Luke Bradford, Nick Leggett, Steve McCracken, and Katherine Rich: Industry Leaders' key hopes for Budget 2026

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The Mike Hosking Breakfast 5 min 5 speakers 4 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Mike Hosking 0:00
Right, let's get into everyone's favourite Budget Day exercise. What do we want from Nicola? $2.1 billion operational allowance. That's new money, by the way, as far as health goes so far. $180 million allocated to the Otago District. $35 million for the ambulances. $15.5 million for children's palliative care. Dr Luke Bradford is the Royal New Zealand College of GPs President and is with us. Luke, very good morning to you. Morning, Mike. Given the overarching state of things, high hopes or not?
Luke Bradford 0:24
Look, we accept that we're in a constrained economy and any investment needs to be able to show genuine impacts for the population and ideally even contribute to economic recovery.
Mike Hosking 0:34
The reallocation thing that seems to be a theme this year, in other words, take money from one area, give it to another, could that be applicable in health?
Luke Bradford 0:42
Yeah, it needs to be.

What are the health leaders' expectations for Budget 2026?

Luke Bradford 0:44
We currently invest 6% of vote health in primary health care. The OECD average is 14%. As a result, what happens is people have to pay higher and higher sums to access it or defer doing so, and we're unable to pay the expert staff to come into it, and we can't attract them. So we have a bit of a bad scenario there.
Mike Hosking 1:04
Right, so if they can do one thing, that would be the thing you would want them to address?
Luke Bradford 1:08
Yeah, absolutely. You start over successive elections, shifting the proportion into primary care from secondary.
Mike Hosking 1:15
All right. Well, I wish you the best with that today and see how it goes. Luke Bradford out of the Royal New Zealand College of General Practitioners. Infrastructure, the capital allowance now sits at 5.7. That's up originally from 3.5. Too many projects, not enough dough, I think, is the basic problem with that. Nick Liggett is with the Infrastructure New Zealand crowd and he's with us. Nick, morning to you. Hi, Mike. What do you want?
Nick Leggett 1:35
Well, from our perspective, infrastructure in this budget just can't be judged on how much money is going to be announced. It has to be judged on whether it improves New Zealand's ability to deliver infrastructure and get value for money. We've had real challenges here.

What challenges does the health sector face in funding?

Nick Leggett 1:50
That's because there's often a stop start. What we're looking for is some consistency and some clarity and getting... funded projects from a pipeline into the market. We know it's tough at the moment, but we don't want to see a stop. We've got to have that consistency that goes through. There are some good announcements already. If you look at Defence, if you look at the courthouses in Rosarua lately, yesterday, but we've got to focus on that efficiency of delivery so we keep people in jobs and who are ready to deliver when the uptick comes. And just one last thing, that operational allowance, we've got to focus and invest more on the assets we already own. We know that things are going backwards in so many different parts of infrastructure assets and you've got to maintain them, you've got to build some resilience into them so they don't fail earlier because that just ends up costing more money.
Mike Hosking 2:43
Very nicely put. Well done, Nick. Nick Liggett, Chief Executive of Infrastructure New Zealand. Meantime, education, big focus, $131 million so far, teaching the basics across primary and intermediate. $212 set aside to extend the school lunches through 2027. Steve McCracken is the Secondary Principals Council Chair, and he's with us. Steve, very good morning to you. Good morning, Mike. There's a bit of buzz about that it could be your day. Do you feel that? Are you hearing that?
Steve McCracken 3:07
We're really hopeful, Mike. The Minister of Education has already indicated that this is going to be a secondary-focused budget, so... To continue that world-class leading education system, we really do need that. We fundamentally have three asks for us, and that's increase in operational funding for schools. That's been a 12% decrease since 2018, and so we're hoping to rectify some of that this afternoon when the budget gets announced and continue with that really positive education system. We're hopeful for a significant injection into the senior secondary curriculum areas.

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