MORENA, GOOD MORNING AND WELCOME TO Q+A. I'M CORIN DANN. I'LL BE YOUR HOST FOR 2018. IT'S GOOD TO BE BACK! TODAY ` CHINA HAS BECOME A MAJOR PLAYER IN THE PACIFIC. THIS WEEK FOREIGN AFFAIRS MINISTER WINSTON PETERS ANNOUNCED A RESET OF OUR PACIFIC POLICY, SAYING NEW ZEALAND AND AUSTRALIA NEED TO WORK HARDER TO MAINTAIN INFLUENCE. WINSTON PETERS HAS JUST RETURNED FROM AUSTRALIA AND HERE FOR HIS FIRST MAJOR SIT-DOWN INTERVIEW SINCE TAKING OFFICE. NEW NATIONAL PARTY LEADER SIMON BRIDGES IS HERE. AT 41 HE SAYS HE'S THE MODERN FACE OF THE NATIONAL PARTY. CAN HE DO FOR NATIONAL WHAT JACINDA ARDERN HAS DONE FOR LABOUR? NEW ZEALAND'S GOT A LOT OF BUILDING TO DO, AND NOT JUST HOUSING. SO, WITH FLETCHER BUILDING PULLING BACK AFTER RECENT $500M LOSSES, WHAT NEXT FOR THIS CRITICAL INDUSTRY? PROJECTS, SAY, OVER THE $300 MILLION LEVEL WILL NEED AN OFFSHORE CONTRACTOR. AND THEY WILL COME IN, WON'T THEY? THERE'S PLENTY CIRCLING AT THE MOMENT. AND WE'LL HAVE INSIGHT AND ANALYSIS FROM OUR PANEL. THEY'RE READY TO GO. CAPTIONS BY CATHERINE DE CHALAIN AND VIRGINIA PHILP. CAPTIONS WERE MADE WITH THE SUPPORT OF NZ ON AIR. COPYRIGHT ABLE 2018 WE'LL BEGIN WITH SOME QUESTIONS AND ANSWERS FROM THE WEEK IN POLITICS, STARTING WITH THAT CRINGING '60 MINUTES' INTERVIEW WITH THE PRIME MINISTER. QUESTION ` WHY DID JACINDA ARDERN FEEL THE NEED TO CITE GROWING UP IN THE COUNTRY AS A REASON FOR NOT BEING OFFENDED BY THE '60 MINUTES' QUESTIONS? ANSWER ` WELL, PERHAPS IT'S BECAUSE BY INVOKING FARMING VALUES OF RESILIENCE AND TOUGHNESS, SHE SIGNALS TO CONSERVATIVE KIWIS SHE'S NO SNOWFLAKE AND HAS BIGGER PRIORITIES THAN DEBATING QUESTIONS OF POLITICAL CORRECTNESS. QUESTION ` IS THE NEW NATIONAL LEADER, SIMON BRIDGES, THE RIGHT MAN FOR THE JOB? ANSWER ` YOU WOULDN'T THINK SO FROM SOME MEDIA REACTION SO FAR, BUT I THINK HE CAN BE. FIRST THINGS FIRST, THOUGH. HE'LL NEED TO GET THROUGH A FRONTBENCH RESHUFFLE FROM HELL. THOSE OTHER WANNABES ` ADAMS, COLLINS, JOYCE AND MITCHELL ` THEY NEED JOBS, AND THEY CAN'T ALL HAVE FINANCE! THERE'S PESKY AMBITIOUS BACKBENCHERS TO PLACATE TOO. MY ADVICE IS KEEP YOUR RIVALS CLOSE, MR BRIDGES. SO MAYBE JUDITH FOR FINANCE? QUESTION ` WHAT IS IT WITH AUSTRALIAN AND NEW ZEALAND LEADERS ALWAYS BLABBING ON ABOUT HOW CLOSE WE ARE? I MEAN, IF WE REALLY ARE COUSINS, BROTHERS, HOW COME KIWIS IN OZ ARE STILL TREATED LIKE SECOND-CLASS CITIZENS? ANSWER ` BECAUSE THEY CAN. AND WE LET THEM. AND DEPUTY PRIME MINISTER AND FOREIGN MINISTER WINSTON PETERS JOINS ME NOW. Good morning Mr Peters. How was Australia? Very good thank you. You have announced a major foreign policy reset for this government. Why is the Pacific your focus? It is our neighbourhood. It is where we matter and can do more. It matters that we understand the changes that have happened in the recent years in the Pacific, and that both Australia and New Zealand step up to the mark. Do you mean the influence of China? Sometimes the same country can have good influence and bad influence. Our job is to ensure that the engagement of other countries and the Pacific is for the interests of the Pacific and for the security and prosperity of the neighbourhood. Are you saying China has had a badinfluence? I didn't say that. I am saying other countries can have a negative influence. No time since 9045 have we needed each other more to maintain the truncal peace in the Pacific. I know from policies about tone and signalling. I you signalling that this government might be taking a slightly less proactive stance with our relationship with China? Do you think that we need to pull back a bit with China? We have belts and roads all around the world. Let's not get carried away with that. I think the speed at which they did it showed a lack of preparation and thought in terms of what it all means. New Zealand has been at the forefront of signing up firsts with China. We all know that but in seven years they were trying to renegotiate that deal. Australia did far better out of China than we did. When things aren't what they should be, we need to dramatically improve them. Our deal with career wasn't great. With the Belts and Road, could we pull out of it? We have a ready signed a memorandum of understanding. I know that but what does it substantially in detail men? Nobody in the National party will tell you that. What sense can we take about your tone here? Are you signalling that we need to take a different approach with China in future? It is in the speech. It is a case of shifting the dial and having our eyes wide open. It's a reset in the circumstance where we must do far better than we have been doing. Our aid is on the decline to go down from just eight years ago. These sorts of things won't stack up against countries with a big cheque-book who are printing money