What would it take for New Zealand to move beyond managing economic decline and begin building lasting prosperity? In a revealing conversation with eLocal's Mykeljon Winckel, economist and NZ First MP David Wilson explains how his party wants to reshape the country's economic foundations, putting greater emphasis on productive businesses, national ownership, affordable energy and investment that benefits New Zealanders
Report by eLocal | eLocal Conversations | 15 October 2026
From Cost-of-Living Pressures to a Plan for Growth
With the 2026 general election approaching, NZ First MP and economist David Wilson says the conversations taking place around the country reveal a common concern: ordinary New Zealanders are struggling with the cost of living, while businesses face rising operating costs and difficulties accessing affordable finance.
Speaking with eLocal's Publisher and Founder Mykeljon Winckel, Wilson describes public meetings attracting substantial audiences, with people questioning electricity prices, banking costs, grocery bills and the direction of the national economy.
But rather than concentrating exclusively on the immediate pressures, Wilson outlines a broader economic strategy aimed at rebuilding New Zealand's productive capacity.
His stated ambition is to double the country's gross domestic product by 2050, an objective he associates with sustained economic growth of approximately four to five percent annually.
Achieving that ambition, he argues, requires changes to the structures that determine how businesses obtain finance, how much they pay for energy, how their profits are taxed and how national wealth is accumulated.
For households and business owners, the underlying proposition is straightforward: a stronger economy should translate into more employment opportunities, greater financial security and higher living standards.
Whether the proposed mechanisms can deliver those results depends on their implementation, financing and effectiveness. Those are questions the interview begins to explore in considerable detail.
Banking Reform: Could New Zealand Own Its Financial Future?
One of the most substantial revelations concerns NZ First's interest in restoring greater New Zealand ownership of the banking sector.
Wilson argues that the dominance of the four major Australian-owned banks has left New Zealand households and businesses paying too much for finance.
He puts their combined share of the banking market at approximately 85 percent and questions whether existing competitive pressures are sufficient to deliver fair borrowing costs.
For Wilson, the issue is not simply the profitability of individual banks. It is the broader economic effect of high financing costs on homeowners, farmers and small businesses.
During the interview, he discusses the net interest margin, the difference between banks' interest income and the interest expenses associated with funding their lending.
He suggests that stronger competition could reduce borrowing costs and release more money into the productive economy.
To illustrate the potential impact, Wilson considers a household with a $750,000 mortgage. A one-percentage-point reduction in the interest rate would reduce annual interest charges by approximately $7,500 on an unchanged loan balance, before accounting for principal repayments and changes in loan structure.
That is a meaningful sum for a household managing mortgage payments, groceries, insurance, rates and other living expenses.
Will this in fact make New Zealand stronger? The relevant test is whether reforms could sustainably lower borrowing costs, increase productive investment and improve household purchasing power without undermining financial stability.
Wilson's proposed response goes further than encouraging the existing banks to compete.
He discusses the possibility of bringing the Bank of New Zealand back into New Zealand ownership.
Buying Back BNZ: An Ambitious Proposal
Wilson says NZ First has examined the possibility of reacquiring BNZ, potentially using a combination of financing mechanisms rather than relying entirely on direct government expenditure.
Among the possibilities he raises are bonds offered to New Zealand investors and participation by KiwiSaver funds.
He also suggests that a reacquired BNZ could eventually be combined with Kiwibank, creating a substantially larger domestically owned banking institution.
The idea is significant because it would change the ownership structure of a major participant in New Zealand's financial system.
Wilson distinguishes between borrowing to fund ongoing expenditure and borrowing to acquire an income-producing asset. He argues that a profitable bank could potentially generate returns that help justify its acquisition cost.
However, the proposal remains subject to important unanswered questions, including the willingness of BNZ's current owner to sell, the purchase price, regulatory requirements, capital adequacy, funding costs and the consequences for taxpayers and investors.
A profitable bank is not automatically an inexpensive acquisition, and its historical earnings do not guarantee future returns.
Wilson nevertheless presents the idea as a serious option NZ First has considered, rather than a casual campaign suggestion.
The wider objective is to create a banking sector with greater domestic ownership, stronger competition and more capacity to finance New Zealand businesses.
He also expresses interest in community banking, alternative lenders and financial technology businesses capable of challenging established institutions.
For small enterprises struggling to secure working capital, this could be one of the most consequential areas of the discussion.
A 20 Percent Company Tax Rate for Small and Medium Businesses
Wilson's economic proposals extend directly to the businesses that form the overwhelming majority of New Zealand enterprises.
He argues that small and medium-sized enterprises, commonly known as SMEs, have been constrained by a combination of taxation, expensive borrowing and limited opportunities to accumulate capital.
In the interview, he describes SMEs as representing approximately 97 percent of New Zealand businesses and contributing around 40 percent of GDP.
The problem, in Wilson's assessment, is that too many businesses remain small, undercapitalised and unable to invest in the equipment, technology and employees needed to increase productivity.
NZ First's proposed response includes reducing the company tax rate for qualifying small and medium businesses from 28 percent to 20 percent.
