1 00:00:03,400 --> 00:00:06,440 Speaker 1: Gotta Koto. Welcome to Shared Lunch. I'm Garth Gray here 2 00:00:06,440 --> 00:00:09,799 Speaker 1: in Morningside in Auckland at the headquarters of the Brisco 3 00:00:10,000 --> 00:00:15,200 Speaker 1: Group that's Brisco's and Rebel Sport Homewares and Sportswear, a 4 00:00:15,360 --> 00:00:19,280 Speaker 1: retail powerhouse. And at the head Rod Duke, a man 5 00:00:19,280 --> 00:00:23,200 Speaker 1: who's been running retail for thirty five years. What are 6 00:00:23,200 --> 00:00:26,080 Speaker 1: the challenges he sees ahead? Are we going to make 7 00:00:26,079 --> 00:00:28,560 Speaker 1: a recovery from this cost of living crisis? And what 8 00:00:28,680 --> 00:00:31,680 Speaker 1: opportunities has he been able to ring from the trade 9 00:00:31,720 --> 00:00:34,920 Speaker 1: war between the US and China. How does he see 10 00:00:34,920 --> 00:00:37,320 Speaker 1: the future coming? Will lie ahead inside to find out. 11 00:00:37,360 --> 00:00:39,720 Speaker 1: Here's some important info you should always keep in mind. 12 00:00:39,880 --> 00:00:42,479 Speaker 2: Investing involves the risk you might lose the money you 13 00:00:42,520 --> 00:00:45,800 Speaker 2: start with. We recommend talking to a licensed financial advisor. 14 00:00:46,520 --> 00:00:50,360 Speaker 2: We also recommend reading product disclosure documents before deciding to invest. 15 00:00:50,600 --> 00:00:53,159 Speaker 2: Everything you're about to see and here is current at the. 16 00:00:53,080 --> 00:00:53,880 Speaker 3: Time of recording. 17 00:00:54,440 --> 00:00:57,440 Speaker 1: First, thanks for inviting us here today. I mean, I 18 00:00:57,520 --> 00:01:00,440 Speaker 1: know you are all about the deal, knowing what the 19 00:01:00,480 --> 00:01:04,240 Speaker 1: customer wants, and so in that view, we've asked some 20 00:01:04,319 --> 00:01:06,280 Speaker 1: of our customers, some of our listeners, some of the 21 00:01:06,319 --> 00:01:09,080 Speaker 1: people that tune into the podcast regularly what they would 22 00:01:09,120 --> 00:01:11,120 Speaker 1: like to ask you, And I've got a couple of 23 00:01:11,120 --> 00:01:15,440 Speaker 1: those questions right here. What's the key indicator of how 24 00:01:15,440 --> 00:01:19,520 Speaker 1: the economy is related to retail? Like, as there are 25 00:01:20,120 --> 00:01:22,880 Speaker 1: a product somewhere on the shelves where when that goes nuts, 26 00:01:23,240 --> 00:01:24,920 Speaker 1: you go things are doing well. 27 00:01:25,000 --> 00:01:27,000 Speaker 3: No, there's probably not a product, but there's probably a 28 00:01:27,080 --> 00:01:30,560 Speaker 3: number of product categories, not one particular. And look, our 29 00:01:30,959 --> 00:01:34,640 Speaker 3: summary of whether or not the economy's buoyant or poor 30 00:01:35,360 --> 00:01:39,400 Speaker 3: is the propensity of people to shop. If they tighten up, 31 00:01:39,680 --> 00:01:43,960 Speaker 3: don't want to shop, there's nothing they want to buy. 32 00:01:44,240 --> 00:01:45,200 Speaker 3: You know you're in trouble. 33 00:01:46,560 --> 00:01:49,520 Speaker 1: So how have you been able to deal with competition 34 00:01:49,640 --> 00:01:52,080 Speaker 1: while also staying true to your core values. 35 00:01:52,720 --> 00:01:54,720 Speaker 3: Look, I think you're going to go all the way 36 00:01:54,760 --> 00:01:58,120 Speaker 3: back to nineteen eighty eight when we sat down and 37 00:01:58,160 --> 00:02:03,960 Speaker 3: we were a quasi seller of toys hardware merchants. I 38 00:02:04,000 --> 00:02:06,920 Speaker 3: sat down then with the key people in the business 39 00:02:06,920 --> 00:02:08,960 Speaker 3: and said, look, the position that we find ourselves in 40 00:02:09,040 --> 00:02:12,560 Speaker 3: right now is unsustainable. There's terrific hardware merchants out there 41 00:02:12,680 --> 00:02:15,880 Speaker 3: selling hardware. The toy business that we're in, which is 42 00:02:15,919 --> 00:02:17,720 Speaker 3: a thirty day business and so we had a look 43 00:02:17,760 --> 00:02:20,240 Speaker 3: at the landscape and figured out which piece of that 44 00:02:20,280 --> 00:02:26,520 Speaker 3: retail landscape we could occupy, dominate and defend. And the 45 00:02:26,560 --> 00:02:30,360 Speaker 3: piece that we found that was vacant was really good 46 00:02:30,480 --> 00:02:34,919 Speaker 3: quality product, really good price. And so we thought, okay, 47 00:02:35,040 --> 00:02:37,640 Speaker 3: let's go out there and get all the famous brand 48 00:02:37,720 --> 00:02:40,840 Speaker 3: names in the categories that we want to operate in, 49 00:02:41,600 --> 00:02:43,840 Speaker 3: and that's what we'll sell. Because look, at the end 50 00:02:43,880 --> 00:02:49,280 Speaker 3: of the day, the rich and middle income folks always buy, 51 00:02:50,080 --> 00:02:53,520 Speaker 3: you know, real good quality product. So that was the 52 00:02:53,520 --> 00:02:57,720 Speaker 3: core of where we thought we ought to sit. We 53 00:02:57,800 --> 00:03:00,600 Speaker 3: believe we could defend that position, and here eight years on, 54 00:03:01,560 --> 00:03:03,360 Speaker 3: we've managed to do it. And we've done it. We're 55 00:03:03,400 --> 00:03:06,480 Speaker 3: now with two brands with two different categories of merchandise 56 00:03:06,800 --> 00:03:08,600 Speaker 3: and two different brands of stores. 57 00:03:08,520 --> 00:03:13,720 Speaker 1: Home, whar and sports where Yeah yeah, yeah. So is 58 00:03:13,720 --> 00:03:16,480 Speaker 1: there a secret to success in the business in this economy? 