Category: Radio New Zealand

Source: Radio New Zealand

Finance Minister Nicola Willis is doubling down on her “disciplined” plan for returning the books to surplus – despite new forecasts delaying it by yet another year.

And she took aim at those advocating for sharper spending cuts, such as the Taxpayers’ Union, warning that that prescription would deliver “human misery”.

“We are sticking to our strategy,” Willis said. “Not over-reacting to movements in the forecasts.”

Treasury’s half-year update, published on Tuesday, predicted a return to surplus in 2029/30 – a year later than its forecasts in May. That’s using the coalition’s new OBEGALx calculation which excludes ACC.

“I wouldn’t get too wound up about small changes,” Willis told reporters. She said she would continue to aim for a surplus by 2028/29.

“We are on target to return the books to surplus faster than Australia, the United Kingdom, Canada and many other advanced economies, while maintaining a prudent debt position.”

In her budget policy statement, released alongside Treasury’s update, Willis confirmed she would stick to her previously signalled operating allowance of $2.4 billion.

Existing pre-commitments meant that left just $1b a year on average for spending on new initiatives in next year’s Budget.

“Most agencies and ministers will need to plan to manage service pressures and other commitments with little or no additional funding,” Willis said.

Willis noted the downward revisions to forecasts were “relatively modest” but acknowledged they followed a similar trend over the past two years due to factors “outside the government’s direct control”.

The Taxpayers’ Union last week launched a campaign calling for Willis to cut public spending and debt more aggressively, accusing her of simply continuing the previous Labour government’s “sugar-rush economics”.

It prompted Willis to throw down the gauntlet, challenging its chair Ruth Richardson – a former finance minister – to debate her “anytime, anywhere” on the government’s finances.

The two have since been locked in negotiations over the conditions for the debate, including [

https://www.rnz.co.nz/news/political/581707/ruth-richardson-still-willing-to-debate-nicola-willis-after-dispute-over-venue time, location and moderator.]

Speaking on Tuesday, Willis said she had no update on that showdown but was still up for the debate.

“The offer is there. Thursday afternoon, I’m available. Friday morning, I’m available. I don’t really care who the moderator is. If they want to turn up, I’m ready.”

Willis explicitly nodded to the “shorter, sharper fiscal consolidation” being advocated by the Taxpayers’ Union.

She said while that would speed up the return to surplus, it could also hurt frontline public services and depress already-weak demand in a recovering economy.

Willis pointed out that the Taxpayers’ Union proposed scrapping all Working for Families tax credits, reducing recipients’ average weekly incomes by about $180.

She said beneficiaries and low-income families would bear the brunt of that change, delivering “a level of human misery” that she was not prepared to tolerate.

Willis said, on the other hand, Labour’s approach to spending was “reckless” and would further delay a return to surplus.

She said the government had delivered about $11b a year in savings during its term.

“Without this disciplined approach, this year’s deficit would be $25 billion and debt would be on track to blow out to 59 percent of GDP,” she said.

Willis promised to release more details to prove that: “We have the receipts.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• Return to budget surplus delayed a year until 2030
• Deficits forecast to be bigger because slow economic recovery
• Growth forecast below 1 pct this year rising to more than 3 pct in 2027
• Debt expect to peak later and higher
• Finance Minister Willis says further spending discipline needed

The government’s financial position is looking worse for longer with a delay in getting to surplus and bigger deficits, according to new Treasury forecasts.

The Half Year Economic and Fiscal Update (HYEFU) showed the expected deficit for the year to next June would be $13.9 billion, $1.8bn worse than forecast in May, with no surplus now forecast until 2029/30.

The downward revisions reflected a slower economy, lower tax take, higher debt costs, but steady expenses.

Finance Minister Nicola Willis said the government was continuing to repair the books and the revisions should not be over emphasised.

“It’s the path to surplus that counts.”

She said the government was looking for the economy to get “fresh air in its lungs” and recover strongly from 2027 onwards which would boost the tax take.

Willis said the government would run a tight financial regime, with the amount of money available for new spending next year to remain capped at $2.4b, but it was determined to get back to surplus a year earlier than Treasury’s forecasts.

