Post-Cabinet Press Conference: Wednesday, 25 January 2023

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Kia ora koutou katoa. Good afternoon, and welcome to our first post-Cabinet press conference of the year and, of course, my first post-Cabinet press conference as Prime Minister. This morning, I was sworn in at Government House, taking the baton of responsibility from my good friend Jacinda Ardern and officially becoming the 41 st Prime Minister of New Zealand. My deputy, Carmel Sepuloni, was also sworn in. It was an immensely proud moment for both of us and for our families, and I did take a few moments to enjoy that occasion and reflect on the incredible privilege and the responsibilities that come with this job. Now it’s time to get on with it.

So I did chair my first Cabinet meeting, the first Cabinet meeting of 2023, this afternoon. At Cabinet, I reiterated my expectation that the reprioritisation work that I have signalled will be our absolute priority over the coming weeks. Today, that work started in earnest, and we had a good discussion about the next steps that we’ll be taking to reprioritise, refresh, and refocus the Government’s work programme so that we can move our resources where we need to to address the bread-and-butter issues that New Zealanders are most concerned about. I’ve already said publicly that we will be reining in some of our plans, putting them on a slower track, giving us more room to move and greater capacity to focus on the immediate priority issues facing New Zealand, particularly the cost of living pressures that have been caused by the global economic situation. My firm focus is on leading New Zealanders and their families through that. You can expect more detail in coming weeks, after the new Cabinet is in place.

Today’s unchanged inflation figure confirms that this is the right and immediate focus for the Government that I lead. The inflation level that we are seeing is not unexpected nor unusual, with many economies around the world feeling the same economic effects. We stack up pretty well against most of them, with an inflation rate below the OECD average, but regardless of where we sit compared to the rest of the world, here in New Zealand household budgets are being stretched, and we do need to do as much as we possibly can to help with that. We’ve already taken active steps to address the underlying causes of high prices, including at the petrol pump and at the supermarket, and the Government is doing its bit to bring spending down to more normal levels so that we don’t add to those inflationary pressures. That is having an impact. The Treasury is forecasting real Government consumption will fall by about 8.2 percent over the next couple of years, which they say indicates that fiscal policy is supporting monetary policy and dampening inflationary pressures. But there’s more to do, and the fight must and will continue.

Tomorrow, I’ll be meeting with business leaders in Auckland. It’ll be my first major engagement as Prime Minister. I’ve met many of them before, but this is, obviously, our first of many engagements in my new role as PM. I’ll be there to ask questions of them and to listen to them, in order to accelerate the important relationship that’s needed between business and Government in order to benefit all New Zealanders and to continue to grow our economy. One of the main topics I’m expecting to come up is the global labour shortage that continues to put additional pressure on those New Zealand businesses who need additional workers. In recent months, we’ve made some significant changes to our immigration settings. Nurses were added to the straight to residency pathway at the end of last year, and 10 trades and professions were also added, such as teachers, drainlayers, and mechanics. It’s too early to see the results of that yet—it was only a month ago that those changes were announced—but we’ve already heard positive feedback about them from businesses.

Another example is the bus companies, which are in line to receive 100 additional drivers from overseas. As those changes flow through, it doesn’t mean that we’re done making others. We’ll continue to listen and to assess both immigration settings and the underlying processes to meet New Zealand’s needs.

So, just quickly looking to the rest of this week and the beginning of next, on Friday I’ll continue to meet with Ministers and go over the reshuffle that I intend to announce next week. On Saturday, I will be in my electorate at the wonderful Trentham Racecourse for Wellington Cup Day, and then next week I will be back here again at Parliament, with further details to follow. I’m now happy to take your questions.

