1 00:00:00,160 --> 00:00:02,960 Speaker 1: So the OCI was cut twenty five, not fifty points 2 00:00:02,960 --> 00:00:05,720 Speaker 1: to three percent yesterday. A split decision means two of 3 00:00:05,720 --> 00:00:08,039 Speaker 1: the committee members wanted to go bigger and go hard 4 00:00:08,080 --> 00:00:11,119 Speaker 1: at four in club twenty five and this was the 5 00:00:11,119 --> 00:00:13,520 Speaker 1: big news yesterday. Really they've signaled down to two and 6 00:00:13,560 --> 00:00:16,400 Speaker 1: a half percent potentially by Christmas. We also found out 7 00:00:16,440 --> 00:00:19,600 Speaker 1: inflation expected to hit three percent for the September quarter. 8 00:00:19,960 --> 00:00:22,600 Speaker 1: Nikola Willis, as the Finance Minister, joins me this morning, 9 00:00:22,640 --> 00:00:23,360 Speaker 1: Good morning. 10 00:00:23,920 --> 00:00:24,720 Speaker 2: Good morning man. 11 00:00:24,880 --> 00:00:27,520 Speaker 1: So they didn't cut both fifty a third of them 12 00:00:27,600 --> 00:00:28,600 Speaker 1: think we needed to. 13 00:00:30,240 --> 00:00:30,360 Speaker 2: Do. 14 00:00:30,440 --> 00:00:33,800 Speaker 1: You are they doing the heavy lifting that you have 15 00:00:33,960 --> 00:00:35,159 Speaker 1: said that they need to do. 16 00:00:36,680 --> 00:00:40,960 Speaker 2: It's really important that monetary policy can stimulate the economy 17 00:00:41,520 --> 00:00:44,480 Speaker 2: and that's what the Reserve Bank made a very clear 18 00:00:44,520 --> 00:00:48,360 Speaker 2: decision to do tomorrow was ensure that interest rates can 19 00:00:48,400 --> 00:00:52,320 Speaker 2: fall further so that people are paying less for their debts, 20 00:00:52,320 --> 00:00:54,600 Speaker 2: so there's more money in people's pockets, so they can 21 00:00:54,640 --> 00:00:59,680 Speaker 2: be more money circulating in the economy, generating activity, jobs, growth, 22 00:01:00,280 --> 00:01:02,040 Speaker 2: all of the things we want to see. 23 00:01:02,320 --> 00:01:05,000 Speaker 1: We have businesses going to the wall, we have people 24 00:01:05,040 --> 00:01:08,240 Speaker 1: cutting back on groceries because they're so expensive. We know 25 00:01:08,360 --> 00:01:11,559 Speaker 1: that we've had a faulted recovery in quarter two, Does 26 00:01:11,680 --> 00:01:14,920 Speaker 1: the strengthen an argument for you to get involved and 27 00:01:15,040 --> 00:01:16,400 Speaker 1: do a bit of stimulus. 28 00:01:17,800 --> 00:01:20,559 Speaker 2: Well, we're very weare of all of those pressures, which 29 00:01:20,640 --> 00:01:24,320 Speaker 2: were exacerbated in the second three months of this year 30 00:01:24,400 --> 00:01:27,520 Speaker 2: following the Trump tariffs. What our Reserve Bank is very 31 00:01:27,520 --> 00:01:30,520 Speaker 2: clear about in their full statement which they released yesterday, 32 00:01:31,080 --> 00:01:34,320 Speaker 2: is that the government, by controlling its own spending, is 33 00:01:34,400 --> 00:01:38,200 Speaker 2: keeping pressure off inflation, allowing the Reserve Bank to deliver 34 00:01:38,319 --> 00:01:41,480 Speaker 2: these interesst rate reductions. It's my view that in the 35 00:01:41,560 --> 00:01:44,720 Speaker 2: absence of control government spending, it would be very difficult 36 00:01:45,040 --> 00:01:47,960 Speaker 2: for the Reserve Bank to keep reducing interrast rates, and 37 00:01:48,000 --> 00:01:50,120 Speaker 2: that would be a real constraint on some sectors that 38 00:01:50,200 --> 00:01:52,920 Speaker 2: I think we all are concerned about. You know, construction. 39 00:01:53,440 --> 00:01:56,840 Speaker 2: Construction projects get over the line where interest rates are 40 00:01:56,840 --> 00:01:59,200 Speaker 2: low enough that people are prepared to take on the 41 00:01:59,280 --> 00:02:02,960 Speaker 2: debt to find those projects. So totally agree to the future, 42 00:02:03,200 --> 00:02:06,040 Speaker 2: this is going to be now demand to the economy. 