Podcasts Other The Mike Hosking Breakfast Nicola Willis: Finance Minister on relief measures for businesses struggling with high power prices, public servant pay increases

Nicola Willis: Finance Minister on relief measures for businesses struggling with high power prices, public servant pay increases

Published: Aug. 7, 2024, 8:46 p.m.

The Government could be importing liquefied natural gas to relieve businesses struggling with high power prices.\xa0

An Auckland paper recycling pulp mill with 75 staff is proposing to close.\xa0

Ohakune's Winstone pulp and timber mills are also at the brink of closure,\xa0putting 300 jobs on the line.\xa0

Both blame sky rocketing increases in power prices over the years.\xa0

Finance Minister Nicola Willis told Mike Hosking she understands the Government may have to go to drastic measures like importing gas to give relief for businesses.\xa0

She says she's hearing there's a lot of pain and pressure being felt by businesses because of these high prices.\xa0

Willis is also tempering expectations for public servant pay increases.\xa0

The Government's written to public sector agencies ahead of collective negotiations saying they must keep spending reined in, and any increases should be based on performance.\xa0

It follows thousands of jobs being cut in the sector to meet Government budget cuts.\xa0

Willis told Hosking agencies need to be realistic about the challenges in the economy.\xa0

She says in the past public sector pay increases have risen ahead of those in the private sector, and that's not right.\xa0

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