and meddling in the Pacific not always in the Pacific's interests. We are already seeing that Australia, who has taken a tougher line with China. We are for things being sorted out in a peaceful way but there is a basis for things to be sorted out. I am not defending the last government. I am defending the rule of law, which the government came to support internationally, but which was not mirrored in its report on that issue in the South China Sea is. We don't want to be involved in anything other than a peaceful solution. You know full well the Chinese will be watching every word you are saying right now. Is it possible that they don't like public declarations about the South China Sea from New Zealand? No one has been more respectful of the place of modern China in the world the New Zealand first on Winston Peters. The reason why I am concerned a and I am taking an attitude is that we think with the same league and we are not. When we speak to China we need to have the candour and the frankness to say so upfront about things we disagree with, Rather than just remaining silent as has been the case. On the campaign trail, you said all over the country National and local government politicians have talked of Chinese interests funding infrastructure. China is quietly starting to dominate the lives of New Zealanders and economic direction. What did you mean by that? You just saw a guy from Fletcher's. What does he mean about 300 million+ projects? What I'm concerned about is when that sort of investment turns into undue influence and ownership. It is not the first country to be worried about that. Do you think that is too much? Others are raising concerns and wanting debate about Chinese influence in New Zealand. Do you think there is too much influence? If you are concerned about too much policy influence when it comes from banking, you should say so upfront and I have. If you think there is been too much untoward American influence in this country, you should say so, and I have. We are a sovereign nation with a great democracy. We have got something to stand up for and we mean something in the Pacific. We've got people who regard us as our cousins and looking to leadership from us. They are looking to standards and the best quality of government from us. It is not going to be easy but if we do not make this intervention in a positive way now and pick up our game, our place in the world will be worse for it and the Pacific will be much worse for it. $26 billion is the two-way trade between New Zealand and China. That is a success story. What is the problem here? No problem, except as you well know, our added value component in dairy which is a potential $50 billion revenue stream, is now in the control of the Chinese economy. Now they have got control of the New Zealand production. What I will do about it? I will discuss her failed in the past and how we don't intend to fail in the future. Let's flips around Donald Trump. Surely his influence now is far was in China. He is talking about trade was. He is saying trade wars are easy to win. Bill Clinton slammed a serious terrace New Zealand steel. Talk of retaliation from Europe. This is a trade war. This is not about New Zealand. How concerned are you? Will you raise it with United States? We are a country that is spent a little amount of time being a good friend of the United States, and yet Morocco and Chile have free-trade deals and we don't. We won't go around kowtowing to anybody in our National interest. We will stand up to things that are important in this world. Other countries are beginning to understand that. Should we retaliate? The Americans aren't in the TP PA. We can make a symbolic gesture that we think talking of trade wars is a disaster for a small country in a globalised world. I do not think that we have the capacity to retaliate against the United States. But it's symbolic isn't it? Symbolism leaves your businesses and industry starving and the people on the street far worse off. You are not worried about Donald Trump talking openly about winning trade wars? I am more concerned about someone like Rex to listen who is a great background in business. In the end foreign policy is about the relationship between people, not temporary power politicians. They are not making exemptions for New Zealand. The last person to slam a tariff New Zealand steel was Bill Clinton. He was over here being celebrated by Jenny Shipley. That was only 21 years ago. Nothing is new about this and there was a time where there was going to. Action. What was the American campaign about? It was about small people and small businesses being totally shut out because of the vagaries of globalism. That is what bricks it was about in the end. Are you