Wilson estimates that the measure would cost approximately $1 billion in government revenue, although the precise fiscal impact would depend on eligibility criteria, taxable profits and behavioural responses.
His argument is that leaving more money within businesses would allow owners to reinvest rather than continually struggle to meet tax and operating obligations.
That additional capital could potentially finance machinery, new staff, business expansion and improved productivity.
The proposal is particularly relevant to regional New Zealand, where smaller enterprises provide essential employment and commercial services.
However, the benefits would not be distributed equally. Businesses making taxable profits would benefit directly, while loss-making enterprises would receive little immediate assistance from a lower company tax rate.
A complete assessment would also need to examine the consequences for government revenue and whether the proposed tax reduction would generate sufficient additional economic activity to offset part of its cost.
Wilson's broader argument is that business owners need access to capital they can actually use to grow.
KiwiSaver and Building New Zealand's Savings Base
Wilson also connects business growth with the need to increase New Zealand's domestic savings.
He discusses moving towards compulsory KiwiSaver contributions of six percent from employers and six percent from employees, arguing that stronger retirement savings could create a larger pool of capital for investment.
He suggests that reducing the tax burden on smaller businesses could help employers accommodate higher contribution costs.
The interaction between the two measures is important.
A company tax reduction benefits businesses according to their taxable profits, while additional employer KiwiSaver contributions are calculated against employee remuneration. Consequently, the net effect would vary considerably between businesses.
A labour-intensive company with modest profits could experience a different outcome from a highly profitable business employing relatively few people.
Nevertheless, Wilson sees greater domestic savings as an important part of reducing New Zealand's dependence on overseas capital.
The longer-term question is whether those savings could be channelled into productive domestic investment while protecting the interests and retirement security of individual savers.
A $100 Billion Sovereign Wealth Fund
Another major proposal discussed in the interview is the creation of a substantial national investment fund.
Wilson says NZ First wants to establish a Future Fund with an ambition of reaching $100 billion, and suggests that a larger fund could eventually be possible.
He points to Norway and Singapore as examples of countries that have accumulated significant national investment assets.
Norway's sovereign wealth fund, built from petroleum revenues and investment returns, provides one example of how natural-resource income can be converted into long-term financial wealth.
Singapore's Temasek and GIC provide different models of state investment and asset management.
Wilson argues that New Zealand should examine how its existing public assets, natural resources and investment opportunities could contribute to a stronger national balance sheet.
He estimates that the Government holds approximately $750 billion in assets, although this figure and the composition of those assets would need to be reconciled against official Crown accounts.
There is also an essential distinction between public assets held to provide services and commercially investable assets.
Hospitals, schools and essential infrastructure cannot simply be treated as liquid investment capital without considering their public purpose.
Wilson's proposal raises a significant economic question: could better management of commercial public assets and new investment revenue create enduring financial benefits for New Zealanders?
A credible implementation plan would need to establish the fund's initial capital, ownership structure, investment mandate, governance protections and rules governing withdrawals.
It would also need to prevent political interference in commercial investment decisions and ensure that public wealth remained accountable to citizens.
Energy Independence: Reducing the Cost of Production
Throughout the conversation, Wilson repeatedly returns to the cost of energy.
He argues that affordable, reliable electricity and fuel are fundamental requirements for a competitive economy.
High energy costs affect manufacturers, farmers, transport operators, retailers and households. They also influence whether businesses invest, expand or relocate.
Wilson expresses concern about the loss of industrial capacity and New Zealand's growing dependence on imported refined fuels.
He supports further exploration of domestic natural gas and petroleum resources and discusses developments in geothermal technology, including the potential of supercritical geothermal energy.
He also refers to naturally occurring hydrogen and the possibility of new domestic energy resources.
These opportunities remain at different stages of technical and commercial development. Exploration prospects are not the same as proven economically recoverable reserves.
Wilson is particularly interested in the potential for modern geological surveying to improve understanding of New Zealand's offshore resources.
His argument is that greater domestic energy production could strengthen security of supply, support industry and potentially reduce costs.
Whether individual projects achieve those objectives would depend on production costs, infrastructure requirements, environmental effects, market pricing and regulatory arrangements.
Marsden Point and the Loss of Refining Capacity
The closure of the Marsden Point refinery receives particular attention.
Wilson questions the wisdom of New Zealand losing domestic oil-refining capacity and becoming dependent on imported finished petroleum products.
He discusses the refinery's former production capabilities, its associated industrial infrastructure and the skilled workforce affected by its closure.
He also argues that rebuilding national energy security requires a serious examination of the consequences of past industrial decisions.
The refinery ceased processing crude oil in 2022 following a commercial decision by its owners. Questions about the role of government policy and the economic case for retaining or restoring refining capacity require separate examination.
Re-establishing domestic refining would involve substantial investment, commercial negotiations, engineering work and long-term supply arrangements.
Wilson nevertheless places the issue within a larger economic argument: a country seeking to expand productive industry must understand which essential capabilities it controls and which it has become dependent on importing.
For New Zealand businesses exposed to international fuel prices and supply disruptions, that question has direct practical consequences.
