Latest / The SME Stream / Nicola Willis: Finance Minister reflects on 2025, looks ahead to 2026

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Nicola Willis: Finance Minister reflects on 2025, looks ahead to 2026 · The SME Stream

• 0:06
  Speaker 1: You're listening to the carry Wood and Mornings podcast from
• 0:09
  Speaker 1: News Talk S'B.
• 0:11
  Speaker 2: This week we're catching up with different ministers who hold
• 0:15
  Speaker 2: significant portfolios, and today it is Nikola Willis, Minister of Finance.
• 0:21
  Speaker 2: I spoke to her earlier because she is flat out
• 0:25
  Speaker 2: like elizard drinking and asked her to talk her wins
• 0:29
  Speaker 2: for the year and what her focus will be for
• 0:31
  Speaker 2: twenty twenty six, and I wished her a very good morning.
• 0:35
  Speaker 3: Good morning greatly on the show.
• 0:37
  Speaker 4: Well, let's look back. Are there any wins for the year.
• 0:41
  Speaker 2: The economy has been a tough bugger.
• 0:44
  Speaker 3: Yeah, it's been very toast for Kiwiz, I've come through
• 0:46
  Speaker 3: a really challenging time. The win is that now the
• 0:49
  Speaker 3: economy is growing, which means that when we look back
• 0:53
  Speaker 3: on twenty twenty five, we'll be able to say it
• 0:56
  Speaker 3: was a year that ended a lot better than it started.
• 0:59
  Speaker 3: And if we look into next year, the economy is
• 1:01
  Speaker 3: set to grow much faster with many more jobs being created.
• 1:05
  Speaker 3: Level can look for their incomes rising faster than inflation
• 1:08
  Speaker 3: and ongoing low interest rates. That's a positive way to
• 1:12
  Speaker 3: start the next year.
• 1:13
  Speaker 2: It is I think Keywis there's a lot of kiwis
• 1:16
  Speaker 2: that are a bit punch drunk. They've heard that things
• 1:18
  Speaker 2: are going to get better any minute. Now.
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  Speaker 4: Look there's grass shoots.
• 1:22
  Speaker 2: Oh my goodness, it's going to turn around thrive in
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  Speaker 2: twenty five and they're like, really.
• 1:28
  Speaker 3: Yeah, look, I totally get it. And I can tell
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  Speaker 3: people about all of the data that retail sales and
• 1:34
  Speaker 3: the manufacturing index in the business confidence, but unless you
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  Speaker 3: feel it in your family and your business and your workplace,
• 1:42
  Speaker 3: it's not really real. And so I completely understand that.
• 1:46
  Speaker 3: And Kee we have been through. It's it's sensible years actually,
• 1:49
  Speaker 3: because in the post COVID period, we saw those massive
• 1:51
  Speaker 3: price increases, we saw interest rates, saw people were looking
• 1:55
  Speaker 3: to get out of that, and it's been a really
• 1:57
  Speaker 3: difficult economic recovery. But I think increasingly what I am
• 2:02
  Speaker 3: hearing some people from their own communities and their own
• 2:04
  Speaker 3: homes is it was just starting to get a little
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  Speaker 3: bit better. And what we want is for that momentum
• 2:10
  Speaker 3: to continue and for more people to feel better. And
• 2:13
  Speaker 3: that's why the economic data matters, because it tells us
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  Speaker 3: that there's a realistic reason to think that's coming.
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  Speaker 2: We've got the GDP out soon. What are you expecting.
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  Speaker 3: Actually, my forecast is that the Treasury have increased their
• 2:26
  Speaker 3: forecast for what they think has been happening in the
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  Speaker 3: economy in the past few months, as has major economists
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  Speaker 3: from a range of outlets. So I think we could
• 2:35
  Speaker 3: be in for some a pre Christmas happy surprise.
• 2:39
  Speaker 2: Were you surprised when you took on the job at
• 2:41
  Speaker 2: how little you could actually do to affect the economy.
