New Zealand’s Finance Minister says she has “never felt so dependent on the actions and feelings of one administration and its leaders”, as concerns grow about the fuel shock triggered by the US-Israel war on Iran.

And the Prime Minister has called the US President’s foul-mouthed threats to Iran “unhelpful” and the US’ goals and objectives in Iran “unclear”.

Few ships carrying stock have been allowed to pass through the Strait of Hormuz since Iran effectively closed it just over a month ago, in retaliation for the attacks.

That has triggered a global spike in prices at the pump, and New Zealand — wholly dependent on importing refined fuels — has not been spared.

At the weekend, US President Donald Trump issued an expletive-laden threat at Iran, telling it to “open the F*****’ Strait, you crazy bastards, or you’ll be living in Hell” or its civilian infrastructure would be attacked.

He followed that up on Monday (US time) with a claim the “entire country can be taken out in one night”.

The comments come as Foreign Minister Winston Peters heads to the US to meet US Secretary of State Marco Rubio.

Asked about Trump’s comments today, Finance Minister Nicola Willis first was diplomatic.

‘Acting with restraint’
“We actually want to see all parties acting with restraint, moving toward a negotiated solution so the crisis can end,” she told RNZ Morning Report.

“And it’s simply the fact that the longer the conflict goes on, the more severe the impact. And once again, we call on the US, Iran, all actors in this conflict to uphold international law.”

Asked again, she replied: “Well, I have reflected that never have I felt so dependent on the actions and feelings of one administration and its leaders as New Zealand is right now.

“And I see the pain that so many New Zealanders are experiencing as a result of this fuel shock, and I wish for it to end.

“And the sad reality is that it’s not in New Zealand’s hands, that lies in the hands of countries very far away.”

Prime Minister Christopher Luxon, appearing on Morning Report shortly after Willis, said Trump’s rhetoric was “unhelpful”.

“I think the bottom line is that the focus needs to be on not seeing this conflict expand any further. It is critical that the US and Iran find a way to de-escalate. Absolutely critical for the world and certainly for us in New Zealand.

“But, you know, yeah, I mean, unhelpful — because more military action is not necessary.”

‘Comply with international law’
He said he expected “all parties to comply with international law, as you’d expect, and international humanitarian law”.

“It would be an attack on innocent civilians and not something New Zealand should in any way condone.

“Threatening to blow up innocent civilians is not the sort of thing you would expect to see the president of the United States engaging in — it’s totally unacceptable and New Zealand should condemn it.”

Steady as she goes
Willis was resisting the temptation to cut fuel taxes and road user charges (RUC) as prices spiked — particularly for diesel — saying it would make no sense to encourage fuel consumption at the same time as calling for restraint.

According to the Ministry of Business, Innovation and Employment’s (MBIE) latest data national fuel stocks are stable, with sufficient stock levels — for now.

Diesel levels have dipped slightly since the last report, while jet fuel and petrol levels have risen slightly. There is now just 17.5 days’ worth of diesel in the country, with more on ships headed this way — 12 outside our exclusive economic zone and four inside.

“We haven’t had any reports of any issues with those shipments that are in international waters,” Willis told Morning Report. “We would expect to get reporting from fuel importing companies if they were seeing any issues with those. They seem to be safely on their way.”

Gaspy figures show diesel is now more expensive than 91 at more than $3.70 a litre, while its users also have to pay RUC.

“That price is really, really tough on many, many businesses in our economy, and also individuals and families who use diesel,” Wilis said. “We’re used to seeing diesel at the pump cheaper than 91.

Prime Minister Luxon said he was “gravely concerned” that the longer the conflict went on, the “harder it gets for Kiwis here at home”. Just how long it would take to get back to normal was “unknown”, he said, but no restrictions on use were yet planned.

Supply challenges
“Even if we’ve got a ceasefire miraculously and a quality one tomorrow, there clearly will be supply challenges as production has ramped back up again, as storage is always put in storage and it’s transported out through the Hormuz out into the refineries around the world.”

Luxon said Peters would be making it clear to Rubio the conflict was impacting New Zealand and “pushing them to deescalate”.

“I think the goals and the objectives from the US administration have been somewhat unclear. For us, that’s why the world is suffering, everybody around the world. I’ve spoken to a number of world leaders.

“Some of those developing economies are doing it incredibly tough. I know it’s difficult for our New Zealand folk here at home as well, dealing with higher prices at the pump.

Article by AsiaPacificReport.nz

Funding for New Zealand’s Ministry for Pacific Peoples (MPP) is set to be reduced by almost $36 million in Budget 2025.

This follows a cut of nearly $26 million in the 2024 budget.

As part of these budgetary savings, the Tauola Business Fund will be closed. But, $6.3 million a year will remain to support Pacific economic and business development through the Pacific Business Trust and Pacific Business Village.

The Budget cuts also affect the Tupu Aotearoa programme, which supports Pacific people in finding employment and training, alongside the Ministry of Social Development’s employment initiatives.

While $5.25 million a year will still fund the programme, a total of $22 million a year has been cut over the last four years.

The ministry will save almost $1 million by returning funding allocated for the Dawn Raids reconciliation programme from 2027/28 onwards.

There are two years of limited funding left to complete the ministry Dawn Raids programmes, which support the Crown’s reconciliation efforts.

Funding for Pasifika Wardens
Despite these reductions, a new initiative providing funding for Pasifika Wardens will introduce $1 million of new spending over the next four years.

