Latest / Best of Business / Chris Luxon: Prime Minister says banks should be passing OCR rates to customers, or customers should switch banks

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Chris Luxon: Prime Minister says banks should be passing OCR rates to customers, or customers should switch banks · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk sed B.
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  Speaker 2: The Prime Minister in the studio where it's being a
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  Speaker 2: Monday morning good morning to you. What he might good
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  Speaker 2: to be with you before the news? I float, well,
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  Speaker 2: I didn't float the idea. Lamming in UK has floated
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  Speaker 2: the idea that we get rid of jewelry trials except
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  Speaker 2: for the odd one like manslaughter and murder and stuff
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  Speaker 2: and public interest? Is that something? I mean, this is
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  Speaker 2: out of the blue because you won't have given this
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  Speaker 2: any thought or have you?
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  Speaker 3: No, nothing, We've had a discussion about whatsoever. I mean.
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  Speaker 3: Our focus has been, as you know, just making sure
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  Speaker 3: we get our sentencing laws tougher. Yes, we've got a
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  Speaker 3: lot more prisoners in there and present at the moment,
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  Speaker 3: but actually no, we want to toughen up the sensing laws
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  Speaker 3: and that stop the judges from doing the discounts. Add
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  Speaker 3: in the three strikes, harassment, stalking, you know, all those
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  Speaker 3: kinds of things.
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  Speaker 2: Okay. Now, TV three tried the very best last week
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  Speaker 2: to explain to us that the British in particular, but
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  Speaker 2: our trading partners more generally are allegedly upset at our
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  Speaker 2: climate stance at the moment and then make this known.
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  Speaker 2: Is that true or not?
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  Speaker 3: Never heard about it, totally disagree. Has never come up
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  Speaker 3: in any of my conversations whatsoever. And my message is
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  Speaker 3: pretty simple. You know, as I said to some of
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  Speaker 3: folk during the cop period, until any other country, you know,
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  Speaker 3: we're in the top ten countries in the world in
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  Speaker 3: terms of renewable energy. Most people are still coal power
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  Speaker 3: advice power stations. Until everyone gets that position, then I
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  Speaker 3: won't really listen too much to others.
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  Speaker 2: And the other thing that came out, I don't ever
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  Speaker 2: got much coverage, but our twenty six to thirty target
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  Speaker 2: we've met because trees suck up more co two than
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  Speaker 2: we previously thought, so so it's all worked out well.
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  Speaker 2: The reason I asked about the trade thing and how
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  Speaker 2: inexpricably linked they are to trade deals. If you followed
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  Speaker 2: that UK budget last week, they've increased the amount of
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  Speaker 2: drilling slash exploration they have for oil and gas.
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  Speaker 3: Yeah, it's quite an incredible budget, wasn't it. There was
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  Speaker 3: massive rise and taxes. But yes, I mean, I think
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  Speaker 3: you know the reality is, you know, we the world
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  Speaker 3: has changed. You need to make sure that your country
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  Speaker 3: is resilient, and if that means in our case, we
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  Speaker 3: want to open up oil and gas, we want to
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  Speaker 3: open up mining. We think that's important. The places we
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  Speaker 3: can get high paying jobs in regional New Zealand, that's great.
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  Speaker 3: Why on Earth where we let New Zealanders go off
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  Speaker 3: overseas to Australia in particularly do mine work or to
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  Speaker 3: work on oil and gas, and yet we deny the
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  Speaker 3: opportunity to be able to do so here. So we
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  Speaker 3: should be looking at all our natural resources and making
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  Speaker 3: sure we're doing the very best with them as we can.
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  Speaker 2: The CRL Will you be alive when it opens?
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  Speaker 3: Damn well? Hope so, because it's well.
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  Speaker 2: I mean, how long can it be? Well, you say
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  Speaker 2: next year, But do you say that hand on hard
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  Speaker 2: or do you just expect it to be open? Well,
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  Speaker 2: that's not the same thing. We've been expecting it to
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  Speaker 2: be open for a long time.
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  Speaker 3: I understand that about. I understood that they are going
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  Speaker 3: it's definitely hapen me next year. That's that's got to
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  Speaker 3: be non negotiable, because what.