43 00:02:06,200 --> 00:02:08,600 Speaker 1: You need demand. You need people who are actually out 44 00:02:08,680 --> 00:02:11,600 Speaker 1: there going wanting to buy things, wanting to buy property. 45 00:02:11,639 --> 00:02:13,959 Speaker 1: We just talked about Fletcher's on the show. I mean, 46 00:02:13,960 --> 00:02:16,120 Speaker 1: so there's no, just for the absence of doubt, you're 47 00:02:16,200 --> 00:02:19,720 Speaker 1: ruling out any mid year mini sprinkle stimulus if even 48 00:02:19,760 --> 00:02:21,959 Speaker 1: reprioritize money doesn't have to be new money. 49 00:02:22,720 --> 00:02:25,799 Speaker 2: Oh, I'm absolutely not ruling that out. We will continue 50 00:02:25,840 --> 00:02:30,040 Speaker 2: to be taking additional actions to stimulate activity in the economy. 51 00:02:30,400 --> 00:02:32,200 Speaker 2: What I'm saying is that this is not a time 52 00:02:32,240 --> 00:02:36,200 Speaker 2: that we will be continuing to drive up additional debt. Well, 53 00:02:36,240 --> 00:02:41,160 Speaker 2: you've seen us continue to make announcements and deliver policy change, 54 00:02:41,160 --> 00:02:45,600 Speaker 2: but more than that, and that will continue. That will continue, right. 55 00:02:45,680 --> 00:02:48,119 Speaker 2: You will continue to see from the government actions which 56 00:02:48,120 --> 00:02:52,919 Speaker 2: we believe will stimulate activity, will give people confidence to invest, 57 00:02:53,120 --> 00:02:58,239 Speaker 2: will give people in nevi to take on your soon listen, 58 00:02:58,360 --> 00:02:59,440 Speaker 2: will continue to see that. 59 00:03:00,600 --> 00:03:03,520 Speaker 1: Why are you rewarding tantrums? 60 00:03:05,400 --> 00:03:08,120 Speaker 2: Whose tantrument I rewarded? That's not been my parenting approach. 61 00:03:08,600 --> 00:03:12,120 Speaker 1: Well, I wouldn't have thought it was. So the teachers. 62 00:03:12,280 --> 00:03:14,959 Speaker 1: We had Judith Collins come out and say the teachers 63 00:03:15,040 --> 00:03:19,320 Speaker 1: are throwing are wobbly throwing a tantrum? Yesterday Brian Roach 64 00:03:19,400 --> 00:03:23,160 Speaker 1: says we're now reviewing our offer. Oh. 65 00:03:23,240 --> 00:03:25,960 Speaker 2: Look, we've always said in order to get a deal 66 00:03:26,000 --> 00:03:28,800 Speaker 2: over the line with the teachers, which I think everyone wants. 67 00:03:29,160 --> 00:03:31,400 Speaker 2: They need to be at the bargaining table. Now, what 68 00:03:31,440 --> 00:03:34,440 Speaker 2: happens at the bargaining table is you negotiate in good 69 00:03:34,480 --> 00:03:36,960 Speaker 2: faith to get an outcome that can work for everyone. 70 00:03:37,000 --> 00:03:40,280 Speaker 2: How disappointment the tantrum which Judith Colins rightly referred to 71 00:03:40,840 --> 00:03:45,280 Speaker 2: was the PPTA walking away from negotiations after only six 72 00:03:45,360 --> 00:03:46,720 Speaker 2: days at the negotiating table. 73 00:03:46,720 --> 00:03:48,640 Speaker 1: And look what against a very good goes Look what 74 00:03:48,680 --> 00:03:50,040 Speaker 1: it gives them a reviewed offer. 75 00:03:51,360 --> 00:03:53,560 Speaker 2: Well, we have always been in a position that we 76 00:03:53,640 --> 00:03:55,920 Speaker 2: want to negotiate. Now, if the PPTA want to play 77 00:03:55,960 --> 00:03:58,440 Speaker 2: games and are more focused on their social media campaign 78 00:03:58,520 --> 00:04:02,040 Speaker 2: than actually representing their workers sitting at the table to 79 00:04:02,040 --> 00:04:04,680 Speaker 2: get a deal, that's on them, that's not on us. 80 00:04:05,200 --> 00:04:08,320 Speaker 1: Where does the money come from the extra money? Because 81 00:04:08,560 --> 00:04:11,040 Speaker 1: I think one point seven billion is what they were asking. 82 00:04:11,880 --> 00:04:14,240 Speaker 1: Do you have to borrow for that? Is that existing baselines? 83 00:04:14,360 --> 00:04:17,320 Speaker 1: Is it reprioritize this reviewed offer? Where does that money 84 00:04:17,360 --> 00:04:18,320 Speaker 1: come from? The extra money? 