saying you are sympathetic? No, I'm not saying I'm sympathetic. I am saying let's have our eyes wide open here and be realistic, Rather than dumbing down statements which take us nowhere and see the disparity between our exports to China against our imports grow larger and larger. That deficit is all debts. I have got your coalition agreement here and it is one of my favourite documents to read. On foreign policy it says you would record a cabinetminute about the National governments sponsorship of UN resolution on Israel and the occupied territories. What happened was that before Christmas 2016 they got railroaded by interests for New Zealand offshore into a pre-Christmas Annunciation of Israel without that going, as is required by the Cabinet manual, to go to Cabinet. Cabinet said we don't like processes that are just ignored. Has the minute been recorded? It has. Are you concerned about the process or you can send about the resolution itself? We have the claim that we had to make that compensatory statement in Saudi Arabia because we were being sued. That was a lie. We were never being sued in Saudi Arabia and no one is being held responsible. I want to know why we're offshore making serious policy without following correct process. I know you are not big on polls. I know you will come back strong. Are you concerned that maybe some of the others and New Zealand first might be worried when they look at the polls and see you being swallowed up by the larger party? Is there anything you can do about that? We are not being swallowed up. Get the language right. This is a Labour New Zealand first coalition. But I want you to talk about Labour that's when you know it's a coalition. Why can't the New Zealand media grasp the language? But more importantly I am looking at where we are going to from here, and we are building our legacy as we speak with a huge initiative out the provinces, and being, dare I say, the heart and soul of the new government. David Parker and I agree wholeheartedly on theTP PA. The greens of come out on atransparency policy. They don't want to take anything from corporations. The cabinet rules specify that now. You don't see much huge money behind New Zealand first. Go look at the returns when they come and about finances and last election. Other parties are awash with money. We have to make a fraction of the money go as far. Has Jacinda's positivity were washed off on you? She is positive and it is a very attractive quality. That's an interesting word. Are people going to be offended when people say Simon Bridges is an attractive man? We live in a modern world where people express themselves differently. Thank you for your time. WE WANT TO HEAR WHAT YOU THINK. WE'RE ON TWITTER ` @NZQANDA OR EMAIL US AT Q+A@TVNZ.CO.NZ. WE'LL HEAR YOUR FEEDBACK THROUGHOUT THE PROGRAMME. BUT AFTER THE BREAK IT'S OUR PANEL'S TURN. STAY WITH US. LET'S BRING IN OUR PANEL. DR JENNIFER CURTIN, AUCKLAND UNIVERSITY POLITICAL SCIENTIST. SHANE TE POU, POLITICAL COMMENTATOR AND A FORMER LABOUR CANDIDATE, BUT NO LONGER A LABOUR PARTY MEMBER. AND SIR DON MCKINNON, WHO'S SPENT 20 YEARS IN INTERNATIONAL POLITICS, ALSO A FORMER NATIONAL FOREIGN MINISTER AND DEPUTY MINISTER. Welcome to you all. It is hard to know where to start with that. Sir Don, the language from Winston Peters in the rhetoric around China, that feels like a change from the last government. I think we will see some changes in perception generally. As to formal policy, I think that is still a while away. I think there is still a lot of figuring out what China is doing right now. Even the fact that the president might stay for another five years obviously concerned some people, but China is a huge monolithic economy now and has large influence all over the world. You have to move fast to keep up with them. Do you think America is putting influence on us here? No. Shane, your thoughts on China in this foreign-policy research. Is it a change in style? No, I think it is entrenched. I think that the growing number of Asians and particularly Chinese living in New Zealand has helped to entrench it. We ought to be concerned about some of the going on is in the Pacific. Go to rara Tonga, there are massive issues. Overall I think I'm relationship with China is stable. We need them more than they need us. The belt and wrote it is theoretical, but his language is interesting. He says we went a bit fast. We do have to bring Australia into this conversation because we know they have been much more hawkish on China than we have. Our link which has been much more diplomatic. But, if as Peter says he wants to tie us to Australia more closely, it makes sense for us to ramp up the language a bit more so we look more in line with them. That is the nature of