And call on Chris Hipkins to rein in inflation
Two finance industry CEOs have welcomed Prime Minister Chris Hipkins, following the resignation of Jacinda Ardern.
Katrina Shanks (pictured above left), Financial Advice New Zealand CEO, said New Zealand was lucky to have a stable democracy, whereby a sudden change in leadership does not disrupt markets in a significant manner or create financial instability.
“The decision for Jacinda Arden to stand down before the next election would not have been taken lightly,” Shanks said. “As a country, we respect this decision and continue with business as normal.”
Shanks said there was evidence-based research which shows Kiwis could increase their financial health, wealth and wellbeing through seeking quality financial advice.
“In times of economic hardship and uncertainty, access to financial advice is one of the key elements of financial resilience,” she said. “Financial Advice New Zealand would like the (incoming) prime minister to facilitate the access to quality financial advisers.”
Shanks said the new prime minister should focus on reining in inflation which remains high at 7.2% and address the fact that Kiwis are struggling with the rising cost of living.
“Alongside this is interest rates, immigration, tax structure and employment,” she said.
“Building costs needs to be resolved if we are to address affordability of housing moving forward. I also believe the CCCFA legislation needs to be reviewed if we are to ensure Kiwis can access credit where appropriate. The new Prime Minister has some significant challenges in the next 12 months and we wait with interest to see the new focus.”
The Financial Services Council of New Zealand (FSC) has congratulated incoming Prime Minister Chris Hipkins and Deputy Prime Minister Carmel Sepuloni by welcoming their commitment to focusing on the cost of living and inflation.
“On behalf of the Financial Services Council, I want to congratulate our new incoming prime minister and deputy prime minister and I wish them all the best,” said FSC CEO Richard Klipin (pictured above right).
“We are heartened by the incoming prime minister’s comments about getting back to basics and focusing on the key issues of inflation and the cost of living. While there are a number of policy areas to focus on, the FSC and its members believe deferring the New Zealand Income Insurance Scheme, an expensive and complex policy which adds costs for businesses and employees alike during a cost-of-living crisis, should be near the top of the list.”
Klipin said the FSC was supportive of the vision as New Zealanders were under-insured and it was crucial that robust safety nets were implemented to support Kiwis when they’re in need.
“However, the policy development has been too rushed, there’s been a lack of sector engagement, and the scope has crept from the original proposal driving even more costs,” he said.
“Deferring the implementation would allow for more time to get the details right and protect workers and employers from additional costs at this difficult time. The FSC is focused on helping Kiwis grow their financial confidence and wellbeing and we welcome further opportunities to collaborate with the government on these crucial policy areas.”
Mortgage advisers welcome new prime minister
NZ Adviser spoke exclusively with three mortgage advisers following the announcement of Jacinda Ardern’s resignation.
Jamie Sanderson, one of NZ Adviser’s Top Advisers for 2022 and director of Auckland brokerage Jamie & Co, said Ardern’s resignation would completely change the landscape and the campaign for the next election.
“Interest rates, inflation and the housing market are top of mind right now for many New Zealanders,” Sanderson said.
“The current government’s stance on property investors and CCCFA changes have had major impacts on the finance and housing market, unfortunately not in a good way.”
Jen Taylor, founder and director of Taylored Mortgages and winner of the Young Gun of the Year and New Mortgage Brokerage of the Year at the 2022 New Zealand Mortgage Awards, said she was already having conversations with her clients around a potential change in government this year.
Learn more about these winners by clicking the links above, or see the rest of the list by reading the Women Leaders in Mortgage in NZ special report.
Meanwhile, Wayne Henry Mortgages director Wayne Henry said the outcome of Ardern resigning was starting to look very promising from a finance industry perspective.
“The last two years especially have been extremely difficult to navigate, given all the roadblocks (mortgage advisers) have had to deal with,” Henry said.
“We have somehow managed to turn a very simple product (lending) into something that requires a hell of a lot more expense and resources to initiate. We can only hope for change – the next government now has a blueprint on what not to do. I’m feeling a little more confident for all Kiwis with this announcement.”
What are your thoughts on the new prime minister? Let us know in the comments below.