59 00:03:16,600 --> 00:03:19,200 Speaker 3: I think if you're predictable, I think if you're trustworthy, 60 00:03:19,520 --> 00:03:22,240 Speaker 3: and I think if you're very, very community located so 61 00:03:22,320 --> 00:03:26,000 Speaker 3: people don't have to go to great lengths to shop 62 00:03:26,040 --> 00:03:28,519 Speaker 3: with you, that's probably a pretty good start. I would 63 00:03:28,560 --> 00:03:28,959 Speaker 3: have thought. 64 00:03:29,080 --> 00:03:31,959 Speaker 1: I tuned into your AGM. I heard a great quote. 65 00:03:32,080 --> 00:03:34,400 Speaker 1: I just want to share with everybody. Retail is like 66 00:03:34,960 --> 00:03:39,600 Speaker 1: crossing a tightrope, juggling flaming tortures while riding a Uni cycle. 67 00:03:40,200 --> 00:03:42,120 Speaker 1: That was your chief financial officer, wasn't it? 68 00:03:42,160 --> 00:03:43,520 Speaker 3: And bang on it was? Yeah? 69 00:03:43,800 --> 00:03:44,680 Speaker 1: Did he get that from you? 70 00:03:45,280 --> 00:03:47,840 Speaker 3: No? No, No, regrettably it is good it. 71 00:03:48,120 --> 00:03:49,480 Speaker 1: I was sort of struck by that. I mean, he's 72 00:03:49,520 --> 00:03:52,560 Speaker 1: talking about I think, if I understand it right, the 73 00:03:52,600 --> 00:03:54,640 Speaker 1: dilemma of trying to sell as much as you can 74 00:03:55,440 --> 00:03:58,160 Speaker 1: but also make as much as you can from it. 75 00:03:58,240 --> 00:04:00,520 Speaker 1: And when I sort of looked, you've had to pull 76 00:04:00,600 --> 00:04:02,880 Speaker 1: your gross profit back how much you're making of this 77 00:04:03,560 --> 00:04:06,040 Speaker 1: by about I think it was about turn the basis 78 00:04:06,040 --> 00:04:09,480 Speaker 1: points about two percent down to about forty percent, just 79 00:04:09,520 --> 00:04:13,920 Speaker 1: in order to keep the sales flat last year. Tell 80 00:04:13,960 --> 00:04:16,080 Speaker 1: me about that typewrote walk. How do you make those 81 00:04:16,080 --> 00:04:16,960 Speaker 1: sorts of decisions? 82 00:04:17,600 --> 00:04:20,240 Speaker 3: It all starts with being able to buy the right 83 00:04:20,279 --> 00:04:22,400 Speaker 3: merchandise and buy it at the right price. If you 84 00:04:22,480 --> 00:04:27,080 Speaker 3: do that, then you've got to build of leeway to 85 00:04:27,120 --> 00:04:30,000 Speaker 3: compensate for some of these poor times that come around 86 00:04:30,040 --> 00:04:33,320 Speaker 3: from time to time, and sometimes these poor times last 87 00:04:33,560 --> 00:04:37,120 Speaker 3: weeks and sometimes months, sometimes the season. They very rarely 88 00:04:37,200 --> 00:04:40,359 Speaker 3: last for the period they've lasted this time, and so 89 00:04:41,360 --> 00:04:44,799 Speaker 3: you know when people are resisting spending money and shopping, 90 00:04:45,720 --> 00:04:48,760 Speaker 3: you know there's always a proportion that will. So it's 91 00:04:48,800 --> 00:04:51,800 Speaker 3: really important that you're able in some way to get 92 00:04:52,680 --> 00:04:55,280 Speaker 3: a bigger chunk. It's been like a day fishing. If 93 00:04:55,320 --> 00:04:57,760 Speaker 3: the fish and are feeding, sometimes you got to change 94 00:04:57,760 --> 00:04:59,880 Speaker 3: your bait, and sometimes you got to change your possession. 95 00:05:00,080 --> 00:05:04,000 Speaker 3: Sometimes you're going to change things up to get a 96 00:05:04,320 --> 00:05:07,640 Speaker 3: good chunk of those that are shopping. And so that's 97 00:05:07,680 --> 00:05:09,240 Speaker 3: the skill I think that's embedded here. 98 00:05:09,720 --> 00:05:11,679 Speaker 1: The world's are washed with all of this news about 99 00:05:11,720 --> 00:05:15,200 Speaker 1: tariffs and so on. I read that pretty much hot 100 00:05:15,240 --> 00:05:17,279 Speaker 1: off the back of the Liberation Day and all that 101 00:05:17,360 --> 00:05:19,800 Speaker 1: kind of thing. You had your entire buying team up 102 00:05:19,839 --> 00:05:21,440 Speaker 1: in China for a couple of weeks. 103 00:05:22,160 --> 00:05:23,960 Speaker 3: What did they see? What did they tell you? They 104 00:05:24,000 --> 00:05:28,480 Speaker 3: saw some panic stricken factories because as you imagine, a 105 00:05:28,520 --> 00:05:30,400 Speaker 3: good chunk of what's made in China goes to the 106 00:05:30,520 --> 00:05:36,200 Speaker 3: United States, and so the American suppliers were simply saying, 107 00:05:36,920 --> 00:05:40,960 Speaker 3: do not ship. I'm not paying one hundred and forty 108 00:05:41,000 --> 00:05:43,919 Speaker 3: five percent tariff when it lands on the dock, so 109 00:05:44,080 --> 00:05:46,040 Speaker 3: don't ship it because I won't be paying for it. 110 00:05:47,160 --> 00:05:50,279 Speaker 3: And so you've got factories in China sitting on mountains 111 00:05:50,279 --> 00:05:53,680 Speaker 3: of stock, not knowing when they're going to ship the 112 00:05:53,760 --> 00:05:58,560 Speaker 3: next consignment. And at the same time, we're saying, I'm 113 00:05:58,600 --> 00:06:01,880 Speaker 3: here with a bag full of cash, and I want 114 00:06:01,880 --> 00:06:06,320 Speaker 3: to take it now, but I want a better price, right, so. 115 00:06:06,360 --> 00:06:08,080 Speaker 1: There were a few bargains to be had when you 116 00:06:08,160 --> 00:06:11,360 Speaker 1: went shopping, your team went shopping. We'll see that turning up. 117 00:06:11,440 --> 00:06:11,800 Speaker 3: Yeah. Sure. 118 00:06:13,200 --> 00:06:15,640 Speaker 1: Does that then mean you pass that on or are 119 00:06:15,640 --> 00:06:18,520 Speaker 1: you using that as a hedge against uncertainty or you're 120 00:06:18,560 --> 00:06:20,280 Speaker 1: just looking at whatever the conditions are at the time 121 00:06:20,279 --> 00:06:21,120 Speaker 1: when the stuff arrives. 122 00:06:21,200 --> 00:06:26,360 Speaker 3: A bit of all that. We have a particular style 123 00:06:26,480 --> 00:06:28,760 Speaker 3: or grade of product that we buy, and there's other 124 00:06:28,760 --> 00:06:31,960 Speaker 3: folks in the market who buy a lower grade, and 125 00:06:32,200 --> 00:06:34,360 Speaker 3: other folks that buy a very very very low grade. 