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  Speaker 2: Are you going to do if it's not? Because I
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  Speaker 2: wouldn't be surprised.
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  Speaker 3: Hopefully someone's listening right now.
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  Speaker 2: I've said they've already said it'll be in twenty six,
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  Speaker 2: and then they said it's now late twenty six. Late
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  Speaker 2: twenty six to me means December. Well, we've got a.
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  Speaker 3: New Zealand International Convention seat that's kicking off at the
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  Speaker 3: beginning of the year. That's going to be bloom and
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  Speaker 3: brilliant and we need the CRL to be the accompany
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  Speaker 3: piece to that. And the sooner they get it done
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  Speaker 3: and open, the better.
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  Speaker 2: Okay, the banks last week, the Reserve Bank their final cuts,
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  Speaker 2: seemingly their final cut. Where are you at? Because I
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  Speaker 2: still can't work out whether the banks are screwing it's
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  Speaker 2: the Monetary Policy Committee made some interesting comments about margins
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  Speaker 2: and they said margins for the retails are back up.
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  Speaker 3: Yeah, so what I want us to watch that really closely.
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  Speaker 3: I made that point a couple of weeks ago on
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  Speaker 3: the banks to say, we expect them to be passing
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  Speaker 3: through those OCR cuts so we get the transmission out
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  Speaker 3: into retail rates as quickly as possible. That should be instantaneous.
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  Speaker 3: And yeah. The second thing is I just say, though,
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  Speaker 3: is that there are some amazing deals out there at
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  Speaker 3: the moment, and if you're not happy with your bank. Actually,
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  Speaker 3: the public, the consumer actually should be shopping around and
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  Speaker 3: actually looking at what they can.
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  Speaker 2: But are those deals about cash backs as opposed to
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  Speaker 2: better interest rates?
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  Speaker 3: But now there's actually variation and interest rates. If you
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  Speaker 3: look at some of the you know, the other day
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  Speaker 3: is looking at you know, if you look at the
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  Speaker 3: second TSB and those kinds of players is at.
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  Speaker 2: You're into some more investment property.
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  Speaker 3: I read something about that somewhere. Yeah, it's too soon, Mike,
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  Speaker 3: but no, I think the point I'm trying to make
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  Speaker 3: is a we're watching it. Nicola and I have talked
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  Speaker 3: about it, and we are very we're very keen to
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  Speaker 3: make sure those rates get passed on through.
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  Speaker 2: Short of jaw burn. And can you actually do anything
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  Speaker 2: now because you've made the moves you've made, and the
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  Speaker 2: margins are back up, and the argument around the reserve
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  Speaker 2: Bank and the money they make you put aside at
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  Speaker 2: retail bank level for a rainy day, and all that's
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  Speaker 2: been sorted, and yet the margins are still up.
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  Speaker 3: So the actual bank, the reserve bank capital rules are
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  Speaker 3: still being worked through. So you know, again, you know,
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  Speaker 3: as you might remember, Robertson put in some pretty stretchy
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  Speaker 3: sort of capital rules and requirements. Possibly over engineered it
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  Speaker 3: and as a consequence, you know, banks a haven't told
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  Speaker 3: more capital and that means higher rates than what they
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  Speaker 3: should have. So you know, we actually want to make
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  Speaker 3: sure we've got that setting right on those limits. That'll
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  Speaker 3: come through, you know, hopefully the next few months. But
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  Speaker 3: the rest of it is actually ye, banks should be
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  Speaker 3: passing it through instantaneously. That's what happens in other countries
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  Speaker 3: around the world. My experience in Australia in the US
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  Speaker 3: was it was immediate. And some of them will say,
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  Speaker 3: oh that we do it in advance of the announcement,
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  Speaker 3: but we've got to watch out closely.
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  Speaker 2: Okay, the maths amounts. When was the maths announcement that
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  Speaker 2: you and Erica were at This was it Tuesday last.
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  Speaker 3: Week or it was?
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  Speaker 2: Yeah, So just to relitigate this because I was ropable,
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  Speaker 2: because this is not about politics. This was about a result.
