Post-Cabinet Press Conference: Monday, 7 August 2023

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

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Good afternoon, everybody. Today, I’m going to set out some additional steps that the Government is taking to turbo-charge New Zealand’s renewable energy generation, but before I do that, I want to acknowledge our country’s nurses, who have today accepted the Government’s latest collective pay offer. It’s further proof that the Government is in it for the nurses, and over six years has delivered pay equity as well as regular increases to this historically underpaid group of, predominantly, women workers. When we took office in 2017, the top of the registered nurse pay scale was $66,755. As a result of the most recent agreement, that will be $106,738. That’s a near $40,000 a year increase, or 59.9 percent, in just six years.

I have asked the Minister of Health to join me today to speak about some of the details of the deal. We’ll then take questions specifically on that, and then I’ll go on to talk about renewable energy and other issues of the day. So to Dr Verrall.

Ayesha Verrall

Minister, Health

Minister, Research, Science and Innovation

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Tēnā koutou katoa, and thank you, Prime Minister. This afternoon, I was delighted to announce Te Whatu Ora and the New Zealand Nurses Organisation hospital nurses have reached an agreement on their collective employment agreement. This is in addition to the $4 billion announced last week, which meant we made history with pay equity for nurses.

When Labour took office in 2017, as the Prime Minister has said, the top of the registered nurse pay scale was $66,755. With this deal, it’ll be up to $106,738—as has been said—a $40,000 increase, or 59.9 percent, in just six years. The Government values the enormous contribution nurses and midwives make to the health system, and we thank them for the critical role that they play in looking after our people and communities. The Government has also already invested $200 million a year, on top of increased funding for primary and community sectors, to support primary and community providers to lift their nurses’ pay rates, too.

The rates we pay nurses in this country is important for keeping them in our health system. I recently announced a workforce plan which looks across the entire health sector to address workforce pressures, and this is a significant piece of work that continues in this space, including focuses on how we train, recruit, and retain our healthcare workers.

Last year, over 8,000 nurses registered for the first time, a 60 percent increase from the previous year, and in the last quarter, the number of nurses registered to practise in New Zealand has grown by about 2,000. The Government’s aspiration is that the health system is sustainably staffed and where New Zealanders can access excellent planned and urgent care when they need it, and I look forward to working with all healthcare workers to achieve that.

Ayesha Verrall

Minister, Health

Minister, Research, Science and Innovation

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Look, I think it’s important to look across the precise comparisons there—I know that is being discussed in the sector. But to look across the work that is being done by, say, a first-year junior doctor versus a senior nurse, there it is possible that the nurse may be better paid in that instance.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

So I guess there are a variety of ways that we pay a settlement—well, there are multiple settlements in question here. So there’s a settlement and a pay equity deal, which is, of course, part of the numbers that we’ve just gone through. There was money set aside specifically for that. The money set aside for the wider nurses’ collective agreement, which is the most recent announcement today—that gets taken into account when we set the overall cost adjustment that the health system gets in each Budget.

Media

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The Nurses Organisation said a lot of the other factors weren’t—they’re not entirely happy with this collective agreement. They’re making emphasis on the fact it was a close vote, including that it’s not inflation-adjusted. Was there any discussion around sort of futureproofing negotiations—so tying their pay to inflation? I know that that has been bandied around with the teachers, for example. Did that form part of the discussion for nurses?

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

And I note that we don’t typically build automatic adjustments into people’s pay in almost any aspect of the public sector, because in collective bargaining there are always trade-offs to be made around what’s more important to the people who are doing the bargaining—whether it’s base pay or whether it’s other things related to their working conditions—and there’s always trade-offs between those. That’s the essence of collective bargaining.

Media

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The education Minister has said that would be something she’d be interested in because of how disruptive the strikes were to education this year, and also for the health system—how disruptive the strikes can be—and if that is sort of one of the baseline arguments that you face at every negotiation table, why not then build that and futureproof it so we don’t have such a disruptive—

Media

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Prime Minister, just on that, can I just ask: do you see a way of paying for much more substantial free dental healthcare for all New Zealanders without needing to do it through, say, the way the Greens have suggested—something like a wealth tax? Do you actually see on the horizon ever being able to do it, because for election after election, we’ve heard, “It’s just too expensive; it’s too expensive.”, but at what point do you actually do something about it?

