Kerre Woodham Mornings Podcast

KiwiRail says the Government needs to better consider the future after pouring cold water on Cook Strait ferry upgrades.  Contracts were already underway for new ferries and port infrastructure, but Finance Minister Nicola Willis says it's now too expensive, after blowing out to over $3 billion.  Chief Executive, Peter Reidy, told Mike Hosking that the upgrades would've benefited the economy in the long run.  He says it's about being a future focused economy, supporting our import and export sector.  Infrastructure New Zealand Chief Executive Nick Leggett joined Kerre Woodham to discuss the situation.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

Surprise at today's negative GDP figure. It fell 0.3% in the three months to September, a switch from a revised 0.5% increase for the three months to June. Stats NZ originally reported that quarter as a 0.9% growth. Herald Business Editor at Large Liam Dann told Kerre Woodham that it's much gloomier than most expected. He says most economists were predicting at least some growth. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Te Kōti o Timatanga Hou. The Court of New Beginnings.  The court writes off charges for recurring low-level crime and helps the homeless get off the streets and back into work.   They meet once a month in Auckland, and have recently celebrated their 13th anniversary.  Coordinator Carmel Claridge joined Kerre Woodham to chat about the court and the impact it has.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

One of New Zealand’s oldest boarding schools is set to reopen.  Te Kura o Tīpene/St Stephen’s School on Auckland's Bombay Hills is set to reopen in 2025, after being closed for 23 years.  The school will be led by former pupil and principal, Nathan Durie, and his wife Yvette McCausland-Durie.  Nathan Durie joined Kerre Woodham to chat about the reopening.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

Otorohanga College is tomorrow joining the roll-call of schools shutting its boarding facilities. The Waikato school's board is putting it down to a lack of Education Ministry financial support. Losses over the past four years have totalled 600-thousand-dollars. It's also well below break-even for enrolment, with only about 25 students signed up to board next year. College Board Chair, Duncan Coull told Kerre Woodham numbers don't look likely to improve.   LISTEN ABOVESee omnystudio.com/listener for privacy information.

Only last Friday I think it was, we were talking about infrastructure and how New Zealand is one of the most expensive countries in the world to build new infrastructure, and the importance of having a bipartisan approach with a long-term vision, a pipeline that's going to deliver what the country needs over the next 30 or even 50 years.   We had a really good discussion about this.   Interestingly, a week later, an article in the New Zealand Herald today reveals warnings from Treasury that Labour's transport plan was substantially underfunded and undeliverable. Treasury was so concerned that it recommended the ministers drop all the projects from its plan until they could be staged in a way that made them more deliverable, until officials could devise more up-to-date costings.  The fact the previous government proceeded with its plans only backs up the call for a more long-term bipartisan infrastructure pipeline to be in place. But that's not the only surprise when it comes to infrastructure this week, with a more pressing issue being laid at the new government's door. And that is the escalating cost of portside infrastructure needed for Cook Strait’s mega ferries.    Finance Minister Nicola Willis has revealed that the potential cost to the taxpayer is now many times what the Government initially signed up to. The financial situation of this project is extremely troubling, she said. Now Willis has been in a meeting with Kiwi Rail. They have completed a review as to where the project is at and at this stage, she's placing the blame firmly at the feet of the previous government.   “I am concerned that this blowout reflects casual and competence by the outgoing Government and its approach to the scoping, management and delivery of major infrastructure projects” Willis said. All very good and well, but what's done is done right? And we've got to deal with what is in front of us and it's time to move on and find a way to get this vital service up and running.   We need a reliable ferry service. We're a nation of islands, but the connection between the two main islands is pivotal to Kiwis needing to move vehicles between islands. For tourism, for the many businesses that freight their goods between islands, the cancellation, the delays, the breakdowns, quite frankly, they've all just been embarrassing.   Yes, we have new ferries coming and this is excellent news, even if they are still two years away and the first one is running a little bit late, but there is no point in investing in new ferries if we can't get the landside infrastructure set up to support it. Kiwi Rail has reported work on the port side infrastructure on both sides of the Cook Strait is well underway. But there are concerns that there might be insufficient space for rail vehicles to get onto the new ferries, which potentially has implications for ship turn around times.  Now look, I do not like the idea of a cost blowout. None of us do. But I also believe that the project needs to be completed to a standard that makes it future proof for at least the next 30 years. There is no point in getting new ferries that increase passenger capacity by 50%, can carry 40% more trucks, and increase rail capacity by almost 300% if we can't use it to its full potential.   Our government will be much more careful stewards of taxpayers' money, Nicola Willis said. And the question of how to manage the project is an ongoing consideration for the incoming government, she added. And I totally appreciate that. They've got to get their heads around this. They've got the report, it's going to take a little bit of time to get up to speed, even though Nicola Willis has already had a couple of meetings around this. But let's get this issue sorted once and for all.   I don't think I can cope with another summer of depressing stories of ruined holidays, lost productivity and potential disasters. It's going to cost us, but let's just get it done and get it done properly.   See omnystudio.com/listener for privacy information.