who he is, but do you think he was going a bit further then Brownlee? If you look at the Lowy Institute speech, he is talking more firmly than what we saw before about the belt and road initiative and what that does mean for the Southern Ocean and the Pacific. If you look at it as a whole Maritime strategy that is coming out of China, it is much bigger than just the South China Sea. New Zealand and the Pacific interests are applicators and that. Sir Don, he didn't seem that concerned about Trump's rhetoric on trade was. I'm sure his people back in Wellington are worried about it. We have seen so many great pronouncements from President Trump and they almost reverse the following day. Trump will be listening to what's going on whether he sticks with what he's saying is another matter. The whole world will be saying to him that this is not the time to do that. His own Republican base is worried. A Sen in Missouri says that he will cost manufacturers more money. The full impact of what he is saying has not got through to him yet. I am worried because someone in charge of the largest economy in the world doesn't know what he is doing. I am very worried, but America has institutions that I think will bring some balance. Also he will face some regional criticism. We know that he only one Florida by a whisker. Cruz is in trouble in Texas. Europe has literally targeted specific products, bourbon, jeans, and warned that it will retaliate. That is what Peters was alluding to is that Europe has done their homework on this. They worked out a long time ago and have everything ready to go. They have selected commodities and they will go for it. It is the midterms soon. There will be a lot of pushback within his own party. For the EU, they will be worried. It is disconcerting the fact that he can be so erratic and get everybody and it is like this globally. In six months time it may be a nonevent. Let's pivot to Winston Peters himself. Sir John, do you think he is happy with where the coalition is going? They are struggling in the polls but he does do well in campaigns are perhaps they don't have much to worry about. Winston can dominate the news in New Zealand when every once. He picks his time. He has been Foreign Minister before. His big job now is to reignite all those relationships he had around the globe, Foreign Minister to Foreign Minister, he will be seen as a senior Foreign Minister because he has been there before. The club are Foreign Minister's is often based on who has been there at the longest, rightly or wrongly. He will be in London in a couple of weeks time. The Commonwealth Foreign Minister is there ` there are 54 ministers you can engage with. They will already know about him. He will make sure that he is known and has those relationships on a sound footing. He talked about Rex Tillerson. He did strike up a strong relationship with him at denang. I think the National party will have trouble attacking him because he has been a senior minister in the government. I don't see a pathway for National without Winston in some way. I wouldn't be worried about the polls if I was him. The small towns haven't even been a warmup act to the rockstar economy. Do you think National attack Winston? I don't think they can afford to do that. They don't have any other partners. The thing we know about New Zealand first is every time they go into coalition with the government's, their support plummets. But we can't assume that that sport has been eaten up by Labour. I think there is been some transfer of votes. Some National support is gone to Labour and some New Zealand first support has gone to National. It's not as straightforward as a straight cannibalisation. There would have been New Zealand firsts voters who expect them to go with National. Does Labour differentiate in last year? To they give the more credit and more oxygen? I think Jacinda Ardern and her Labour team have that covered. They are giving the regional platform to New Zealand first. Labour doesn't win a lot of regional small towns in the rural areas, so that leaves that they are for New Zealand first. I think they will have to consider trying to win an electorate seat. That is what protects them from the 5% risk. Shane, what you think of Winston at the end lighting up about political correctness? He speaking out saying his sick of people being PC. What you make of it? I'm often called attractive and it doesn't offend me. I am over it. He is an old-fashioned guy and likes people to be treated well. I think that is a plug to Heartland New Zealand, who are over it. I think that is about right. The issue of the T-shirt of the act member of Parliament was a case of going too far the other way. Winston is trying to bring it back to the