1
00:00:06,120 --> 00:00:07,880
Speaker 1: Good morning New Zealand. It is the dawn of a

2
00:00:07,920 --> 00:00:11,720
Speaker 1: new day. We've begun our slide down the interest rate curve.

3
00:00:12,000 --> 00:00:14,520
Speaker 1: The Reserve Bank, with Adrian or at the helm, has

4
00:00:14,560 --> 00:00:17,160
Speaker 1: cut the OCR twenty five basis points to five point

5
00:00:17,160 --> 00:00:21,560
Speaker 1: twenty five percent, but economist Brad Olsen reckons we can't

6
00:00:21,600 --> 00:00:24,960
Speaker 1: trust them after they said just three months ago that

7
00:00:25,040 --> 00:00:28,760
Speaker 1: we weren't cutting until twenty twenty five and even discussed

8
00:00:28,880 --> 00:00:31,880
Speaker 1: an increase. Nikola Willis is the Finance minister. She joins

9
00:00:31,880 --> 00:00:34,920
Speaker 1: me this morning, Good morning minister, good morning line.

10
00:00:34,960 --> 00:00:38,120
Speaker 2: You played my songs. It's dark as before the dawn,

11
00:00:38,440 --> 00:00:39,000
Speaker 2: Thank you for that.

12
00:00:39,360 --> 00:00:42,720
Speaker 1: We're actually discussing is it darkest before the dawn? Isn't

13
00:00:42,720 --> 00:00:44,640
Speaker 1: it as dark at two am as it is it four?

14
00:00:45,800 --> 00:00:48,440
Speaker 2: I think we all know that nighttime comes before morning,

15
00:00:48,600 --> 00:00:51,559
Speaker 2: and I think it is still cloudy out there, but

16
00:00:51,720 --> 00:00:55,360
Speaker 2: there are rays of light getting through. And we always

17
00:00:55,360 --> 00:00:57,840
Speaker 2: said with the economy, what we need to see happen

18
00:00:57,880 --> 00:01:01,440
Speaker 2: as inflation come under control, so interest rates can come

19
00:01:01,480 --> 00:01:04,920
Speaker 2: down and gross can recover. And what the Reserve Bank

20
00:01:05,240 --> 00:01:09,039
Speaker 2: emphatically said yesterday is that they think inflation is now

21
00:01:09,120 --> 00:01:13,240
Speaker 2: under control. They're forecasting it being back and target, and

22
00:01:13,280 --> 00:01:16,360
Speaker 2: that's given then the confidence they need to actually reduce

23
00:01:16,520 --> 00:01:19,240
Speaker 2: interest rates. So that's positive news for a lot of people.

24
00:01:19,440 --> 00:01:22,200
Speaker 1: Isn't the problem that they emphatically said basically the opposite

25
00:01:22,240 --> 00:01:24,480
Speaker 1: three months ago? Do you trust them?

26
00:01:25,480 --> 00:01:27,360
Speaker 2: Ah? Look, I do trust the Reserve Bank to do

27
00:01:27,400 --> 00:01:30,000
Speaker 2: their job, and it's important they let them do their

28
00:01:30,120 --> 00:01:34,720
Speaker 2: job independently. And when I look at the decision yesterday

29
00:01:34,920 --> 00:01:37,880
Speaker 2: and the data that backs it up, there are facts there.

30
00:01:38,040 --> 00:01:41,080
Speaker 2: You know, inflation has come down to three point three percent,

31
00:01:41,160 --> 00:01:44,280
Speaker 2: that is the lowest it has been in three years.

32
00:01:45,160 --> 00:01:47,800
Speaker 2: And all I need to do is go around New

33
00:01:47,880 --> 00:01:51,000
Speaker 2: Zealand at the moment to know the economy has slowed

34
00:01:51,040 --> 00:01:54,920
Speaker 2: down and so seeing interest rates come down to me

35
00:01:55,160 --> 00:01:58,840
Speaker 2: is logical. But ultimately, these are independent decisions for the

36
00:01:58,880 --> 00:01:59,440
Speaker 2: Reserve Bank.