The Treasury forecasts generally showed an economy hitting a peak of growth at 3.4 percent in 2027 before easing back to around 2.5 percent for the next three years, while inflation eases back to around 2 percent over the forecast period, with unemployment also easing below 5 percent.

Treasury said it was basing its forecasts on a pick up in housing, an increase in migration, and continued solid export trade, but saw risks to its forecasts in both directions.

The positive risks included the economic recovery being quicker and stronger than anticipated, while the downside risks were that the recovery was softer as consumers and businesses remained cautious.

Net debt was forecast to peak at 46.9 percent of GDP in 2028/29 before edging lower from 2030.

The Debt Management Office reduced the borrowing programme by $5bn over the next two years, but increased it by $8bn in total in 2027 and 2028.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Finance Minister Nicola Willis is doubling down on her “disciplined” plan for returning the books to surplus – despite new forecasts delaying it by yet another year.

And she took aim at those advocating for sharper spending cuts, such as the Taxpayers’ Union, warning that that prescription would deliver “human misery”.

“We are sticking to our strategy,” Willis said. “Not over-reacting to movements in the forecasts.”

Treasury’s half-year update, published on Tuesday, predicted a return to surplus in 2029/30, a year later than its forecasts in May. That’s using the coalition’s new OBEGALx calculation which excludes ACC.

“I wouldn’t get too wound up about small changes,” Willis told reporters. She said she would continue to aim for a surplus by 2028/29.

“We are on target to return the books to surplus faster than Australia, the United Kingdom, Canada and many other advanced economies, while maintaining a prudent debt position.”

In her budget policy statement, released alongside Treasury’s update, Willis confirmed she would stick to her previously signalled operating allowance of $2.4 billion.

Existing pre-commitments meant that left just $1b a year on average for spending on new initiatives in next year’s Budget.

“Most agencies and Ministers will need to plan to manage service pressures and other commitments with little or no additional funding,” Willis said.

Willis noted the downward revisions to forecasts were “relatively modest” but acknowledged they followed a similar trend over the past two years due to factors “outside the government’s direct control”.

The Taxpayers’ Union last week launched a campaign calling for Willis to cut public spending and debt more aggressively, accusing her of simply continuing the previous Labour government’s “sugar-rush economics”.

It prompted Willis to throw down the gauntlet, challenging its chair Ruth Richardson – a former finance minister – to debate her “anytime, anywhere” on the government’s finances.

The two have since been locked in negotiations over the conditions for the debate, including [

https://www.rnz.co.nz/news/political/581707/ruth-richardson-still-willing-to-debate-nicola-willis-after-dispute-over-venue time, location and moderator.]

Speaking on Tuesday, Willis said she had no update on that showdown but was still up for the debate.

“The offer is there. Thursday afternoon, I’m available. Friday morning, I’m available. I don’t really care who the moderator is. If they want to turn up, I’m ready.”

Willis explicitly nodded to the “shorter, sharper fiscal consolidation” being advocated by the Taxpayers’ Union.

She said while that would speed up the return to surplus, it could also hurt frontline public services and depress already-weak demand in a recovering economy.

Willis pointed out that the Taxpayers’ Union proposed scrapping all Working for Families tax credits, reducing recipients’ average weekly incomes by about $180.

She said beneficiaries and low-income families would bear the brunt of that change, delivering “a level of human misery” that she was not prepared to tolerate.

Willis said, on the other hand, Labour’s approach to spending was “reckless” and would further delay a return to surplus.

She said the government had delivered about $11b a year in savings during its term.

“Without this disciplined approach, this year’s deficit would be $25 billion and debt would be on track to blow out to 59 percent of GDP,” she said.

Willis promised to release more details to prove that: “We have the receipts.”

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• Return to budget surplus delayed a year until 2030
• Deficits forecast to be bigger because slow economic recovery
• Growth forecast below 1 pct this year rising to more than 3 pct in 2027
• Debt expect to peak later and higher
• Finance Minister Willis says further spending discipline needed

The government’s financial position is looking worse for longer with a delay in getting to surplus and bigger deficits, according to new Treasury forecasts.

The Half Year Economic and Fiscal Update (HYEFU) showed the expected deficit for the year to next June would be $13.9 billion, $1.8bn worse than forecast in May, with no surplus now forecast until 2029/30.

The downward revisions reflected a slower economy, lower tax take, higher debt costs, but steady expenses.