centre and his support base. But there is some valuable stuff happening here. There is push back against discrimination and there are gains being made here. To be fair here, we might say it's PC, but if you ask a lot of women in politics, it just doesn't feel like it should go back to business as usual. You could see from the 60 minute interview with our Dern that women in politics who are leaders don't expect to have to deal with this sort of language any more. The fact that it gets called out as a good thing. If some of the guys think that they've gone too far and it's all a bit PC, it's tough luck to them. We will talk more later on. BEFORE WE GO TO THE BREAK, I WANT TO TELL YOU ABOUT SOME OF THE EXCITING EXTRA FEATURES Q+A HAS FOR YOU THIS YEAR. I'LL BE PUTTING TOGETHER A NEW WEEKLY PODCAST FOCUSING ON BUSINESS AND ECONOMIC ISSUES. THAT'LL BE AVAILABLE ON ITUNES, SOUNDCLOUD AND OUR WEBSITE, OF COURSE. LOOK OUT FOR IT THIS THURSDAY COMING. WE'LL HAVE LOTS OF NEW CONTENT ON OUR WEBSITE, INCLUDING A REGULAR AND HOPEFULLY REVEALING SERIES OF ONLINE-ONLY INTERVIEWS CALLED TE TARI, OR THE OFFICE. HERE'S A TASTE OF WHAT YOU'LL SEE. WHENA OWEN VISITED SIMON BRIDGES BEFORE HIS BIG MOVE TO THE LEADERSHIP OFFICE. HE'S ALSO IN OUR INTERVIEW CHAIR, AFTER THE BREAK. And this is your gym close. That's not something I'm proud of. I need to go to the gym or. THE CORE OF MY BELIEF IS THE UTTER INTEGRITY OF THE INDIVIDUAL PERSON ` THEIR IMPORTANCE, OUR OBLIGATION TO THEM, COS I HAVE NEVER MET A PERSON IN 27 YEARS WHO HAD NO HOPE. NEVER. NOT ONE, INCLUDING THE WORST OF OUR OFFENDERS, AND I'VE MET THEM. THERE IS ALWAYS SOME HOPE. IN FACT THAT'S OFTEN ALL THEY HAVE. BILL ENGLISH, FAREWELLING PARLIAMENT AND A POLITICAL CAREER SPANNING 27 YEARS. AND THE MAN WHO IS REPLACING HIM AS LEADER OF THE NATIONAL PARTY, SIMON BRIDGES, JOINS ME NOW. Some big shoes to fill. Absolutely. A remarkable valedictory speech. I found it quite moving. I want to start with foreign policy. Winston Peters has talked about the reset and the Pacific. Do you feel he is changing tack particularly in relationship to China? I think the China material and what he was saying was interesting. If you look at both what the Prime Minister has said and Winston Peters has said, they have not talked about wider Asia. If that was to continue, that would be a worry. It is an exciting and dynamic part of the world. I would say if it continues and if he means what he says, it is a potentially significant shift. I think it was about the opportunities. Remember our history with China. First FTA under Labour. It has taken us from eight or 9 billion to 26 or 27 billion. Don't raise human rights, rule of law. It is the tone in which you do it. I don't agree with his tone. What does the belt mean? You are seeing China investing significantly in infrastructure around the world. Winston had his facts wrong. I was the minister involved in the northern roading. We have good procurement rules. Is this about balance here? The balance has been very much to the advantage of New Zealand. Maybe we need to pull it back. There will always be a balance between them and the United States and alliances. I do worry if you look at foreign policy in this country, you have seen a candid approach to Manus Island. I would not want to see that sort of approach Leach out into Asia. I don't have any issue and raising important issues. But it is how you do it. Your take as National party leader that the National Party continues its course in terms of the relationship with the US? What I would say is if you look at New Zealand's story, we have been a big beneficiary of free trade. We have gone to 1 of the most open small economies in the world. I do think you need to raise these issues through the WTO. We are pro free trade because it works for New Zealand. Our economy is a versatile cork bobbing on the ocean. We have a few questions from viewers. Maori wards being removed from councils? It is for councils. I pulled myself up from my own bootstraps and I sat in a general seat. There is a council process where they can do this. If enough signatures are obtained, you can have a referendum. Another one is the position on gay marriage. You voted against. Why? I thought civil unions were working well. I thought I saw marriage as a religious institution. New Zealand has moved on and so do I. Do you think governments have an obligation to do more about te reo. We have an obligation to make it available and to encourage it. My children are more proficient than I am. I encourage that. I do not think that the next step is right in terms of compulsion. That would be the reverse of what we saw and what was terrible 100 years ago when people weren't allowed to talk. I think Bill English was