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  Speaker 2: You've got a result in maths is tangible. Yeah, we
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  Speaker 2: got a good result.
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  Speaker 3: We've been working you know. You know my story. I
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  Speaker 3: really am passionate about education. I studied it a lot
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  Speaker 3: before I even came to politics. And Erica and I
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  Speaker 3: made a determination in opposition, if we get the chance,
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  Speaker 3: we're going to go for a big time on education
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  Speaker 3: because it's the single biggest thing that gets kids from
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  Speaker 3: a set of circumstances to a better set. And the
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  Speaker 3: frustration here was that, you know, we take over power,
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  Speaker 3: we've got fifty five percent of our kids not at school,
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  Speaker 3: half not where they need to be on reading, going
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  Speaker 3: to high school, eighty percent not where they need to
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  Speaker 3: be on mathematics. So we take the intermediate school kids
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  Speaker 3: because we've put some other programs in place for primary school,
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  Speaker 3: and we basically did these hot house sessions for twelve
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  Speaker 3: weeks and we got these kids moving one to two
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  Speaker 3: and a half years and then maths knowledge with a
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  Speaker 3: twelve week intensive intervention. So we did that trial, and
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  Speaker 3: we now want to roll that out to fifteen thousand
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  Speaker 3: kids across the country. And that was really great news
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  Speaker 3: and I think parents care about that. But instead some
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  Speaker 3: of the media went off about a leadership change that
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  Speaker 3: isn't happening. And secondly, I went and spent the whole
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  Speaker 3: time talking about Section one twenty seven Entreaty Principles. Now
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  Speaker 3: we've passed that law, we're done, We've finished the boards.
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  Speaker 3: We've taken it the obligation of them. I get people
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  Speaker 3: maybe unhappy about it. I don't care. We are there
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  Speaker 3: to get our kids to school and to teach them
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  Speaker 3: the basics. Well, but there's a really good example where
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  Speaker 3: we've actually got great results on new entrants during the
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  Speaker 3: phonics tests. Now fantastic improvement. You had eighteen percent improvement
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  Speaker 3: in kids at or above standards on reading in their
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  Speaker 3: first year at primary school and a sixteen percent reduction
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  Speaker 3: kids need extra help. That's good because our teachers are
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  Speaker 3: freed up to get on with the program. It's working.
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  Speaker 2: But having watched the thing live and then watched the
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  Speaker 2: coverage of it, they are two different things happened, correct,
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  Speaker 2: and so.
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  Speaker 3: We didn't get to talk about the math story, did
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  Speaker 3: we We know we did not.
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  Speaker 2: So what is it you face an election year? Is
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  Speaker 2: this deliberate? Do you think on behalf of some in
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  Speaker 2: the media who will become hell a high water simply
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  Speaker 2: not cover gave.
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  Speaker 3: I think some of the media are just so disconnected
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  Speaker 3: from the reality of where Kiwis are at. And you know,
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  Speaker 3: when I'm up and down this country, I'm telling your
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  Speaker 3: parents want to talk about how their kids are going
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  Speaker 3: what's going on education? I want to talk about their
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  Speaker 3: mortgage rates. They want to talk about what we're doing
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  Speaker 3: to make the country better, And you actually get you know,
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  Speaker 3: some media just fixated on, you know, a story that
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  Speaker 3: actually isn't happening, not happening, and actually more importantly than
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  Speaker 3: something that's already we've already made a decision on. We've
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  Speaker 3: moved on. So we're not relitigating Section one twenty seven.
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  Speaker 3: We're not asking boards to be upholding the Treaty of
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  Speaker 3: by telling obligations. That's not their responsibility. We're done, we've
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  Speaker 3: finished that, but we're focusing on doing these practical things
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  Speaker 3: to get the kids better educated.
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  Speaker 2: The other stream of that story was a couple of
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  Speaker 2: days later, the Principal's Federation, I said, seem to suggest
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  Speaker 2: it was a waste of money, It was a bit
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  Speaker 2: of a jack up. And if you ask the kids
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  Speaker 2: the same question every time, of course they're going to
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  Speaker 2: remember it, etc. Is there a mentality within the education
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  Speaker 2: union slave circles that they don't want that they just
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  Speaker 2: can't get their head.
