Viewpoint – Change through adversity

I want to discuss growth and its importance for Mangawhai and New Zealand. Growth is fundamental to our well-being. Without it, we risk stagnation and, as recent years have shown, the economy can regress, leading to plummeting business confidence. Those of us in the regions often feel these impacts most acutely, especially when investment, particularly in infrastructure, is redirected elsewhere.

However, there are encouraging signs that this narrative is shifting. Ironically, one of the first signs of positive change for Mangawhai came through adversity. The tornado that tore through Mangawhai in January prompted a swift and positive response from all quarters – the people of Mangawhai were awe-inspiring and inspirational, banding together, neighbour helping neighbour. Emergency services and first responders did an excellent job. As for the Government, I was on-site within hours, soon joined by Emergency Management Minister Mark Mitchell, assessing the damage and offering resources from every government department to expedite the recovery process.

Suddenly, Mangawhai – and Northland– mattered.

And it doesn’t stop there. Nobody walks away from this thing. If any Mangawhai resident still wants my help, simply phone my office 09 407 7219.

On a broader scale, there are significant indications that the economy is on an upward trajectory, which could lead to increased disposable income for Kiwi families. A recent announcement from the Reserve Bank regarding a substantial 50 basis point reduction in the Official Cash Rate (OCR) offers hope. Such a reduction can profoundly impact the economy, acting as a potential turning point many have eagerly awaited.

In practical terms, this decrease could increase disposable income for families in the coming months. Reduced interest rates are likely to lower monthly mortgage payments for homeowners, freeing up more funds for essential expenses and discretionary spending. This could enhance the overall economic landscape, providing families with greater financial flexibility.

Furthermore, this shift in interest rates is fostering confidence among business owners. A more stable economic environment empowers companies to consider investments in expansion, hiring and innovation. This growth within the sector can create a ripple effect that benefits the broader economy. Last month, a report from BNZ and Business NZ noted an encouraging rise in manufacturing activity, reaching its highest level since September 2022. This is a clear sign that confidence is returning, which is crucial for long-term economic health. When businesses feel secure, they tend to thrive, creating jobs and stimulating economic activity.

That said, we must acknowledge that the journey ahead is not without its obstacles. Many families and businesses still face financial pressures, and it’s clear that significant work remains. Despite these challenges, a growing sense of optimism is emerging. Inflation appears to be stabilising, and we are steadily progressing toward economic recovery. The combination of lower interest rates and rising business confidence generates a positive feedback loop we can leverage moving forward.

By working together, we are on the right path to fostering an economy that benefits everyone and ensures growth translates into a brighter future for all Kiwis and upcoming generations.