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- By Parmjeet Parmar, Pakuranga-based ACT List MP
Every night on the 6pm news, the political media in Wellington seems to focus on a different sideshow.
Each week when I return from Wellington to Pakuranga and speak with my neighbours and community members, I’m reminded the single largest concern for ordinary Kiwis is the cost of living.
A major part of our living costs come from housing, and in particular, interest rates.
Mortgage holders have likely felt the sting of rising rates in recent years, while renters may have noticed their payments creeping up as landlords try to cover their own increased expenses.
But there’s reason to be hopeful. The Reserve Bank recently cut the Official Cash Rate by another 0.5 points, and banks responded by cutting interest rates.
The Reserve Bank makes its decisions independently, but all of us contribute to the context in which it acts.
Households contributed by tightening their budgets in the face of mounting expenses.
These efforts have helped curb inflation, which is why the Reserve Bank has had confidence to deliver relief for mortgage payers.
Then there’s the role of politicians. Government spending, like household spending, contributes to inflation and interest rates.
The Government has made moves to cut Labour’s wasteful spending, and to reduce bureaucracy in Wellington, as advocated by ACT.
This has helped, but more action is possible, and is needed, to give households relief.
The people paying the bills deserve leadership that reflects their own financial discipline.
We cannot expect to see interest rates keep dropping without persistent effort from Wellington.
Prioritising efficiency must remain front and centre, so ACT Ministers and MPs are advancing and promoting further reductions in low-value spending.
Further reductions in spending, and in interest rates, will help us afford the basic services and infrastructure we expect from our taxes.
Consider this: the cost of just the interest on Government debt is forecast to hit $9.2 billion in the 2024/25 fiscal year.
That’s enough to build 10 Puhoi to Warkworth motorways, just to service one year of borrowing costs.
This burden stems partly from elevated interest rates and growing debt levels.
Without substantial spending cuts, these payments could soon outstrip investments in education, policing, defence, and other essential services.
By slashing waste and easing interest pressures, we enable firms, farms, and families to retain more of their income.
This gives them the freedom to direct resources where they see fit, paving the way for genuine prosperity and growth.