126 00:06:34,480 --> 00:06:37,960 Speaker 3: So we don't always always buy exactly the same merchandise, 127 00:06:38,720 --> 00:06:41,680 Speaker 3: and so it largely depends for us anyway, It largely 128 00:06:41,720 --> 00:06:45,560 Speaker 3: depends on the on the strength of the competitor set 129 00:06:46,040 --> 00:06:49,400 Speaker 3: that determines, you know, what, what you're able to, what 130 00:06:49,440 --> 00:06:50,440 Speaker 3: you're able to sell at. 131 00:06:50,680 --> 00:06:52,520 Speaker 1: It sounds like we need to talk about competition, but 132 00:06:52,560 --> 00:06:54,080 Speaker 1: I wanted to stay in China for a little bit 133 00:06:54,120 --> 00:06:57,520 Speaker 1: longer because I mean, were they waiting where they're ready 134 00:06:57,520 --> 00:06:59,159 Speaker 1: to do deals straight away to get it done, or 135 00:06:59,160 --> 00:07:00,800 Speaker 1: were they going hang on, We'll just wait and see 136 00:07:00,800 --> 00:07:01,919 Speaker 1: how this train Chinese. 137 00:07:02,120 --> 00:07:04,400 Speaker 3: Chinese want the order right now. They want to ship 138 00:07:04,480 --> 00:07:07,520 Speaker 3: right now. We'll take the orders, take the LC okay, 139 00:07:08,080 --> 00:07:12,120 Speaker 3: and then ship when we request. But they want firm 140 00:07:12,120 --> 00:07:14,520 Speaker 3: commitments now, and if you're able to get firm commitments, 141 00:07:14,880 --> 00:07:15,440 Speaker 3: they'll deal. 142 00:07:15,960 --> 00:07:18,480 Speaker 1: So if we've just seen in the last little while, 143 00:07:18,520 --> 00:07:21,200 Speaker 1: they've struck a deal for a pause. Now after sort 144 00:07:21,240 --> 00:07:23,480 Speaker 1: of six weeks of kind of chaos and uncertainty, a 145 00:07:23,520 --> 00:07:26,880 Speaker 1: different kind of uncertainty, now there's a ninety day pause 146 00:07:27,440 --> 00:07:29,920 Speaker 1: and China and the US have agreed to sort of 147 00:07:30,040 --> 00:07:33,360 Speaker 1: suspend the worst of some of those tariffs. Does that 148 00:07:33,400 --> 00:07:35,280 Speaker 1: mean they just snap back to supplying the US and 149 00:07:35,320 --> 00:07:36,960 Speaker 1: you miss out on the next round of deals or 150 00:07:37,000 --> 00:07:38,440 Speaker 1: what happens. 151 00:07:38,560 --> 00:07:40,720 Speaker 3: Well, look, at the end of the day, they've reduced it, 152 00:07:40,800 --> 00:07:43,080 Speaker 3: and Trump to reduce it from one hundred and forty 153 00:07:43,520 --> 00:07:46,880 Speaker 3: out of thirty percent, thirty percent still kills it. So 154 00:07:47,080 --> 00:07:49,520 Speaker 3: thirty percent is still a bad deal. One hundred and 155 00:07:49,560 --> 00:07:52,680 Speaker 3: forty five percent. They close the gates. Not the gates, 156 00:07:52,720 --> 00:07:56,280 Speaker 3: it's count your business. So thirty percent is still bad. 157 00:07:57,000 --> 00:08:00,760 Speaker 3: Now there'll be some merchandise in some categories. You know 158 00:08:01,320 --> 00:08:04,080 Speaker 3: that the American suppliers will go. Look for the sake, 159 00:08:04,560 --> 00:08:07,760 Speaker 3: the toys might be one. Toys have got to be 160 00:08:07,800 --> 00:08:11,640 Speaker 3: shipped pretty soon to get there for Christmas. You can 161 00:08:11,680 --> 00:08:13,440 Speaker 3: have all the toys in the world at at whatever 162 00:08:13,480 --> 00:08:15,800 Speaker 3: price you like, but they land in January February, they 163 00:08:15,800 --> 00:08:18,800 Speaker 3: don't sell because that business is a thirty day business. 164 00:08:19,880 --> 00:08:25,000 Speaker 3: So toys might be one where the supplies go thirty percent. Look, 165 00:08:25,200 --> 00:08:28,000 Speaker 3: just give it, ship it, I'll worry about I'll worry 166 00:08:28,000 --> 00:08:28,920 Speaker 3: about the pricing later. 167 00:08:29,400 --> 00:08:31,280 Speaker 1: So this thing has given a sort of a longer 168 00:08:31,360 --> 00:08:34,400 Speaker 1: term opportunity for a business like the Brisco Group to 169 00:08:34,600 --> 00:08:38,440 Speaker 1: get in there and achieve those lower costs of input, 170 00:08:38,760 --> 00:08:40,600 Speaker 1: the lower costs of the product that you're bringing in. 171 00:08:40,679 --> 00:08:45,120 Speaker 3: Yeah, remember the priuce reductions we've got in the order 172 00:08:45,200 --> 00:08:49,360 Speaker 3: of one hundred basis points better than perhaps prior periods 173 00:08:50,600 --> 00:08:54,920 Speaker 3: fifteen percent. So it's not huge price reductions, but they're 174 00:08:54,960 --> 00:09:00,800 Speaker 3: significant enough to compensate for you know, PEPs current fluctuations. 175 00:09:01,080 --> 00:09:02,360 Speaker 1: I was just going to get to that. Obviously, the 176 00:09:02,400 --> 00:09:05,760 Speaker 1: dollar has been pretty pretty strong, the US dollar, don't 177 00:09:05,800 --> 00:09:07,920 Speaker 1: kis pretty weak against it. That must have been really 178 00:09:08,000 --> 00:09:10,079 Speaker 1: hurting your buying ability if you're settling in dollars. 179 00:09:10,200 --> 00:09:13,079 Speaker 3: How exclusive buying currency is yours dollars and I think 180 00:09:13,120 --> 00:09:17,360 Speaker 3: eighteen months ago it was about seventy three cents. Last 181 00:09:17,400 --> 00:09:20,400 Speaker 3: week it was fifty nine sixty, and now it's fifty 182 00:09:20,480 --> 00:09:25,000 Speaker 3: eight fifty, so it's still well below the seventy three cents. 