I'm quite impressed that Mark Mitchell has made his letter of expectations to the Police Commissioner, Andrew Coster, public.   Of course, it's normal for an incoming Police Minister to outline expectations to the Police Commissioner, a Commissioner, who's often been employed by the previous government. But this is the first time it has been released.   While campaigning, Mitchell was reluctant to back Coster and initially I thought he'd released this letter to poke the bear, to put Coster on notice. And in a way, he has. Even though Mitchell doesn't have the ability to hire or fire the Police Commissioner, that's a job for the Public Service Commissioner, with the final call made by the Prime Minister. So, the reality is that Mitchell is stuck with Coster until April 2025, which is when his term finishes, unless he resigns beforehand.   Mitchell might have put the Commissioner on notice, but by being so open and transparent, which I actually really appreciate, he's also put himself on notice. Not only has he outlined the government's expectations, but he has also stated that he's fully committed to backing the police by providing the tools and resources to restore law and order in our communities.   Mitchell also put his big boy pants on, accepted that he has to work with Coster and is going about it in a constructive and positive way. Mitchell’s determined to see this as a reset, an opportunity to put a line in the sand between the last government's policies, approach to policing, and give Coster the chance to fulfil National's expectations.   He doesn't really have a choice at the moment, Mitchell knows that, but is dealing with it maturely. When questioned by Mike Hosking this morning, he said Coster deserves a chance:  “I think that he deserves a chance. I think that he's had a long career in the police and some of those roles have meant that he's had leadership roles in South Auckland, he's been an AOS Commander. So you know I respect that service and, and he's been given a chance now under a National Government to get out to support his frontline, provide the leadership, and start to deliver on what we want.”  So, is Coster the man for the job to put these ambitious expectations into play? Only time will tell. The public service is, in theory, politically neutral. Coster knows it is his job to fulfil the current government's policies, and these policies are hardly news to him. They were campaigned on long and hard so if he wants the job, and he's up for the job, it's up to him.   We all want to feel safe in our homes, our communities and workplaces. We're hoping that this focus on public safety and victims and real consequences for crime and serious offending, we're really hoping it's going to bring better outcomes. But at the end of the day, it's going to be about resources, and this is something that Police Association President Chris Cahill is concerned about.  “The challenge, of course, is who's going to do all this stuff if we're losing cops to Australia? We'd like to see the word extra rather than just new. We already get 450 new a year, so that needs to be clarified that it's actually extra and not just new. I'll tell you what I want to see.  I want to see the letter of expectations going to the CEO of Health, the CEO of Oranga Tamariki, that they’re going to step in and do their job, ‘cause it can’t just be Police. So, I want to see the same letters, they need to be published as well.”  And look, it makes total sense to involve other departments and take a multi-agency approach to allow the police to get back to the core police work, that's what so many of us are keen to see happen, but only if everyone's on the same page.   If the Ministry of Health or Oranga Tamariki don't have the capacity or resources to deal with these problems, they're just passing the buck with little improvement. And no improvement in outcomes. And we want to feel safe in our homes and our community and our workplace, just like Mark Mitchell has stated.   So, expectations are all good and well, but without the resources to put them in place, the new government risks being all talk and no action. See omnystudio.com/listener for privacy information.

