 00:01:31,119 Speaker 2: and there are other projects coming in that health area. 29 00:01:31,200 --> 00:01:34,880 Speaker 2: Look across the board, Ryan, we've made big investments in infrastructure. 30 00:01:35,040 --> 00:01:37,600 Speaker 2: The key is we don't want it sitting there as 31 00:01:37,640 --> 00:01:40,560 Speaker 2: a theory and a business case. We want it resulting 32 00:01:40,680 --> 00:01:43,280 Speaker 2: in a construction contract and people in work. 33 00:01:43,360 --> 00:01:46,679 Speaker 1: Okay, how many jobs do you by the end of 34 00:01:46,680 --> 00:01:48,760 Speaker 1: the year, how many jobs will you have put on 35 00:01:48,800 --> 00:01:49,240 Speaker 1: the table? 36 00:01:50,520 --> 00:01:53,800 Speaker 2: Well, look, people have different analyzes of how many jobs 37 00:01:53,800 --> 00:01:58,520 Speaker 2: are created per contract, but the Infrastructure Commission estimates that 38 00:01:58,640 --> 00:02:02,280 Speaker 2: for every billion that you invest, you are creating hundreds 39 00:02:02,320 --> 00:02:05,280 Speaker 2: of jobs. So look, we expect hundreds off not thousands 40 00:02:05,280 --> 00:02:08,240 Speaker 2: of jobs to be created through these new construction contracts 41 00:02:08,240 --> 00:02:09,360 Speaker 2: by Christmas. 42 00:02:10,280 --> 00:02:14,400 Speaker 1: Yes, and that's with the money going out or the 43 00:02:14,440 --> 00:02:17,440 Speaker 1: money announced, because there's a difference which you've just explained 44 00:02:17,440 --> 00:02:20,520 Speaker 1: to us. So is that is that you hope, because 45 00:02:20,520 --> 00:02:23,000 Speaker 1: you've allocated the money, will get those hundreds or thousands 46 00:02:23,040 --> 00:02:26,480 Speaker 1: of jobs by Christmas or the contracts assigned and they 47 00:02:26,639 --> 00:02:27,480 Speaker 1: will be created. 48 00:02:28,200 --> 00:02:31,120 Speaker 2: Well, Look, as I say, it's difficult to assign these numbers, 49 00:02:31,120 --> 00:02:33,200 Speaker 2: which is why I'm being cautious about not giving you 50 00:02:33,240 --> 00:02:36,320 Speaker 2: a specific one. And that's because there's a combination of things. 51 00:02:36,320 --> 00:02:39,679 Speaker 2: There's those major construction projects that will commence before Christmas, 52 00:02:39,680 --> 00:02:42,280 Speaker 2: that's the seven billion worth of projects. Then there's these 53 00:02:42,320 --> 00:02:46,560 Speaker 2: maintenance projects that are being brought forward in education and elsewhere, 54 00:02:46,880 --> 00:02:50,560 Speaker 2: and the jobs per contract will vary. Some of those 55 00:02:50,639 --> 00:02:53,000 Speaker 2: jobs will be of long duration, some of short duration. 56 00:02:53,440 --> 00:02:56,160 Speaker 2: Certainly expect a lot of activity. 57 00:02:56,240 --> 00:02:59,600 Speaker 1: The biggest regret in government would it be cutting the 58 00:02:59,680 --> 00:03:02,520 Speaker 1: kying order funding. I mean, that's devastated construction. 59 00:03:03,560 --> 00:03:06,320 Speaker 2: I am going to correct you on that one because 60 00:03:06,320 --> 00:03:09,919 Speaker 2: I am absolutely sick of this myth. In the past 61 00:03:09,960 --> 00:03:13,440 Speaker 2: two years, Coying of Aura has built more than seven 62 00:03:13,720 --> 00:03:17,560 Speaker 2: thousand new homes. Yeah, how many were is because all 63 00:03:17,560 --> 00:03:18,240 Speaker 2: of the funding. 64 00:03:18,280 --> 00:03:19,360 Speaker 1: How many were labor? 65 00:03:20,600 --> 00:03:23,640 Speaker 2: They weren't. So let me finish my point, which let 66 00:03:23,680 --> 00:03:26,160 Speaker 2: me finish this point because labor have misled people on this. 67 00:03:26,320 --> 00:03:30,000 Speaker 2: They put funding and budget twenty twenty three, their last 68 00:03:30,040 --> 00:03:32,800 Speaker 2: budget into Coying of Aura, and we kept that in 69 00:03:32,840 --> 00:03:36,640 Speaker 2: place for housing construction. We in addition put in more 70 00:03:36,680 --> 00:03:40,480 Speaker 2: funding for social houses, two thousand more to be delivered 71 00:03:40,480 --> 00:03:44,640 Speaker 2: by community housing providers. The change that we have made 72 00:03:44,880 --> 00:03:48,440 Speaker 2: is that our analysis showed that fifty percent of people 73 00:03:48,600 --> 00:03:52,560 Speaker 2: on the social housing waitlist needed a one bedroom home, 74 00:03:53,000 --> 00:03:57,400 Speaker 2: yet only twelve percent of Coying Aura's overall housing was 75 00:03:57,400 --> 00:04:00,360 Speaker 2: one bedroom homes, which is just a silly miss match. 