37
00:01:59,560 --> 00:02:01,680
Speaker 1: And you've got no issues with Adrian or has got

38
00:02:01,720 --> 00:02:05,120
Speaker 1: three more years on his term. You've also recently reappointed

39
00:02:05,840 --> 00:02:07,680
Speaker 1: the board chair. You've got no issues there.

40
00:02:09,120 --> 00:02:11,640
Speaker 2: Well, he does his job. I do my job, and

41
00:02:11,680 --> 00:02:14,200
Speaker 2: it's really important that we let each other get on

42
00:02:14,240 --> 00:02:16,560
Speaker 2: and do their job because when the rest of the

43
00:02:16,560 --> 00:02:18,919
Speaker 2: world looks at New Zealand, one of the things they

44
00:02:19,080 --> 00:02:22,880
Speaker 2: like about us is that we have good monetary policy

45
00:02:23,400 --> 00:02:27,840
Speaker 2: independent institutions, and that we've had a long history of

46
00:02:27,960 --> 00:02:31,280
Speaker 2: Reserve bank governors doing their thing, finance ministers doing their thing,

47
00:02:31,720 --> 00:02:34,440
Speaker 2: and they're not trying to influence each other too much.

48
00:02:35,280 --> 00:02:38,400
Speaker 1: Hey, just on the banks while we're there, the retail Variety.

49
00:02:38,560 --> 00:02:42,120
Speaker 1: That banking report from the Commerce Commissions do out this week,

50
00:02:42,200 --> 00:02:43,720
Speaker 1: I understand have you read that yet?

51
00:02:45,639 --> 00:02:48,480
Speaker 2: I had seen an advanced copy. It's really important. I

52
00:02:48,560 --> 00:02:51,480
Speaker 2: don't comment on its contents obviously, it's for the Commerce

53
00:02:51,480 --> 00:02:55,440
Speaker 2: Commission to announce later this week, but the draft report

54
00:02:55,480 --> 00:03:00,040
Speaker 2: has been in seculation publicly. It's clear, according to the

55
00:03:00,080 --> 00:03:04,040
Speaker 2: Commis Commission, we have a two tier oligopoly of banks

56
00:03:04,040 --> 00:03:07,320
Speaker 2: in New Zealand, that there hasn't been enough competition, that

57
00:03:07,360 --> 00:03:10,560
Speaker 2: there have been sustained levels of high profitability for those

58
00:03:10,600 --> 00:03:13,920
Speaker 2: big banks. And we are very keen to hear the

59
00:03:13,919 --> 00:03:17,000
Speaker 2: recommendations of a Commerce Commission and where they make sense,

60
00:03:17,040 --> 00:03:22,400
Speaker 2: act on them because New Zealanders deserve fair, competitive banking services.

61
00:03:22,720 --> 00:03:25,440
Speaker 1: Are you still considering partial privatization of Kevybank?

62
00:03:27,520 --> 00:03:31,440
Speaker 2: Become really keen to see Kiwibank muscle up and grow

63
00:03:31,680 --> 00:03:34,680
Speaker 2: so it can take on those big Ossie banks, and

64
00:03:34,800 --> 00:03:38,680
Speaker 2: so we are exploring options for how we could help

65
00:03:38,880 --> 00:03:43,800
Speaker 2: Kiwibank get bigger. It's no secret time that we don't

66
00:03:43,800 --> 00:03:46,240
Speaker 2: have a big pile of cash sitting around at the moment,

67
00:03:46,960 --> 00:03:50,080
Speaker 2: So we are looking at how we can achieve that something.

68
00:03:50,720 --> 00:03:53,920
Speaker 1: Would that include sorry Minster, would that include foreign investment?

69
00:03:54,560 --> 00:03:56,760
Speaker 1: Will any foreigner get their hands on Kwibank?

70
00:03:58,200 --> 00:04:02,640
Speaker 2: Well, look at this stage, the people who are kind

71
00:04:02,640 --> 00:04:07,960
Speaker 2: of showing interest are New Zealand entities, and it is

72
00:04:08,360 --> 00:04:11,320
Speaker 2: really possible. I think that there would be New Zealanders

73
00:04:11,400 --> 00:04:14,000
Speaker 2: who would want to invest in making a new Zealand bank.

74
00:04:14,200 --> 00:04:17,719
Speaker 2: Figure And I say that because I look at the key.