I don't think any of us were hugely surprised to wake up this morning to the news that the latest PISA report shows that Kiwi kids aren't doing so well in maths, and to a lesser extent, science.   PISA, or Programme for International Student Assessment, gives us a gauge on students’ maths, reading, and science literacy in every OECD country and in New Zealand. The report is based on assessing and surveying 4700 students aged 15, across 169 schools, and they did this test in term 3 of 2022.    In the report released overnight there is a slice of positivity. I went looking for it folks! We still rank highly in the OECD for reading and science, but we're still in the middle for maths. So New Zealand's mean reading scores hasn't changed significantly over the 2012/2022 period, but it is lower than it was in 2009 and previous cycles. New Zealand's mean science score is similar to 2018, but lower than it was in 2015, and 2009, and 2006. Maths didn't fare so well, with New Zealand's main mathematics score significantly declining since 2018 and over the long term. Interestingly, there was a large learning loss globally in maths and reading. New Zealand has bucked the trend in reading. See, I'm just looking for all these little slices of positivity.   So we haven't gone too far backwards over the last few years, but there is still plenty to worry about. Because our educational outcomes have been in decline over the last two decades and since we began being involved with this program, and basically it has got to stop.   There are some obvious reasons for this. The PPTA is blaming Covid and our new Education Minister, Erica Stanford, is blaming the way we teach these subjects and at the end of the day, it's not one thing. As a parent you'll probably know this, Covid absolutely did not help.   Interestingly, an Educational Review Office report found that only 19% of principals in 2023 believe their school has recovered from Covid-19 disruptions. Almost half of the 37% in 2021. There is also the approach to teaching, the way we teach, the classroom environment, that modern learning environment, resources and upskilling teachers – it all comes together to play a part, doesn't it? So yes, it is time to revert to the best approaches based on the best scientific evidence to teach our children.   And this is where I do have some hope in what Erica Stanford is offering, saying that there be one hour of math reading and writing a day. I actually think that sort of statement is a bit pointless, because if you ask any teacher, they will tell you they're already doing that through various tasks and exercises. But teach these subjects better, with better approaches as Stanford is promising, and you never know, we could be away.   So yes, let's get on with training teachers and structured literacy and introduce a new curriculum with clear expectations for what children are to be taught each year, that's good for both the child and the parent who's trying to work out where their kid is at and where they may need some help. When it comes to maths, we need to get back to basic mathematical knowledge and keep strategies simple, unless the child shows the need for a different approach.   The only problem, of course, is that changes in the curriculum take time, and gosh, I understand the frustration that teachers will be feeling right now - we've only just finished changing the curriculum and now we're sort of back to square one, we're going to change it again. And even once these changes are made, it may take time to see the impact. So, we actually need to throw all the resources at we can to make these changes as quickly and nimbly as we can.   PPTA Acting President Chris Abercrombie spoke to Early Edition this morning and he had some other solutions as to what was necessary to lift the academic performance of our children.   “I think one of the key things to remember is there needs to be really good professional development to upskill teachers because the PISA’s testing them at 15 years old, so they've had a lot of education by that point. So, we need to make sure our professional development is there for our teachers to upskill them, particularly in the early stages of schooling.”  “There needs to be more support for students with diverse needs. This is a really key example. You know, students who come from more advantaged backgrounds, we know do better than students from less advantaged backgrounds, so we need to put things in place to sort of limit that impact. We know education has become a political football. We've already got the new government talking about rewriting the curriculum that's just being rewritten.  And so those are big issues. To say that it creates disruption in the classroom, it creates disruption in the profession. Rewriting curriculum is a year's long process. It doesn't happen overnight. To then be told three years down the track you need to rewrite it again, it's just incredibly disruptive to the profession.”  Totally understandable, right?   But obviously if it is the best thing for our children, it has to be done. It actually doesn't matter which political party is delivering the change. We know the value of education, at the end of the day, the most important thing is that we do what is best for our children's education. See omnystudio.com/listener for privacy information.

