1 00:00:00,080 --> 00:00:02,040 Speaker 1: So the talk and noise has started around the government's 2 00:00:02,080 --> 00:00:04,360 Speaker 1: Global investment summoned around one hundred of the world's top 3 00:00:04,400 --> 00:00:06,920 Speaker 1: investors businesses. Construction Leader is going to be here to 4 00:00:06,960 --> 00:00:09,440 Speaker 1: hear that we are open and looking for money and 5 00:00:09,560 --> 00:00:12,080 Speaker 1: deals now, Simplicity CEO Sam Stubbs is going to be 6 00:00:12,119 --> 00:00:12,760 Speaker 1: there and he's with us. 7 00:00:12,760 --> 00:00:14,840 Speaker 2: Sam, morning to you, Good morning. 8 00:00:14,880 --> 00:00:16,760 Speaker 1: How much is riding on this, you reckon. 9 00:00:17,760 --> 00:00:20,600 Speaker 2: Look, I think quite a lot, Mike. I mean, there 10 00:00:20,640 --> 00:00:22,160 Speaker 2: will be an awful lot of money in the room. 11 00:00:22,200 --> 00:00:25,200 Speaker 2: I think what I'm concerned about is that the government 12 00:00:25,200 --> 00:00:27,200 Speaker 2: will spend more time focus on the offshore money than 13 00:00:27,240 --> 00:00:30,360 Speaker 2: the domestic money. You know you have ke We Saber 14 00:00:30,400 --> 00:00:31,760 Speaker 2: managers will be in the room there. They'll have it 15 00:00:31,800 --> 00:00:33,760 Speaker 2: one hundred and twenty billion dollars right now and that'll 16 00:00:33,800 --> 00:00:36,239 Speaker 2: should be about a trillion dollars by twenty fifty. So 17 00:00:36,640 --> 00:00:39,199 Speaker 2: getting a dollar in from overseas is I think a 18 00:00:39,200 --> 00:00:41,560 Speaker 2: lot harder than getting a domestic dollar in the door. 19 00:00:41,600 --> 00:00:43,599 Speaker 2: And if you look at the Aussie super funds, they 20 00:00:43,600 --> 00:00:45,960 Speaker 2: have about fifty percent of their money invested domestically at 21 00:00:46,000 --> 00:00:47,640 Speaker 2: the moment. The KIW save for funds have got about 22 00:00:47,640 --> 00:00:50,720 Speaker 2: thirty percent so if by twenty fifty you could have 23 00:00:50,760 --> 00:00:53,440 Speaker 2: another two hundred billion dollars invested in New Zealand by 24 00:00:53,520 --> 00:00:56,440 Speaker 2: KIWI fund managers. So if this conference is doing what 25 00:00:56,480 --> 00:00:58,520 Speaker 2: we were typically doing sort of the nineteen nineties and 26 00:00:58,560 --> 00:01:01,080 Speaker 2: focus on the offshore money, that's all very well. But 27 00:01:01,160 --> 00:01:04,240 Speaker 2: I think the size of the prize domestically is much 28 00:01:04,480 --> 00:01:05,440 Speaker 2: much bigger. 29 00:01:05,240 --> 00:01:08,360 Speaker 1: And so locally would collab with international or we could 30 00:01:08,400 --> 00:01:09,880 Speaker 1: do a lot more than we are with local. 31 00:01:11,160 --> 00:01:12,520 Speaker 2: We could do an awful lot more than we are 32 00:01:12,560 --> 00:01:14,640 Speaker 2: with local right now. What you have to do is 33 00:01:14,840 --> 00:01:19,080 Speaker 2: sufficiently incentivize local managers to invest domestically, and we actually 34 00:01:19,080 --> 00:01:21,039 Speaker 2: want to, it's just it's very hard to find things 35 00:01:21,080 --> 00:01:25,120 Speaker 2: to invest in right now. So I think if we 36 00:01:25,319 --> 00:01:26,800 Speaker 2: if we have this conference like the one we would 37 00:01:26,800 --> 00:01:28,640 Speaker 2: have had in the nineteen nineties, which is us going 38 00:01:28,640 --> 00:01:30,199 Speaker 2: out with a begging bowl and saying that we don't 39 00:01:30,200 --> 00:01:33,000 Speaker 2: have that much money, could you please, you know, basically 40 00:01:33,080 --> 00:01:34,840 Speaker 2: look after us and invest in us, I think that 41 00:01:34,840 --> 00:01:36,559 Speaker 2: that would be a shame because we're a very different 42 00:01:36,560 --> 00:01:38,960 Speaker 2: country now. We actually have a lot more money saved domestically. 