Kerre Woodham Mornings Podcast

Well, we were a little in advance of the day yesterday, weren't we? If you were with me yesterday, I was looking at the armed forces lowering their standards to try to attract more people into the services. They're leaving in droves, finding it very hard to recruit new people, men and women, to join the services. And instead of lowering standards, I said, why not make the Defence Force more attractive as a career? Address the poor pay, the substandard housing and the lack of opportunities for career advancement for servicemen and women to stop them leaving in their legions. And what do you know? Twelve hours later they have.   A huge investment into our services, $12 billion over the next four years for a modern combat capable New Zealand Defence Force, $9 billion of that 12 is new money. Where is it going to come from? Who knows? All will be revealed. It's an unprecedented investment into services and it will certainly bring them into the 21st century. Morale must have gone through the roof. So to the grandad that texted in yesterday and said we've just encouraged our grandson onto a Pathways Programme into the Navy, have we done the right thing? This time yesterday morning, no. Today? Abso-bloody-lutely!    The Defence Capability plan released yesterday afternoon will see all sorts of things. It will see the ailing Boeing 757s replaced – that'll cost between $600 million to $1 billion. Other smaller vehicles, including light armoured vehicles, will get around the same – $6 million to $1 billion in funding. The maritime helicopters will be replaced, that'll cost $2 billion plus. There'll be uncrewed autonomous vessels. There'll be javelin anti-tank missile upgrades, enhanced strike capabilities, long range remotely piloted aircraft, space capabilities. You name it, Uncle Tom Cobbley and all. The Governments chosen not to replace the two Anzac frigates, Te Mana and Te Kaha, certainly not in the first part of the plan. Instead, they're going to spend around $600 million to keep them going.  Former Defence Minister Ron Mark says he sees NZ First’s hand in the defence commitment. He said there would have been a lot of nudging, a lot of feeing on, a lot of encouragement from NZ First, and he told Mike Hosking this morning that this significant commitment to our defence will only enhance our standing with our long term allies.   “This will play well with our strategic partners globally. I mean I'm thinking right now ASEAN, FPDA, and the Indo Pacific. I'm thinking of security comfort that the South Pacific Defence Ministers will get. Five Eyes also, and NATO, can't forget NATO. But it's also going to enhance the Prime Minister and the Minister of Foreign Affairs ability to secure our economic future. You can't have prosperity without security and right now we're living in possibly the most insecure times that we've seen since the Second World War.”  Amen to that. He also told Mike that he wanted to get the contract signed as soon as possible so that in the event of a Labour/Greens coalition there wouldn't be a U-turn on this defence commitment. But Labour leader Chris Hipkins said he broadly agreed with the plan as it stood on Monday. He was interested in seeing how it would be paid for, as indeed are we all, but what would he care about that? Didn't bother him in the past where the money came from. He basically sees an increase in defence spending as an extension of Labour's 2019 plan, and they did put in a considerable sum of money, again, probably as part of the coalition commitments.   I guess when you see Chris Hipkins saying he broadly agrees with it, political leaders with an ounce of experience and pragmatism, who are not blinded by ideology, understand that the world is indeed a precarious place. We have to be willing and prepared to play our part in helping ourselves and helping our friends, and with that commitment yesterday we're certainly showing that we're willing to do so.  See omnystudio.com/listener for privacy information.