How was your morning commute in your region?   I'm not surprised that Te Pati Māori have chosen the first day of Parliament for the new Government to protest their plans to repeal the many policies that affect Māori. Te Pati Māori has always advocated strongly for their constituents, that's their purpose that's their job, and they take on activism with vigour.    And I understand the concerns Māori have. A lot of positive work has been done over the last 40 years to provide equity and equality for Māori and so you would expect the rollback on policies designed to improve Māori health outcomes, the use of Te Reo on public services, and Oranga Tamariki processes to be a huge concern to Māori.   But have they gone too early? Should we have let democracy and debate take place first before taking to the streets? Every change of government is an awkward time as we go through a period of ideological change, but as we know, not every promise is realised throughout the term, and there are many compromises on the way.   That said, we all have the right to lawful protest - it's part of our make-up. Over decades, we've seen protests by unions, women, LGBTQI+, farmers. We've protested apartheid, wars, nuclear weapons and vaccines, and it would be fair to say peaceful or not, they all created some kind of discomfort and disruption for the country. That's what protests do. And of course, depending on how they affect you, may depend on how much sympathy you have for the cause.   Of course, the aim of this protest is to get the government to reflect on their policy announcements and encourage your positive conversation about how the country can enhance the relationship between Māori and non-Māori. Political commentator Dr. Grant Duncan on Early Edition this morning said the protests will test the Prime Minister's leadership: “These protests, generally in the long run, could come to define his leadership, in fact, because he really has to carry through now with the policies that he's agreed to with New Zealand First and the ACT party. But the question really is, will he just continue fighting his corner or will he reach out and try and create some kind of rapprochement with the Māori party and others?”  “Personally, I would like to see the Prime Minister be a little bit statesman like here, and at least do some listening, try to do some reconciliation because I think that these protests are not going to go away. I would guess this is just the beginning.”  Luxon says he does not believe protests will continue throughout the term, as he believes his Government will earn the support of Māori. So, it feels like Te Pati Māori is beginning this new parliamentary term as they mean to continue, to be honest with you, the swiftness of this protest signals a determination to make themselves heard.   We have the right to protest. It was inevitable they would protest. I'm not sure launching into it until the parliamentary year is actually underway and debate begins is really going to be effective. See omnystudio.com/listener for privacy information.

Twenty-one days until Christmas and about now the pressure of the festive season and how you're going to pay for it might be on your mind. After a challenging year that has seen the price of almost everything rise, will Christmas be business as usual for you this year, or will it be Christmas on a budget?  The cost of living crisis has been with us for a while now, but its impact continues to grow. It was announced yesterday that money withdrawn early from KiwiSaver funds due to financial hardship has doubled compared to a year ago, with more people taking money out before retirement.  The latest figures show the number of KiwiSaver members taking withdrawals increased from 1570 people in October 2022  to 2800 people in October 2023. So, the amount of money withdrawn from KiwiSaver due to financial hardship doubled from $10.3 million in October last year to $21.5 million in October this year. Also, last week, it was announced the number of Kiwis behind on their mortgages spiked back up again in October. There are now 19,200 mortgage accounts passed due in October. That's up 25% year on year. That's an increase of 1.25% of mortgages in arrears in September to 1.29% in October. With the Reserve Bank’s forecast effectively keeping the possibility of one more rate hike in this cycle, and the thoughts that there will be no rate cuts until 2025, there is little relief in sight for those struggling with their mortgages.  Now these increases might feel small. It might feel like a small percentage of those who have them are suffering. But what we are seeing is a trend in the increase of the numbers of people who are suffering from hardship, and that brings us to the cost of insurance. One retiree living in Wellington spoke out over the weekend, saying the nearly 40% increase in his contents insurance policy would mean that he's probably just going to have to risk losing his possessions if his house burns down. The increase is just too much for a pensioner. So he would retain third-party insurance on his car in case he hit a Rolls Royce, but that had gone up 24% too. Now, according to the insurance companies, since Covid-19 hit, it is now more expensive to replace or repair customers' assets. So there's inflationary pressures at play here, an increase in weather related claims and increase in costs being charged to insurers, as reassurers were changing their view of how risky New Zealand is, is also adding to the cost which is being passed on to us, the consumer. Now look,  even before the weather events of this year, many of us have seen some pretty impressive increases in our insurances over the last few years. There are, of course, steps that you can take to lower your premiums. You could increase your excess, for example. But is it getting to the point where you need to make some pretty significant changes to your insurances or get rid of some of them altogether? So we're always told, (this is what sensible people do, you know, financially savvy people do this) We're always told to reassess our insurances each year, aren't we? And to make sure that they're still appropriate for our age or our situation. But I wonder if heading into 2024, you might be taking a slightly more dramatic approach as to what you think is necessary and what isn't.  What insurance policies do you think are important to have? What wouldn't you live with? If the price is getting a bit too high for those policies, how are you dealing with it? Have you thought about getting rid of one or two insurances, or are you looking at doing things like increasing your excess to try and drop the cost of your premium.  Or are you planning on getting rid of some of your insurances in 2024 altogether?    LISTEN ABOVESee omnystudio.com/listener for privacy information.