News | Business
14 Feb 2025 2:12
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    BRETT O'RILEY

    BRETT O'RILEY


    EMA CHIEF EXECUTIVE
    021 027 09021

    0548


    MORE REAL TALK FROM THE FINANCE MINISTER ABOUT THE STATE OF THE ECONOMY.

    IN A PRE-BUDGET SPEECH TO THE EMPLOYERS AND MANUFACTURES ASSOCIATION, NICOLA WILLIS CONFIRMED THE GOVERNMENT HAD FOUND THE SAVINGS TO PAY FOR THE TAX CUTS.

    BUT SHE WARNED THE BOOKS ARE STILL IN A STRUCTURAL DEFICIT - MEANING SPENDING IS OUTPACING TAX REVENUE.

    SO MORE CUTS ARE ON THE WAY.

    THE EMA'S CHIEF EXECUTIVE BRETT O'RILEY IS WITH US...



    -HOW DID THE SPEECH GO DOWN?

    -IS IT REFRESHING FOR THE MINISTER TO TALK IN REAL TERMS - NOT SUGAR COATING ANYTHING?

    -HOW ARE BUSINESSES FEELING AT THE MOMENT? IT'S NOT JUST THIS BUDGET - BUT THE PLAN TO GET THINGS BACK ON TRACK?

    -ARE THERE THINGS YOU WANT TO HEAR FROM THE GOVERNMENT THAT YOU'RE NOT AT THE MOMENT?


    NEWSTALK ZB

    The Finance Minister's again dampening expectations - before next week's Budget.

    Addressing the Employers and Manufacturers Association in Auckland this afternoon, Nicola Willis has warned the Government faces a structural deficit.

    That's the fact Government spending has way exceeded tax revenue -- and it's projected to continue without significant spending reforms.

    Nicola Willis says it's about six billion dollars a year.

    She says that's not sustainable long term, because it requires continual borrowing to cover expenses -- which leads to a never-ending debt spiral.

    XXX

    A promise from the Finance Minister the Government will get the books in order.

    Nicola Willis has delivered a speech to the Employers and Manufacturers Association - a week out from the Budget.

    She says high inflation and high interest rates are top of mind.

    She's confirmed they've hit their saving target for funding their tax package - but says more spending cuts are on the cards.

    Willis says Kiwis need a clear and credible path out of this economic mess - which will come with a little relief today and hope for tomorrow.


    STUFF

    The government intends keeping a tight rein on spending in the future and maintaining an overall contractionary fiscal stance, the Finance Minister says.

    Nicola Willis has spoken to the Employers and Manufacturers Association ahead of Budget 2024.

    Bringing down high inflation and interest rates were among the government's priorities, Willis said.

    Mentioning again the necessity of tax cuts, Willis said contrary to what her audience might have heard from some quarters, they would not require additional borrowing.

    "Since tax relief will be fully paid for, it should actually - at the margin - take a bit of pressure off inflation, given that households may save some of their tax relief rather than spend it all.

    "More importantly, we will be reining back spending in future years and maintaining an overall contractionary fiscal stance. Treasury has advised me that this means that interest rates could track lower than would otherwise be the case."

    She said that lower interest rates would be important for every Kiwi with a mortgage and every business carrying debt.

    "We will do our bit to support a lower interest-rate future."

    She said all the economic pointers showed the country was experiencing "the hangover after the wild party".

    "And, as everyone knows, the wilder the party, the longer and messier the hangover."

    However, Kiwis had realistic expectations of what the government could do and did not expect it to wave "a magic wand".

    "Instead, people are looking to us to show a clear, credible path out of this economic and fiscal mess. You are looking for a little relief today but most importantly you need that hope that tomorrow will be better. That's what our Budget will do."

    © 2025 Newstalk ZB, NZCity

     Other Business News
     13 Feb: A consumer action group wants immediate changes to the supermarket sector
     13 Feb: A 103-million-dollar decline in retail spending last month may be a sign of things to come
     13 Feb: To achieve real growth, the NZ government needs to relax the rules around housing
     13 Feb: A lower-than-forecast rates increase is on the cards for Christchurch
     13 Feb: Rising premiums are pushing more people into considering third party car insurance
     13 Feb: Fears about power shortages appear to have prompted the latest agreement between the major power companies
     13 Feb: While inflation has been easing, the price of car insurance is still rising sharply
     Top Stories

    RUGBY RUGBY
    All Black Caleb Clarke continues to ponder his future with New Zealand Rugby More...


    BUSINESS BUSINESS
    A consumer action group wants immediate changes to the supermarket sector More...



     Today's News

    Living & Travel:
    A plan to get Roger Tuivasa-Sheck more involved for the Warriors has been the catalyst for his switch to the wing for the upcoming NRL season 21:57

    Entertainment:
    Isla Fisher has branded Kanye West a "monster" 21:42

    Accident and Emergency:
    A person's died after a water-related incident at Coromandel Peninsula's Whangapoua Beach 21:17

    Entertainment:
    Gloria Gaynor has urged young women to "save something for your man" 21:12

    Environment:
    A major Greek tourist hotspot is being rattled by an 'earthquake swarm'. Here's what that means 21:07

    Entertainment:
    Kieran Culkin is trying not to "pay attention to his nerves" ahead of his return to Broadway 20:42

    Entertainment:
    Katie Price is hoping to make a music comeback 20:12

    Motoring:
    One person's seriously injured, following a crash on State Highway 25 - south of Coromandel town - this afternoon 19:57

    Entertainment:
    Terry Crews has had to "work" hard at his marriage to keep it going 19:42

    Entertainment:
    Brenda Song and Macaulay Culkin bonded over the "trauma" of child stardom 19:12


     News Search






    Power Search


    © 2025 New Zealand City Ltd