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  Speaker 3: It's been very humbling to see how the forecasts, which
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  Speaker 3: Treasury obviously gave us before the election, how subject to
• 2:58
  Speaker 3: change they have been. Because all Treasury needs to do
• 3:02
  Speaker 3: is make a small percentage point change in the estimate
• 3:05
  Speaker 3: of future activity or global trade partner growth or whatever
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  Speaker 3: it is. Factor is outside our control and it has
• 3:10
  Speaker 3: a massive impact on the books and the outlook for
• 3:13
  Speaker 3: the economy as a whole. So I really had to
• 3:17
  Speaker 3: focus with our team, what are the things that are
• 3:19
  Speaker 3: in our control that we can drive forward. And that's
• 3:22
  Speaker 3: where I'm really proud that our team has been making
• 3:24
  Speaker 3: a big difference. When you look at what we've achieved
• 3:27
  Speaker 3: with reducing violent crime, with lifting education standards, with making
• 3:32
  Speaker 3: sure that we have delivered real tax relief to kiwis
• 3:35
  Speaker 3: that we are being more disciplined than the spending. Those
• 3:38
  Speaker 3: things are real, they're what we can achieve, but it
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  Speaker 3: doesn't mean we control the world.
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  Speaker 4: No exactly.
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  Speaker 2: Going into twenty twenty six into an election, there are
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  Speaker 2: you willing to have tough conversations with kiwis? Do you
• 3:52
  Speaker 2: think that kiwis are ready to hear that we simply
• 3:55
  Speaker 2: cannot afford the lifestyle we've had for such a long time.
• 4:01
  Speaker 3: Well, it is my job to have tough conversations about
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  Speaker 3: where the dollars that we're spending on your behalf. Remember
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  Speaker 3: it's the tax you pay from your wages isn't actually
• 4:12
  Speaker 3: having the impact that it should. And we've had a
• 4:15
  Speaker 3: few of those tough conversations already with New Zealanders. You know,
• 4:18
  Speaker 3: I think back to the plan to redesign the school
• 4:22
  Speaker 3: lunch system to say, actually, it shouldn't be first year
• 4:24
  Speaker 3: fees three, it should be final years fees three. Actually,
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  Speaker 3: can we really afford to say to eighteen and nineteen
• 4:30
  Speaker 3: year olds, yep, you can just get on the benefit,
• 4:32
  Speaker 3: that's fine. Can we really afford to have a pay
• 4:36
  Speaker 3: equity scheme that's no longer about rewarding women for discrimination,
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  Speaker 3: but has turned into a really big grievance industry. We've
• 4:45
  Speaker 3: had a number of tough conversations and the reason I
• 4:48
  Speaker 3: know I can keep having them with New Zealanders is
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  Speaker 3: because people get it. Actually, there's no magic money tree.
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  Speaker 3: We can't just racking up debt to the rest of
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  Speaker 3: the world. That's our countries come acropper, and New Zealanders
• 5:01
  Speaker 3: have asked our government to be responsible in our management
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  Speaker 3: of the finances and put the cash rep matters into
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  Speaker 3: our lease, into our schools, into our hospitals, our doctors,
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  Speaker 3: and to keep doing that while being responsible with to borrowing.
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  Speaker 3: We do need to look carefully at those things which
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  Speaker 3: you've got a bit out of control.
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  Speaker 2: As soon as Pete you say borrowing, I'll get texts
• 5:18
  Speaker 2: saying you've borrowed love and labor.
• 5:22
  Speaker 3: Well, let's remember what labor left me with, which is
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  Speaker 3: an interest bill every year of around nine billion dollars
• 5:28
  Speaker 3: on the massive debt they wrapped up. They more than
• 5:32
  Speaker 3: double debt is a proportion of our economy, bringing it
• 5:34
  Speaker 3: to the highest level it's been in many generations. And
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  Speaker 3: I think if you look back, what did we get
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  Speaker 3: for that debt? That's the big question I think is
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  Speaker 3: still unanswered because the heaps of money gun went around
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  Speaker 3: during COVID, but we didn't get a new harbor bridge,
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  Speaker 3: we didn't get new hospitals, we didn't get anything substantive,
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  Speaker 3: and so we're now in a position where we're having
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  Speaker 3: to pay that interest off and keep the money going
• 6:00
  Speaker 3: out the door to all of the public services that
• 6:02
  Speaker 3: we're still funding and get the books back and balance.
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  Speaker 3: So we are borrowing at the moment. Around eighty percent
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  Speaker 3: of the borrowing over the next four years is for
• 6:10
  Speaker 3: capital infrastructure investment and things like roads and hospitals and schools.
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  Speaker 3: But we are also borrowing to make sure that at
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  Speaker 3: this time of need, when the economy has been flower
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  Speaker 3: we have that safety net there for New Zealanders who
• 6:23
  Speaker 3: need it, and we can keep the lights on in
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  Speaker 3: our sexual public services. That's a responsible thing to do
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  Speaker 3: only if we have a plan to reduce the borrowing,
• 6:31
  Speaker 3: and we do, and that's what I'd want your listeners
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  Speaker 3: to hear is in our plan that I presented, we
• 6:36
  Speaker 3: will be getting that debt curve bending down, We'll be
• 6:38
  Speaker 3: getting the books back in balance.
