1 00:00:00,240 --> 00:00:03,080 Speaker 1: Right. The government's financial books have sunk further into debt. 2 00:00:03,279 --> 00:00:06,200 Speaker 1: In the year to June, Treasury has revealed the deficit 3 00:00:06,320 --> 00:00:09,080 Speaker 1: on the Crown books deepened by three point four billion dollars. 4 00:00:09,560 --> 00:00:12,239 Speaker 1: It was also one point eight billion dollars worse than 5 00:00:12,280 --> 00:00:15,480 Speaker 1: Treasury forecast in the May budget. Nicola Willis is the 6 00:00:15,520 --> 00:00:19,599 Speaker 1: Minister of Finance and she is with us now. Good afternoon, Nicola, 7 00:00:19,760 --> 00:00:21,560 Speaker 1: thank you for being with us. 8 00:00:21,560 --> 00:00:22,360 Speaker 2: Great to be on the show. 9 00:00:22,600 --> 00:00:24,040 Speaker 1: What's your reaction to these numbers? 10 00:00:25,320 --> 00:00:28,480 Speaker 2: Well, look, this just underscores the need for the government's 11 00:00:28,520 --> 00:00:31,920 Speaker 2: ongoing efforts to restore discipline to public spending. Where we 12 00:00:31,920 --> 00:00:34,880 Speaker 2: were elected on a mandate of tidying up the books 13 00:00:34,920 --> 00:00:38,760 Speaker 2: for spring a bit more respect for taxpayers money and 14 00:00:38,840 --> 00:00:41,640 Speaker 2: getting New Zealand back into a more sustainable financial position, 15 00:00:41,800 --> 00:00:45,560 Speaker 2: and these numbers underscore why that is so necessary. Of course, 16 00:00:45,560 --> 00:00:49,159 Speaker 2: they relate to the year that's passed, during which a 17 00:00:49,320 --> 00:00:52,080 Speaker 2: very important event happened, which was a change of government, 18 00:00:52,520 --> 00:00:55,120 Speaker 2: and we're taking a much more disciplined path going forward. 19 00:00:55,480 --> 00:00:58,560 Speaker 1: What is driving this What are the expenses the main ones? 20 00:00:59,400 --> 00:01:03,200 Speaker 2: Well, there's been a real build up in the amount 21 00:01:03,280 --> 00:01:06,680 Speaker 2: of spending that the government does as a proportion of 22 00:01:06,720 --> 00:01:11,360 Speaker 2: the overall economy that's increased dramatically in recent years, adding 23 00:01:11,400 --> 00:01:15,959 Speaker 2: one hundred and eighteen billion dollars to New Zealand government 24 00:01:16,040 --> 00:01:20,800 Speaker 2: debt in just five years. And that's what happens when 25 00:01:20,959 --> 00:01:23,720 Speaker 2: people are all disciplined about the spending choices they make. 26 00:01:23,720 --> 00:01:27,880 Speaker 2: We've seen significant growth across the public sector. We've seen 27 00:01:29,240 --> 00:01:32,280 Speaker 2: lots of spending going in lots different directions, and we've 28 00:01:32,319 --> 00:01:34,920 Speaker 2: come in and seeing that that is not sustainable. Essentially, 29 00:01:34,959 --> 00:01:38,200 Speaker 2: we're spending more than we earn, that we are living 30 00:01:38,240 --> 00:01:41,520 Speaker 2: beyond our means, and just like any household or business, 31 00:01:41,959 --> 00:01:44,080 Speaker 2: we need to get those books back in balance. And 32 00:01:44,800 --> 00:01:47,560 Speaker 2: we've seen in New Zealanders we've seen that does involve 33 00:01:47,600 --> 00:01:50,240 Speaker 2: some tough decisions. It does mean we can't say yes 34 00:01:50,320 --> 00:01:53,320 Speaker 2: to everything that we want to. At the same time, 35 00:01:53,680 --> 00:01:56,560 Speaker 2: we can drive investment where it's needed by pulling our 36 00:01:56,560 --> 00:01:58,640 Speaker 2: belt in on the things that are less necessary. 37 00:01:58,880 --> 00:02:01,520 Speaker 1: Minister, can can you just keep cutting? Is that the 38 00:02:01,560 --> 00:02:03,280 Speaker 1: way we're going to counter it? 39 00:02:03,960 --> 00:02:06,400 Speaker 2: Well, we've made a pledge that we will continue to 40 00:02:06,480 --> 00:02:10,160 Speaker 2: invest more in the health system and every single budget 41 00:02:10,240 --> 00:02:13,440 Speaker 2: that we deliver more funding will go into our schools. 42 00:02:14,040 --> 00:02:17,760 Speaker 2: We're going to keep funding those important frontline services. But 43 00:02:17,880 --> 00:02:20,519 Speaker 2: what that requires from us is that we keep looking 44 00:02:20,560 --> 00:02:23,639 Speaker 2: across all of the spending that the government does to say, well, 45 00:02:23,639 --> 00:02:25,560 Speaker 2: where's it being wasted, Where's it not going to a 46 00:02:25,600 --> 00:02:28,920 Speaker 2: good use, where is it not actually delivering good outcomes 47 00:02:28,960 --> 00:02:31,480 Speaker 2: for the New Zealanders it's meant to serve. And so 48 00:02:31,960 --> 00:02:34,560 Speaker 2: I've committed for as long as I'm Finance Minister, i 49 00:02:34,639 --> 00:02:38,560 Speaker 2: expect every public agency, every minister, every day to be 50 00:02:38,639 --> 00:02:41,560 Speaker 2: looking at where's the money not delivering vally for tex Player, 51 00:02:41,560 --> 00:02:43,720 Speaker 2: because if we can put that money into a school 52 00:02:43,800 --> 00:02:45,720 Speaker 2: or a hospital, we should do. 53 00:02:45,760 --> 00:02:48,720 Speaker 1: You regreet to the tax cuts, the tax cuts in light. 54 00:02:48,600 --> 00:02:53,280 Speaker 2: Of this absolutely not. You know, you can't operate as 55 00:02:53,280 --> 00:02:55,720 Speaker 2: a government by saying we'll just spend waiver we want 56 00:02:55,840 --> 00:02:59,079 Speaker 2: and then more treat taxpayers like a bottomless atm who 57 00:02:59,080 --> 00:03:02,000 Speaker 2: can keep funding. And that was essentially the approach of 58 00:03:02,040 --> 00:03:04,640 Speaker 2: the last government. They allowed the amount of tax that 59 00:03:04,720 --> 00:03:08,160 Speaker 2: New Zealanders were paying to increase dramatically and that was 60 00:03:08,240 --> 00:03:11,960 Speaker 2: hitting working people. In my view is that every family, 61 00:03:12,120 --> 00:03:15,440 Speaker 2: every household, knows how to spend their money after the 62 00:03:15,680 --> 00:03:17,720 Speaker 2: best students, and as a government we need to respect 63 00:03:17,720 --> 00:03:20,880 Speaker 2: that our text cuts were modest. They just restored a 64 00:03:20,919 --> 00:03:21,520 Speaker 2: bit of balance. 65 00:03:22,360 --> 00:03:24,800 Speaker 1: Minister of Finance Nicola Willis, thank you so much for 66 00:03:24,880 --> 00:03:27,960 Speaker 1: your time. It airs fifteen past five. 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