85 00:04:18,320 --> 00:04:20,799 Speaker 2: Well, well, Ryan, I think you're making an assumption about 86 00:04:20,800 --> 00:04:23,200 Speaker 2: what the components of the reviewed offer are and I 87 00:04:23,240 --> 00:04:26,640 Speaker 2: wouldn't do that. But of course, like every government before us, 88 00:04:26,680 --> 00:04:30,359 Speaker 2: we have set an envelope for this negotiation that some 89 00:04:30,720 --> 00:04:34,680 Speaker 2: is confidential, and we will be working within that envelope 90 00:04:34,880 --> 00:04:37,239 Speaker 2: because of course, I think people understand there are trade 91 00:04:37,240 --> 00:04:41,279 Speaker 2: offs here. In this year's budget, we delivered a record 92 00:04:41,320 --> 00:04:44,320 Speaker 2: package of learning support for children with additional needs that 93 00:04:44,440 --> 00:04:48,440 Speaker 2: will support additional teacher aides, supports and classrooms. Well as 94 00:04:48,520 --> 00:04:51,480 Speaker 2: we actually blow the negotiating budget on the teachers, those 95 00:04:51,520 --> 00:04:53,719 Speaker 2: things are going to be much much harder to fund 96 00:04:53,800 --> 00:04:56,000 Speaker 2: now and into the future. So this is all about 97 00:04:56,040 --> 00:04:59,400 Speaker 2: getting a deal that delivers for students, delivers for families, 98 00:04:59,400 --> 00:05:01,760 Speaker 2: and yes lothers for teachers who we value very much. 99 00:05:01,800 --> 00:05:04,480 Speaker 1: As people are listening to this this morning, they're hopefully 100 00:05:04,480 --> 00:05:06,919 Speaker 1: putting butter on their hosts. Many won't be. You have 101 00:05:07,000 --> 00:05:10,160 Speaker 1: congratulated night and day for selling butter at six dollars fifty. 102 00:05:10,360 --> 00:05:14,760 Speaker 1: That's apparently they're losing three bucks on every block. You've 103 00:05:14,800 --> 00:05:17,400 Speaker 1: said food stuffs and wool worse have the same option, 104 00:05:17,560 --> 00:05:20,400 Speaker 1: you'd encourage them to lower prices. I had food Stuffs 105 00:05:20,440 --> 00:05:23,240 Speaker 1: on my Herald Now show on Monday. They said they 106 00:05:23,279 --> 00:05:26,120 Speaker 1: are making a loss on the home brand butters that 107 00:05:26,200 --> 00:05:29,040 Speaker 1: they sell for eight dollars twenty nine. Did you realize that. 108 00:05:30,520 --> 00:05:32,680 Speaker 2: I listened to your show, Ryan, and this is the 109 00:05:32,800 --> 00:05:36,320 Speaker 2: kind of commercial behavior that you want to see. I 110 00:05:36,320 --> 00:05:39,000 Speaker 2: think all of us want to see retailers competing hard 111 00:05:39,000 --> 00:05:42,360 Speaker 2: against each how they which sometimes involve for having one 112 00:05:42,400 --> 00:05:44,719 Speaker 2: product or a whole range of products where they're selling 113 00:05:44,760 --> 00:05:47,560 Speaker 2: below costs because they know that they will recruit some 114 00:05:47,680 --> 00:05:51,280 Speaker 2: profits in other areas and other products that they are selling. 115 00:05:51,279 --> 00:05:54,320 Speaker 2: And my point's always been the more competitive the marketers, 116 00:05:54,360 --> 00:05:56,600 Speaker 2: the more you've got night and days and other entities 117 00:05:56,600 --> 00:05:59,440 Speaker 2: snapping at the heels of the big guys, more likely 118 00:05:59,480 --> 00:06:02,200 Speaker 2: you are to get those sorts of offers. All I 119 00:06:02,240 --> 00:06:04,320 Speaker 2: want is the best deal for Kiwi shoppers, and I 120 00:06:04,360 --> 00:06:07,000 Speaker 2: continue to believe more competition will support that. 121 00:06:07,160 --> 00:06:09,479 Speaker 1: All Right, Nicholas Willis appreciate your time this morning the 122 00:06:09,520 --> 00:06:10,279 Speaker 1: Finance Minister. 123 00:06:11,200 --> 00:06:13,480 Speaker 2: For more from earlier edition with Ryan Bridge. 124 00:06:13,560 --> 00:06:17,000 Speaker 1: Listen live to News Talks at b from five am weekdays, 125 00:06:17,240 --> 00:06:19,240 Speaker 1: or follow the podcast on iHeartRadio.