Jessica.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, I’ve only had the job a couple of hours, and so I think New Zealanders won’t be expecting to hear a lot from me today until I’ve had the opportunity to actually work through what our options are. But what I am saying is I acknowledge—I’ve said it’s the number one issue that we’re facing as a country, and, therefore, it will be the number one priority area of focus for the Government.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Yeah, and the numbers that we’ve seen today, I think, underline the importance of the commitment that I have made over the last few days to place the cost of living and the economic situation that we face as our number one priority as a Government. Now, we’ve been here—I’ve only been here for a couple of hours, and I need to work through the options about what we do about that with my Ministerial colleagues, and I will do that. And we will be making haste, but I’m not going to be so hasty as to make things up on the fly.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Well, that, of course, remains the Reserve Bank’s target. We want to bring inflation down to sustainable levels. Clearly, the level of inflation that we have at the moment is not sustainable. We’re not changing the Reserve Bank’s target—that remains the target. But if you look at our overall rate of inflation—7.2 percent here in New Zealand, 7.8 percent in Australia, 10.5 percent in the United Kingdom, and the OECD average is 10.3 percent, the European Union is 11.1 percent—you know, New Zealand is not immune from those international pressures, and they will continue to have an impact on our rate of inflation. We will do everything we can to bring inflation down in New Zealand as much as we can, but acknowledging those international pressures, we will also be seeking to support New Zealanders through this.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, there are a range of bids in the Budget process, and I’m not going to go into the details of those—we never do that. But the prioritisation process of those Budget bids hasn’t yet concluded, so there is an opportunity for us to make sure the Budget reflects the priorities that I’ve set out.

Jane.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, I believe we’ve had this conversation in the last sort of 48 hours or so, and I’m not going to make up policy on those things on the fly. What I will say is I will honour the commitments that have been made for this term of Parliament, and that people will be absolutely clear where we stand on that as we head towards the next election.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Well, I mean all of those things would have very long lead times if there was to be any change in those. We’ve set out a policy for this term of Parliament. That doesn’t change because there’s been a change in Prime Minister, and we’ll be very clear with New Zealanders what our policy is as we head into the next election for the next term of Parliament.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I’m not ruling that in or out today either. We will work carefully through the options— we’ll do that quickly. I’m aware that there’s—you know, there are timing considerations with regard to that particular issue, but I’m not announcing anything in that regard today.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Like I said, I’m not announcing tax policy today. We’ll honour the commitments we made around tax at the last election; I absolutely stand by those commitments. And in terms of our tax policy for the next election, New Zealanders will know it well in advance of the election. I’m not going to announce a tax policy on day one.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I’ll be meeting with a broad cross-section of the Auckland business community, and that will include some small business leaders, some ethnic business community leaders. We recognise that we all want New Zealanders to be in work, to be earning a good income so that they can get ahead. I’ll continue to meet with a large cross-section of people over the coming weeks and months. Of course, we have to recognise that I’ve put the economy front and centre of my priorities, and that is going to involve working closely with business.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Well, as I’ve indicated, I mean, I think cost of living is right at the top of the issues facing New Zealanders at the moment, because it has an impact on just about every other one of the issues that New Zealanders will care about. I have a lifelong commitment to quality public services for New Zealanders—health, education, making sure that we have housing. You know, we still have a housing crisis that we’re working our way through. We’ve seen significant population growth and we haven’t built the right number of houses to keep up with that. That’s never going to turn around overnight, but we’re making good progress; we’ve got to keep working our way through that. But all of these things are affected by the cost of living. So if you look at the inflationary figures today, the increased cost of building a new house is one of the things that’s contributing to that. So it’s all interlinked.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Well, the work that we’re doing around making sure that there is competition and fair regulation in the grocery sector is one of those things that don’t deliver immediate returns, but they’re the sorts of things that you need to do in order to make sure we’ve got fair prices in the supermarket. I do want to acknowledge one of the pressures that New Zealand and Australia are both feeling around food prices at the moment is caused by the weather, and there’s a limited amount that the Government can do. So if you look at fresh fruit and vegetables, the weather’s had an impact here and across the Tasman, and, you know, Governments can’t do very much about that, but we will continue to strive to look for everything that we can do in that space.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, New Zealanders will absolutely see in the coming weeks and months the cost of living is right at the heart of our work programme. It is the number one priority that we are facing as a Government, and they will see tangible evidence of that. Now, obviously, I’m not going to make it up on the fly, as I’ve already indicated, but New Zealanders will certainly see, in the coming weeks and months, evidence of the fact that we’ve made it our number one priority.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I absolutely acknowledge the pressure that Kiwi families are feeling, and, of course, we’re not starting from zero. We’ve done a lot over the last year or so as we’ve faced these cost of living challenges to support Kiwi families, and you’ve seen evidence of that in the work around fuel taxes, for example—you know, cutting fuel taxes. You’re seeing evidence of that around the changes that we’ve made around benefit rates and so on. So we have been working to support New Zealanders through this and we’ll continue to do that. Now, the inflation rates have stayed higher for longer and, therefore, we need to do more, and we’ll continue to focus on it.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I’m not going to get into—and look, you’ve cut to the heart of the Budget process with your question, and I’m sure that you’ll appreciate I’m not going to re-announce or change announcements that the Minister of Finance has already made or will make in the future right here today.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I think that we should continue to look at what we can do to support families to access early childhood education. There has been an escalation in costs in early childhood education in the recent past. Wage and salary pressure has been a really big contributing cost to that, and that’s been work that I’ve been leading as Minister of Education to make sure that we’ve got the funding model right so that we can meet that cost.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Again, I’m not going to get into what is on the table or off the table or what might be a good idea or not when it comes to tax. What I’ve said is that we’re honouring our tax commitments this term of Government, and people will know well in advance of the next election what our commitments are for the next term of Government.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

