Nicola Willis: Finance Minister on relief measures for businesses struggling with high power prices, public servant pay increases

The Mike Hosking Breakfast

The Government could be importing liquefied natural gas to relieve businesses struggling with high power prices.

An Auckland paper recycling pulp mill with 75 staff is proposing to close.

Ohakune's Winstone pulp and timber mills are also at the brink of closure, putting 300 jobs on the line.

Both blame sky rocketing increases in power prices over the years.

Finance Minister Nicola Willis told Mike Hosking she understands the Government may have to go to drastic measures like importing gas to give relief for businesses.

She says she's hearing there's a lot of pain and pressure being felt by businesses because of these high prices.

Willis is also tempering expectations for public servant pay increases.

The Government's written to public sector agencies ahead of collective negotiations saying they must keep spending reined in, and any increases should be based on performance.

It follows thousands of jobs being cut in the sector to meet Government budget cuts.

Willis told Hosking agencies need to be realistic about the challenges in the economy.

She says in the past public sector pay increases have risen ahead of those in the private sector, and that's not right.

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