I find it incredible that within a few days of a report into the sinking of the Manawanui - a damning report that revealed the crew and the Commanding Officer of the Navy ship were under trained, ill-prepared, not up to the job, the boat wasn't up to the task it was doing when it grounded on a Samoan reef - we learn that the New Zealand Defence Force (NZDF) has lowered its standards to make it easier for people to apply for a job. This is an RNZ story and documents obtained by RNZ show that last year the Defence Force quietly removed some entry requirements for NCEA levels 1 and 2, which you would have hardly thought were the most onerous of qualifications to get. To apply to train as an army combat specialist, an auto technician, a plumber, a Navy diver and logistics specialist, and an Air Force firefighter- among other roles - you'll now need three years of high school up to year 11, you don't have to pass Level 1 credits. The Defence Force says the changes prompted a surge in applications in 2024, however, it's unclear whether that surge is continuing or whether it has had a marked effect on enlistment numbers. The drop in standards - because however you dress it up, that's exactly what it is - came about because people were leaving the army in droves and bosses needed to get boots on the ground however they could. There's a great piece in North and South Magazine from 2023 looking at just this problem, the attrition within the Army and the decline in standards and the decline in it being an attractive career option. More than one in 10 military personnel left the organisation in 2023. In the interview with North and South, Chief of Defence Force Air Marshall Kevin Short, estimated that the attrition rate for the most skilled personnel was even greater, somewhere between 20 and 30 percent. So you're losing the experienced people, those who are able to be good leaders, they're going. It's almost certainly higher now. Short said “We cannot sustain that loss.” Then defence Minister Peeni Henare said these are some of the worst rates the Defence Force has seen in its history. The consequences of that, the Royal New Zealand Navy idled three of its nine ships for lack of people to crew them. A recent briefing to Henare explained that the NZDF was experiencing significant fragility and presumably the new Defence Minister, Judith Collins, has got that briefing as well. When asked whether Defence Force could maintain a peacekeeping operation in the South Pacific - the organization's most important task after after civil defence - Short says it would struggle. And that's despite the most significant boost to military spending in living memory. However, the boost -  that money  - was all spent on new planes, ships and vehicles. Money needed to be spent on them, you couldn't keep some of those planes in the air and the dear old Manawanui was bought and that disappeared. The problems causing the mass exodus of personnel weren't addressed. And that is the poor pay - they're about 7% to 16% percent less than civilian counterparts - substandard housing, the lack of career advancement and the lack of leadership. So those are the problems, that is why people are leaving. They can't see any way to advance their careers. It used to be a great career option - if you wanted to get you go to university, if you wanted to learn a trade, you'd join the forces, you'd have subsidised housing, you'd put in your service to the country, and in return you'd have a great career. You'd have options after you've done your time. If you decided to leave, you could go into Civvy Street, you'd be snapped up in no time because they knew that training was great, that you'd be a benefit to any organisation. That's just no longer there. The reason why people are leaving is the poor pay, the substandard housing, the lack of career advancement, the poor leadership. And that simply hasn't been addressed, other than to dumb down, lower and compromise standards. And we've seen what happens when you do that. Loose lips might sink ships, but so too do loose standards and loose training. See omnystudio.com/listener for privacy information.

Backyard granny flats are about to get bigger, and easier to build. The Government's announced it's going further to ease construction regulations, allowing for an estimated 13-thousand new flats to be built without consents. The proposed 60 square metre maximum is now increasing to 70. Building and Construction Minister Chris Penk, says removing these barriers is critical for increasing housing supply. Newstalk ZB's resident builder Pete Wolfkamp talks to Kerre Woodham.  LISTEN ABOVE. See omnystudio.com/listener for privacy information.

The Access and Choice Programme, biggest investment in mental health in a generation, has now been in place for five years. The Mental Health and Wellbeing Commission released its final report on the programme rollout yesterday. The programme was funded from the 2019 wellbeing budget. You'll remember that, where more than a billion dollars, nearer to $2 billion, was committed to mental health support, to provide support for ‘mild to moderate’ needs relating to mental health and problematic substance use or gambling in primary care and community settings. That’s the official name for it. So you turn up to your GP, the GP says your corporeal self is not the issue, you need to shore up your mental wellbeing and instead of sending you away and then you have to make an appointment and wait, they can just hand you over to a mental health worker who's parked up right next door. It’s is a really sound idea in principle.   Did it work? Is it working? The answer appears to be, looking at the report, up to a point, yes, it is. The number of people seen per year by services has increased steadily over the last five years to more than 207,000 for the 23/24 financial year, but it does fall short of the programs target of 325,000. CEO of the Mental Health and Wellbeing Commission, Karen Orsborn defended the program on the Mike Hosking breakfast yesterday and says the program is achieving what it's set out to do.   “It does work. And we've heard some really, really positive feedback from the people who use these services. And so it is working for many people, it's just not getting to the number of people that it really needs to. And some of this is the way the service was designed – so having people in individual practices and people being able to access on the day and that's, there's not a steady flow of people always needing those services. So what we also need to use is some of the digital virtual tools to make sure that people are being fully utilised across the country. So there are some strengths in the model, but there's also some areas that need to improve.”  And that's pretty much what the Minister for Mental Health Matt Doocey said when he spoke to Early Edition yesterday. He said that when he was in opposition, he was broadly supportive of the Access and Choice Programme, but since becoming Minister, he's seen ways to improve it and to broaden its reach.   “Looking forward, I think part of the solution is going to be digitising the Access and Choice Programme, shifting it online so that will enable the staff to have higher utilisation rates and see more people. What I want to see is that programme rolled out further. We want to hit its target of seeing 325,000 people. Not only that, one of my first targets, I've set five targets for mental health —first time in New Zealand would have mental health targets— is for people to be seen within one week of the service, so I want more people to be seen and seen quicker.”  I guess the questions I have are, given the conversations we've had around the lack of support for parents looking for help for their children, for people looking for help and dealing with their mental wellbeing is, is it fit for purpose? Are you able to access the help when you need it?   When it comes to the substance abuse, that's one aspect of mental health and wellbeing. When it comes to the problem gambling, it's another, when you've got children who are in pain that's a whole other area. When you've got people who are just struggling with the day-to-day life, that's a whole other area as well. There are so many different ways, just as there is with physical ill health, that you can be mentally unwell. Are the services there for those who need it across the broad spectrum? See omnystudio.com/listener for privacy information.