We do keep that under review. My understanding from Dr Verrall is that there was a review just before Christmas, I think, so we’re due to be having another one shortly. We do do that every month. I haven’t had a chance to talk to her about that. I haven’t been involved in the day to day of that over the last couple of months.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Bear in mind that the seven-day isolation period is designed to result in fewer people getting COVID-19 in the first place. I think one of things that businesses don’t want to see happen is a whole lot of their workforce go down sick because someone who had COVID-19 came to work rather than staying home and isolating. So I think there’s a reason for it. It is actually a pro-business, pro-employer reason, and that is that we don’t want COVID-19 spreading rampantly and resulting in a whole lot of people getting unnecessarily sick.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, as I said yesterday, co-governance can mean different things in different situations. We should have a mature discussion about it, not one that’s informed by bumper sticker slogans. We should make sure that we’re informing New Zealanders what we’re doing and why we are doing it. As I indicated yesterday, the last National Government entered a multitude of co-governance arrangements during their time in office; in fact, some of the co-governance—some of the examples put forward by the National Party yesterday of initiatives that they support have elements of co-governance within them. So if we think about, you know, kura kaupapa, for example, the wānanga, even Whānau Ora, there’s elements of co-governance within that.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

No, I didn’t. I’ve only met her once or twice, normally at Waitangi. I do want to acknowledge her passing, and I do want to extend my condolences and my aroha to her whānau. Look, there’ll be a lot of Kiwis who didn’t agree with Titewhai Harawira, but no one could doubt her passion and her sincerity and her commitment to Māori—particularly to urban Māori. Over recent years, I know that she has played a significant role in transforming how we commemorate Waitangi Day, and she should be acknowledged for that as well. So I didn’t know her well and I won’t claim to have, but I have had a few interactions with her, and, of course, I’ve had plenty of interactions with other members of her family—one in particular, when he was here at Parliament—and I just extend to them my condolences and my very best wishes at this point.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Did I enjoy it, did you say? Yes, I did. It was a really warm day. I can tell you that over the nearly 20 years—19 years—that I’ve been visiting the Rātana Marae, I’ve always found it a really special day. It’s always much warmer when you’re there, even if it’s raining, than perhaps the public might think. The conversation is always lively, but, actually, the goodwill has always been evident in that whole time, and that includes some pretty difficult years.

We’ll come over here.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Yes, absolutely. We—the former Prime Minister and I—announced just late last year quite a significant amount of additional support for small-business owners—dairy owners, in particular—who have been affected by things like ram raids and aggravated robberies. That includes making fog cannons much more widely available. We have an uncapped fund available to subsidise fog cannons, to cover the vast bulk of the cost of those fog cannons. The Retail Crime Prevention Fund, which has been established to support businesses that were the victims of ram raids, has been extended to businesses that have been the victims of aggravated robbery. We’ll continue to work hard to roll those out. We’ve put additional funding into partnering with local government on the sorts of initiatives that will help to keep those businesses safe and increase their safety—environmental design can have a significant impact there. And, of course, there is a whole-of-Government work programme—a big phrase that doesn’t mean much to people at home—but we’re making sure that we’re doing everything that we can to identify who the young offenders are, to hold them accountable for their actions, and to actually stop that offending from continuing.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, there’s a lot that we can do within the existing law. I don’t think that the existing laws that we have at the moment have necessarily been used to the full extent possible to make sure that we’re getting these young kids out of trouble, and so this was some work that I was helping to lead before I became Prime Minister. I’ll continue to have an active interest in it because I think it is a very important, a very significant priority, and you can be reassured that I won’t be taking my eyes off that one.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I haven’t been officially briefed. I have had a little bit of information just before I came down to the press conference, and I just want to extend my condolences to the Bagshaw family. I haven’t had an opportunity to convey that to them personally yet. It’s obviously a very tragic situation.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Like I said, I haven’t had a chance to talk to his family about what support they are seeking from us. It is a difficult situation because we have very limited—in fact, next to none in terms of consular support available in the Ukraine, and so, look, I haven’t had a chance to really, kind of, get into the detail of that. I am aware of the situation. I do want to just extend my condolences to his family in what must be a very, very difficult time for them, and I understand they’ve issued a statement and I’ll just refer you to that.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, haven’t been briefed on that at this point. Obviously, New Zealand fully supports Ukraine. This is an unjust and unjustifiable war, so we absolutely stand with Ukraine and we’ll continue to engage in international efforts to support the Ukrainians in their plight.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Not so far, no. I think, generally, there’s a bit of an exception for our mates across the Tasman, but, generally, I think, other world leaders wait until you actually have the job before reaching out and making contact. So I suspect there’ll be a little bit more of that now.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, I think all New Zealanders will be finding it tough with the cost of living at the moment, and any New Zealander who’s on a fixed income or on a low income, and students— you know, tertiary students I assume is what you are referring to here—in particular, are often in that category. They’ll be feeling that—there’s no question about it— and so that is why I said, you know, I’ve made that the core focus of my Government to help New Zealanders through.

Now, here we go—over here.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Yeah, look, I don’t want to speculate on what we may or may not decide in the coming weeks and months, but I just want to reassure New Zealanders that we’ve put this front and centre. I’ll be looking across the range of options to see what more we can do to support Kiwis.

Yeah—over in the far corner.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I think we do need to take a little more time to articulate exactly what we’re doing and why we’re doing it in each situation, and, you know, let’s let that unfold a little bit. But I just think, you know, I’m not sure that the Opposition’s position on co-governance is particularly clear or understandable either, so it is a complex issue, and I think we owe it to New Zealanders to be a little more thoughtful on our contributions than perhaps some of them have been in recent days.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, I don’t intend to go back and revisit co-governance arrangements that have already been put in place, because there are many of them in place as a result of Treaty settlements and so on. Some of them have been in place a long, long time, and I’m not intending to go back and revisit those, but where there are decisions still to be made then, yes, we will make sure that we do that in a way that New Zealanders understand what we’re doing, and why we are doing it.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I made a commitment yesterday—and it’s a commitment that was easy to make— that I will never seek to use race relations in New Zealand to divide New Zealanders. I think that is totally unnecessary, it’s totally unfair on the parts of our population that find themselves the subject of what can often be really unnecessary criticism and negative energy, shall we put it that way. I think we can handle these debates maturely and in a way that gives all New Zealanders an opportunity to understand what we’re doing and why we’re doing it. That’s what I’m committed to.

Up the back there.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

No, what I’ve said is I’m not going to go back and revisit decisions that have already been made and that are already in effect. But we will, as I have said—things that are on our current work programme we’re looking very closely at them.

Now, I’m going to wrap up shortly, but—

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

They can expect to see a Government that is absolutely committed to addressing the challenge of climate change. The fact that we’re dealing with a cost of living crisis and that we’re dealing with a whole range of pressures that are immediate and now doesn’t mean that climate change somehow moves off the agenda. It continues to be one of the biggest intergenerational challenges that we face. So expect to see my Government continuing to make sure, as we owe it to future generations, that we do everything we can to tackle that challenge.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I think Government’s always a balance between addressing the pressures of today and making sure that you do, you know, continue to focus on the future and make sure that you leave New Zealand in a better state than you found it. That’s absolutely my commitment. Thanks, everybody.