75
00:04:17,720 --> 00:04:19,800
Speaker 2: We favor funds that have built up. I look at

76
00:04:19,839 --> 00:04:22,080
Speaker 2: the money and super funds that's built up. I look

77
00:04:22,120 --> 00:04:25,840
Speaker 2: at the money that ACC invests. And actually a lot

78
00:04:25,839 --> 00:04:28,520
Speaker 2: of the time when I talk to people in those funds,

79
00:04:28,600 --> 00:04:32,400
Speaker 2: they're looking for good New Zealand investments. So it's the

80
00:04:32,480 --> 00:04:33,160
Speaker 2: first port of call.

81
00:04:33,320 --> 00:04:35,480
Speaker 1: Yeah, first port of call. But is there a second

82
00:04:35,480 --> 00:04:37,960
Speaker 1: portal call? Or would you rule out foreign investment in Queybank?

83
00:04:38,880 --> 00:04:42,279
Speaker 2: Well, look, I'm taking advice on what is needed to

84
00:04:42,480 --> 00:04:46,240
Speaker 2: get investment into kwibank. And if I say I've said,

85
00:04:46,279 --> 00:04:48,680
Speaker 2: let's look at what the options are. I think we

86
00:04:48,760 --> 00:04:50,920
Speaker 2: will also be interested. By the way, I think there

87
00:04:50,920 --> 00:04:54,320
Speaker 2: could be institutional investors from New Zealand who are interested.

88
00:04:54,400 --> 00:04:56,520
Speaker 2: So what if that look like, what are the next

89
00:04:56,520 --> 00:04:59,800
Speaker 2: steps and then we'll take proposals out and we'll talk

90
00:04:59,839 --> 00:05:00,920
Speaker 2: with New Zealand about them.

91
00:05:01,000 --> 00:05:02,760
Speaker 1: Minister, we are very short on time, but I just

92
00:05:02,760 --> 00:05:04,719
Speaker 1: want to quickly put to you that Health New Zealand

93
00:05:04,720 --> 00:05:09,359
Speaker 1: proposal to cut doctors and nurses. It sounds absolutely mad

94
00:05:09,440 --> 00:05:12,440
Speaker 1: and goes against everything that you guys said you wanted

95
00:05:12,800 --> 00:05:15,560
Speaker 1: when it came to cuts. Have you spoken to ministers

96
00:05:15,600 --> 00:05:16,520
Speaker 1: you're doing anything about this?

97
00:05:18,080 --> 00:05:21,080
Speaker 2: Well, it did sound absolutely mad, so I was very

98
00:05:21,080 --> 00:05:24,640
Speaker 2: pleased to see the Commissioner, mister Levy rule it out

99
00:05:25,240 --> 00:05:29,760
Speaker 2: and in fact expresses frustrations that such numbers were ever

100
00:05:30,040 --> 00:05:34,200
Speaker 2: put out into the universe because they're so far away

101
00:05:34,360 --> 00:05:37,200
Speaker 2: from the direction the government has given Health New Zealand

102
00:05:37,760 --> 00:05:40,760
Speaker 2: and the expectations we've placed on that commissioner, which is

103
00:05:40,839 --> 00:05:44,520
Speaker 2: we want resources going to the front line. We want

104
00:05:44,560 --> 00:05:47,440
Speaker 2: our doctors and nurses in a better position to provide

105
00:05:47,560 --> 00:05:51,760
Speaker 2: care to New Zealanders. That's our focus, and so proposals

106
00:05:51,800 --> 00:05:53,440
Speaker 2: like that don't have truck with us.

107
00:05:53,960 --> 00:05:56,600
Speaker 1: That is the Finance Minister, Nichola Willis Nicola, thank you

108
00:05:56,720 --> 00:05:58,839
Speaker 1: very much for your time this morning, and enjoy the dawn.

109
00:05:59,560 --> 00:06:02,479
Speaker 1: For more from Newstalk st B, listen live on air

110
00:06:02,680 --> 00:06:05,360
Speaker 1: or online, and keep our shows with you wherever you

111
00:06:05,440 --> 00:06:07,880
Speaker 1: go with our podcasts on iHeartRadio