Media

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I understand that, but what I’m asking is, because everyone always says— politicians always say it’s far too expensive, and the suggestion from the Greens is that you do something like a wealth tax to pay for it. So do you see a way of actually putting something as massive as free dental care in for all New Zealanders without having to go down the route of something like a controversial wealth tax? Can the country afford it, is, basically, what I’m asking.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Well, it’s not just a question of how much free dental care might cost; it’s also having the capacity to be able to deliver that—which I think at the moment the system wouldn’t have the capacity to be able to deliver it—and there would likely be significant investment required just in order to build capacity to meet the need for additional dental care, regardless then of the question of how that dental care itself might be paid for. So I think that the proposal that we’ve seen from the Greens is somewhat simplistic in the sense that there would be a lot more to it than what they’ve set out.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

As we’ve indicated, the COVID isolation periods are due to be reviewed in the next week or two, and then we’ll have announcements as soon as they have been.

OK. Thank you to the Minister of Health.

Right, moving along. So coming back to renewable energy, the Government is significantly accelerating progress on new wind and solar farms to generate more of our power generation. I’m announcing today that there are new wind farm projects—three new wind farm projects—that have been approved for fast-track consenting. They would cut around 150 million kilograms of carbon emissions and create up to 840 construction jobs in the Manawatū; Waiuku, near Auckland; and in Southland. Combined, they would generate about 419 megawatts of electricity at peak output. That’s about the same as New Zealand’s third-largest hydro-electric dam, the Clyde Dam.

New Zealand is increasingly well positioned globally to harness wind power onshore and offshore. When it comes to offshore generation, for example, our location in New Zealand matters. The least windy sites here in New Zealand are considered to have better wind energy potential than the windiest sites in Australia. This means that we’ve got amazing opportunities right here at out fingertips, and we’re determined to make the most of those.

But it’s not just wind power that we want to make more progress on. We’re also fast-tracking solar energy projects, with nearly 2 million solar panels already sped up through the consenting process. That’s part of nine solar farm projects which have been fast track referred to expert consenting panels since 2021. If all of those are approved, they could add 1.87 million solar panels to the national total and generate 1,147 megawatts of energy at peak output. Again, tying that back to the Clyde Dam, that’s almost three times the power output of the Clyde Dam.

When you put those things together, the fast-track solar and the wind projects, along with geothermal projects that have also been referred using fast-track consenting—they could create about 3,500 construction jobs nationwide and employ more than 350 full-time staff when they’re completed. It’s another of the reasons why the Government has been relentlessly future-focused and why we firmly believe New Zealand’s energy future is a renewable energy future. This is the future, and we can’t afford any more backward-looking thinking that would keep us tied to the past. That’s why we’re going hard out for half New Zealand’s total energy needs to be met by renewable energy by 2035, and for 100 percent of energy generation to be renewable by 2050.

These decisions to fast track projects are the latest to underpin the strong momentum that’s been building towards what we think is an achievable aim. Fast tracking is a critically important tool for us to get there. It means these projects can proceed faster, provided they meet normal environmental tests as determined by the expert consenting panels. It’s already reduced consenting time by an average on 18 months per project, saving infrastructure builders time and money. It’s become a key part of the Government’s strategy to accelerate economic recovery, boost jobs, and speed up our emissions reductions. That’s why we’re making it permanent through the Natural and Built Environment Bill that will become law later this month.

Finally, at a time when the cost of power is eating into people’s budgets, the benefits of maximising renewable energy will flow through to cheaper bills for households and for businesses, not just for one month or one year, but to cheaper prices the public can build into their budgeting and that they can rely on.

Now, happy to open up for questions. Jessica.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Fast-track consenting means that these projects will come on stream faster.

Obviously, the companies who are sponsoring these projects need to then go through the fast-tracked consenting process, which, as I said, shaves about 18 months off the overall time that it will take to bring these things live. But at the moment, in the environment we’re in at the moment, where we want renewable energy coming on stream faster, it’s a significant advance.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

If you look you across the country, there aren’t that many more big hydro opportunities for us, so we have to look at other options. Also, just to put it into context, the Clyde Dam took over a decade to build and to come on stream—“come on stream”, if you’ll excuse the pun. Actually, these can be generating electricity a lot faster than that.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

There are a range of different things that affect people’s power prices. One of them, of course, is peak demand and the price of electricity at the peak, which determines quite a lot of retail pricing. Some of that’s still determined, of course, by our existing fossil fuel electricity generation. So the more renewable we have, the more sustainable our electricity prices will be; the lower, ultimately, in the long term, our electricity prices will be. But it’s hard to pin point at a particular time what the impact of these projects will do. But we know that overall, the cumulative effect of more renewable electricity generation is that it means a more sustainable price path for electricity generally.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

