That’s more than just good vibes. Treasury is forecasting 1.7% economic growth this year, rising to 3.4% next year, although events in the Middle East will force some recalibration.
For many farming families, Fonterra’s news has also helped. In April, $3.2billion flows back to shareholders and unit holders — an average of $400,000 per Fonterra farmer. That’s debt paid down, equipment upgrades, kid’s school fees, dinner at the pub. Combined with a forecast milk price of $9.70 per kilogram of milk solids, this is the kind of season where money starts moving again — through local businesses, local tradies, local towns.
But events beyond our borders are significant.
Conflict in the Middle East is having a global effect, and Kiwis are feeling it at the pump. Rising fuel prices hit every trip, every delivery, every time you fill up. They hit rural families harder, because there’s no alternative when town is 20 or more minutes away.
The government is taking this seriously. A ministerial group has been set up to monitor the situation, and support for those who need it most is on the way.
New Zealand has close to seven weeks fuel supply, with more coming. Some local stations have experienced brief outages — reflecting a local demand spike, not national supply shortage.
The government’s also taken the practical step of allowing fuel that meets Australian specifications into the New Zealand market. The more supply options we have, the harder it is for disruption to bite. Countries with flexibility keep fuel flowing. We need to be one of them.
Looking further ahead, there’s a practical investment being made, even if EVs aren’t your thing. The government’s backing 2500 new public EV chargers through $52.7million in zero-interest loans to ChargeNet and Meridian. EVs aren’t for everyone, and in rural areas practicalities don’t always stack up.
But for those who have the option, the biggest barrier has been lack of chargers. This reduces that barrier and means New Zealand’s slightly less exposed to global fuel shocks. A diverse transport mix is good for everyone’s energy security, whatever you drive.
Just as the previous National-led government did with ultrafast broadband, we’re taking action to reduce barriers so regional New Zealand has better access to technology.
Closer to home, there’s been the important health news of decision-making within Health New Zealand being delegated back to regional and district level from July, so hospitals can hire staff without waiting for sign-off from Wellington. For communities like ours, decisions closer to patients is exactly the right direction.
The world is increasingly volatile, which highlights how good our part of it is, but it takes ongoing work from all of us to keep it that way. The government’s committed to doing all it can with the levers available, and I want to thank everyone reading this for the contribution you’re making to your family and community.