Slow and steady improvements in mental health and addiction service access.   Minister Matt Doocey's latest quarterly target updates have been released and show a small increase in the proportion of people being seen by specialist and primary services in under a month.   However shorter ED department stays are still far below the 95% target, rising slightly to 65%.   Doocey told Kerre Woodham it's a work in progress.   He says he believes there is no silver bullet, but improvements happen through the sum of every action, which is why they now have very clear targets.   LISTEN ABOVE See omnystudio.com/listener for privacy information.

Our Government is asking the US for more details on its new import rules for New Zealand.  Donald Trump's announced 10% tariffs on almost all goods entering the country from around the world – including New Zealand.  Many countries face much higher tariffs, with goods from China being hit by a combined 54% levy.  Trade Minister Todd McClay has confirmed officials are still seeking information.  He told Kerre Woodham that while a trade war isn’t ideal, New Zealand has a very diverse trade strategy, with agreements with most parts of the world.   He says that trade will adapt, and exporters will have other opportunities.   LISTEN ABOVE See omnystudio.com/listener for privacy information.

Kiwis seem to be on the move.  Ministry of Housing and Urban Development data shows that half of New Zealand tenancies are less than two years old, and just 1% have been in place for more than 18 years.  The average tenancy is now 50 months long, up from 28 in 2010, and the median has reached 25, up from 14 in 2010.   Residential Property Managers Association Chairperson Tony Mitchell told Kerre Woodham that it comes down to flexibility – mostly on the part of the tenant.  He says most landlords would prefer a long-term agreement, but tenants prefer the flexibility of shorter contracts as it allows them to move or upsize as needed.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

Labour's leader says the US tariffs on New Zealand aren't justified in a retaliatory sense.   A US chart states New Zealand imposes 20% tariffs on US imports, and Chris Hipkins is wondering if this includes GST, which isn't a tariff.   He told Kerre Woodham New Zealand's one of the world's lowest no-tariff countries.  Hipkins also says New Zealand won’t just be impacted by the tariffs directly imposed on us, but we could be hit harder by indirect knock-on effects from the higher amounts Trump is imposing on other countries.   The Labour leader says the party’s learned from its last stint in Government.   Hipkins says the Labour Government tried to do too many things at once, preventing them from doing many things well enough.   He says watching the current Government has made him reflect on another lesson.   Hipkins told Woodham the Government had also spent too much consulting and asking people what they thought, and sometimes people just want them to get on with it.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