Finance Minister Nicola Willis said the government was continuing to repair the books and the revisions should not be over emphasised.

“It’s the path to surplus that counts.”

She said the government was looking for the economy to get “fresh air in its lungs” and recover strongly from 2027 onwards which would boost the tax take.

Willis said the government would run a tight financial regime, with the amount of money available for new spending next year to remain capped at $2.4b, but it was determined to get back to surplus a year earlier than Treasury’s forecasts.

The Treasury forecasts generally showed an economy hitting a peak of growth at 3.4 percent in 2027 before easing back to around 2.5 percent for the next three years, while inflation eases back to around 2 percent over the forecast period, with unemployment also easing below 5 percent.

Treasury said it was basing its forecasts on a pick up in housing, an increase in migration, and continued solid export trade, but saw risks to its forecasts in both directions.

The positive risks included the economic recovery being quicker and stronger than anticipated, while the downside risks were that the recovery was softer as consumers and businesses remained cautious.

Net debt was forecast to peak at 46.9 percent of GDP in 2028/29 before edging lower from 2030.

The Debt Management Office reduced the borrowing programme by $5bn over the next two years, but increased it by $8bn in total in 2027 and 2028.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

New Zealand’s video game sector is growing rapidly while much of the global industry is stagnating, according to an international expert.

This year’s annual survey by the NZ Game Developer’s Association put the sector’s pre-tax income at $759 million, up 38 percent from the year before.

Kate Edwards, the executive director for the International Game Developer’s Association, told Nine to Noon that New Zealand’s growth was making waves internationally.

“You’ve got a nice ecosystem that is well supported by the government, you’ve got an education system that’s supplying talented people going into the games industry,” she said.

“As far as sustaining that level of growth, it’s possible. That’s one thing that I think makes New Zealand stand out right now is it’s seeing that growth in the face of an industry that has not seen growth, at least internally.”

She said a number of major game companies around the world had bitten off more than they could chew during the Covid-19 pandemic.

“During Covid-19 a lot of game companies ramped up, they hired a lot of people, because during Covid-19 we saw a huge boom in gameplay because people were stuck at home… A lot of people started playing games for the first time,” she explained.

“A lot of companies mistakenly thought this wasn’t going to end, so when things went back to normal a lot of companies had to downsize.”

New Zealand’s gaming industry was still young and the vast majority of studios would be considered “indie” or “double-A” compared to major international publishers like PlayStation, Microsoft and Nintendo as “triple-A” giants, Edwards said.

But she explained that “indie” and “double-A” studios were seeing the most growth and success in 2025.

“Let’s take some recent examples that have been very successful, Clair Obscur: Expedition 33 which swept The Game Awards just a few days ago. Clair Obscur made by about a 20 person team in France,” she said.

“Or even the year before, the game Balatro which just went crazy in terms of both popularity, sales, awards it got, that was made by one individual in Saskatchewan (in Canada) who still remains anonymous. So the scale of the studio is not really the [measure] of success.”

Christchurch-built indie game Dredge achieved massive success in 2023 despite being made by just four people.

Some games would have a relatively short life-cycle, with developers moving on to sequels or other projects, while others would persist for several years at a time, Edwards said.

“Certainly people like things new, [Clair Obscur and Balatro] are examples of games that are very new and very fresh… At the same time, a lot of companies have had tremendous success with the long tail of an IP that’s very popular,” she said.

“Look at some of the franchises like Call of Duty and Battlefield, games like that which have been going on for decades now.”

New Zealand-made online game Path of Exile was released in 2013 and had maintained a steady player-base for over ten years before its sequel, Path of Exile 2, released to even greater success last year.

Kate Edwards drew parallels with Finland’s game industry, which was experiencing similar success.

“I see a lot of similarities and parallels there, which is a really good thing because Finland has basically used their national identity as a driving force to say ‘Finnish game developers are the best in the world,’ well I think New Zealand developers are on par with that as well,” she said.

“If they want to lean into national identity as a cohesive force… Because I think that’s the key, among the creative sectors… There needs to be that sense of cohesion that we’re all in this together because ultimately we’re seeing trans-media and the crossover of all these properties, IP in games being turned into film and TV and vice versa, there’s so much room there to work together.”

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand