Latest / Early Edition with Ryan Bridge / Simon Bridges: Auckland Business Chamber CEO on alternative plan to the surcharge ban

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Simon Bridges: Auckland Business Chamber CEO on alternative plan to the surcharge ban · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Business groups have come up with a plan B for
• 0:02
  Speaker 1: the surcharge ban. They are proposing a cap, not a ban.
• 0:06
  Speaker 1: The surcharge on debit cards they say should bwo point
• 0:09
  Speaker 1: five percent, a cap on personal domestic credit cards one percent.
• 0:13
  Speaker 1: But will the government budge that's the question. Simon bridges
• 0:16
  Speaker 1: Auckland Business Chamber CEO Hey Simon, Hey morning, Ryan, good morning.
• 0:20
  Speaker 1: So why do you think a cap and not a ban?
• 0:24
  Speaker 2: Well, our looks in the ends would be clear. We
• 0:26
  Speaker 2: don't like this bill. I think it's going to create
• 0:29
  Speaker 2: unintended mess and you know, actually the an important thing
• 0:34
  Speaker 2: there is basically every submitted to Parliament and there are
• 0:37
  Speaker 2: a lot didn't like it either. They saw it as
• 0:40
  Speaker 2: well intentioned but unfair, not transparent. So we s me
• 0:44
  Speaker 2: he's basically had a terrible choice. Either have to suck
• 0:46
  Speaker 2: up the costs and you know they're working on tin
• 0:49
  Speaker 2: margins that's bad, or they smear it on everyone and
• 0:52
  Speaker 2: that's very unfair and opaque as well. So you know
• 0:55
  Speaker 2: why this because I think actually in the end it's
• 0:57
  Speaker 2: a workable compromise. It deals with the concern and it's
• 1:00
  Speaker 2: a legitimate concern of excessive surcharges because you've got this
• 1:04
  Speaker 2: cap that's not very high. On the other side of it, though,
• 1:07
  Speaker 2: it does mean there's you know, the retailers, hospo, tourism,
• 1:11
  Speaker 2: these various businesses operating onto margins can recoup some of
• 1:15
  Speaker 2: their cost and that's fear as well. So you know,
• 1:19
  Speaker 2: I think potentially it's a it's a it's a win
• 1:22
  Speaker 2: win sweet spot for the government, for business.
• 1:25
  Speaker 1: For consumers simon, if they go with the smear option. Like,
• 1:28
  Speaker 1: let's assume that the band goes ahead and businesses go
• 1:31
  Speaker 1: with the smere option. How much extra do we pay
• 1:33
  Speaker 1: in general prices? Do you reckon.
• 1:36
  Speaker 2: Well, loos It's very hard to say, but I mean,
• 1:39
  Speaker 2: I think it would be inflationary. I think in the
• 1:41
  Speaker 2: end what happens is very messy. My sense of it is,
• 1:44
  Speaker 2: you know, you have a bunch of businesses say, you know,
• 1:47
  Speaker 2: we're going to try rehout, and the big ones they say,
• 1:49
  Speaker 2: we're going to try hard to sort of sort of
• 1:51
  Speaker 2: absorb this, and but then another others that will think,
• 1:54
  Speaker 2: we know, we are going to smear it, and they's say,
• 1:56
  Speaker 2: you think about that, if you're paying cash that's on fear,
• 1:59
  Speaker 2: you're paying more when you shouldn't have if you're paying
• 2:01
  Speaker 2: f poss that's unfair because you're paying more and you
• 2:03
  Speaker 2: shouldn't have all to deal with the issue of kind
• 2:06
  Speaker 2: of you know, the tap on tip tap off cards
• 2:09
  Speaker 2: and the credit cards. We're actually you know, the focus
• 2:12
  Speaker 2: I've always thought should be on banks and that the
• 2:15
  Speaker 2: payment providers, your visas and your master cards. We're making
• 2:17
  Speaker 2: a lot of money from this.
• 2:18
  Speaker 1: Hey, I want to get your view on the RBI
• 2:20
  Speaker 1: and Z Yesterday they're saying there is a worry that
• 2:22
  Speaker 1: once the economy starts to pick up that businesses will
• 2:25
  Speaker 1: start hiking prices because you know, they've been holding off
• 2:28
  Speaker 1: because demand's been subdued, right, so you can't hike your prices.
• 2:31
  Speaker 1: And then as soon as we've got a bit of
• 2:32
  Speaker 1: money in our pockets they start hiking. That's inflationary. Do
• 2:35
  Speaker 1: you think that's going to happen.
• 2:39
  Speaker 2: I don't know. I wouldn't. I wouldn't say it's the
• 2:41
  Speaker 2: biggest issue, and I wouldn't say it's going to be
• 2:43
  Speaker 2: like dramatically palpable and inflationary. I think in the end,
• 2:48
  Speaker 2: you know, I've had the view. I appreciate it. It's
• 2:51
  Speaker 2: pop PEPs a business and political view rather than a
• 2:54
  Speaker 2: strictly economic one that you've got to pick your poison.
• 2:57
  Speaker 2: You know, what would you rather have lower interest rates? Inflation?
• 3:00
  Speaker 2: I think in this economy, nine out of ten say
• 3:03
  Speaker 2: actually a little bit of inflation, albeit you know they've
• 3:05
  Speaker 2: got to try and work hard to keep it in
• 3:08
  Speaker 2: the band. I mean, I look at next year and
• 3:11
  Speaker 2: I am I think realistically optimist and thinks are going
• 3:14
  Speaker 2: to slowly but surely get better. But I think anyone
• 3:17
  Speaker 2: looking for the Devana in twenty twenty six is prehaps
• 3:19
  Speaker 2: misplaced because reality of it is, you know, you just
• 3:22
  Speaker 2: think about some of the facts going on. We've got
• 3:24
  Speaker 2: an election. Close elections mean people stop spending and making
• 3:28
  Speaker 2: investment decisions for a while. I think the stock market
• 3:32
  Speaker 2: looks like it's very high. You know, people say to me,
• 3:34
  Speaker 2: who know, it's basically recessionary in America other than the
• 3:38
  Speaker 2: stock market which is so big, So any correction there
• 3:40
  Speaker 2: I think makes a big difference. So, you know, for heaven,
• 3:43
  Speaker 2: maybe we've got to wait till twenty twenty seven.
• 3:45
  Speaker 1: Simon always good to get view Simon Bridges All from
• 3:48
  Speaker 1: Chamber of CEO.
• 3:50
  Speaker 2: For more from early edition with Ryan Bridge, listen live
• 3:53
  Speaker 2: to News Talks. It'd be from five am weekdays, or
• 3:56
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