The fast-track consenting process has itself been a fast-tracked process, and that as these applications come through, we actually have a relatively rapid process for advancing them through. So it will be a question of when the applications came in and the amount of time it took to consider those. But it is significant. As I said, it’s about 18 months faster than it would be if it was under the conventional process.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I don’t agree with the overall assessment, and certainly the way some of it’s been presented publicly. I haven’t had the chance to talk to Helen Clark about that directly in person. But what I would say is New Zealand’s foreign policy approach is a very balanced one. I’ve been very clear all the way along in my time as Prime Minister that there are areas where we work closely with our like-minded countries like Australia, the US, the UK, Canada—our Five Eyes partners—and there will be areas where we work with countries like

China, for example, and there’ll be areas where we disagree. And we have, I think, a robust enough relationship with all of the countries that I’ve just mentioned to be able to navigate that.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

We have an overseas investment process which considers where there is an investment flowing into the country for whatever reason, there’s a strategic interest test that determines where the funding’s coming from and whether it’s in New Zealand’s interests to accept that funding, and there have been some high-profile examples recently where some overseas funding has been rejected on that—using that criteria. I don’t propose to change that.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I’m absolutely concerned about any escalation in public violence and in gang tension. We’re resourcing the police to be able to deal with that. Police have issued—I think at last count it was something like 43,000 charges have been issued against gang members as a result of Operation Cobalt. A lot of the work that we’re doing around getting illegal firearms out of circulation will help. The establishment of the firearms register will help us to identify where firearms have come from where they’ve been used illegally. All of that work is very important. I don’t think that any of these sorts of events are acceptable.

Media

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The police have just put out a statement—as you were coming down—to the people of Manawatū, saying that they’re urging them to come forward if they knew about firearms being held—being used unlawfully, so they can ensure firearms are not in the hands of anyone who plans to use them for ill intent. Will you or your police Minister be looking— well, presumably your police Minister will be, but will you be looking for any update from police on the situation there?

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I’m sure the Minister of Police will be updated on that. I can say that the issues around illegal firearms have been a focus for the Government since we took office, and particularly since the events of March 15, and the establishment of a more robust licensing regime and the establishment of the firearms register, which is now being populated— licensed and law-abiding firearms owners are able to enter their firearms into the register now, and we encourage them to do that as quickly as possible. These things will give police a significant head start in addressing this type of criminal offending.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Oh, I believe that the public have reason to be confident in the work the Government has been doing around crime. I acknowledge that there’s a certain heightened anxiety around some forms of crime at the moment—so around youth offending, we’ve been working on tackling that quite intensively over the last 18 months, always looking for where the gaps in the system are and how we can plug those gaps. Issues around gang offending— and we have seen an escalation in gang tension and gang-related criminal offending, particularly in recent years, as we’ve seen new gangs emerging in New Zealand that haven’t been part of the gang landscape in New Zealand recently. We’ve been giving the police additional tools in order to be able to deal with that.

If you look at issues around violent offending, one of the big drivers in the increase in reported violent crime has been increased reporting of violent family harm. I would never say I welcome the fact that more of that has been reported, because I’d never welcome the fact that it exists in the first place, but the fact that New Zealanders are less tolerant of it and are reporting more of it to the police, and therefore it’s coming through in our violent crime statistics, does mean that we can do something about it.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, there’s always more to be done in the law and order space, and you’ve seen even just a couple of weeks ago, we were looking at more options in the ram-raiding space that we’re working through the system now because I don’t think that what we’re seeing at the moment is acceptable.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

As I indicated a couple of weeks ago, when we announced the latest programmes of work in the ram-raiding space, our first port of call here is to try and avoid this pattern of offending in the first place. We’ve put in place some fast-track intervention programmes that were designed to get these kids out of trouble, and not undertaking ram raids and not getting into this cycle of crime. That’s worked for more than three-quarters of those kids, who are not going on to reoffend, but for that persistent remaining group—it’s somewhere between 20 and 25 percent—clearly, more needs to be done, and that’s what we’re doing.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, ultimately, I think that the public has reason to have confidence in the Government’s work on crime, but, you know, you can read opinion polls all you like. I’m sure it sounds like there are some opinion polls coming, and no doubt we’ll all find out what they are.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I wasn’t aware of that recommendation, which I understand emerged from a review that was done last year. I understand it came from some earlier work that Mike Bush had been doing for Oranga Tamariki. The reason that it wasn’t actioned at the time—so I understand that there were about 11, 12 recommendations, and all but that one have either been implemented or are in the process of being implemented, and the reason that that one wasn’t actioned at the time was that there wasn’t anywhere else to put those young people.