Digital Currency and the Future of Financial Sovereignty
The interview also ventures into an area receiving comparatively little attention in everyday political debate: the rapid development of digital payments, stablecoins, blockchain technology and central bank digital currencies.
Wilson warns that international financial systems are changing and that New Zealand risks falling behind.
He discusses competition between major economies over digital settlement systems and the implications for a small trading nation.
He also raises questions about the governance of New Zealand's domestic payments infrastructure and the influence of established banks.
For Wilson, these developments present both an opportunity and a sovereignty challenge.
New financial technologies could potentially reduce transaction costs, increase competition and provide alternative ways for businesses to transfer money internationally.
At the same time, they introduce questions about privacy, monetary control, financial regulation, cybersecurity and dependence on foreign payment infrastructure.
Wilson indicates that he and Winckel intend to return to the subject in a future conversation.
He also reiterates NZ First's support for the continued availability and use of physical cash.
The distinction between cash, privately issued stablecoins and a potential central bank digital currency is important. Each operates under different legal and technical arrangements, with different implications for consumers and the monetary system.
Local Government and the Cost of Regulation
Wilson also identifies local government costs as a significant concern for households and businesses.
He discusses NZ First's interest in reducing duplication within local government and questions whether some regional council functions could be transferred to territorial authorities.
The objective, he argues, should be improved value for money and greater accountability for public expenditure.
However, regional councils perform functions involving environmental management, water, land use and other matters that frequently cross district boundaries.
Any restructuring would therefore require a detailed assessment of which functions could be delivered more efficiently, how they would be funded and whether environmental and infrastructure responsibilities would remain effective.
Wilson also discusses the costs associated with building regulations and earthquake-strengthening requirements.
These issues matter particularly to smaller property owners and businesses, for whom regulatory compliance can represent a substantial financial burden.
Rebuilding the Productive Economy
Perhaps the most consistent theme running through the conversation is Wilson's belief that New Zealand must rebuild its capacity to produce goods, develop businesses and retain a greater share of the wealth generated by its economy.
He is concerned about what he describes as the hollowing out of New Zealand's industrial and small-business sectors.
The proposed response brings together several connected mechanisms: more competitive banking, lower business taxation, greater domestic savings, investment in national assets and access to affordable energy.
Wilson's central argument is that these elements reinforce one another.
Businesses with lower financing costs and more retained earnings may be better positioned to invest. Investment can increase productivity and employment. Higher productivity can support wages and economic growth. A stronger domestic savings base can provide capital for further development.
This is a coherent economic proposition, although the scale of its benefits and the costs of implementing each component remain open to scrutiny.
Economic growth alone also does not guarantee greater prosperity for every household.
The critical measures would include real wages, productivity per worker, household purchasing power, business formation, competition, housing affordability and the extent to which investment returns remain within New Zealand.
A strategy that increases GDP without improving those outcomes would fall short of the citizen-centred objectives Wilson describes.
The Election and What Happens Next
The interview comes at an important political moment.
Wilson is outlining an economic direction NZ First would seek to advance if the party secured sufficient electoral support and negotiating influence following the general election.
That distinction matters. The proposals discussed are not all enacted government policy, and their implementation would depend on electoral outcomes, coalition negotiations, legislative approval and available funding.
Some ideas, such as acquiring BNZ and establishing a major sovereign wealth fund, would require substantial further work before becoming operational.
Others, including changes to company taxation and KiwiSaver contributions, would need detailed legislation and fiscal modelling.
Wilson's interview provides a useful opportunity for voters to examine the party's economic thinking and the mechanisms it proposes, rather than relying solely on campaign slogans.
The next stage of scrutiny should involve published costings, implementation timetables and measurable outcomes against which the proposals can be assessed.
A Conversation About New Zealand's Economic Future
What distinguishes this eLocal Conversation is its concentration on the financial and institutional structures underlying New Zealand's economy.
Wilson does not limit the discussion to immediate tax relief or government expenditure.
Instead, he examines ownership, banking competition, investment capital, energy security and the capacity of smaller businesses to grow.
His proposals are ambitious, and some would involve significant financial and political challenges.
But they also raise questions that deserve consideration across the political spectrum.
Can New Zealand lower the cost of capital for productive businesses? Can it retain more of the financial returns generated within its economy? Can domestic savings and public assets be used more effectively? And can energy policy support both economic competitiveness and long-term resilience?
These questions reach beyond the coming election.
They concern the kind of economy New Zealand wants to build, who participates in its growth and whether greater national prosperity can translate into better opportunities for ordinary citizens.
The full 54-minute interview provides an opportunity to hear Wilson explain his thinking in his own words, including the mechanisms he believes could reshape New Zealand's economic future.
Watch the full eLocal Conversation with David Wilson MP and Mykeljon Winckel in the accompanying video.
Music Credit:
Music performed by Groovexpress and composed, produced by Michael John Winckel.
© 2026 Michael John Winckel. All rights reserved.
Used by permission for eLocal Conversations.
Editorial note: Policy proposals, estimates and economic comparisons attributed to David Wilson reflect his statements during the interview. They should not be interpreted as independently verified forecasts or confirmed government commitments.