43 00:01:39,000 --> 00:01:41,120 Speaker 2: If you add it up, can we save ACC and 44 00:01:41,959 --> 00:01:44,440 Speaker 2: NZ super that's over two hundred billion dollars or remarket, 45 00:01:44,440 --> 00:01:44,760 Speaker 2: it's a lot. 46 00:01:44,840 --> 00:01:47,360 Speaker 1: Do you want. What's the problem then, So when you 47 00:01:47,360 --> 00:01:49,400 Speaker 1: say we can't find anything to invest in, what is 48 00:01:49,440 --> 00:01:51,840 Speaker 1: it the internationals are coming to hear to see? 49 00:01:52,880 --> 00:01:55,040 Speaker 2: Look, I think what the government wants is for the 50 00:01:55,080 --> 00:01:57,000 Speaker 2: international investors to come in and funda all of the 51 00:01:57,040 --> 00:01:59,920 Speaker 2: new stuff, you know, build the new factories and so on. 52 00:02:00,800 --> 00:02:04,040 Speaker 2: That may well work, And I mean you have to 53 00:02:04,040 --> 00:02:05,840 Speaker 2: be very serious about this, Mike. You know, you can't 54 00:02:05,840 --> 00:02:08,240 Speaker 2: just basically set up an expotent sprinklet with a few 55 00:02:08,240 --> 00:02:10,919 Speaker 2: wall blacks and expect foreigners to invest in New Zealand. 56 00:02:10,919 --> 00:02:13,919 Speaker 2: It's an extremely competitive business and you have to provide 57 00:02:13,919 --> 00:02:16,639 Speaker 2: a lot of incentives and that is not something key 58 00:02:16,639 --> 00:02:21,160 Speaker 2: we are usually comfortable with providing, you know, unfair competitive 59 00:02:21,160 --> 00:02:24,440 Speaker 2: advantage to the new international dollar versus the local player. 60 00:02:24,600 --> 00:02:26,800 Speaker 2: So I think we have to go through a mindset changer. 61 00:02:26,880 --> 00:02:28,800 Speaker 2: For you really want to get serious about making New 62 00:02:28,880 --> 00:02:31,680 Speaker 2: Zealand like Ireland, you have to deal with companies you 63 00:02:31,720 --> 00:02:33,919 Speaker 2: may not feel comfortable dealing with. For example, Island I 64 00:02:34,000 --> 00:02:37,480 Speaker 2: think has three research centers from Huawei. We don't like 65 00:02:37,680 --> 00:02:41,799 Speaker 2: Huiawei investing here. They have to provide serious cash incentives. 66 00:02:41,840 --> 00:02:43,880 Speaker 2: So this is a this is a very serious game 67 00:02:43,919 --> 00:02:46,320 Speaker 2: you're playing when you're starting to fight for international capital. 68 00:02:46,320 --> 00:02:48,680 Speaker 2: I think the much easier prize is to get the 69 00:02:48,720 --> 00:02:49,880 Speaker 2: locals to invest more. 70 00:02:49,880 --> 00:02:52,120 Speaker 1: Here, very good insight, and I'll put it to Crystal 71 00:02:52,160 --> 00:02:54,200 Speaker 1: Bluxan about half an hour. Appreciate your time, Sam Stubb's 72 00:02:54,200 --> 00:02:55,280 Speaker 1: Simplicity CEO. 73 00:02:55,880 --> 00:02:58,760 Speaker 2: For more from the Mic Asking Breakfast, listen live to 74 00:02:58,880 --> 00:03:01,920 Speaker 2: news talks that'd be from six am weekdays, or follow 75 00:03:02,000 --> 00:03:03,520 Speaker 2: the podcast on iHeartRadio.