183 00:09:25,360 --> 00:09:29,080 Speaker 3: So some would argue if you get ten or fifteen 184 00:09:29,080 --> 00:09:32,800 Speaker 3: percent or twenty percent discount off last year's product, last 185 00:09:32,880 --> 00:09:36,520 Speaker 3: year's similar product, so you're getting a twenty percent discount, 186 00:09:36,840 --> 00:09:38,840 Speaker 3: you know, fifteen percent of that has gone and gone 187 00:09:38,880 --> 00:09:41,800 Speaker 3: in currency, so there's not a lot of change left over. 188 00:09:43,520 --> 00:09:45,400 Speaker 1: The economy takes with one hand and gives with the 189 00:09:45,440 --> 00:09:47,079 Speaker 1: other kind of things, so you've just got to try 190 00:09:47,080 --> 00:09:49,520 Speaker 1: and see it over the middle, right, how's their own 191 00:09:49,559 --> 00:09:52,280 Speaker 1: government you think rolling with these punches in terms of 192 00:09:52,320 --> 00:09:55,040 Speaker 1: how it's responding. Do you see any anything in the 193 00:09:55,080 --> 00:09:56,760 Speaker 1: air that helps it all or is there anything that 194 00:09:56,840 --> 00:09:57,160 Speaker 1: can do it? 195 00:09:57,559 --> 00:10:02,400 Speaker 3: The government that's in paw Are now has I think 196 00:10:02,440 --> 00:10:08,760 Speaker 3: got a different set of issues. This tariff thing is interesting. 197 00:10:08,760 --> 00:10:12,400 Speaker 3: But I was reading the Financial Review this morning. A 198 00:10:12,440 --> 00:10:17,160 Speaker 3: lot of the Australians now are trying to just pretend 199 00:10:17,200 --> 00:10:19,760 Speaker 3: Trump's not there. I don't really want to talk to 200 00:10:19,800 --> 00:10:22,160 Speaker 3: you right now. I'm happy with the ten percent. Leave 201 00:10:22,240 --> 00:10:26,880 Speaker 3: me alone. I'll keep dealing business with China because they 202 00:10:28,559 --> 00:10:30,840 Speaker 3: they're exports of China something like two hundred and twenty 203 00:10:30,880 --> 00:10:33,719 Speaker 3: billion into the United States and thirty seven so they 204 00:10:33,720 --> 00:10:35,920 Speaker 3: really don't want to get into their conversation. They'd rather 205 00:10:36,440 --> 00:10:38,360 Speaker 3: just hide it in a corner than just leave it 206 00:10:38,360 --> 00:10:43,480 Speaker 3: at ten percent. We're probably in a similar position, I imagine. 207 00:10:43,679 --> 00:10:47,680 Speaker 3: I don't imagine that our exports in the United States 208 00:10:47,720 --> 00:10:53,840 Speaker 3: come anywhere near our imports from China, and so in 209 00:10:53,960 --> 00:10:58,280 Speaker 3: terms of balance of trade, We're probably pretty happy to 210 00:10:58,320 --> 00:11:00,480 Speaker 3: sit in the corner and cop the ten percent and 211 00:11:00,920 --> 00:11:05,280 Speaker 3: stay out of Trump's sight lines, I imagine. But don't 212 00:11:05,280 --> 00:11:07,320 Speaker 3: look at the goverment itself. It's got a whole bunch 213 00:11:07,320 --> 00:11:09,199 Speaker 3: of other issues they've got to contend with. They've got 214 00:11:10,480 --> 00:11:14,120 Speaker 3: pretty poor book they walked into. You know, it looks 215 00:11:14,160 --> 00:11:16,600 Speaker 3: like we've got to pay nine billion dollars a year 216 00:11:16,679 --> 00:11:18,120 Speaker 3: just to pay the interest bill on some of the 217 00:11:18,400 --> 00:11:20,199 Speaker 3: some of the borrowings the previous government did. 218 00:11:20,280 --> 00:11:22,840 Speaker 1: But it's a company that was a group that isn't 219 00:11:23,000 --> 00:11:25,559 Speaker 1: largely encumbered by debt. I mean, you're pretty well cashed, 220 00:11:25,559 --> 00:11:29,640 Speaker 1: aren't you any lending all credit facilities of the projects, right, 221 00:11:29,679 --> 00:11:30,840 Speaker 1: so you've managed to stay out of that. 222 00:11:31,000 --> 00:11:33,480 Speaker 3: Yeah, you're right, But we've always been a bit like that. 223 00:11:33,800 --> 00:11:35,319 Speaker 1: I think it was one hundred and forty million or 224 00:11:35,320 --> 00:11:35,920 Speaker 1: something in the bank. 225 00:11:36,520 --> 00:11:40,640 Speaker 3: Yeah, yeah, but traditionally we don't borrow borrow money. I'd 226 00:11:40,720 --> 00:11:44,080 Speaker 3: much rather save a bit and then pay cash for something, 227 00:11:44,200 --> 00:11:46,640 Speaker 3: or like this, this new warehouse facility. 228 00:11:46,679 --> 00:11:48,960 Speaker 1: You're looking at spending what one hundred million or something 229 00:11:49,000 --> 00:11:51,280 Speaker 1: over the next couple of three years, forty million just 230 00:11:51,320 --> 00:11:55,360 Speaker 1: this year to build a warehouse, Yeah, with distribution center. 231 00:11:55,600 --> 00:11:58,560 Speaker 3: Yeah, you're right, it's going to do both. We made 232 00:11:58,559 --> 00:12:01,080 Speaker 3: the decision we buy it. We want to own it. 233 00:12:01,920 --> 00:12:03,560 Speaker 3: If I want to rent it, then someone else will 234 00:12:03,559 --> 00:12:06,040 Speaker 3: be paying that. But I'll be paying two or three 235 00:12:06,120 --> 00:12:09,319 Speaker 3: or four million dollars a year in rent. I've got 236 00:12:09,360 --> 00:12:13,320 Speaker 3: pretty much the cash there, so we thought we're buy it. 237 00:12:13,320 --> 00:12:16,200 Speaker 3: It's a strategic asset that's going to be very very 238 00:12:16,280 --> 00:12:20,000 Speaker 3: valuable to us for decades to come. It's going to 239 00:12:20,160 --> 00:12:23,640 Speaker 3: produce a lot of incremental profit for the group after 240 00:12:23,720 --> 00:12:26,160 Speaker 3: this investment, and so we thought it was important that 241 00:12:26,160 --> 00:12:31,800 Speaker 3: we owned it and ran it ourselves. And because we've 242 00:12:31,840 --> 00:12:34,720 Speaker 3: been thrifty in the past, our borrowings to pay for 243 00:12:34,760 --> 00:12:36,240 Speaker 3: it are going to be negligible. 