The initiative will improve services to Pacific communities through capacity building, volunteer training, transportation, and enhanced administrative support.

Funding for the National Fale Malae has ceased, as only $2.7 million of the allocated $10 million has been spent since funding was granted in Budget 2020.

The remaining $6.6 million will be reprioritised over the next two years to address other priorities within the Arts, Culture and Heritage portfolio, including the National Music Centre.

Foreign Affairs funding for the International Development Cooperation (IDC) projects, particularly focussed on the Pacific, is also affected. The IDC received an $800 million commitment in 2021 from the Labour government.

The funding was time-limited, leading to a $200 million annual fiscal cliff starting in January 2026.

Budget 2025 aims to mitigate this impact by providing ongoing, baselined funding of $100 million a year to cover half of the shortfall. An additional $5 million will address a $10 million annual shortfall in departmental funding.

Support for IDC projects
The new funding will support IDC projects, emphasising the Pacific region without being exclusively aimed at climate finance objectives. Overall, $367.5 million will be allocated to the IDC over four years.

Finance Minister Nicola Willis said the Budget addressed a prominent fiscal cliff, especially concerning climate finance.

“The Budget addresses this, at least in part, through ongoing, baselined funding of $100 million a year, focused on the Pacific,” she said in her Budget speech.

“Members will not be surprised to know that the Minister of Foreign Affairs has made a case for more funding, and this will be looked at in future Budgets.”

More funding has been allocated for new homework and tutoring services for learners in Years nine and 10 at schools with at least 50 percent Pacific students to meet the requirements for the National Certificate of Educational Achievement (NCEA).

About 50 schools across New Zealand are expected to benefit from the initiative, which will receive nearly $7 million over the next four years, having been reprioritised from funding for the Pacific Education Programme.

As a result, funding will be stopped for three programmes aimed at supporting Tu’u Mālohi, Pacific Reading Together and Developing Mathematical Inquiry Communities.

Republished from Pacific Media Network News with permission.

Article by AsiaPacificReport.nz

Opposition National Party deputy leader Nicola Willis was among three political leaders who made a surprising commitment at a debate last night to build 1000 state houses in Auckland each year.

Labour Party leader and caretaker prime minister Chris Hipkins and Green Party co-leader Marama Davidson also agreed to do so, with resounding “yes” responses to the direct question from co-convenors Sister Margaret Martin of the Sisters of Mercy Wiri and Nik Naidu of the Whānau Community Centre and Hub.

All three political leaders also pledged to have quarterly consultations with a new community alliance formed to address Auckland’s housing and homeless crisis and other social issues.

The “non-political partisan” public rally at the Lesieli Tonga Auditorium in Favona — which included more than 500 attendees representing 45 community and social issues groups — was hosted by the new alliance Te Ohu Whakawhanaunga.

Filipina lawyer and co-chair of the meeting Nina Santos, of the YWCA, declared: “If we don’t have a seat at the table, it’s because we’re on the menu.”

Later, in an interview with RNZ Morning Report today, Santos said: “It was so great to see [the launch of Te Ohu] after four years in the making”.

‘People power’
“It was so good to see our allies, our villages and our communities — our 45 organisations — show up last night to demonstrate people power

“Te Ohu Whakawhanaunga is a broad-based alliance, the first of its kind in Tāmaki Makauarau. The members include Māori groups, women’s groups, unions and faith-based organisations.

“They have all came together to address issues that the city is facing — housing is a basic human right.”

She chaired the evening with Father Henry Rogo from Fiji, of the Diocese of Polynesia in NZ.

Speakers telling heart-rending stories included Dinah Timu, of E Tū union, about “decent work”, and Tayyaba Khan, Darwit Arshak and Eugene Velasco, who relating their experiences as migrants, former refugees and asylum seekers.

The crowd was also treated to performances by Burundian drummers, Colombian dancers and Te Whānau O Pātiki Kapahaka at Te Kura O Pātiki Rosebank School, all members of the new Te Ohu collective.

Writing in The New Zealand Herald today, journalist Simon Wilson reported:

“Hipkins told the crowd of about 500 . . . that he grew up in a state house built by the Labour government in the 1950s. ‘And I’m very proud that we are building more state houses today than at any time since the 1950s,’ he said.

“’Labour has exceeded the 1000 commitment. We’ve built 12,000 social house units since 2017, and 7000 of them have been in Tāmaki Makaurau. But there is more work to be done.’

“He reminded the audience that the last National government had sold state houses, not built them.

“Davidson said that housing was ‘a human right and a core public good’. The Greens’ commitment was greater than that of the other parties: it wanted to build 35,000 more public houses in the next five years, and resource the construction sector and the government’s state housing provider Kāinga Ora to get it done.

“’We will also put a cap on rent increases and introduce a minimum income guarantee, to lift people out of poverty.’

“Willis told the audience there were 2468 people on the state house waiting list in Auckland when Labour took office in 2017, and now there are 8175.

“’Here’s the thing. If you don’t like the result you’re getting, you don’t keep doing the same thing. We don’t think social housing should just be provided by Kāinga Ora. We want the Salvation Army, and Habitat for Humanity and other community housing providers to be much more involved.’

“Members of that sector were at the meeting and one confirmed the community housing sector is already building a substantial proportion of new social housing.”

Article by AsiaPacificReport.nz