76 00:04:00,440 --> 00:04:02,200 Speaker 2: So we are working to make sure we've got the 77 00:04:02,280 --> 00:04:03,440 Speaker 2: right houses and the right. 78 00:04:03,440 --> 00:04:06,400 Speaker 1: Totally understand that who need that. But you can't seriously 79 00:04:06,680 --> 00:04:09,280 Speaker 1: go to the construction industry and say this is a 80 00:04:09,440 --> 00:04:13,200 Speaker 1: labor myth that we've pulled projects from Cayeing Order. The 81 00:04:13,280 --> 00:04:16,599 Speaker 1: construction industry themselves are telling us that one of the 82 00:04:16,640 --> 00:04:21,000 Speaker 1: biggest barriers they've faced is a pullback from KO. 83 00:04:23,600 --> 00:04:26,640 Speaker 2: We have changed some of the projects, but overall we 84 00:04:26,720 --> 00:04:29,880 Speaker 2: have added seven thousand homes in the last two years. 85 00:04:29,920 --> 00:04:32,800 Speaker 2: That's just a simple fact rhyme. It is true that 86 00:04:32,800 --> 00:04:35,840 Speaker 2: the construction sector has gone through a tough time, and 87 00:04:35,960 --> 00:04:38,680 Speaker 2: I fully appreciate that. One of the big changes that's 88 00:04:38,680 --> 00:04:41,679 Speaker 2: affected them is that when interest rates got really high, 89 00:04:41,720 --> 00:04:44,800 Speaker 2: and let's remember they didn't start dropping again until last August, 90 00:04:45,440 --> 00:04:49,680 Speaker 2: a huge number of private construction projects completely fell over 91 00:04:49,960 --> 00:04:53,080 Speaker 2: because they no longer stepped up at those expensive rates 92 00:04:53,080 --> 00:04:55,640 Speaker 2: of borrowing, and that's had a massively depressive impact on 93 00:04:55,680 --> 00:04:56,599 Speaker 2: the construction sector. 94 00:04:56,680 --> 00:04:59,440 Speaker 1: Reserve Bank governor will hear soon by the end of 95 00:04:59,480 --> 00:05:02,080 Speaker 1: the week. Hope who that is? That's right. 96 00:05:02,120 --> 00:05:03,800 Speaker 2: I'm happy to confirm that you will know by the 97 00:05:03,880 --> 00:05:05,880 Speaker 2: end of the week for the new Reserve Bank governors. 98 00:05:06,000 --> 00:05:08,560 Speaker 1: Okay, will you make sure that if they because you 99 00:05:08,560 --> 00:05:11,440 Speaker 1: know Adrian Or for twenty nine months he failed to 100 00:05:11,440 --> 00:05:13,360 Speaker 1: get inflation within the target and then he's still got 101 00:05:13,360 --> 00:05:15,320 Speaker 1: a pay rise when he went for his next contract. 102 00:05:15,480 --> 00:05:17,760 Speaker 1: I mean, are we going to be stricter with the 103 00:05:17,800 --> 00:05:18,440 Speaker 1: next governor. 104 00:05:19,600 --> 00:05:22,719 Speaker 2: Well, my requirement of the Reserve Bank governor, which I 105 00:05:22,760 --> 00:05:25,560 Speaker 2: set out in my Monetary Policy remit, is that they 106 00:05:25,600 --> 00:05:29,320 Speaker 2: need to keep inflation inflation in the target band between 107 00:05:29,360 --> 00:05:32,720 Speaker 2: one and three percent over the medium term. So it 108 00:05:32,800 --> 00:05:35,279 Speaker 2: is acceptable to get a small blip out of that 109 00:05:35,839 --> 00:05:37,920 Speaker 2: if it's just a quarterly thing, and then it goes 110 00:05:37,960 --> 00:05:40,599 Speaker 2: back to the me. But those couple of years of 111 00:05:40,640 --> 00:05:44,680 Speaker 2: out of control inflation under or in labor, we're unacceptable, 112 00:05:44,760 --> 00:05:48,040 Speaker 2: created carnage in our economy and a real reminder of 113 00:05:48,080 --> 00:05:51,320 Speaker 2: where we need to keep our eye on inflation economy. 