NZ Herald Headlines | Friday, May 29, 2026

Added: 2026-06-02

[00:00:00]The government's books are forecast to be back in order earlier than predicted.

[00:00:05]Budget 2026 shows a return to surplus in the 2028-29 financial year, a year sooner than forecast in December. The health system's getting a record $34 billion, some going towards a new tower block at Whangarei Hospital and land for a new hospital in South Auckland's jury. Rail infrastructure is a big winner with a billion dollars committed to KiwiRail. A promise of no new taxes in this year's budget doesn't quite ring true with a new levy to fund Reserve Bank services.

[00:00:35]The levy's been slammed on banks, non-bank deposit takers, insurers, and other financial market participants. The government expects it will recover about $209 million over the next 4 years, but Massey University banking professor Claire Matthews says that the money will just be coming out of a different bucket. She says anything the banks have to pay becomes part of their costs and therefore is incorporated into charges to customers.

[00:01:02]Dame Linda Tu has blasted the government's budget priorities during a speech at the Aotearoa Music Awards.

[00:01:10]Dame Linda, who lost her twin sister Dame Jewels earlier this week, was visibly emotional as she addressed Arts and Culture Minister Paul Goldsmith. She says that the government needs to show they care about artists. Dame Linda says we need a government that says the arts is more important than a defense budget.

[00:01:29]Defense was allocated $4.29 billion in the budget.

[00:01:34]Meanwhile, singer-songwriter Marlon Williams took out the two biggest awards at the Aotearoa Music Awards. His song 'Aotearoa' won single of the year, while his album 'Te Ao Hou Hou' became the first-ever Te Reo Māori album to score album of the year.

[00:01:53]The Transport Accident Investigation Commission hasn't made any recommendations after the grounding of Interislander's Aratere in Picton in 2024.

[00:02:03]It found crews were not properly trained in the ferry's new steering system and had expected the ship to make a 3-degree right turn. The ship's autopilot instead turned 34° towards shore. Chief accident investigator Louise Cook says KiwiRail since updated training and management processes and she says these actions address the safety issues. So, a recommendation was not required.

[00:02:30]One of Auckland's CBD's longest surviving restaurants is making a final plea to be saved. The Mexican Cafe on Victoria Street West is urgently seeking a buyer after 43 years in business.

[00:02:44]Owner Bruce Glover says the diner suffered through years of disruption caused by the City Rail Link construction and now risks folding just before the project opens later this year.