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Speaker 1: Thomas Coglan, the Herald's political editors of US. Hey, Thomas, Hey,

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Speaker 1: I see that the both coalition partners have come out

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Speaker 1: against this co governance situation and why targeting range is.

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Speaker 2: Yeah, yeah, this is very interesting. I think it's sort

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Speaker 2: of blew onto the public consciousness on your show actually,

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Speaker 2: and it's Shane Jones has really really empted up this

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Speaker 2: morning saying that he actually thinks this is co govenance

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Speaker 2: and he thinks it's a breach of the Coalition agreement

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Speaker 2: because obviously the Coalition Agreement is pretty clear that there

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Speaker 2: are there is to be no co governance of public

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Speaker 2: services and David Seymour has effectively in broad terms back that.

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Speaker 2: So it really puts the ball in National's court. We

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Speaker 2: haven't actually heard a lot from National arm at the moment.

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Speaker 2: We're going to probably hear a bit more this week

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Speaker 2: from them. Well you hear a.

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Speaker 1: Bit more at six o'clock because Nichola has gone away

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Speaker 1: to find out some information for us.

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Speaker 2: Oh yes, why I heard last week when she was

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Speaker 2: on your show, she didn't seem to be aware of

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Speaker 2: it at all, So she suddenly she suddenly had plenty

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Speaker 2: of time to scrub up on it. So, so, I

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Speaker 2: mean it will be really interesting to see where they

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Speaker 2: where they come at it from. Interesting too that the

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Speaker 2: Council does sort of see it as a co govenance arrangement.

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Speaker 2: They see it as dating back to this two thousand

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Speaker 2: and eight deed. But but certainly National and Act are

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Speaker 2: pretty clear that they actually do they do see thiss

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Speaker 2: co governance and therefore, and what Shane Jones is saying

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Speaker 2: is that it would be a breach of the Coalition agreement,

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Speaker 2: which is very very serious.

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Speaker 1: Indeed, is it possible for central government to stop local

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Speaker 1: government from doing this?

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Speaker 2: I mean that is the I think because the deed

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Speaker 2: itself as a legislative instrument, it might actually require it.

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Speaker 2: I mean, central government can ultimately do anything, but it

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Speaker 2: would require potentially a parliamentary intervention, which you know that

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Speaker 2: that that could that could be done. But of course

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Speaker 2: that that opens up a whole lot of other controver

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Speaker 2: controversies because then you'd you'd effectively have central government legislating

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Speaker 2: over the top of something that local government wants to do,

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Speaker 2: which does happen all the time but but but never

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Speaker 2: a good look could become an issue in the election

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Speaker 2: this year, So so certainly I think this has got

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Speaker 2: this has got legs the story. Yeah.

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Speaker 1: Now, now I'm interested in the fact that Shane Jones

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Speaker 1: opposes it, but is only prepared to take a member's

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Speaker 1: bill to Parliament. So I mean if he I mean,

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Speaker 1: if they really oppose it, they are government, they can

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Speaker 1: stop it, right. Why are they doing all this members

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Speaker 1: bill stuff? Is this stuff?

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Speaker 2: Is this?

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Speaker 1: Is this preparing for twenty twenty six?

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Speaker 2: Yeah? There is. I think you have hit upon something there.

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Speaker 2: We've actually just seen, you know that several members' bills

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Speaker 2: come through in the last few weeks from New Zealand first,

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Speaker 2: and I think Actor is getting on and on the

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Speaker 2: game as well. It's sort of it's almost like legislative

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Speaker 2: virtue signaling. I think they're using members bills to make

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Speaker 2: a point and differentiate themselves. I think if you could,

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Speaker 2: there could be a case for a government bill, but

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Speaker 2: then they'd have to put that through the Cabinet committee

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Speaker 2: that have to go through cabinet, get government support for

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Speaker 2: that that. You know, you couldn't rule that out from

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Speaker 2: happening in this case. I'm not sure what the National

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Speaker 2: Party thinks, but perhaps they could be persuaded. Yeah, and

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Speaker 2: the other issue is, of course, you know, to go

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Speaker 2: back to the Coalition agreement. Those these three parties view

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Speaker 2: the Coalition agreement as sort of sacred and if one

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Speaker 2: party thinks, and potentially two parties think that it's a

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Speaker 2: brief each of that coalition agreement, then that it's a

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Speaker 2: very serious issue.

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Speaker 1: Yeah, true too, right, Hey listen, David Seymour, I see

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Speaker 1: he's rejected this advice from his Ministry for Regulation on

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Speaker 1: the bank's requirement with capital requirement rules. What do you

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Speaker 1: make of this?

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Speaker 2: Yeah, like a quickly, but the background the Reserve Bank

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Speaker 2: has asked will force the trading banks to hold more

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Speaker 2: capital relative to the lending that they do. What that

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Speaker 2: means for you and me is that it means more

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Speaker 2: expensive loans, less less ability to borrow money, and ultimately

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Speaker 2: it means the economy grows slower than it would have

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Speaker 2: otherwise done, which is not ideal. David Seymour, The act

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Speaker 2: parties always, they've always opposed these rules. National doesn't like

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Speaker 2: them either. Interestingly enough, though, David Seymour Asked's REGs Ministry

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Speaker 2: to have a look at them, and the Regulations Ministry said, well,

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Speaker 2: the rules are actually not out of line with what

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Speaker 2: other countries rules are. David Seymour actually thinks that the

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Speaker 2: REGs Ministry is wrong in that case. He's cited some

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Speaker 2: other advice that he received from them that that's sorry

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Speaker 2: in the public domain, from PwC and the Banker's Association.

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Speaker 2: That advice says that actually, our rule rules are twice

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Speaker 2: as onerous as the rules in some other parts of

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Speaker 2: the world, mainly Europe, and therefore they are they are

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Speaker 2: a sort of an unfair imposition on our economy. So

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Speaker 2: you know, essentially he sided with he sided with the

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Speaker 2: banks against his own ministry. It doesn't really matter now

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Speaker 2: at the moment. It's sort of the issue is kind

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Speaker 2: of dormant because the Reserve Bank has said that they're

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Speaker 2: going to have a look at the rules anyway, and

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Speaker 2: potentially I would imagine the rules will be weakened to

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Speaker 2: be a bit more pro lending, proeconomic growth. But certainly

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Speaker 2: if the bank decides to stick with the rules, then

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Speaker 2: I would imagine that this issue will bubble to the

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Speaker 2: front burner again.

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Speaker 1: Yeap too, right, Hey, thanks very much, Thomas has always appreciated.

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Speaker 1: That's Thomas Coglin, the Herald's political editor. For more from

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Speaker 1: Heather to Duplassy Alan Drive, Listen live to news talks

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