244 00:12:37,559 --> 00:12:40,720 Speaker 1: So you're also, I understand looking at going smaller little box. 245 00:12:40,720 --> 00:12:43,000 Speaker 1: It's not big ones, right, those are the mini or 246 00:12:43,000 --> 00:12:46,040 Speaker 1: the metro concept that's been talked about at your AGM. Yeah, 247 00:12:46,400 --> 00:12:48,640 Speaker 1: fifteen new stores, but smaller ones? Where are they going 248 00:12:48,679 --> 00:12:50,960 Speaker 1: to be? Why do that? And I suppose if I 249 00:12:50,960 --> 00:12:53,880 Speaker 1: can bombard you with questions, Yeah, what were you thinking 250 00:12:54,600 --> 00:12:56,839 Speaker 1: before you made that decision? What made you think? 251 00:12:56,920 --> 00:13:01,200 Speaker 3: Yep, we'll go with this. We sit down periodically and 252 00:13:01,360 --> 00:13:06,520 Speaker 3: do a three year review of We sit there and go, okay, look, 253 00:13:07,679 --> 00:13:09,800 Speaker 3: what do we have to do the next year or two? Okay, 254 00:13:09,880 --> 00:13:13,240 Speaker 3: that makes perfect sense, and then three to four years 255 00:13:13,240 --> 00:13:16,520 Speaker 3: out a bit of blue sky stuff, what might be 256 00:13:16,559 --> 00:13:22,240 Speaker 3: interesting to evaluate, to experiment with, just to toy around 257 00:13:22,280 --> 00:13:24,240 Speaker 3: with and see whether or not of works because it 258 00:13:24,360 --> 00:13:28,720 Speaker 3: smells like a good idea. That's where this smaller unit 259 00:13:28,960 --> 00:13:32,880 Speaker 3: came from and so yes, we've got the strategic stuff 260 00:13:32,920 --> 00:13:35,199 Speaker 3: like the DC blah blah blah all the way out. 261 00:13:35,280 --> 00:13:42,280 Speaker 3: And now we look at Briscoes and Rebel Metros or Minis, 262 00:13:42,520 --> 00:13:46,720 Speaker 3: their little stores in little catchments and so whilst it 263 00:13:46,840 --> 00:13:52,000 Speaker 3: is you know, schedule all being well to be established 264 00:13:52,000 --> 00:13:56,960 Speaker 3: in f I twenty eight, you know, we're starting to 265 00:13:57,000 --> 00:14:00,280 Speaker 3: do a lot of the work now. What we what 266 00:14:00,320 --> 00:14:04,120 Speaker 3: we've got right now is about around about one hundred 267 00:14:04,160 --> 00:14:12,360 Speaker 3: stores in both brands, total brands, in every catchment that's 268 00:14:12,360 --> 00:14:17,120 Speaker 3: got twenty thousand or less permanent residents. I think our 269 00:14:17,160 --> 00:14:20,320 Speaker 3: smallest is about Taupo and they've got about twenty twenty 270 00:14:20,520 --> 00:14:24,080 Speaker 3: twenty three permanent residents. But there's a lot of other 271 00:14:24,960 --> 00:14:30,040 Speaker 3: spots around New Zealand where we think it would be 272 00:14:30,200 --> 00:14:34,640 Speaker 3: uneconomic to put a full line Briscoes and Rebel in there. 273 00:14:35,240 --> 00:14:40,720 Speaker 3: You know, about three thousand square meters one hundred car parks. 274 00:14:41,040 --> 00:14:45,680 Speaker 3: You know, that's that's chunky. But at the same time 275 00:14:45,800 --> 00:14:52,440 Speaker 3: there's there's catchments like Hamilton and Toweronga for example, in 276 00:14:52,480 --> 00:14:54,520 Speaker 3: Twong and most of our competitors's got three or four stores. 277 00:14:54,520 --> 00:14:59,760 Speaker 3: I've got one, okay, And there's development going over the 278 00:14:59,760 --> 00:15:03,200 Speaker 3: bridge at Papamha and it's going to the other side 279 00:15:03,400 --> 00:15:07,800 Speaker 3: at Bethlehem Way. So we want to experiment and see 280 00:15:07,800 --> 00:15:11,480 Speaker 3: whether or not it would be worthwhile either planning a 281 00:15:11,760 --> 00:15:15,920 Speaker 3: larger store later or slap in a couple of minis 282 00:15:16,000 --> 00:15:22,040 Speaker 3: right now. So that that's Taroga Hamilton for example, almost 283 00:15:22,080 --> 00:15:24,680 Speaker 3: all the shopping is done on the north side. People 284 00:15:24,720 --> 00:15:26,720 Speaker 3: don't all the people don't live on the north side. 285 00:15:27,200 --> 00:15:30,360 Speaker 3: People live on the southwest and east. So would it 286 00:15:30,400 --> 00:15:32,800 Speaker 3: be interesting to have a look at the store in 287 00:15:32,920 --> 00:15:35,800 Speaker 3: those catchments. Yeah, we think it'd be pretty interesting to 288 00:15:35,480 --> 00:15:38,280 Speaker 3: have a look at that. Hamilton's not a small catchment. 289 00:15:39,200 --> 00:15:42,160 Speaker 1: So this sounds a bit more of your occupy, dominate 290 00:15:42,200 --> 00:15:45,240 Speaker 1: and defend your building a few outposts around your fortress. 291 00:15:45,440 --> 00:15:49,120 Speaker 3: Well yeah, building a wall, perhaps not a wall, but 292 00:15:49,960 --> 00:15:55,680 Speaker 3: we're putting little forts in different spots. Live in Gore. 293 00:15:55,920 --> 00:15:59,600 Speaker 3: What now, They're probably not quite big enough for a 294 00:15:59,640 --> 00:16:04,120 Speaker 3: full life in store for us, But would it support 295 00:16:04,480 --> 00:16:07,880 Speaker 3: a smaller version of our two brands. Probably, So we're 296 00:16:07,880 --> 00:16:08,640 Speaker 3: going to have a look at it. 297 00:16:08,880 --> 00:16:10,960 Speaker 1: So who are you competing with at that level? Because 298 00:16:10,960 --> 00:16:13,640 Speaker 1: I would have thought stacks of people are shopping in 299 00:16:13,680 --> 00:16:16,200 Speaker 1: those places online. They just get it comes off the courier. 300 00:16:16,320 --> 00:16:18,520 Speaker 1: That's the ship that two ships through, right. 