Here we go again – the America’s Cup. How many times have you heard the debates for and against the America’s Cup? The Government, as you will have heard, has declined the opportunity to invest in hosting the America's Cup in 2027 and the usual arguments are raging over the wisdom or otherwise of that decision. Tātaki Auckland Unlimited (TAU) chief executive Nick Hill said it was with great disappointment that they were confirming that Auckland would no longer be bidding to host the 2027 America's Cup, explaining that Auckland's bid was contingent on a three-way funding partnership between Auckland Council, central government, and the private sector.   MBIE informed TAU that the government is unable to provide the funds required and, on that basis, he said, he bid cannot proceed. He said the situation illustrates the need for a long-term, sustainable funding model in New Zealand to support major events, and there, I would agree. Rather than having it on an ad hoc, piece meal, “hey, what about this guys?” kind of a basis, having some sort of structure to provide funding for major events as they come along would be a very good idea. Viv Beck, from Auckland's Heart of the City, also expressed her disappointment ruing a missed opportunity.   “The reason it's so disappointing is it's ripe for the picking. I mean, we've got the infrastructure, the economic benefits would be there and if there had been quicker action on finding alternative funding. I mean we understand that there are other priorities for the government, but growth is also a big opportunity, a big priority and you know the reality is that the GST alone could pay for that money. So I think with some imagination and will and determination it could have been a different result.   “We know we don't compete internationally now. Often, we don't, we're a small country, we get that. But I think we do have to have the energy and drive and will to try and find ways to actually grow this, because events are a great way of attracting people here. It's not just a one-time wonder that people come and have a great time. I mean the benefits from trade and jobs, international profile. You look at Barcelona. I mean, imagine if we had that in 2027, something along those lines at a time where we really do need to have something that actually excites people, that we actually are growing and not just full of problems.”  Yes, yes, yes. But at risk of stating the obvious, we aren't bloody Barcelona, are we? We're not in the middle of Europe, surrounded by nations who are just a fair wind filling a spinnaker away. We're at the bottom, next stop, Antarctica. The last time New Zealand hosted our economy was left $293 million worse off. That was the 36th America’s Cup in 2021, and that was according to an official cost benefit report. Auckland's economy alone was left with a financial deficit of $146 million, with a financial return of 72 cents back for every dollar put in. I am a financial and economic numpty, but even I can see that that does not make sense.   To be fair, we were severely hampered by Covid-19, and according to the Trevor Mallard and the Clarke government – they crowed about the 2003 event, they said that generated around half a billion dollars of economic activity into the New Zealand economy which made the investment of around $10 million worthwhile. They said back in 2003, an extra 9360 full-time equivalent jobs were created. And while 85% of the extra economic activity was generated in Auckland, there was still a substantial effect in other regions as international visitors travel to other parts of the country.   That was 22 years ago. The world is a vastly, vastly different place. Right now, an America’s Cup is a nice to have. It would be lovely, it feels great. I've been in Auckland for a number of Americas Cup’s, and they were fantastic, feel-good affairs. They boost morale, and the bars and restaurants do a roaring trade, and everyone with a bit of cash has a jolly good time. It's an absolute jolly. But then I'd like to put a pool in the backyard too, and I think ultimately it would have economic benefits, ultimately it would pay off. I could make the case that if I put in the money now, then I could put in the pool and get the pay off later. Well, except it's a nice to have right now. There are other priorities, and I would say the Government is absolutely damned if it does and damned if it doesn't.   This is the price we pay for spending up over the last few years. I'm sure we could find the money. Admittedly, this Government doesn't have Grant Robertson's knack of finding millions down the back of the couch – he always seemed to pop up with $460 million just when it was needed. But what do the optics look like? Cutting the ribbon at a pared down Dunedin hospital while Auckland has a knees up on-board boats and drinking champagne, sure that's going to look fantastic, isn't it? Labour would be bleating away about “unnecessary expense” and “look at the waiting lists”. They're absolutely damned if they do, damned if they don't.   We were warned. Wise souls told us on the show, during Labour’s hoot's wahay spend up that ultimately, we would have to pay the piper, and this, turning down the opportunity to host an America's Cup is what it feels like. See omnystudio.com/listener for privacy information.

Auckland's chance of hosting the next America's Cup has gone the way of the wind.  Auckland Unlimited confirmed yesterday that the city is unable to proceed with its bid for the 2027 event, as the Government isn’t contributing any funding.   AUT Sailing Professor and former world champion sailor, Mark Orams told Kerre Woodham that the professionalisation of sport has resulted in finances playing a more significant role when it comes to decision making.  He says New Zealand lagged behind the trend as much of our sport remained amateur, but sailing has now caught up to the transition.  “The days of hosting the America’s Cup or having Team New Zealand sponsored by a family of five New Zealand sponsors are now gone.”  “The costs associated with both mounting a competitive campaign and hosting a major international sporting event are just beyond our ability to fund within New Zealand.”  LISTEN ABOVE See omnystudio.com/listener for privacy information.