Herald NOW: PM on why so many Kiwis are leaving NZ

Summary

In this candid interview, Prime Minister Christopher Luxon discusses New Zealand's economic challenges, including the skilled migration of Kiwis to Australia, the nation’s wage gap, and the impact of recession. He emphasizes the government's efforts to improve education, healthcare, and productivity to make New Zealand more attractive for its citizens to return. Luxon also addresses the mental health crisis, particularly in emergency departments, and responds to criticism about his government's fiscal policies and public service management. Throughout, he underscores his commitment to economic recovery and balancing financial discipline with essential services.

Takeaways

• 😀 The New Zealand Prime Minister discussed the country's current economic challenges, including the high rate of skilled workers leaving for Australia due to the wage gap.
• 😀 The Prime Minister acknowledged that New Zealand is not yet attractive enough for skilled workers to return, but emphasized efforts to improve the country's future prospects, including economic growth and better public services.
• 😀 He highlighted that New Zealand's productivity problem is a long-standing issue, where despite hard work, the standard of living has not improved substantially in 30 years.
• 😀 The government aims to improve key sectors like education and healthcare to make New Zealand more appealing for citizens to stay and return in the future.
• 😀 The Prime Minister also mentioned that New Zealand is facing a recessionary period, and that government policies are designed to help turn the economy around.
• 😀 There is a recognition that the wage gap with Australia will take time to close, with estimates suggesting it could take up to 12 years under current conditions.
• 😀 The Prime Minister expressed concern about New Zealand's mental health crisis, particularly with the workforce shortages and incidents like patients fleeing mental health facilities.
• 😀 The government is committed to pay equity but acknowledged delays in addressing the issue, highlighting challenges with funding and policy implementation.
• 😀 Regarding fiscal policy, the Prime Minister defended the government's approach of reducing wasteful spending, promoting financial discipline, and working toward achieving a budget surplus by 2028-29.
• 😀 He also addressed concerns about public infrastructure projects, noting that consultations are ongoing regarding road expansions, and decisions will be made to ensure better value for money.
• 😀 In the lighter part of the conversation, the Prime Minister shared his preference for wearing New Zealand-made suits, joking about the media's attention to his style and personal habits.

Q & A

Why did 70,000 Kiwis leave New Zealand permanently, according to the Prime Minister?

The Prime Minister attributes this trend to recessionary times, where people seek opportunities in better-performing countries. Many skilled Kiwis are leaving for Australia, where the wage gap is 33%.

What is the government's goal to make New Zealand an attractive place for skilled workers to return?

The Prime Minister's goal is to create a strong economy with opportunities for people to get ahead. This includes offering world-class education, healthcare, and a safe environment for families to thrive.

What does the Prime Minister believe is the key issue preventing New Zealand from closing the wage gap with Australia?

The Prime Minister points to New Zealand's productivity problem, where despite hard work, the standard of living has not significantly improved. He mentions the importance of improving education and job opportunities to close this gap.

How does the Prime Minister respond to concerns about New Zealand being unable to attract skilled workers back?

He believes that the country needs to grow its economy, restore law and order, and improve education and healthcare to make it an attractive place for skilled workers to return.

What is the Prime Minister's stance on New Zealand’s ability to reach a budget surplus in the coming years?

While the Prime Minister commits to delivering a budget surplus by 2028-29, he emphasizes that achieving this will require navigating global economic volatility and adhering to prudent financial management.

What was the Prime Minister's reaction to criticisms of the recent 25-basis-point reduction in the Official Cash Rate (OCR)?

The Prime Minister highlights the importance of fiscal and monetary policies working together. He criticizes the previous government's approach, which he claims caused inflation due to excessive spending and money printing.

How does the Prime Minister justify delaying budget surpluses in previous years?

The Prime Minister argues that the delays were necessary due to global economic challenges, and assures that the government is committed to achieving the surplus despite these difficulties.

What is the government's approach to public service spending, according to the Prime Minister?

The government aims to prioritize existing spending to better places, rather than cutting public services drastically or continuing unchecked spending, striking a balance between fiscal responsibility and maintaining public services.

How does the Prime Minister address the issue of mental health in New Zealand?

The Prime Minister acknowledges the ongoing challenges in mental health, particularly the shortage of workforce in this field. He highlights measures like increased psychiatric training placements and early interventions to address mental health issues.

What is the government's stance on the reduction of road projects, such as the Otaki to Levin Expressway?

The Prime Minister indicates that no decisions have been made yet, but the government is consulting on ways to reduce costs while ensuring value for money in major road projects.