301 00:16:18,600 --> 00:16:20,960 Speaker 3: But how much do you miss? How much do you miss? 302 00:16:21,520 --> 00:16:23,960 Speaker 3: We record we're doing pretty well online and it's less 303 00:16:23,960 --> 00:16:26,640 Speaker 3: than twenty percent of my total volume, less than twenty 304 00:16:26,680 --> 00:16:29,920 Speaker 3: percent nineteen point seven, up from eighteen point seven last year. 305 00:16:30,480 --> 00:16:32,880 Speaker 3: And I'm near the top of the tree. I'm going 306 00:16:33,040 --> 00:16:38,040 Speaker 3: real well. So there's eighty percent not shopping there. And 307 00:16:38,120 --> 00:16:41,720 Speaker 3: I'd suggest to you that perhaps twenty percent of the 308 00:16:41,760 --> 00:16:45,480 Speaker 3: twenty percent are shopping because they're nowhere near it, so 309 00:16:45,520 --> 00:16:49,480 Speaker 3: they have to. So the proportions in the overall are 310 00:16:49,520 --> 00:16:55,720 Speaker 3: relatively small. Okay, that wouldn't stop someone buying if they 311 00:16:55,760 --> 00:16:57,560 Speaker 3: didn't live and live in they lived outside of it, 312 00:16:58,000 --> 00:17:01,160 Speaker 3: buying it and using it as a click and collect place. 313 00:17:02,440 --> 00:17:04,200 Speaker 1: Who are you looking at when you're competing with because 314 00:17:04,200 --> 00:17:05,840 Speaker 1: I guess if you if you're looking at where people 315 00:17:05,840 --> 00:17:08,000 Speaker 1: shop now, it's all over the place. People might jump 316 00:17:08,000 --> 00:17:10,720 Speaker 1: on and jump on TIMU or something and get something 317 00:17:10,760 --> 00:17:12,560 Speaker 1: extremely cheap and run through and that kind of thing. 318 00:17:12,600 --> 00:17:15,160 Speaker 1: Are you worried about them? Are you worried about Ikea 319 00:17:15,200 --> 00:17:17,119 Speaker 1: who are tuning up in this country later on this year? 320 00:17:17,200 --> 00:17:20,720 Speaker 3: Or sports Direct I think they. I think the Teamurs 321 00:17:20,760 --> 00:17:25,879 Speaker 3: and the Shines and those folks operate at a different 322 00:17:26,000 --> 00:17:30,320 Speaker 3: end of the market that I operate in. They do 323 00:17:30,720 --> 00:17:34,800 Speaker 3: meet other competitors in this country, but they don't meet me. 324 00:17:37,240 --> 00:17:42,320 Speaker 3: But I'm more focused on the the Costcos and the 325 00:17:42,400 --> 00:17:50,840 Speaker 3: IKEA's and other people. You mentioned sports Direct, because. 326 00:17:50,560 --> 00:17:52,760 Speaker 1: They're looking at moving into this part of the world, 327 00:17:52,800 --> 00:17:56,720 Speaker 1: aren't they. How Normally when a competitor turns up new entrant, 328 00:17:56,760 --> 00:17:58,399 Speaker 1: they throw a lot of money around to try and 329 00:17:58,440 --> 00:18:01,159 Speaker 1: draw custom. That's got to be something you have to 330 00:18:01,240 --> 00:18:02,520 Speaker 1: chew on and show people. 331 00:18:02,640 --> 00:18:05,800 Speaker 3: Sure, but we've got people in their stores already. I 332 00:18:05,880 --> 00:18:08,639 Speaker 3: know how they operate, I know what they sell, i 333 00:18:08,680 --> 00:18:12,560 Speaker 3: know the propositions. I've got a lot of stores, and 334 00:18:12,560 --> 00:18:14,480 Speaker 3: I've got a lot of stores right next door the 335 00:18:14,520 --> 00:18:16,840 Speaker 3: stores where they think they're going to put foot jobs. 336 00:18:17,359 --> 00:18:21,639 Speaker 3: It's fine, I've got to lift my game. People. People 337 00:18:21,680 --> 00:18:25,520 Speaker 3: will go to these places and experiment with them. I 338 00:18:25,600 --> 00:18:29,399 Speaker 3: want people to go there and experiment a service level 339 00:18:30,160 --> 00:18:33,439 Speaker 3: or quality of service that is lower than mine, to 340 00:18:33,480 --> 00:18:35,359 Speaker 3: have a look at a range of product it's not 341 00:18:35,400 --> 00:18:38,920 Speaker 3: even nearest significant as mine. To go into an environment 342 00:18:38,960 --> 00:18:43,159 Speaker 3: that's not as comfortable as my environments. So does that 343 00:18:43,160 --> 00:18:45,120 Speaker 3: mean I have to lift my game in some centers 344 00:18:45,560 --> 00:18:50,320 Speaker 3: and in some brands. Yeah, it's okay, I'll do it. 345 00:18:50,359 --> 00:18:52,160 Speaker 1: Sounds like you're relishing the challenge. 346 00:18:53,520 --> 00:18:56,360 Speaker 3: You can't avoid it, mate, It's going to happen when 347 00:18:56,400 --> 00:18:58,800 Speaker 3: you're when you're on a really really really good plot, 348 00:18:58,840 --> 00:19:02,600 Speaker 3: you're doing it well and you're exit cueuting wonderfully. There's 349 00:19:02,600 --> 00:19:06,000 Speaker 3: always someone sitting outside the bar bier a fence thinking, oh, 350 00:19:06,040 --> 00:19:08,639 Speaker 3: I wouldn't want a bit of that. I wouldn't that. 351 00:19:09,000 --> 00:19:11,280 Speaker 3: I might have a crack at that. So is he? 352 00:19:11,400 --> 00:19:12,119 Speaker 3: Is he that clever? 353 00:19:12,880 --> 00:19:13,120 Speaker 1: Hmm? 354 00:19:13,440 --> 00:19:17,480 Speaker 3: I have a crack. Wasn't that long ago that that 355 00:19:18,040 --> 00:19:20,800 Speaker 3: Rebel Sport Australia brought over one of their concepts called 356 00:19:24,440 --> 00:19:31,960 Speaker 3: DFS no not DFS Boating Fishing cam bcf okay, set 357 00:19:32,040 --> 00:19:36,480 Speaker 3: up eight stores, lasted eighteen months, cost him forty five million, 358 00:19:36,520 --> 00:19:37,320 Speaker 3: and then went back home. 359 00:19:39,160 --> 00:19:41,280 Speaker 1: You saw that as as seeing them off from the gate. 360 00:19:41,320 --> 00:19:45,760 Speaker 3: Digit it's fine, that's okay. Look, I'm looking at doing 361 00:19:45,800 --> 00:19:49,080 Speaker 3: the same in Australia. I want to set up a 362 00:19:49,119 --> 00:19:53,920 Speaker 3: brand or buy a brand over there and compete over there. 363 00:19:54,520 --> 00:19:55,199 Speaker 3: I want to do that. 364 00:19:57,680 --> 00:19:59,200 Speaker 1: You've still got a lot of energy. And I guess 365 00:19:59,200 --> 00:20:00,880 Speaker 1: that comes back to the question that one of our 366 00:20:00,920 --> 00:20:04,960 Speaker 1: listeners and viewers had asked there, what keeps you going? 