Early Edition with Ryan Bridge

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

  1. 1 hr ago

    Ryan Bridge: We can't afford a credit downgrade

    You know how New Zealanders love it when foreign countries, or media or even tourists talk about us?  There always the most read stories on news sites. It's like a national past time.  Oh look! Brad Pitt says New Zealand is beautiful! Oh look... Jason Mamoa did a bungy and Queenstown is beautiful! Well. Have I got news for you, New Zealand.  S & P, the global ratings agency, has just done a bungee on our out-country's finances.  It's mostly good news. Low net debt. Growth of 2.5% a year. Good government. Safe. Sound. Stable outlook.  The equivalent of a 4-star Tripadvisor review.  BUT... there's one number that should be making headlines.  It's on page 4.  10%. Our country has been borrowing more money to fund stuff, including everyday spending and election promises. They issue bonds, or debt, to investors and pay them interest for the pleasure.  Those interest costs are going up because of the bond market sell-off we've been talking about on this show.  S & P says the amount we're paying interest will reach 9% of government revenue (i.e. tax) in 2029.  That means for every million bucks the government earns in tax, it pays almost $100k just on interest on its debt.  Interest is our 4th most expensive item on the government's books.  More than we spend schooling our kids through primary and secondary.  S & P says interest costs of more than 10% of revenue could result in 'weaker debt metrics'. That's not a good thing. It means we're stretching ourselves. We could get a credit downgrade.  People start looking at us sideways asking.... can those guys pay back what they owe us or they taking the Mickey?  That's not the sort of reputation this country can afford.  See omnystudio.com/listener for privacy information.

  2. 1 day ago

    Ryan Bridge: Have we found the next leaky building saga?

    Two questions for you this morning if you're buying or have bought a property recently. 1. Did you get a pre-purchase inspection done? 2. And did that person have a qualification?  Remember leaky buildings? Well, there are a builders and surveyors out there who reckon we're sitting on another leaky building saga.  There was a very good piece in the Herald at the weekend about this.  New builds, builds less than 10 years old, failing. Looks spick and span on the outside, underneath, the timber's damp. There's mould.  Water is getting inside the walls of houses that are pretty new. I don't know about you, but when somebody builds a house, or apartment, it should keep the water out.  I've spoken to some builders and tradies about this. They're worried too.  They tell me there are two problems. One is builders and developers who cut corners, using materials sourced from overseas that look the similar to products we use here, but aren't.  The other red flag they talk about is price. There are builders and developers undercutting them on jobs with prices that seem absurd.  How on earth can you build something for 75% of the cost of the rest of your competitors?  Now I know what you're thinking. Chill out, bro. I got a pre-purchase inspection.  And the Council signed it off.  Bad news. Anyone can call themselves a building surveyor or inspector.  I could. I could start a business tomorrow. Inspect your house. Write a report. Charge like a wounded bull. Take some photos on an iPhone. Email you a report. And bob's your uncle.  You don't need a licence. You don't a formal qualification. You don't even need insurance, according to the Herald piece.  The thing about these types of stories is that it's mostly anecdotal. How widespread is this problem? Is it 1% of new builds? Is it 20?  You don't know what you don't know.  And by the time you find out, your walls are wet and filled with mould.  See omnystudio.com/listener for privacy information.

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A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

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