114 00:05:51,560 --> 00:05:54,240 Speaker 1: Speaking of it and Trump and the terriffs. If we 115 00:05:54,360 --> 00:05:57,560 Speaker 1: got hammered so badly by his last announcement, what's to 116 00:05:57,560 --> 00:06:00,200 Speaker 1: stop us getting equally hammered next time you do there's 117 00:06:00,240 --> 00:06:02,880 Speaker 1: another crazy moment or a liberation day. 118 00:06:03,800 --> 00:06:06,040 Speaker 2: I think we can see clearly now that we are 119 00:06:06,080 --> 00:06:08,920 Speaker 2: not in the group of countries that's been hardest hit 120 00:06:09,040 --> 00:06:11,200 Speaker 2: in nor would we expect to be in future. We've 121 00:06:11,200 --> 00:06:14,200 Speaker 2: also got clarity for our American exporters about the rate 122 00:06:14,600 --> 00:06:17,080 Speaker 2: of tariff they can expect to face into the future, 123 00:06:17,360 --> 00:06:20,720 Speaker 2: which is obviously unwelcome at fifteen percent, But at least 124 00:06:20,720 --> 00:06:24,040 Speaker 2: they know what they're dealing with, and we can have 125 00:06:24,080 --> 00:06:26,479 Speaker 2: some certainty that the rest of the world hasn't gone 126 00:06:26,520 --> 00:06:28,680 Speaker 2: into an all out trade war. You remember when he 127 00:06:28,720 --> 00:06:32,800 Speaker 2: first made his announcement back in April, people were talking 128 00:06:32,800 --> 00:06:36,359 Speaker 2: about all sorts of retaliatory tariffs happening and free traders 129 00:06:36,360 --> 00:06:39,120 Speaker 2: we know it collapsing. That hasn't transpired. In fact, a 130 00:06:39,120 --> 00:06:42,680 Speaker 2: lot of our trading partners have leaned even more positively 131 00:06:43,000 --> 00:06:45,640 Speaker 2: towards free trade and that's good for New Zealand because 132 00:06:45,640 --> 00:06:48,000 Speaker 2: we have a constellation of free trade arrangements, we're not 133 00:06:48,040 --> 00:06:49,520 Speaker 2: just dependent on the US. 134 00:06:49,400 --> 00:06:51,120 Speaker 1: To approve projects in the fast track. 135 00:06:51,240 --> 00:06:54,920 Speaker 2: Is that success Well, it is and I'm advised that 136 00:06:54,960 --> 00:06:57,600 Speaker 2: there will be at least half a dozen more decisions 137 00:06:57,640 --> 00:07:00,600 Speaker 2: before Christmas. In terms of those projects. Ryan also another 138 00:07:00,680 --> 00:07:03,960 Speaker 2: one that's been provisionally approved. But they're exciting. These are 139 00:07:03,960 --> 00:07:07,480 Speaker 2: projects that are going to add hundreds of millions to GDP, 140 00:07:07,640 --> 00:07:10,160 Speaker 2: that are going to create thousands of jobs. The my 141 00:07:10,360 --> 00:07:14,880 Speaker 2: Tahi Village housing project in Nelson that's going to impact 142 00:07:14,880 --> 00:07:17,880 Speaker 2: employment activity by around two thousand, seven hundred jobs. I'm 143 00:07:17,880 --> 00:07:21,760 Speaker 2: advised the Auckland Port one over its lifetime will support 144 00:07:21,800 --> 00:07:25,600 Speaker 2: employment of one hundred thousand workers in Auckland, Milldale and Auckland, 145 00:07:25,600 --> 00:07:28,360 Speaker 2: which has been given provisional approval that will result in 146 00:07:28,440 --> 00:07:32,720 Speaker 2: eleven hundred more homes being delivered and generate around half 147 00:07:32,720 --> 00:07:35,760 Speaker 2: a billion and GDP. So these are exciting projects that 148 00:07:35,960 --> 00:07:40,240 Speaker 2: would not have been approved without fast Track. They would 149 00:07:40,240 --> 00:07:43,760 Speaker 2: have been stuck in the system for years. Let me 150 00:07:43,840 --> 00:07:46,560 Speaker 2: remind you, this is a piece of legislation that has 151 00:07:46,600 --> 00:07:49,640 Speaker 2: been opposed by opposition parties. We've said no, you need 152 00:07:49,680 --> 00:07:52,000 Speaker 2: to get these big private sector developments out the door, 153 00:07:52,240 --> 00:07:53,600 Speaker 2: and we're doing it a lot faster than would have 154 00:07:53,640 --> 00:07:54,560 Speaker 2: otherwise been the case. 155 00:07:54,640 --> 00:07:57,760 Speaker 1: Nicola Willis financemister, appreciate your time. Hopefully they can do 156 00:07:57,920 --> 00:07:59,760 Speaker 1: without the I don't know if you saw the story, 157 00:07:59,800 --> 00:08:02,680 Speaker 1: but the speed humps at Mildale. Hopefully they can build 158 00:08:02,720 --> 00:08:05,520 Speaker 1: those eleven hundred homes without the need for tons more 159 00:08:05,560 --> 00:08:08,960 Speaker 1: of them. Nicola will it's the Finance minister. For more 160 00:08:09,040 --> 00:08:12,360 Speaker 1: from Hither Duplessy Allen Drive. Listen live to news talks. 161 00:08:12,400 --> 00:08:15,560 Speaker 1: It'd be from four pm weekdays, or follow the podcast 162 00:08:15,680 --> 00:08:16,680 Speaker 1: on iHeartRadio.