making the point that I was. Yes, encourage it and support it but compulsion is not the way forward. The language to he used to describe it was a bit odd. What he was trying to say and what I agree with Bill English is encourage it. I think compulsion is the wrong way to go. The economy is going well. There isn't that much to suggest it is going to fall off a cliff in a hurry. Surely your focus has to be about inequality and doing it different to labour. Effective social policy that works is vital. For the economy, and understanding of what creates opportunities for New Zealand. Why don't we understand that? I would argue that we have a government that takes that for granted and you see that in the policies. In relation to immigration and employment laws. They have watered those down. They aren't pushing hard on immigration and they have watered down the employment stuff. Let's see where they go. You take the top of growth but if you want an exciting dynamic place to live with a very best of opportunities. Troop deployment to Iraq? I don't have enough information but if they are making a useful contribution. The 60 minutes interview with Jacinda? I have not seen the interview. I have seen the cometary. Do leaders have to be judicious? Yes. We should not have topics that are off conversation. I don't think we should go that far and I think we are seeing a little bit creep in to the discourse. I agree with Winston Peters. Thank you very much for your time. AFTER THE BREAK, WHENA OWEN LOOKS INTO THE FALLOUT FROM FLETCHER BUILDING'S RECENT HALF BILLION DOLLAR LOSSES. WHY ARE SOME INDUSTRY INSIDERS CONCERNED ABOUT THE FUTURE WELCOME BACK TO Q+A. GREAT TO HAVE YOU ALONG THIS SUNDAY MORNING. LET'S GET TO OUR PANEL NOW ON SIMON BRIDGES. Jennifer, has he done all right? He's had the odd gaff. He is dealing with not a honeymoon. There were five in the race. The media have not been all Yay. He is not that well known outside Tauranga. He has a lot of experience but very little experience in opposition. He is going to have to work much harder at being proficient and argumentative and clear in parliament. That is where people are going to draw their information about him. He knows Jacinda quite well. That is an advantage. Yes, it is an advantage. He has a double degree, including Oxford. He is somebody I want my Maori kids, despite the politics, to aspire to. My mum was able to feed us on the family benefit and because of the social infrastructures that existed and a lot of Maori missed the boat. I don't think he will get to that support in that area. Te reo as a tricky issue for him. Our language ought to be compulsory. I am compelled on a daily basis to participate. I think he is fundamentally wrong on that issue. He is uncomfortable and he should call upon his whakapapa and call on some advice. His base and many supporters will agree with him. It should be compulsory that we all learnt at primary school and at secondary school, take a choice about learning te reo. When you judge members of Parliament, have a look at their chosen career. He is an academic and law and Crown prosecutor. He has succeeded in everything he wanted to do. He is very stable and has a good sense of humour. Do you think he is the right guy? He is the right guy right now. Looking at Andrew little, he suffered from this. They don't want to say much policy. Does it need to change with Simon Bridges? He was not too bad this morning. They have to be more than motherhood statements or platitudes. Maybe after the budget and they have some time to get their new opposition spokespeople embedded, they need to have very clear points of opposition from the government and also from NZ First without upsetting Winston Peters to some degree. We have to remember national have a really strong core base. Only 16% of national voters split their vote. People are going to keep with national no matter who was the leader. He has to think about how to create and support a partner for the next election. Without a coalition partner, they will not get 50% or whatever is needed of the vote. Do you think he is the right person to reach out to Winston Peters? I do. You can see he was consilatory. There was some bridge building, excuse the pun. The reshuffle is going to be crucial. There was a lot of party support for Judith Collins. I would bring her in close and tight. A bored and disinterested Judith is a dangerous one. He knows these people. He should be making the call about the front bench. He needs to present a new new United face. He only gets one chance. Could Judith do finance? I'm sure she could but Simon has more authority now than probably through the next through years so go for it now. There are 50 or more in the caucus. Do not let them become