• 6:40
  Speaker 2: And what will be your big win for twenty six
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  Speaker 2: what's the what's your real goal you're aiming for.
• 6:47
  Speaker 3: Well in twenty twenty six. A big goal for me
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  Speaker 3: is that everyday New Zealanders have worked so hard these
• 6:53
  Speaker 3: past few years, have had to really hang on in
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  Speaker 3: many cases feel like their life has got a bit easier.
• 7:01
  Speaker 3: And by that I mean that at the end of
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  Speaker 3: the week they feel like they're getting head and for
• 7:07
  Speaker 3: that to happen. That means more jobs being created so
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  Speaker 3: that people feel more secure in their employment and more
• 7:13
  Speaker 3: optimistic that they can get a promotion or a better
• 7:15
  Speaker 3: paying job in the future. That means more businesses opening
• 7:19
  Speaker 3: their doors and taking a risk and taking on a
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  Speaker 3: new investment or deciding to export overseas. It means inflation
• 7:28
  Speaker 3: staying under control so we don't get there's rocketing prices.
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  Speaker 3: And it means employers feeling confident in us that they're
• 7:35
  Speaker 3: going to give people some pay rises. So all of
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  Speaker 3: those things are what I'm hoping for in twenty twenty
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  Speaker 3: six because what it comes down to me down to
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  Speaker 3: for me is that family have worked hard, have a
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  Speaker 3: really good keiwi to do all the right things. They
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  Speaker 3: save hard, they work hard, they did a great job
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  Speaker 3: for their kids, and what they deserve and reward for
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  Speaker 3: that is to feel like they can get ahead.
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  Speaker 4: And what do Kiwis need to do?
• 7:59
  Speaker 2: You can't save the country on your own. What do
• 8:02
  Speaker 2: New Zealanders need to do?
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  Speaker 3: Oh? Well, I can't help myself, can I? They need
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  Speaker 3: to stick to the course and don't make a terrible,
• 8:11
  Speaker 3: terrible mistake by putting it our economy at risk and
• 8:16
  Speaker 3: electing a labor to Parsi mardor their green government. Truly,
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  Speaker 3: we've been through some hard yards together. Let's bank the win.
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  Speaker 3: Let's not put it all at risk again. And I
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  Speaker 3: think that's the task that we have next year as
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  Speaker 3: a government is to prove to New Zealanders that we're
• 8:32
  Speaker 3: worthy of another term so that we can keep delivering
• 8:36
  Speaker 3: for them. And I recognize that there's a lot more
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  Speaker 3: work for us to do, and we will be going
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  Speaker 3: hard at it. But my experience of most Keywiss, they're
• 8:43
  Speaker 3: already doing the right things. They get up in the morning,
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  Speaker 3: they work hard, they put some money in their key wesaver,
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  Speaker 3: they look after their family, they look after their neighbors
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  Speaker 3: and their community. And what you need now as an
• 8:54
  Speaker 3: economy that's working alongside you. And as I say, the
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  Speaker 3: data tells me that'll be happy next year.
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  Speaker 2: Now before you can crack into twenty six, you'll need
• 9:01
  Speaker 2: a break. So what's your plans over the Christmas break?
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  Speaker 3: Will we take our kids to a little place called
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  Speaker 3: Riversdale Beach on the Wide and Upper Coast. It's got
• 9:12
  Speaker 3: one dairy that extends to fish and chips if you
• 9:17
  Speaker 3: can't do obid cooking, and the contusis life saving, so
• 9:20
  Speaker 3: they do the Nipper and Cadet program and then they
• 9:23
  Speaker 3: roll around on their bikes all day. And I essentially
• 9:26
  Speaker 3: will read a couple of books, hopefully get a bit
• 9:28
  Speaker 3: of a ten. That's not very PC to say, is it,
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  Speaker 3: But that's what I'll be aiming for and enjoying a
• 9:34
  Speaker 3: GMT or two well deserved.
• 9:36
  Speaker 2: Thank you so much for your time, and do enjoy
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  Speaker 2: the break with your beautiful family.
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  Speaker 3: Thank you, We'll do Merry Christmas.
• 9:42
  Speaker 1: For more from Kerry Wood in Mornings, listen live to
• 9:45
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• 9:48
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