Media

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Just on another Labour Party - esque sort of question, in previous years we’ve seen previous Prime Ministers and other key leaders of political parties jumping into advertisements or being involved in hyping up the campaign. Can we expect to see Jacinda Ardern at all being involved in Labour’s campaign, either in televised adverts or in speeches, or any appearances whatsoever?

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Jacinda is going to be out of the country for most of the campaign—I think that’s already been well-signalled publicly—so I’m not expecting her to be hitting the campaign trail with us. Of course, I’m sure that she’ll have a view, and if she wants to share that, she’s welcome to do that.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Look, I acknowledge as a father who has taken time off when my kids have been born that families want to be able to make decisions and they want to have some flexibility to make decisions around how they handle parental leave and so on after the birth of a child. We’ve worked hard to give them extra resource. So the extension to six months of paid parental leave is something that I’m very proud of—a decision that was taken by this Government, and at the time we set out the reasons for doing that—and that can be taken by either parent, so it’s important to note that that doesn’t automatically mean that it’s always mums who are taking that leave. It can be shared between mum and dad. I acknowledge some of the issues that were raised last week around the desire for mums and dads, or a different parenting arrangement—you know, the two parents—to have leave concurrently, and you’ll see us say a few more things about that shortly.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

I think, you know, where we can give parents more options to spend more time at home with their babies—which is something that our Government has been consistently working towards, as evidenced by the fact that we extended paid parental leave to six months—I think that that’s a positive development. It gives parents more choices and more options. We’ll announce our policy around paid parental leave in due course.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

What I would note here is that parents make choices around how they use their paid parental leave entitlement, recognising that not all parents use all of the entitlement that they have now. Some will make other choices, and that’s a matter for them—those are the choices that they can make. There is good scientific evidence around attachment for babies in the sense that a consistent presence, whether that’s one or two parents, in the first six months of a child’s development is very good for those babies. That of course, though, is evidence that parents can draw on in making their decisions.

Media

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There was a bill on the table that would have meant that families had more decisions about paid parental leave and who got to stay home and who had to go back to work, and just every decision that comes in having a child. There was a bill on the table that you could have, at the very least, put it through to select committee to flesh some stuff out there, and yet you chose not to.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

It would not have given parents any more choices this side of the election, and the official advice that we have is that the bill as drafted was un-implementable. So I think the decision to vote against a bill that was unimplementable was probably a responsible one for the Government.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

No, what I’ve said, because if you’d listened to what I was just saying—I was saying that the science around attachment and around having a consistent presence in a baby’s life in the first six months of their life is good for a baby’s development. Decisions around how families achieve that is a matter for those families.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

Oh look, I’ll put the cards on the table: the more time that parents can spend at home with their kids and the more we can support them to do that, the better. Of course, there’s financial constraints on both sides in that regard. Even with paid parental leave—of course, paid parental leave for most families is less than what they would get by being in work, and so there are always going to be financial considerations here, both for the Government in terms of what we can support and for families in terms of what they can afford to live off during that period of time. But, you know, I’ll always be aiming, as long as I’m in politics, to increase the amount of time that parents can spend with their kids.

Media

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There was quite the debate at the latter half of last week about the Government’s books, and the last time that we were able to actually take a glimpse under the hood was the 11 months to May, I believe, which showed a rapid deterioration in the Government’s tax take. Since then, some commentators have pointed to this situation getting worse, given New Zealand has dipped into a recession. How worried are you about the Government’s books going into that 12 September PREFU document, and are you doing anything behind the scenes to bolster the numbers a little bit ahead of that document?

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

So I guess there are two things at play here. One is that the Government’s monthly accounts get released publicly all of the time, so there’ll be more updates and people will be able to see them before the election. The next is the pre-election fiscal update, which is, basically, Treasury’s reckons on what that means longer term—so what are the current accounts telling us about what’s likely to happen a year from now, three years from now, and, actually, longer term into the future in terms of the Government’s long-term fiscal forecasts. The Treasury do that process independently of the Government, but they will factor in to that any decisions that have been taken since their last update, so they will look at any areas where the Government’s identified any additional spending and any areas where the Government’s identified any additional savings. And so of course both of those things are a regular occurrence for Government. We’re always looking at areas where money isn’t being spent or where we no longer need to spend money, and we’re always looking at areas where there is a new pressure where additional spending is required.

Chris Hipkins

Minister, Ministerial Services

Minister, National Security and Intelligence

Prime Minister

Permanent link

In the context of paid parental leave, I’d note that paid parental leave is a supplement to help parents to have more choices. Of course, I know from experience and from other families that I’ve spoken to that they will also draw on other financial sources when they have new babies, as well. We’ll always look at how we can better support parents to have more choices.