too remote to you. What does he do with Joyce? If he wants to stick around? Who else for finance? You give them work to do and jobs to do and demand performance. You can demand that very regularly. Whoever you spoken to? How many people have you met? Keep theM busy. They have really got to get out of Wellington and get to know people. he is so keen on the idea of the economy. I think the National Party will probably be thinking that the economy is vulnerable and that there may be a dip and New Zealanders vote with their pockets. We might see some gains in that territory. Joyce is not to new and nor is he different. Kaupapa is much more important than blood. Another viewer feedback says the only woman on the panel has to explain why attractive comments are not acceptable. A CHANGE OF FOCUS NOW, AND ONE OF THE BIGGEST BUSINESS STORIES SO FAR THIS YEAR IS THE HALF-BILLION DOLLAR LOSSES INCURRED BY FLETCHER BUILDING IN ITS BUILDING AND INTERIORS DIVISION. WHILE MOST OF THE COMPANY IS IN GOOD HEALTH, FLETCHER HAS HAD PROBLEMS WITH THE PROFITABILITY IN ITS LARGE BUILDING PROJECTS, LIKE THE INTERNATIONAL CONVENTION CENTRE IN AUCKLAND. IT'S ANNOUNCED IT WILL BE PULLING BACK FROM TAKING ON ANY SIMILAR PROJECTS IN THE NEAR FUTURE. SO WHERE DOES THAT LEAVE THE REST OF THE BUILDING INDUSTRY? WHENA OWEN REPORTS. FLETCHERS DID BUILD NEW ZEALAND, AND THAT'S HOW THEY'RE SEEN. I WOULD SAY THAT THE AVERAGE PERSON JUST SEES FLETCHERS AS ONE OF THOSE ROCK-SOLID COMPANIES THAT'S GONNA BE HERE FOREVER. VOICES FROM THE BUILDING INDUSTRY AFTER THE SHOCK FLETCHERS ANNOUNCEMENT LAST WEEK ` A $660 MILLION DOLLAR LOSS FOR ITS BUILDING AND INTERIORS DIVISION BECAUSE OF DELAYS AND COST BLOWOUTS ON MAJOR PROJECTS. FROM WHAT IS PROBABLY AUCKLAND'S MOST IMPRESSIVE OFFICE, FORMER HEAD OF HAWKINS GEOFF HUNT NOW LEADS THE MCCONNELL GROUP AND IS PART OF A BUILDING STRATEGY GROUP WHICH ADVISES GOVERNMENT. I'D LIKE TO THINK THAT THIS HUGE EVENT THAT HAS HAPPENED WITH FLETCHERS ` SO UNEXPECTED ` WILL ACTUALLY ENABLE A FOCUS ON THE INDUSTRY A RANGE OF ISSUES. AND NOW WE CAN HAVE THE CONVERSATION ABOUT WHAT THOSE ISSUES ARE AND MAYBE GET SOMETHING DONE ABOUT THEM. BUT FIRST, LET'S BE CLEAR. FLETCHER'S PROBLEMS ARE WITH ITS VERTICAL-BUILD BUSINESS ` THE BUSINESS THAT BUILT THE SKY TOWER, THE JUSTICE PRECINCT IN CHRISTCHURCH. NOT TO BE CONFUSED WITH ITS HORIZONTAL OR INFRASTRUCTURE PROJECTS, LIKE TUNNELS AND ROADS, OR ITS WELL-PERFORMING RESIDENTIAL ARM. FLETCHERS WOULDN'T BE INTERVIEWED FOR THIS STORY BUT EMPHASISED TO Q+A THAT IT WOULD BE COMPLETING ALL ITS BIG PROJECTS BUT HAD CEASED BIDDING FOR MORE. SO WITH FLETCHER BUILDING NOW PULLING AWAY FROM THE REALLY BIG PROJECTS, THERE'S A LOT OF SPECULATION IN THE INDUSTRY ABOUT WHO IS GOING TO STEP INTO THAT SPACE. WILL WE SEE A BIT OF OVERSEAS INTEREST? MORE PARTNERING UP? IT'S INTERESTING YOU SHOULD SAY THAT. BARRY CALVERT REPRESENTS THE NEW ZEALAND INSTITUTE OF QUANTITY SURVEYORS. I JUST FOUND OUT TODAY THAT A LARGE ENGLISH COMPANY HAS STARTED SENDING SOME PEOPLE OVER HERE TO KIND OF SCOUT THE SITUATION AND SEE IF THERE'S ANY OPPORTUNITIES HERE FOR THEM. FOR LARGE PROJECTS? FOR LARGE PROJECTS. BRUCE KOHN OF THE NEW ZEALAND BUILDING INDUSTRY FEDERATION SAYS THERE ARE SOME VERY GOOD SECOND-TIER NEW ZEALAND COMPANIES THAT CAN TAKE ON PROJECTS UP TO ABOUT $170 MILLION. BUT TO GO ABOVE THAT, THEY EITHER PROBABLY NEED TO PARTNER OR PROJECTS, LET'S SAY, OF THE 300 MILLION LEVEL WOULD NEED AN OFFSHORE CONTRACTOR. AND THEY WILL COME IN, WON'T THEY? SURE. THERE'S PLENTY CIRCLING AT THE MOMENT. NO QUESTION ABOUT THAT. LOOKING FOR JOBS? A LOT OF EYES ARE ON CHINA. ARCHIVE: NAPIER AND HASTINGS FLATTENED. IN 1931, FLETCHERS HELPED REBUILD THE HAWKES BAY AFTER A DEVASTATING EARTHQUAKE AND WERE THERE FOR THE CHRISTCHURCH REBUILD. IN THE EVENT OF ANOTHER DISASTER, WHO WOULD DO THE WORK FOR THE CROWN? WHAT PAINS ME IS THE THOUGHT THAT ALL THAT MONEY WOULD GO TO AN OFFSHORE COMPANY. IF BIG MONEY IS TO BE SPENT ON DISASTER RECOVERY IN NEW ZEALAND, I'D LIKE TO THINK IT'S GOING BACK INTO NEW ZEALANDERS' POCKETS. THE GOVERNMENT, OF COURSE, IS THE BIGGEST PROCURER OF THESE PROJECTS. AND SOME IN THE INDUSTRY CLAIM IT HAS EXACERBATED THE INDUSTRY-WIDE PROBLEM OF LOSSES BY TRANSFERRING TOO MUCH RISK IN THE PROJECT. WE'VE SEEN KIND OF UNPRECEDENTED LEVELS OF TRANSFER OF THIS RISK IN RECENT TIMES, AND THIS IS ONE OF THE REASONS WHY WE'D REALLY LIKE TO GET IN FRONT OF THE MINISTER AND START TO DISCUSS THESE ISSUES, BECAUSE... I THINK RISK NEEDS TO BE TAKEN BY THE PERSON WHO'S BEST ABLE TO DEAL WITH THAT RISK. THE NEW BUILDING AND CONSTRUCTION MINISTER IS JENNY SALESA. THE PROCUREMENT INITIATIVE AND THE PROCUREMENT PROCESSES OF THIS GOVERNMENT WILL BE PRETTY DIFFERENT TO THE OUTGOING GOVERNMENT. FOLLOWING