Nicola Willis tells Labour: We need to talk about superannuation

The Finance Minister has invited her opposition counterpart to have a serious discussion about superannuation.

At today’s Mood of the Boardroom debate, Nicola Willis invited Labour’s Barbara Edmonds to have the discussion as both debated immediate and long-term economic challenges.

“Barbara, if you’re up for tough conversations, at the last election my party started a tough conversation about New Zealand superannuation. I invite you to join me in continuing that conversation.”

Edmonds said she was happy to have the debate, after both were asked various economic challenges.

This year’s Mood of the Boardroom survey showed business leaders had a more upbeat view of New Zealand’s potential even though AI, geopolitical tensions and some domestic political issues were concerns.

Willis said she hoped confidence would be channelled into investment.

She added: “Business, we hear you. After a tough few years, it is time to pivot.”

Willis said fighting inflation and charting a path back to balanced government finances had been among her priorities.

“We need you on board. These next few decades can be New Zealand’s decades.”

Willis said she rejected austerity and was focused on targeted spending.

“We shouldn’t look at every dollar we’re spending and say that’s baked in forever.”

Edmonds raised concerns about emigration and unemployment, including public sector layoffs.

“I’m here to listen. I’m here to absorb. I’ll also be responding, of course.”

She added: “Something that concerns me is the number of Kiwis leaving.

“Even through Covid-19 we didn’t see unemployment like this.”

But Edmonds said she was also optimistic about the economy.

“We are now very much at the bottom of the economic cycle. Things will get better, because of you.”

Edmonds said spending on infrastructure would boost productivity.

Business leaders rated Prime Minister Christopher Luxon’s high energy, charm on offshore trips and standing up for Kiwi values even though his political performance wasn’t so highly regarded.

Leaders also rated the Government’s maintenance of tight fiscal settings but didn’t think it had done much to support Māori and Pasifika aspirations.

Education and Immigration Minister Erica Stanford was rated highly, above all other ministers, and Simeon Brown, Minister for Energy, Local Government, Transport and Auckland, also rated highly.

On the US election, 82% of respondents favoured Kamala Harris.

Willis told business leaders that New Zealand had nicer people than Australia, but needed to improve on education, innovation and infrastructure.

She said the beleaguered Cook Strait ferry project had been a problem for years with cost blowouts.

“It wasn’t just me who walked into a dog’s breakfast.”

On next week’s Official Cash Rate announcement, Edmonds said she hoped for a cut.

“It’s tough times. When I look at the GDP figures and the unemployment figures, they’re clashing against each other.”

She expected a 25 basis point cut but said a 50 basis point cut would be better.

“The people in this room understand that I have to stay in my lane,” Willis joked when asked about the cash rate.

Asked if she preferred working with Winston Peters or David Seymour, she said of National’s coalition partner leaders: “I love working with them both. Both of them challenge me in new and peculiar ways.”