367 00:20:05,480 --> 00:20:08,040 Speaker 1: No sign of your stopping? I mean, is it the 368 00:20:08,080 --> 00:20:12,400 Speaker 1: love for the business generally? Is it the need to occupy, dominate, 369 00:20:12,440 --> 00:20:12,920 Speaker 1: and defend. 370 00:20:15,560 --> 00:20:17,320 Speaker 3: Maybe some of that, maybe all of that, maybe none 371 00:20:17,359 --> 00:20:20,760 Speaker 3: of that. I don't know. I've been in the retail 372 00:20:20,760 --> 00:20:22,840 Speaker 3: business since I was sixteen. I just happened to love 373 00:20:22,920 --> 00:20:28,800 Speaker 3: the concept of buying something, selling something, buying plenty, selling plenty, 374 00:20:28,920 --> 00:20:33,359 Speaker 3: having plenty of stores, having plenty of customers. I just 375 00:20:33,400 --> 00:20:36,240 Speaker 3: happen to like the idea. I think with this business 376 00:20:36,240 --> 00:20:40,960 Speaker 3: over here, it is a lot of fun. You know, 377 00:20:41,400 --> 00:20:45,520 Speaker 3: it's a lot of fun building, you know, something from 378 00:20:45,720 --> 00:20:51,000 Speaker 3: pretty much nothing into an organization that's really really, really 379 00:20:51,000 --> 00:20:57,880 Speaker 3: well respected and successful. And it's hard to give away 380 00:20:58,000 --> 00:21:02,800 Speaker 3: something or move away from something. For me anyway, if 381 00:21:02,880 --> 00:21:07,520 Speaker 3: you gave birth to it, you know, it's hard. And look, 382 00:21:07,600 --> 00:21:11,440 Speaker 3: I can I have to tell you I'm in a really, really, 383 00:21:11,440 --> 00:21:14,080 Speaker 3: really fortunate position at the moment. I've got about three 384 00:21:14,119 --> 00:21:16,480 Speaker 3: or four really really key people who have been here 385 00:21:16,520 --> 00:21:19,520 Speaker 3: for a very long time, who are very, very, very 386 00:21:19,560 --> 00:21:21,960 Speaker 3: clever and I'll tell you now, I don't get down 387 00:21:22,000 --> 00:21:25,919 Speaker 3: there amongst the weeds as much as I used to, well, 388 00:21:26,000 --> 00:21:29,000 Speaker 3: because it's not my job anymore. My job is. My 389 00:21:29,160 --> 00:21:33,080 Speaker 3: job is to is the mentor, is to guide, to assist, 390 00:21:33,200 --> 00:21:36,320 Speaker 3: to encourage, to do. I step into the weeds from 391 00:21:36,320 --> 00:21:40,720 Speaker 3: time to time, absolutely, yeah, But I try to be 392 00:21:41,960 --> 00:21:45,480 Speaker 3: a different sort of manager these days than I was 393 00:21:46,200 --> 00:21:48,880 Speaker 3: because I'm not going to be here for a very, 394 00:21:49,000 --> 00:21:54,199 Speaker 3: very lot longer, you know. But I'm very healthy, but 395 00:21:54,240 --> 00:21:56,600 Speaker 3: I'm not going to be here a lot longer. You know, 396 00:21:57,040 --> 00:22:00,359 Speaker 3: I'm past the halfway mark. I'll concede you that, okay, 397 00:22:01,359 --> 00:22:05,040 Speaker 3: And so this is my legacy. I don't want this 398 00:22:05,800 --> 00:22:10,280 Speaker 3: business to fail just because I go. You know, that'd 399 00:22:10,320 --> 00:22:13,600 Speaker 3: be a slight on me. That'd be well, didn't you 400 00:22:13,640 --> 00:22:16,600 Speaker 3: didn't do your job particularly well. You didn't train these 401 00:22:16,600 --> 00:22:19,159 Speaker 3: people particularly well. You didn't encourage them enough, you didn't 402 00:22:19,520 --> 00:22:22,639 Speaker 3: set the platform for success for them. That's not what 403 00:22:22,680 --> 00:22:25,080 Speaker 3: I want to do. So look, the short answer is 404 00:22:25,359 --> 00:22:27,760 Speaker 3: I'm still having some fun. I can still play golf 405 00:22:27,760 --> 00:22:32,679 Speaker 3: when I want to. My body can't take the games 406 00:22:32,680 --> 00:22:36,080 Speaker 3: of golf that it used to, so so my expectation 407 00:22:36,200 --> 00:22:38,280 Speaker 3: for games out on the course a lot as high 408 00:22:38,280 --> 00:22:38,959 Speaker 3: as they used to be. 409 00:22:40,680 --> 00:22:42,720 Speaker 1: But in here you're still very competitive. 410 00:22:42,760 --> 00:22:45,800 Speaker 3: Look well, you know, look I'm still full on I 411 00:22:45,840 --> 00:22:48,679 Speaker 3: don't I like to win every battle. I like to 412 00:22:48,680 --> 00:22:50,600 Speaker 3: buy at the best price. I like to sell at 413 00:22:50,640 --> 00:22:53,919 Speaker 3: the best price. I like the best quality people around. 414 00:22:54,280 --> 00:22:57,520 Speaker 3: When we sit down and we look at strategically, where 415 00:22:57,520 --> 00:22:59,120 Speaker 3: we want to be, when we want to be there, 416 00:22:59,160 --> 00:23:02,320 Speaker 3: what we want to achieve it, you've got to succeed 417 00:23:02,359 --> 00:23:08,040 Speaker 3: at that. You know. There's plenty of graveyards, corporate graveyards 418 00:23:08,359 --> 00:23:12,399 Speaker 3: where you know, the business was good, but management just 419 00:23:12,440 --> 00:23:17,360 Speaker 3: couldn't execute on change strategies. They couldn't execute. I think 420 00:23:17,400 --> 00:23:20,880 Speaker 3: we can and we've demonstrated that. Look, in a couple 421 00:23:20,920 --> 00:23:23,359 Speaker 3: of years, we would have invested one hundred, one hundred 422 00:23:23,359 --> 00:23:26,800 Speaker 3: and twenty million dollars in a DC. It will produce 423 00:23:27,119 --> 00:23:32,680 Speaker 3: substantial sales and margin gains. It'll it'll deliver a better 424 00:23:32,760 --> 00:23:37,200 Speaker 3: quality service to our customers. You know, if I can 425 00:23:37,240 --> 00:23:38,679 Speaker 3: do that, and I can execute on that, and we 426 00:23:38,720 --> 00:23:42,119 Speaker 3: think we can, then that'll be another giant hurdle you 427 00:23:42,160 --> 00:23:45,359 Speaker 3: know that we've conquered, and then the runway from there, 428 00:23:46,040 --> 00:23:50,520 Speaker 3: you know, is made. You know, significantly easier. 