THE BIG FLETCHER ANNOUNCEMENT, DEFEND ITS HOUSING COMMITMENTS. GIVEN THAT FLETCHER RESIDENTIAL IS REALLY STRONG, WE ARE CONFIDENT THAT THEY WILL HAVE NO IMPACT ON THE KIWIBUILD INITIATIVES MOVING FORWARD. IS THERE TALK AROUND THE INDUSTRY THAT PERHAPS FLETCHERS WILL FOCUS A BIT MORE ON ITS RESIDENTIAL ARM? YES, THERE IS. FOR SOME TIME, THE WORD HAS BEEN OUT IN THE INDUSTRY THAT FLETCHERS ARE LOOKING FOR A MUCH STRONGER OFF-SITE PANEL CONSTRUCTION UNIT THAT WILL, FOR THEM, BE A BIG STEP, BUT WE THINK IT LOOKS VERY PROMISING. THIS PART HERE, WHERE THEY'VE GOT THE EXTRA SCAFFOLDING THERE, THAT'S GONNA BE THE BIG GLASS FACADE. AT ANOTHER BIG FLETCHERS SITE AT THE BOTTOM OF QUEEN STREET, FRANCIS SWEETMAN IS SHOWING US OVER THE COMMERCIAL BAY PROJECT. SHE'S A SENIOR ANALYST WITH MILFORD ASSET. IT'S HARD TO KNOW WHAT THE FUTURE FLETCHERS IS GOING TO LOOK LIKE, BECAUSE IT'S GOT A BIG SCOPE TO FOCUS ON, AND IT'S NOT GOING TO BE ANNOUNCED UNTIL JUNE, BUT FLETCHERS IS IN A VERY STRONG POSITION IN NEW ZEALAND. ON THE OTHER HAND, FLETCHERS HASN'T PERFORMED VERY WELL IN AUSTRALIA AND IS, IN FACT, INCURRED QUITE SEVERE LOSSES THERE. BUT THE NEW CEO IS AUSTRALIAN. HIS ENTIRE CAREER HAS BEEN IN AUSTRALIA. AND THERE ARE THE OPPORTUNITIES TO GROW, SO WE THINK AUSTRALIA MAY BE AN AREA OF FOCUS. IN THE MEANTIME, THE BUILDING MINISTER IS DUE TO MEET FLETCHERS' MANAGEMENT. THE NZ BUILDING SECTOR WANTS A REFRESH ` MORE TRAINING FOR LOCAL WORKERS AT ALL LEVELS AND THEIR PROCUREMENT GUIDELINES AROUND QUALITY AND SHARING THE RISKS MADE MANDATORY. THE INDUSTRY REALLY WANTS TO IMPROVE ITSELF, BUT IT DOES NEED LEADERSHIP FROM THE GOVERNMENT. AND I THINK WE NOW HAVE THAT POSSIBILITY. THE PANEL'S BACK AFTER THE BREAK, AND YOUR FEEDBACK TOO. PLUS, WE LOOK BACK TO THE 2008 ELECTION, WHEN THE CAMPAIGN KING WAS CHALLENGED BY A POLITICAL ROOKIE IN TAURANGA. We think he represents the future of New Zealand and the future for Tauranga. OUR GUESTS THIS MORNING, SIMON BRIDGES AND WINSTON PETERS, HAVE A LONG HISTORY. BACK IN 2008, MR PETERS WAS TRYING TO REGAIN THE TAURANGA SEAT HE'D LOST TO NATIONAL'S BOB CLARKSON, AND MR BRIDGES WAS THE NEW YOUNG NATIONAL PARTY CANDIDATE WHO TOOK HIM ON ` AND WON. AND SO WITH NO SEAT AND NOT ENOUGH VOTES TO GET OVER THE 5% THRESHOLD, NEW ZEALAND FIRST WAS OUT OF PARLIAMENT FOR THE FIRST TIME SINCE ITS FORMATION IN 1993. HERE'S SIMON BRIDGES IN THE ONE NEWS REPORT ON HIS SELECTION. IT'S 1978, AND A FRESH-FACED WINSTON PETERS IS OUT IN SOUTH AUCKLAND CHASING VOTES FOR NATIONAL. AS HE WAS DOING THAT, THE MAN'S NATIONAL'S CHOSEN TO GO UP AGAINST HIM IN TAURANGA IN 2008 WAS THE RIPE OLD AGE OF 2. I THINK THE PEOPLE OF TAURANGA WANT DIGNITY IN THEIR POLITICIANS. I WANT TO PROVIDE THAT. I CERTAINLY DON'T WANT TO GET INVOLVED IN PERSONALITY POLITICS. TAURANGA CROWN PROSECUTOR SIMON BRIDGES WAS SELECTED BY NATIONAL'S LOCAL MEMBERS LAST NIGHT TO REPLACE BOB CLARKSON AS THE PARTY'S CANDIDATE. AFTER A COLOURFUL TIME AS TAURANGA'S MP, MR CLARKSON PULLED OUT OF THE RACE LAST MONTH. BUT THIS 31-YEAR-OLD OXFORD UNIVERSITY GRADUATE IS INTENT ON KEEPING TAURANGA TRUE BLUE. THREE YEARS AGO, THE PEOPLE OF TAURANGA MADE A CHOICE FOR A CHANGE OF LEADERSHIP, AND THEY DON'T WANT TO GO BACKWARDS. WE THINK HE REPRESENTS THE FUTURE OF NEW ZEALAND AND THE FUTURE FOR TAURANGA, AND SO WE'LL BE BACKING HIM HARD. SO HOW DID TAURANGA'S VOTERS SEE THE BRIDGES V PETERS MATCH-UP? HE HASN'T DECLARED IT YET, BUT IT'S THE WORST KEPT SECRET IN POLITICS THAT WINSTON PETERS WILL STAND HERE IN TAURANGA. A NEW ZEALAND FIRST SPOKESMAN SAYS MR PETERS THINKS SIMON BRIDGES SEEMS LIKE A DECENT YOUNG LAD, BUT HE HOPES NATIONAL GIVES HIM A DECENT SPOT ON ITS PARTY LIST. AND YOU MAY HAVE NOTICED THE REPORTER ON THAT TRACK WAS ONE KRIS FAAFOI, NOW MINISTER FOR CONSUMER AFFAIRS AND CIVIL DEFENCE AMONG OTHER PORTFOLIOS. We turn to some hits and misses. My miss is David Seymour's decision to wear a T-shirt and put it on Twitter. If he wants ACT to be taken seriously as a party, he needs to be doing a bit more. My hit was the university getting real on the sexual harassment claim. My hips was Andrew Little and his discussion around prison numbers. Our numbers are shocking. And economic reform in the provinces. There is real economic deprivation there. My must would be a very enthusiastic education minister calling for half a dozen reports in 2019. They will be debated all over the country. His own caucus will wish he never started it. I remember tomorrow's school some 25 years ago. My hit would be Simon Bridges. MARAE IS NEXT. THANKS FOR WATCHING AND THANKS FOR YOUR CONTRIBUTIONS. THOSE WERE THE QUESTIONS AND THOSE WERE THE ANSWERS. THAT'S Q+A. WATCH OUT FOR OUR BUSINESS PODCAST ON THURSDAY ON ITUNES AND SOUNDCLOUD. SEE YOU NEXT SUNDAY MORNING AT 9.