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  Speaker 3: Well, here's an idea. Rather than sitting on a labor
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  Speaker 3: party stage, why don't you get around the table and
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  Speaker 3: do a twenty four to seven negotiation for your members.
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  Speaker 3: Who are the teachers who are doing a good job?
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  Speaker 3: You know, I just think they're focused on the wrong things.
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  Speaker 3: And the reality is we need to put some standards
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  Speaker 3: in place. You know, you cannot call yourself a first
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  Speaker 3: world country where an under Chris Sipkins, forty five percent
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  Speaker 3: of our kids go to school regularly and fifty five
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  Speaker 3: percent don't. You can't call yourself a first world country
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  Speaker 3: and set yourself up for a fantastic future if you
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  Speaker 3: can't get your kids to do maths and reading. And
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  Speaker 3: so that's what we're doing. We're doing the practical things
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  Speaker 3: to make sure we lift the quality big time so
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  Speaker 3: those kids have great opportunities.
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  Speaker 2: You mentioned the Conventions Center a moment ago, and I
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  Speaker 2: should have asked this, then where are we at with
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  Speaker 2: move on orders? Because one of the things you said
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  Speaker 2: with move on orders is there's a cruise season. The
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  Speaker 2: cruise seasons here yep, yep.
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  Speaker 3: So Goldsmith's got advice coming very very quickly on that.
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  Speaker 3: I mean, the move on orders we're very interested in
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  Speaker 3: the problem is what do you do with the people?
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  Speaker 3: You can't just move them around and bounce them around
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  Speaker 3: the city. You've actually got to get a solution in
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  Speaker 3: place that's already that thinking there. Having said that, Simon
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  Speaker 3: Brown and Wayne Brown actually came together last week and
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  Speaker 3: actually put together quite a good action plan on what
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  Speaker 3: they can do.
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  Speaker 2: So how close is this? I mean, when's something going
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  Speaker 2: to be announced? And something before before Christmas is what
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  Speaker 2: we expect. Yet you're back in parliament this week?
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  Speaker 3: Yeah? Yeah, yeah, yeah, I'm looking forward to seeing you
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  Speaker 3: on Friday, my friend.
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  Speaker 2: Yeah no, now look, oh sorry.
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  Speaker 3: Is this your last week this week?
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  Speaker 1: Sorry?
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  Speaker 3: You gave me to the listeners. I'm sorry, but it
• 9:37
  Speaker 3: is payback time people, because he gives me grief about
• 9:40
  Speaker 3: the relative and frequency he thinks. We're in parliament. This
• 9:44
  Speaker 3: is I want you to know. This is the hardest
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  Speaker 3: working government probably since the eighties, passing the most amount
• 9:48
  Speaker 3: of legislations. Yes, yes, yes, while you're on holiday, where
• 9:51
  Speaker 3: will you be on a beach somewhere? Or no, I'm
• 9:53
  Speaker 3: still working.
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  Speaker 2: We just up the road because I can't afford to travel.
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  Speaker 2: Now here's here's the thing that the gift I've got you?
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  Speaker 2: Are you backing yourself on the gift you've got me? Oh?
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  Speaker 3: Big time. It's the Powell doctrine. I'm going to hit
• 10:06
  Speaker 3: you with overwhelming force. My friend is that it is yep,
• 10:08
  Speaker 3: because you better be ready. It's as a gift arrived
• 10:11
  Speaker 3: and it was Sammy's idea to his Now you're shifting
• 10:14
  Speaker 3: it to sam produce.
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  Speaker 2: A brilliant idea, so you will be I think blow
• 10:19
  Speaker 2: it away. Yeah, I think you could almost be emotional. Really,
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  Speaker 2: I think you could almost. I think there could be
• 10:26
  Speaker 2: some tears anyway on your last day. So you're coming,
• 10:29
  Speaker 2: So you're back on Good to see.
• 10:32
  Speaker 1: Appreciate for more from News Talks B Listen live on
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