The Mike Hosking Breakfast

We knew the Government books were going to be bad, but not this bad. No way we’re getting to the surplus we expected in 2028. That is now so far away it’s not even in Treasury’s forecast period anymore. It’s some time, who knows when, in the 2030's. We’ll have to borrow another $20b in debt to tide us over for the next four years. That’ll push our interest payments over $10b every year. So we’ll be spending more on our debt interest than we spend on Defence, Corrections, Police, and Customs combined. Now, this is not the current Government's fault. This is a recession caused by Adrian Orr and the Reserve Bank to deal with Labour’s overspending. But National are not doing what they need to. They need to be cutting way harder than they are. There is a measure we use to look at how much the Government is adding to, or reducing from, economic growth. It’s called public consumption. They were supposed to cut that by 1.4% this year. They cut it by 0.2%. That’s basically no cut. Next year it's supposed to cut by 2.2%. Now, it's by another 0.2%, which is to say they’re actually not cutting much at all. We still pay the wages of 14,000 more public servants than we did in 2018. They’ve only cut one public agency, which is the Productivity Commission. Nicola Willis spent more in her last budget than Grant Robertson ever did. National keeps saying they can’t cut more because they don’t want austerity, but we are so far from austerity it’s not funny. We are spending more and hiring more public servants than five years ago. The trouble with that is we’re in a recession, which we weren’t five years ago. National needs to treat this like the economic trainwreck it is and cut their cloth accordingly. They might not be responsible for the mess we’re in, but they are responsible for fixing it and so far, they’re really not fixing it. See omnystudio.com/listener for privacy information.

On the Mike Hosking Breakfast Full Show Podcast for Wednesday 18th of December, the Government books are in a shocking state, so Heather du Plessis-Allan asked Nicola Willis how much is on the last Government, and how much is on her. Did you hear the one about the judge, the doctor, and NZ First at the Northern Club? Trust us, it's a doozy. For the final time this year Mark Mitchell and Ginny Andersen talk the books, political scandals, and what they're getting each other for Christmas on Politics Wednesday. Get the Mike Hosking Breakfast Full Show Podcast every weekday morning on iHeartRadio, or wherever you get your podcasts. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Businesses hope to employ more migrants after changes to work visas. The Government's updating the Accredited Employer Work Visa in March, removing the median wage threshold and reducing minimum experience requirements for lower skill roles. They'll also reduce the minimum threshold for how many domestic workers must be employed. BusinessNZ Chief Executive Katherine Rich told Heather du Plessis-Allan it’s a step in the right direction. She says there are a lot of areas where businesses can’t get the skills and experience they need, and the changes Stanford is making will be react welcomed. Rich says the median wage threshold was too high, and wound up being an artificial proxy for skill and experience. She says in some cases it resulted in offshore applicants being paid more than their Kiwi counterparts, creating a bit of friction. LISTEN ABOVE See omnystudio.com/listener for privacy information.

It's suggested the Government's dealing with an economic hangover. The half year economic and fiscal update, opening the Government's books, signals a surplus is further away than previously thought. Politicians are clashing on what the numbers signal. Speaking to Heather du Plessis-Allan, Labour's Ginny Andersen's accusing the Government of austerity, as public sector jobs have faced the chop. She says that hits our local bars, restaurants, and businesses and slows the economy. National party Minister Mark Mitchell told du Plessis-Allan Kiwis dodged a bullet when changing the Government and they inherited an awful economy. LISTEN ABOVE See omnystudio.com/listener for privacy information.