429 00:23:51,520 --> 00:23:54,000 Speaker 1: You're off that typewrote with the juggling torches and the 430 00:23:54,080 --> 00:23:56,280 Speaker 1: unicycle you're onto. I think it was your CFO said, 431 00:23:56,720 --> 00:23:57,880 Speaker 1: a well paved road. 432 00:23:58,560 --> 00:24:01,560 Speaker 3: Well, we think so beyond that. But look, they will 433 00:24:01,600 --> 00:24:05,000 Speaker 3: be there'll be other potholes and there'll be other type 434 00:24:05,040 --> 00:24:07,800 Speaker 3: ropes that you've got to get on. You know, this business, 435 00:24:08,359 --> 00:24:13,359 Speaker 3: this business, you know, is always there's always change. 436 00:24:14,040 --> 00:24:17,399 Speaker 1: You know, it's never what doesn't change constant, what doesn't change? 437 00:24:17,440 --> 00:24:20,399 Speaker 1: As you own seventy seven percent of it, Yeah, with 438 00:24:20,520 --> 00:24:22,639 Speaker 1: such a majority, what is the point of being listed? 439 00:24:25,520 --> 00:24:27,200 Speaker 3: Well, the point in the beginning was that I could 440 00:24:27,280 --> 00:24:30,520 Speaker 3: expand this business very very quickly, and I Rebel Sport 441 00:24:30,600 --> 00:24:33,200 Speaker 3: may not have come along if we hadn't add access 442 00:24:33,280 --> 00:24:38,359 Speaker 3: to you know, to funds. You know, if you, if you, 443 00:24:38,520 --> 00:24:42,200 Speaker 3: if you, if you're listening, you're successful at it. It's 444 00:24:42,200 --> 00:24:47,560 Speaker 3: a pretty good road. You know, very shortly, within weeks, 445 00:24:47,960 --> 00:24:51,159 Speaker 3: we may very well be invited to go into the 446 00:24:51,160 --> 00:24:55,640 Speaker 3: inns the next top fifty top fifty companies. You know 447 00:24:55,840 --> 00:24:59,880 Speaker 3: now that that brings another different set of rewards where 448 00:25:00,760 --> 00:25:07,240 Speaker 3: you know, institutions who follow have to get on board. 449 00:25:09,040 --> 00:25:10,600 Speaker 1: That it's a big moment for a year. If that 450 00:25:10,640 --> 00:25:11,960 Speaker 1: comes to pass. 451 00:25:11,920 --> 00:25:14,000 Speaker 3: Well, you think back to where we were. You know, 452 00:25:14,119 --> 00:25:16,160 Speaker 3: well they've been shops doing twenty minute and losing two 453 00:25:16,160 --> 00:25:18,560 Speaker 3: million in a year. Didn't know where we wanted to be. 454 00:25:18,720 --> 00:25:22,679 Speaker 3: We're selling just rats and mice. And now it's a 455 00:25:22,840 --> 00:25:25,520 Speaker 3: very very very very different group now quite different. 456 00:25:25,960 --> 00:25:28,199 Speaker 1: So the idea that governments just sort of reduced some 457 00:25:28,240 --> 00:25:30,400 Speaker 1: of the requirements for capital listings, made it a little 458 00:25:30,400 --> 00:25:31,520 Speaker 1: bit easier, a little bit cheaper. 459 00:25:32,240 --> 00:25:34,240 Speaker 3: Good work here, can I think so? I think so 460 00:25:34,880 --> 00:25:38,480 Speaker 3: that Look, that's that's the government's job. The government's job 461 00:25:38,600 --> 00:25:41,879 Speaker 3: is not to not to hand out stuff everywhere and 462 00:25:43,080 --> 00:25:45,320 Speaker 3: then people get hold of it and they spend it. 463 00:25:45,440 --> 00:25:47,560 Speaker 3: They either pay it back or don't pay it back. 464 00:25:48,000 --> 00:25:53,760 Speaker 3: Government's job is to make life and business and living easier, 465 00:25:54,480 --> 00:25:58,200 Speaker 3: you know than it was yesterday. 466 00:25:57,920 --> 00:25:59,639 Speaker 1: So they can go shopping. 467 00:26:00,600 --> 00:26:05,600 Speaker 3: Shopping, well, build a road, build a bridge, you know, 468 00:26:05,760 --> 00:26:09,000 Speaker 3: get some infrastructure, just get people in work. 469 00:26:11,600 --> 00:26:13,399 Speaker 1: So you're not expecting a lot from budget day. You're 470 00:26:13,480 --> 00:26:15,399 Speaker 1: just hoping that they try and stay out of the 471 00:26:15,400 --> 00:26:16,040 Speaker 1: way a little bit. 472 00:26:16,400 --> 00:26:19,800 Speaker 3: Well, I think I think all of us can expect 473 00:26:20,200 --> 00:26:24,000 Speaker 3: and should expect, you know, some real thought about what 474 00:26:24,040 --> 00:26:26,480 Speaker 3: the next year or two might look like or even 475 00:26:26,520 --> 00:26:29,159 Speaker 3: beyond that and fix some of the issues. Well, we 476 00:26:29,240 --> 00:26:33,119 Speaker 3: have to tighten our belts. Look, it's like a household, 477 00:26:33,440 --> 00:26:36,000 Speaker 3: you know. If mum and dad just go crazy and 478 00:26:36,119 --> 00:26:40,399 Speaker 3: just spend spend, someone's got to pay it back. But 479 00:26:40,600 --> 00:26:42,560 Speaker 3: how long has that taken, how painful it will be. 480 00:26:42,920 --> 00:26:44,320 Speaker 3: We'll find out pretty soon, won't we. 481 00:26:45,680 --> 00:26:47,080 Speaker 1: And you're so here looking for it. 482 00:26:47,359 --> 00:26:48,600 Speaker 3: I'll be looking for it. Yes. 483 00:26:48,920 --> 00:26:51,800 Speaker 1: Thank you, Roger, thanks for having us here at Briscoe's headquarters, 484 00:26:52,040 --> 00:26:54,400 Speaker 1: and thank you for watching and for listening, whether it's 485 00:26:54,440 --> 00:26:57,879 Speaker 1: on YouTube or iHeart or Spotify or Apple wherever you 486 00:26:57,960 --> 00:27:00,520 Speaker 1: get your podcasts, even straight off the year. He's app 487 00:27:00,560 --> 00:27:02,040 Speaker 1: Couma two. That's us for this week. 488 00:27:09,680 --> 00:27:10,080 Speaker 3: M hmm.